According to a survey carried in the field of towing regarding to the minimum revenue per month a light duty carrier runs to be profitable 25% the participants said the minimum revenue should be $8000, 14% answered $4000 while 7% said $16,000.From the survey, it is clear that towing companies are profitable.
Factors contributing to profit maximization
While in this business you must learn how to manage your expenses. At no given time should you exceed your revenues. To do this you must recognize all your expenses and what type they are. In most cases, businesses end up making losses due to poor management.
Accurate record keeping
The issue of figures not adding up to a business leading to huge loses is not a new thing. For you not to get in such a position you should consider investing in a good record keeping tool. I would suggest a software. For example, Quick books which is easy to use and can be accessed remotely.
For you to run a successful business you need to invest in a good marketing strategy. Luckily for you, it does not have to cost a fortune. A good marketing strategy helps you generate more sales which reflect to increased revenues. You can simply post advertisements in relevant magazines, open a company Facebook page, attend seminars and business fairs, carry out promotions for your products or even choose to capitalize on referrals.
Brand awareness is mostly important when launching a new product. It helps customers come to a decision when differentiating between two competing companies. Brand awareness influences perception which drives brand loyalty and brand choice which results to repeat purchases. One of the ways you can create awareness is by branding your towing trucks.
Retaining your current customers is more important than finding new ones. Ones you have a customer, you should make them your priority. You should make it your responsibility to satisfy your customer’s needs. Have a functional customer service that not only apologizes but also gives solutions and identifies the root cause of a problem. In doing so, they can solve a systematic issue and help other customers avoid the same altogether.
Diversifying your business offerings can help attract new customers and retain the old ones. As a result, you will boost sales increasing revenues. Diversifying also helps spread risks across your business. You should not rely on one product or market. Make sure that if something happens to one of your products or market it does not bring down your entire company.
In conclusion, tow companies are profitable. All that you need to do is manage your company in the right way, ensure that there are no cases of misappropriation of funds, market your products and create brand awareness, have a good support system (customer service), have a fall back plan and cease every opportunity whenever it arises.