Here We Go Again

I guess round two is about to start. Will it be as bad as the first round or could it be worse? What we do know is we will have people making decisions on our business that will not be us. We already painted all the offices and cleaned all the trucks during the first quarantine. I think it’s time to concentrate on you the owner. I am in Dallas, Texas and things are starting to slow down. I am sure by the end of July we all may be back in quarantine; if so, I have decided to get healthy.

I have decided to beat my type two diabetes. I read all the Facebook cures and talked to different doctors, and they all have the solution, and they are all different. My diabetic doctor just keeps raising the dosage of my meds without giving me a cure. Here is my approach, and I want you to decide what you are going to do while our business is slow and follow the same approach. I recently talked to a friend of mine, and he was telling me about some Tony Robbins classes he was attending or viewing his videos. He told me how these classes helped him tremendously. I took these classes several years ago, and now I follow his outline in every business or project I start.

It is simple: for me, I want to cure my diabetes, so I write down 6 things I need to do to make that happen:

1. Do a cleanse. This consists of a diet of water for three days. This gives my body a chance to readjust.

2. For the next 90 days, eat nothing but meats and greens.

3. Exercise, even its just walking.

4. Keep a log of everything I eat.

5. Check my blood sugar level 3 times a day.

6. Pray to God I do not drive my wife crazy while I am doing this because I know I’m going to be grouchy and miserable.

Once I have identified the six things, I then take each one and write down 5 things I will do for each step I take. For example, I need to cleanse, so I will write down 5 things to help me with the 1st step. Then I will write down 5 things I need to do to make those five things happen. Once you have it written down, look at it every day and follow your instructions. That is the key, it is something you can look at every day, and it tells you what to do.

Apply this method to your business. Let’s say you want to improve your bottom line.

Write down 5 things you can address to do that:

1. First identify your monthly bottom line.

2. Assess whether you need more trucks or less trucks.

3. Determine whether you need to increase your staff or release people.

4. Cut all your expenses by 10%, so identify every expense you have.

5. Increase revenue. I can help you here just give me a call.

Now write 5 things for each item listed above. You will be amazed once you have it on paper and look at it. Don’t do this alone. Get your employees involved. You will be surprised how helpful they can be, and it will improve the moral of your company. You might want to offer education to your employees. Let’s identify five things we need to address:

1. What employees need education (drivers, dispatchers, others)

2. Identify what their weaknesses are.

3. Make a budget you want to spend to educate them.

4. Decide what classes you should offer to your employees.

5. Identify the benefits received from the education program.

You should have an idea of what we are doing here, so let’s move on. Since we are in different times, let’s try something different. I need 20 companies to help build a tow academy and the classes that should be taught at the academy. Our goal is to develop tow truck drivers for the future. We will divide into working groups, and each group will work on a specific project. Here is what my vision is: I see a person attending the academy that knows nothing about the tow industry. Here are a few videos they can watch to get started:

1. Educate them on them types of tows (repo, police, private-property, consumer, other)

2. Educate them on the types of trucks that are available, (light, medium, heavy, other).

3. Educate them on the use of each truck.

4. Educate them on the tools and other equipment necessary for each truck.

5. Show them how to use all the necessary equipment.

6. Hands-on training on the use of all the tools and equipment.

Then we get into specialized tows like:

1. What is required to tow an all-wheel drive vehicle.

2. What is required to tow an electric vehicle.

3. Take each truck available and show them what is required to use that truck.

4. What is required to tow high-end vehicles (Porsche, Mercedes, other).

5. What is required to tow a Honda, Toyota, Ford, Chevrolet, Other).

We will create a video of each, and then give them hands-on training for each vehicle. These

videos will be made by towers in the industry who have been doing this for years. When I get 20 tow companies that are interested, we can add to the list of things that should be taught at the academy. Once we have 20 videos created that have value to each tow company, we then give them to the state associations and let them sell them to their members. This gives the state association a new revenue stream. Hopefully the state associations will get involved with the training and the academy and provide input.

One thing we never talked about were the students attending the academy. We will work with the government and get people coming out of jail and train them on a new career. When I mention that, everyone’s first reaction is we can’t hire felons. We don’t take everyone, just the ones that qualify. We can also work with veterans and give them a new career. Once the program takes off, we will start getting funding necessary to expand our academies and create other programs. These are my thoughts. Imagine if we had 20 people working on this. If you are slow over the next few months, give me a call at 469-774-0340 or e-mail me at dan@towtrax.net. Be safe, wash your hands, and wear a mask if necessary.

Did You Create a Business or Just a Job?

