Running a tow truck business isn’t easy – or cheap. If you’re thinking about starting up a tow truck business, you need to be prepared for the costs you’re going to face. It’s better to know about the things you’ll have to pay for than to be caught off-guard, right? To help give you an overview of some of the expenses you might face as a tow truck business owner, we’ve come up with a list of expenses that you’ll need to plan for.
11 costs of running a tow truck business.
1. The tow trucks.
Well, of course, there’s the cost of the tow truck or wrecker itself. You can’t have a towing business without one of those, right? But of course, tow trucks aren’t free. You’ll have to consider the cost of the truck and what your truck payment will be.
You can’t avoid this one, either. Insurance is a huge part of protecting your business from unforeseeable disasters. Your tow truck insurance rates depend on a lot of factors, such as your loss history, tickets/accidents, your location, your tow radius, and so on. The best way to get an accurate idea of the cost of insuring your tow truck (or trucks) is to get insurance quotes.
3. Licensing and permits.
You’re also going to have to find out what kind of licensing and permits you’ll need for your business – and if there are any fees you’ll have to pay to get all of that squared away.
Well, someone’s got to handle and manage the money, right? If you want to hire accounting services to take care of that for you, that’s going to cost. Just like you expect to be paid for towing a car, an accountant expects to be paid for the time they spend working on your business’s stuff.
Hey, gas is expensive. And since towing involves a lot of driving, you’ll burn through gas pretty quickly. Don’t underestimate how much it’s going to cost to keep your trucks filled with fuel – you’ll be covering a lot of ground.
Driving means that you’re putting wear on your tires, which, unfortunately, don’t last forever. It’s important to replace your tires when they need to be replaced so you’re not driving on bald, unsafe tires. To do that, it’s important to have budgeted for it. (Plus, what if you get a flat and need to buy a new tire?)
7. Washing the trucks.
Sure, it might seem silly and unnecessary as an expense, but keeping your trucks squeaky clean can help you make a good impression on your customers. It helps you come off as a professional and proud of the work you do. So, instead of rolling up in a mud-splattered mess, budget to wash your trucks. Besides, who doesn’t like a shiny truck?
8. Tow truck maintenance.
It’s also vital to maintain your tow trucks properly. The better care you take of your trucks, the safer the vehicle will be. There’s less chance that a dangerous problem with the truck will cause an accident because you’ll have a better chance of catching it before something goes wrong. And if there is an issue with the truck, they might be less expensive than if you hadn’t maintained the vehicle. It’s like going to the doctor for a checkup.
9. Dispatch software.
You also have to consider what dispatch software will be right for your tow truck business. You’ll need something that will keep your business organized and get the tow trucks where they need to go…and that software can cost money.
If you’ll be covering an area that includes toll roads, you’ll need to figure out how much those tolls are going to cost you. That expense can add up quickly.
And then, of course, there are taxes. Don’t forget about those (even though we understand that it might not be something you’re thrilled about.) Don’t get caught off-guard about taxes.
These might not be the only expenses you’ll incur for your business. Understanding what it will cost to keep your business running will help you when you’re setting your rates and making a livelihood from towing.
Don’t let this list of expenses discourage you. We can help you get great tow truck insurance a great rate, so at least you can lower the insurance costs of running your business. All you have to do to get started with your tow truck insurance quotes is fill out our online form, give us a call, or send us a message on LiveChat.