Motorclubs in 2020

Car issue breakdown or engine failure. Elegant middle age man waiting for towing service for help car accident on the road. Roadside assistance concept.

For the past six months TowTrax has been working with motor clubs and tow companies on how TowTrax can support the industry.  

TowTrax was designed to be a win, win, win for everyone.

Win – Motor Clubs – Improve ETA’s, better relationships with tow companies; Cut expenses (Call Centers)

Win – Tow Companies – Getting tows they never had before, better communications with Motor clubs, easy billing process

Win – Consumer – Better experience, Improve ETA’s 

Since we started processing tows for motor clubs, we have learned a lot about the industry.  The motor clubs face difficulties trying to find tow companies to run their jobs in remote locations.  A lot of the smaller companies have gone out of business because of the pandemic.  The larger companies had to cut back, and motor clubs are no longer part of their business plan.  Then the pandemic created a problem at the call centers where they could not get staff for their call centers. 

Our customer gave TowTrax nine cities in eight states and wanted TowTrax to support these areas because it was difficult getting tow companies in these cities. Since TowTrax built the network in the cities our customers requested, we have experienced great success.  The following is a sample of some of the calls.  Notice the ETA’s and ATA’s. (See chart)

How are we doing, you might ask? We are doing well, however it did not come without some pain.  The tow companies in these remote areas took some time to build their trust.   The motor club also faces issues with the consumer and getting all the correct information when they call for help.  It is surprising to me how the tow companies in each state and small city are different.   As TowTrax continues to grow with each customer we bring on, our network increases.  This will make things better for the motor club.

One problem the motor club has is overpaying for the service.  Here are a few war stories I have heard:

  1. A motor club paid with a credit card $720.00 in Oregon for a flat tire change. That never took place because the consumer called and said the problem was resolved.  
  2. On super bowl Sunday a motor club paid $425.00 for a lock out in Texas that was 20 miles away.
  3. I was recently talking to a tow company in Pennsylvania that told me a motor club call him and was authorized to pay $1,000.00 for a flat tire 200 miles away.  The consumer was already waiting 9 hrs. for help and it would have been another 4 hrs. so the tow company refused the job.  

With TowTrax these types of stories are eliminated.  We can improve the customer experience by improving the ATA’s 

Because of the tow companies making up our network, they are not familiar with motor clubs and how they work.  They do like TowTrax for the following reasons:

  1. We are giving them tow they never had.  They get it right on their phone and they can accept the tow or just ignore it if they do not like the price or distance.
  2. By being selective they control the expense on each tow saving on gas.
  3. They increase their revenue because they can do more jobs because of the distance.
  4. TowTrax pays the tow companies saving the motor club problems dealing with tow companies, and the tow companies having problems with motor clubs.

The big winner at the end of the day is the consumer.  

  1. Their ATA’s are reduced by as much as 50% so they are not standing on the side of the road for 9 hrs. or more, waiting for a tow truck. 
  2. They are in contact with the tow truck driver knowing exactly where the tow truck is. 
  3. The consumer could add comments about their experience.

Because of the pandemic and all the other problems motor clubs are facing today some are forced to change their business strategy or worse, sell out to other motor clubs. In 2021 our industry will be facing many obstacles.  I was already told some of the tow shows will be canceled next year because the convention centers will be closed.  Motor clubs will have to find new ways to build their existing networks.  TowTrax can build networks in remote areas that can relieve some of the pain of the motor club.  

We will all have to work hard to make this a WIN, WIN, WIN for all.

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Dan Messina
In 2003, Dan Messina started his own towing company starting out with just one truck and no accounts. In two short years, he was number one in the industry. In 2006, he founded Southwest Tow Operators, one of the largest tow associations in the U.S. We are proud to share Dan's business advice with the towing industry.