Business trip — Mature tow truck driver making reports on clipboard against sky

I have come across an interesting phenomenon several times in the past few years. I would say it is unique to our industry, but it applies equally to any business that operates twenty-four/seven, or at least long hours during the day and seven days a week.

I’m talking about the grand plan where you start a business from the ground up, beginning with one truck or a few trucks, build up things to the point where you have light-, medium-, and heavy-duty covered with trucks and trained operators, and a plethora of accounts to keep your folks busy and the money coming in. Here is where the true breakdown happens. You marry yourself to a “job,” not a “business,” and you might as well just be one of the other W-2 employees.

For example, about ten years ago, I interviewed for a heavy towing/manager position in Montana. It was a great location with a major interstate nearby, large town, and a fleet of eleven or twelve great looking, custom painted or wrapped trucks. The problem was the pay. I was offered ten dollars an hour and no commission. I did not get mad, but I was bewildered as to why a company owner would offer $400 a week and no room for making more, considering the qualifications I had. So, I asked about it. He explained that he was the only one who had been to any formal training classes, the only one who could operate their fifty-ton, and the one who calls the shots at all the wreck scenes. He created a scenario where he was the only one he trusted or truly knew what he was doing, and he had a group of drone worker bees that couldn’t think for themselves and didn’t have real training and experience.

I refused the job offer, of course, since a good heavy operator is easily worth three times that much. I kept going back in my mind to understand just how the guy makes it all work. The answer to that question is that he does not. He is continually dealing with a new crop of minimum-wage level workers who can tear up equipment, damage vehicles, and could never handle a wreck scene on their own. The other thing he has done is that he guaranteed that he could never take a weekend off. Because he did not train, educate, and trust his people, he HAD to be available on every call that is more serious than a parking lot tow.

The guy does not have a company. He has a job. If he had a company, he could train his people and delegate supervision, and build enough confidence in his folks to where they could handle a small or large wreck scene on their own while the owner was camping in the mountains. The most depressing aspect of all this is that the guy lives in one of the most beautiful areas of the country and can’t go camping, fishing, hunting, or anything else – plus, he’ll work himself into the ground and look and feel like he’s eighty when he’s just fifty.

I have brought this one up before. In Casper, Wyoming, a lady inherited her husband’s towing company after his untimely death and let her “operations manager” run the show. During normal operations, I am sure things went well. During big wrecks, though, is where the trouble surfaced. I interviewed over the phone with her “manager.” I asked him how he trained his people. He explained that he tells them to roll over a car, for example, and then he tells them what all they screwed up. That is not being a trainer – that is being a bully. Now the driver hates you, and they did not learn much. This manager was on-call for every single tow or wreck and was tied to the phone or responded in-person. The guy was incredibly insecure, yet had a huge ego, so he could not possibly let his people think for themselves for fear that they might learn something. Also, then he might not be as necessary to the owner. The lady complained about employees treating her company as if there was a revolving door. Who would want to work like that?

The latest experience comes from Texas. The owner of the company is significantly detached due to health issues, so his “manager” runs the show, and what a show it is. He flaunts to his employees that he is the only one trained on anything yet does not realize that his primary job as a “manager” and experienced driver IS to train. The manager showed me a rollover stick and scoffed that “none of these idiots” know how to use one. I asked why he had not shown it to them and trained them on it, and I got a blank stare. This guy regularly curses his people, calling them names that would make a drunken sailor blush, and then wonders why they do not respect him. He hands out days off only after special favors and keeps days off away from certain people out of personal judgement. He rations out time off in such a way people only know about a day off a few hours before the time starts. His people have no way to plan anything with their family, friends, or home projects.

I have used “manager” in quotes simply because these guys are not managers. They are bullies. They do not think ahead and plan. They are reactive instead of proactive. They scream, freak out, throw stuff, etc., over things they could have planned for. They are always putting out fires that could have easily been prevented. Why? Because they are burnt out, and they did it to themselves.

Now the Texas guy has not had a weekend off in twenty years. Not because the boss wouldn’t let him, but because the guy can’t make a schedule to save his life, doesn’t trust anyone with the bigger equipment because he won’t train them, and is afraid he’s going to miss something.

There is no real hope for the three men I have detailed here. They’re going to come to an ugly realization when they hit sixty or so that they’ve missed countless family events, times with their kids, and their health is failing, and their bodies are beaten into the ground.

