Thinking about going into business for yourself?
Maybe you’re thinking about opening a towing company but you’re asking, “how much does a towing company make?” You want to get into a business that is going to allow you to earn a good amount of money.
Continue reading this article and learn whether tow truck companies make a lot of money or not.
Average Money You’ll Make
Each area differs when it comes to how much money you’re going to make with a towing company. We are going to give you an average amount so you can get a general idea.
When you get a call to come tow a vehicle, most people are willing to pay you around $120. Many times insurance companies like East Coast Insurance Group, LLC will foot the bill if it is covered under your plan.
If you have to store their vehicle on your property, you can usually charge $20 per day.
You may want to add other services like roadside assistance if you want to make more money at your business. The profits that come from these services can be extremely helpful if the towing business becomes slow.
The above money isn’t all profit because you do have some expenses you need to take care of just like any other business. Besides the big cost of purchasing your towing vehicle, you have to think about your necessary licenses, your company’s insurance and if you have employees then you’ll need to pay them as well.
Beyond these expenses, you have to think about depreciation on your vehicles, repairs and the cost of fuel. Depending on your service area, these costs might be more or less.
Is a Towing Business the Right Option for You?
Before you start your towing business, you need to think about the area where you’d start the business. Is there a lot of competition there already? If there are a lot of other tow companies already serving the area, it might not be a good idea to try to start a tow company unless these companies are overworked.
If you have the money to start your business, that’s one more thing you don’t have to worry about. Otherwise, you might need to figure out how you can secure financing or if you can ask a friend or family member for a loan to get you started.
You Have the Answer to How Much Does a Towing Company Make
Now you have the answer to, “How much does a towing company make?” Do you think it’s worth it to start your own business?
Maybe you want some other ideas for business. Whether you’re going for your towing business or not, our site can help you as you learn more about this business idea or others you’re considering.
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