There IS hope for those people reading this article. Train your people. Instill confidence. Delegate authority. Take time off. Taking time off shows that you trust your people. If you can’t take time off and allow someone else to handle things, YOU are the one who truly suffers through that revolving door of angry employees and dealing with your significant other because you can’t take a night or weekend off like people in other companies and other industries. You deserve to enjoy the company you built, but your own ego and insecurities may have you locked into just having a JOB.

Staying Ahead

Darian Weaver

Many tow operations find themselves stuck in an outdated business pattern. Tow operations should be constantly rebuilding and changing with the times. We now have so much technology available to us that it allows us to maximize the use of equipment and personnel.

Tow operators have really taken advantage of the “CASH TOW” jobs for years. These have been revenue streams that most likely were not reported. You may have practiced this in the past, but cash is not always king.

Most customers commonly do not carry cash, and if they do, it is not in large amounts. Most customers want convenience and are willing to pay for it. This is why convenience stores are located on almost every major intersection.

I implemented many payment options to test this convenience theory. I set up accounts with Zelle, Venmo, Cash App, and PayPal. All of these platforms have different apps that can attach to you bank account for you to be able to make and receive payments.

I trained our dispatch team and drivers to make them knowledgeable of all payment options we offer. We had handouts printed, regularly post-payment options on all of our social media outlets, and we have all payment options on our website.

We found that many of our customers preferred to pay via a cash exchange platform than with cash or credit card. Secondly, it also allowed us to take third party payments in a more secure manner for the customer, the account user, and us. Many of these platforms make it very difficult to dispute, and this added an additional layer of protection to the Tow Operator.

With the Covid-19 pandemic, these money exchange platforms allowed our drivers and customers to conduct business and practice social distancing. Our staff never has to handle credit cards or cash. TOWBOOK Management Software also allows our customers to reply by text or emails for signatures or authorization we may have needed when starting or completing a job. We also were able to provide an invoice via text or email on the spot.

I recommend you explore the many cash exchange platform options. Make sure you set up with the most commonly used apps to gain the best results. The use of towing management software can also help. Convenience and customer service is what will set you apart from your competition.

Mark Denson
On Site Towing

RANGER…FOR FREE? FOREVER? Sounds too good to be true?? Read On

Darian Weaver

For credit card processing, Ranger has recently integrated features available in some other payment processing platforms directly into the Ranger Tow Management Solution. The bottom-line-results can offset the costs of using Ranger. • How it works: Ranger automatically adds a fee (1 to 4%) to cover your extra costs for administering, securing, and reconciling credit card payments. The fee is in addition to the amount the customer is charged for the services delivered. The fee applies only to designated accounts (e.g., cash or call-in customers), and only for credit card payments, whether entered by dispatchers, or by drivers on-scene. • The fine print: Added fees are “banned” in ten states: CA, CO, CT, FL, KS, MN, MD, NY, OK, TX. However, in three states – CA, FL, and TX – their so called “No-Surcharge” laws have been found to be unconstitutional, and the states are enjoined from enforcement. So for tow companies operating in almost all states, offsetting the extra expense for credit cards could easily cover the monthly investment to use Ranger (Ranger for Free!)

Related News: The Ranger credit card solution is seamlessly integrated with OpenEdge who offers consistently low rates (Interchange Plus). Readers for EMV/chip cards link to Ranger’s mobile apps – Android and iOS. (And, manual number entry remains available.)

Please call for more information: 440.498.1495 or visit info.rangersst.com

FLOWSTOP’S DOT 406 CARGO TANK WEEP HOLE SET

Darian Weaver

FEATURES

• 8) 3/4’’ BRASS BALL VALVES

• 1) 10’ X 3/4’’ PVC HOSE

• 1) 2’’ X 3/4’’ PVC ADAPTER

• 1) POLY CASE FOR STORAGE & TRANSPORT

Enables Responders in closing off Weep Holes when Bulkheads are Compromised.

www.flowstop.net | 877.356.9767

TowTrax Goes Nationwide

Darian Weaver

You never have to worry about car troubles when traveling ever again. TowTrax launched its nationwide tow network to be there when you need help. Whether you are going across town, across the state, or across the U.S. if you ever have car troubles, you just call 844-548-5400, and TowTrax will find the closest tow truck and send it to you.

TowTrax has a network of tow companies in every state that will be your highway hero when you need help. It’s easy, no apps to load, no google searches necessary, just call 844-548-5400 and let TowTrax do the work for you. Just add our phone number to your contact list. Whenever you need help, just call our number 24/7, 365 days a year. I don’t care where you are; we can get help for you.

Help us spread the word. Tell your employees, your friends, or family members and tell them to tell their friends and family they never have to worry again when traveling.

2020 HALL OF FAME INDUCTEES ANNOUNCED BY ITRHFM

Darian Weaver

CHATTANOOGA, TN, — The International Towing and Recovery Hall of Fame and Museum today announced that it has completed the selection process for induction into the International Towing and Recovery Hall of Fame as the Class of 2020.

Troy Barnett (Sierra Vista, AZ), Ron Bressler (Morgantown, PA), Stacey Tucker Canterbury (Bremerton, WA), Tom Griffin (Hixson, TN), Norman Horton (Newville, AL), Phil Howard (Kennesaw, GA), Luc Le Baron (Brunoy, France), Rodney Pellow (Isanti, MN), Antonio Re (Glen Iris, Victoria, Australia), and Sherry White (Fremont, CA) were nominated by members of the International Towing and Recovery Hall of Fame and Museum for their many contributions to the towing and recovery industry, their families and communities.

“The towing Hall of Fame is the highest honor in the industry and celebrates those who have worked hard to support and grow the professionalism of towing and recovery around the world,” said Bill Gratzianna, President of the International Towing and Recovery Hall of Fame and Museum. “This year’s group of inductees is no exception in their work on behalf of the industry and their leadership inside and outside of the industry.”

The Class of 2020, will be inducted into the Hall of Fame, in a ceremony to be held at 6pm on Saturday, October 10th, 2020 at the Westin Hotel in Chattanooga, TN. A full weekend of activities will be held to celebrate this year’s inductees.

For more information on the induction ceremony, or to order event tickets and/or make hotel reservations, contact the museum at 423-267-3132 or visit them on the internet at towingmuseum.com.

TowMateTV is Our new Online Source for Information about New Products, Company Highlights, and News Within the TowMate Universe

Darian Weaver

On TowMateTV, we will be introducing our newest products and explaining them in detail, shown both in-studio and in-use. You will get to meet our staff and find out why they do what they do, and why they love to help you stay safe. You will also learn about our next ideas for growth, change, and the next level of technology that will evolve the towing industry into a new era. Check our YouTube channel and Facebook page for episodes!

Live broadcast soon with live comments and question from the audience will be available! Subscribe to our channel and like our page to be the first to get and interact with the newest content!

Go to www.TowMate.com/dealers or call (800) 680-4455 to find a dealer near you to order.

Jerr-Dan Side Recovery System

Darian Weaver

The Jerr-Dan Side Recovery System (also known as SRS) series offers product versatility by adding unparalleled recovery capability to any unit. The SRS is available for wreckers and carriers. On a carrier, the SRS-8 and SRS-10 are the strongest and most durable in their class.

The SRS-25 and SRS-35 offer maximum pulling capacity and add versatility to the heavy-duty product line. On any SRS model, the pivoting recovery boom makes recovery from either side of the vehicle possible.

To learn more about Jerr-Dan, visit www.jerrdan.com.

FlowStop’s Hazmat Products

Darian Weaver

FlowStop’s Hazmat Products, “ Equipment & Supplies,” are designed by a veteran of the towing, recovery, and spill response service for a quick and easy solution to minimize exposure when dealing with roadside mishaps. FlowStop has a proven track record for dependability for the task at hand.

DOME LID CLAMPS

Designed for MC 306 / DOT 406 Tank Trailers
Quick & Easy Deployment for Rapid Results
5 Aluminum Locking Clamps

AIR DRILL KIT

Reversible Air Drill
Infrared Temp Gun
Lennox 2’’ Hole Saw
Lennox 4’’ Hole Saw
2) Oatey 2’’ Plugs
2) Oatey 4’’ Plugs
50’ X 3/8’’ Air Hose
Storage/Carry Case

Cargo Tanker Vac Stinger
Achieve 3 Separate Lengths with 2 Vac Stingers!

3’ x 2” Aluminum Vac Stinger
3’ x 5” Aluminum Vac Stinger
8’ x 2” With Both Stingers Connected!
3” Sight Glass to 2” Vac Pipe
Aluminum Strainer
Fits Through 4”
Opening with Easy Lock Couplers
Grounding Tabs on Stingers
Aluminum Dust Caps for Male Couplers Pelican Case for Storage & Transport

VAC PUMP CADDY

Yamada 1” Dual Diaphragm Pump Aluminum Housing Excellent for Hydrocarbons & Light Chemicals
1-Year Warranty
Air Regulator
2 Aluminum VAC Stingers: 1, 48“ and 1, 30”
Aluminum VAC Wand 30“
4, 25’ x 1” VAC & Discharge Hoses
50‘ x 3/8“ Air Hose w/ Quick Couplers Mounted Plastic Tool Caddy for 90 Degree ELL & 2” Plugs
Mounted on 600-lb. Handtruck
Pneumatic or Hard Tires (option)
Ideal for quick evacuation of damaged saddle tanks, IBC’s, and drums.

Check out the FlowStop Product line at www.flowstop.net or call us at 877-356-9767 for details and pricing.

Custom Built Manufacturing

Darian Weaver

Custom Built Mfg. LLC came to be after 30 years in the Towing industry and 35 in the Auto Body industry as Dangelo’s Auto Body and Repairs.

At Custom Built Mfg. LLC., it has always been about three things:

1)The Customer, 2) The Customer, 3) The Customer

That has carried over into the heavy-duty towing vehicles manufactured in Kane, Pennsylvania with the care and pride that only the small town attitude brings to the table. That being true, team work and the very BEST our trucks can be all of the time. Quality is number one at Custom Built Mfg. LLC. using quality American made; steel, aluminum, fasteners, hydraulics, cables, winches, lights, rings and pinions for our rotators, and as many accessories whenever possible. Custom Built means just that, hand-crafted and hand-fit for precise long life operation. From metal forming, welding to assembly, our technicians have eyes on every step of the maufacturing process as well as Derek Dangelo’s (Owner) personal supervision occurs at every step of the manufacturing processes. You will even see Derek involved in hands-on when issues arise.

For more information, visit www.custombuiltmfg.com

Winches Inc. Your Winch Solution

Darian Weaver

Winches Inc. offers the most comprehensive line of winch and hoist products in the industry. Our goal is to provide you with the best solution for your needs. We have experts ready to provide the best winch selection. Whether it is a towing recovery winch, a drill rig hoist, Jeep, Truck, or ATV, we will provide professional sales and service for years to come for your application.

COMPREHENSIVE PRODUCT LINEUP

Winches Inc. stocks all the major brands used by consumers in the winch market such as: TULSA WINCH, DP WINCH, BRADEN, CARCO, GEARMATIC, PULLMASTER, RAMSEY, WARN, and SUPERWINCH. We also stock complete components to finish your winch installation such as hooks, blocks, motors, pto, and hydraulic pumps.

DIVERSIFIED MARKETS

Since 1981, after first opening its doors in Odessa, Texas, Winches Inc. has expanded its operations to branches in Houston, Texas and Broken Arrow, Oklahoma. We now specialize in towing recovery, utility, energy, construction, and marine markets. We have had many repeat customers as well over the years as a reliable provider of winch parts and service. Each location also has a service group ready to answer questions, repair and/or replace a winch currently used in the field. Winches Inc. is a one-stop-shop organization.

EXPERIENCED IN SALES AND SERVICE

Winches Inc. prides itself on sales and service. We staff our branches with experienced and trained personnel ready to assist with providing the most up-to-date information needed. With over 39 years of experience in this industry, we are your winch solution. Including repair, Winches Inc. also provides testing and documentation services to meet requirements in today’s changing environment. Our facilities in Broken Arrow, Ok and Houston, TX are equipped to provide dynamic load testing and documentation services to meet current requirements.

NEW PRODUCTS

New products offered include our Rigmaster guard kit packages that provide protection to keep hands, tools, and debris away from the wire rope on the cable drum. Other desirable options include the RigMaster guard with integral tension roller that assists in proper cable spooling under light to heavier load conditions.

Highlight features include the following:

• All stainless-steel construction for long life in harsh environments.

• Flexible design for different applications and wire rope departures.

• No welding on, or modifying of, the original winch manufacturers design; avoiding any risk of nullifying the factory warranty or certification.

• Economic design saves money and time.

• Panels and parts can be easily replaced and are in stock.

• Field installations are not only possible, they are recommended.

• RigMaster guards create standardization throughout your entire fleet of winches.

For all your winch and hoist product needs, contact us at 877-495-9721 or through our website at https://winchesinc.com/pages/our-company

The Right Financing In A Crucial Time

Jeremy Tsakiris

COVID-19 coronavirus, finance and crisis concept, US president Franklin`s eyes and face mask on 100 dollar money bill. Corona virus affects global stock market. World economy hit by pandemic fears.

Finding the right financing is so crucial in the towing industry especially during these challenging times. Often it can make or break the cash flow and profitability of the business. With so many companies and dealer financing options out there, the industry can be enmeshing and mind boggling for owners. To bring clarity for good decision making, I am highlighting key factors that I have learned through my twenty-one years of truck-financing experience that can help guide your choice of a finance partner.

Support Availability, Not Distancing

It appears this world is trying to operate with minimal human contact. Though this may be helpful on the spread of infection, it is not helpful from a finance service-provider standpoint. Do yourself a favor and choose a partner that will answer the phone or will promptly call you back. When you are expanding your business or replacing needed trucks which have gone down, you need a finance partner that is knowledgeable, efficient and, for sure, available. Helping you to navigate quickly through processing and titling, the right support will save you needless aggravation and help your business get where you are taking it. Combine this with a finance manager whose character and experience you can trust, and your mind will be at ease. We have received feedback from repeat customers whose have experienced this:

“Jeremy is a stand-up guy and has been financing my equipment for more than seven years. I have never found anyone so willing to help the customer.” Mark Denson- Onsite Towing, Houston, Texas.

Direct Lender Over Broker

Another key factor that I have experienced is to find a finance company like Alliance Funding that is a direct lender on the balance sheet as opposed to a broker. Although a broker can be important for lower-credit scenarios, direct lenders can offer fast processing times, more competitive products by avoiding broker margins, and have the ability to structure the lowest rates, longest terms, and a balloon-payment structure. Our goal is not just a sale for you, but a lifetime of sales earned through excellent service:

“Jeremy Tsakiris is the man. He hooked me up more than once and has definitely earned my business for life.” Trevor Sherrer –California

Collateral-Specific Financing

Equipment finance should be specific to the collateral you want to fund. This may be a confusing statement, but what I have seen through my tenure is that many banks, credit unions, or other equipment finance and capital funding companies will file a blanket lien or incumbent on the business. Alliance Funding, along with a couple of other finance companies that focus on the towing industry, will only file a lien on the title. They do not take advantage of the customer by burying the blanket lien language in the fine print.

Early Payoff Numbers at the Beginning

In same context of “buried” info, note what the real prepayment or early payoff numbers look like at the beginning of your decision making. Be specific in your questions, so you can learn what all your financing options are. A good of example of options is leasing. Most of my customers prefer to do a lease purchase for tax benefits. However, in an early buyout situation, a small penalty on the “Principle Remaining Balance” is massively more beneficial than having to pay the whole remaining schedule.

Leasing’s Tax Advantage

As some of you may know, the tax advantage of a lease purchase program far exceeds that of a traditional loan. A lease purchase program is 100% tax deductible as an expense to the company. A traditional loan is considered an asset where a standard depreciation schedule is applied. This results in a fraction of the write-off to the business.

A common misconception is that a lease-purchase program is more expensive. When, in fact, after factoring in the expense deduction, the result is most beneficial to the entity. The underwriting requirements do not differ whether I structure the agreement as a lease or a loan. Most financing companies, Alliance Funding included, can do either type of agreement. The lease purchase agreement allows for a longer balloon payment (i.e. 10-30% balloon payment). By doing this type of structure, you are simply allowing yourself more options when the term is over and giving yourself a lower monthly payment through the term. This will allow the business to have a quicker cash flow helping the monthly budget:

“Jeremy from Alliance Funding, helps my customers to whom I sell trucks by structuring their agreements with a balloon payment which helps them meet their monthly budgets.” Ed Stroth, Sales, Twin City Wreckers

In conclusion, financing equipment and trucks is a requirement for many businesses across this beautiful country. Finding a finance partner you can trust in challenging times or times of boom is crucial to the process. When that time comes, you need a partner who is not just knowledgeable and available, but who is also competitive and can approve the financing with your budget and needs in mind. We don’t just want you to survive during this time, we want you to thrive, so please contact us here at Alliance Financing by calling us at 800-978-8817 or visiting us at our website at https://alliancefunding.com/ Stay safe, and God bless this great country!

Interview with Jerr-Dan® VP & General Manager Bob Nelson

Darian Weaver

This past month, I got the opportunity to talk with Jerr-Dan’s current Vice President & General Manager Bob Nelson. I met Bob earlier at the TRAA Legislative Workshop dinner that was sponsored by Jerr-Dan on March 10th twenty-four hours before COVID-19 flipped the whole world upside down. Bob is no stranger to the Oshkosh family as he has been working under their umbrella, the Access segment specifically, for the last 22 years. Prior to moving to Jerr-Dan, Bob was with the JLG Industries brand in several OEM sales management roles. JLG is the world’s leading designer and manufacturer of lift and access equipment. Bob is married, has three daughters and a son, enjoys golf and fishing and the outdoors with his family, and has a passion for his work!

THE INTERVIEW WITH JERR-DAN VP & GENERAL MANAGER BOB NELSON

Tow Professional (TP): Bob, I appreciate this opportunity to talk with you, especially in the middle of the COVID-19 outbreak. This is a unique situation for you as a new vice president and general manager to tackle before you even get the pictures hung in your office and your boxes unpacked. How are you and the management team at Jerr-Dan handling the current situation?

Bob Nelson: I am glad to be here today to talk with you, Darian; we appreciate the opportunity to share how Jerr-Dan is responding to the COVID-19 crisis.

Nelson, Bob, Bob Nelson, Jerr-Dan — Bob Nelson, VP & General Manager, Jerr-Dan

The first thing we did after arriving back from the TRAA Legislative Workshop, and after other members arrived back from the CONEXPO show, was to put a plan together to maintain operations and ensure that warranty and service is available for our existing owners. We are keeping a level of support to make sure our customers talk to a live person if they have any service needs. Team members also work remotely so that the supply chain is kept open for customers. We plan to have the entire team back in full force by the time the readers get this next issue.

TP: How are you currently working with your distributor network to help them meet the needs of their customers during this time?

Bob Nelson: We started a Dealer Advisory Council two weeks into the COVID-19 pandemic and related shutdowns. We also implemented a parts and service program, “ABCs of Truck Care & Repair,” and worked directly with our distributors to help them promote their parts and service availability to their customers. Additionally, we created a retail finance program to lower down payments and offer more flexibility to customers. The terms have been extended to include our distributors as well, so they can fill their floorplan and have units on hand for their customers.

TP: Bob, that certainly sounds like you and the Jerr-Dan team have taken the right steps to be able to keep the market moving. The Dealer Advisory Council sounds interesting; tell me how it works if you will.

Bob Nelson: We meet weekly through a video conference call with a council that is made up of distributors from across the nation. This gives us an opportunity weekly to get a snapshot of what is happening at ground level with our distributors by hearing from them and sharing information across a variety of our locations nationwide. (Jerr-Dan has over 65 distributor locations across North America).

TP: Jerr-Dan is close to 50 years old, and Oshkosh is more than 100 years old. What are your final thoughts looking forward into the market?

Bob Nelson: The companies both have been through tough times and have had to handle adversity. I am really looking forward to the challenges ahead for Jerr-Dan. My biggest concern is keeping 375 employees healthy and gainfully employed at a company that they enjoy working for. We are not here for the short term; we are here for the long term! Our employees, distributors, and customers make up the Jerr-Dan family. So, we will continue to work hard to meet our customers’ needs and exceed their expectations both during this COVID-19 crisis and well into the future.

TP: Thanks again, Bob, for your time and for giving us a glimpse inside the current operations at Jerr-Dan while you all are navigating through current challenges with the COVID-19 outbreak. Stay safe and be blessed!

COVID-19 and YOUR INSURANCE

Scott Fowler

young man in suit showing an insurance policy — a young man in suit in his office showing an insurance policy and pointing with a pen where the policyholder must to sign

We are a couple months into learning what the “new normal” is in this country with the unprecedented shutdowns and protocols put into place in response to COVID-19. Every state has a different idea of how far to take things, and it has had our lives and the economy effectively closed. Every industry has been affected whether yours is deemed necessary like towing or not. The guys in the repo towing sector have been shut down completely since in some states, the courts have not been open to sign off on replevin orders. Additionally, many banks have voluntarily worked with borrowers to keep them from defaulting in the first place. Those doing typical motor clubs and police rotation calls are still functioning. However, with stay-at-home orders, schools closed, and people working from home, it is slim pickings since traffic is almost non-existent.

So, what happens to owners who are faced with anywhere from 50 to 100% reduction in revenue? Their bills still demand payment, their employees must be dealt with, and the show must go on! There have been a great many business sectors that have stepped up to help. Most of you guys have truck payments to make whether the wheels are turning or not. Fortunately, many of your lenders have offered payment deferments and waived late fees to try to help you weather the storm. Between the state and federal governments, unemployment is taking such good care of the employees you had to lay off that they may not want to come back anytime soon. One of your biggest expenditures is your insurance. That bill keeps coming every month too, and that one is mandated to be able to operate at all. What can I do about that? Every industry in this country is interconnected with every other in some way. The insurance industry is no exception. It has been greatly affected by COVID-19 too.

All the COVID-19 government restrictions have greatly reduced the number of cars on the roads during morning and afternoon commute times because obviously hardly anyone is commuting right now. This reduces the number of broken-down vehicles needing road service, and the number of car crashes needing your services to clean up. This has negatively impacted your business, but those events are usually paid for by insurance companies. The insurance industry business has been positively impacted by the shutdowns. Claims handling is down significantly in the auto sector which translates to increased profits. Now you are thinking, “Let me get this straight- I’m struggling trying to keep my doors open, and those insurance companies are raking it in?!” It does not seem fair does it? Well the insurance industry did not think so either. Most all the major companies have refigured their rates retroactively for the affected months based on much lower mileage. They have then issued refund checks to their customers. This is not just limited to personal lines drivers. Many companies have also done the same for their commercial auto accounts too!

If you are a lucky recipient of one of these refund checks on your wrecker insurance, you were probably happy for about a nanosecond and then realized it is a drop in the bucket compared to the monthly insurance bill for 20 wreckers when you have 10 of them parked and their drivers

out on an “unemployment vacation.” You are between a rock and a hard place because the state and federal regulators say you must keep your insurance in force to be on the roadway at all. What can you do? Is there any help for you? The answer to that is “probably.” If you are struggling to make the insurance payment or have one coming up you know you cannot make, CALL YOUR AGENT! The insurance industry does not want mass cancelations of policies. It cost them a lot of money to process all the paperwork to get a policy issued. They really do not want to lose that investment. Plus, they need revenue coming in just like every other business, and they have bills to pay too. Most carriers are offering some help.

In most states, the repossession sector of towing has been hit the hardest. Many of the people that have office jobs have simply transitioned to doing that job at home on their dining room table sitting next to their sixth grader that is trying to figure out math without a teacher. These lucky people have not seen a hiccup in their income, and paying their bills is business as usual. However, people in the hands-on service fields (like restaurant workers that are traditionally on the income margins as it is and people like hair stylists and nail care workers) have been sent home with no income. Some qualify for unemployment benefits, but that is not always a cash cow. With this situation, you would think repo business would be booming–not so. Some states flat out put a moratorium on repossessions and foreclosures. Banks have been bending over backwards to help people not default on loans. The insurance companies that insure repossession towing companies understand this, and there are many tools in their box to help. Since many repo companies have parked most or all their fleet, some companies are allowing the furloughed trucks to be reclassified as “service.” This greatly decreases the rate on the affected trucks thus reducing the monthly premiums. Some carriers are also removing the “on-hook” from the trucks which will further reduce premium.

You guys doing regular non-repo towing probably want to know what help there is for you. I know a lot of companies have laid off drivers and parked most of their fleet too. With no one on the roads, there is not much call for tow trucks. Well, your insurance carrier may have some tools to help reduce your bill and keep you insured. Some insurance companies are allowing the temporary down grade in the rating from “towing” to “service” of the parked trucks just like the previous paragraph mentioned.

In some cases, “on-hook” can be removed too. Another possibility is removing collision coverage from the parked units. That can be a significant decrease in premium. This only works if the vehicle does not have a loan on it. Otherwise, you can be in violation of your finance contract, and they can put coverage of their own on it, and you really will not like that price tag! I know some of you guys out there are saying “why can’t I just take off the parked trucks entirely?” Well, the answer to that is complicated. First and most important is if you have state or federal filings, you cannot take trucks off liability coverage. That could jeopardize you with your state or FMCSA. You could get your authority suspended. If your trucks are financed through a lease situation, you cannot take liability off that vehicle, or you would be in default on the contract. The same holds true for comprehensive and collision coverage whether it is a lease or conventional loan. A word of caution here is warranted. If you take advantage of any of these downgrades to coverage, it is imperative that you inform your agent immediately when you put these units back on the road. The last thing you want is to have a claim and find out that truck has NO coverage on it because you forgot to make a call to your agent.

For you guys that do not fall into any of the previous help areas there is still help out there. In some states, their Departments of Insurance have put temporary rules in place preventing your commercial auto insurance from canceling for non-payment. Now, that is not a “forever” ban. It usually only adds another 30 days. Many insurance companies and premium finance companies are stepping up in all states, regardless of state mandate, and working with customers. I have seen finance companies allow customers to run 30 days behind with no fear of cancelation. Many are waiving late fees. In many cases, owners can make their payments. They just need a little more time because their cash flow is down to a trickle, and many are being slow paid by companies that they do business with. Help is there for the asking.

Whether you buy into this whole COVID-19 hype or not, we are all affected in some major way. I talk to owners on a regular basis because we insure many towing companies in our agency, and we are very active in our state’s towing association. You guys are an independent bunch and try to solve problems on your own. Most are no strangers to lean times. However, this in not that. This is unprecedented. Help is out there for you. All you need to do to get relief is CALL YOUR AGENT! If you are with the right agent and the right agency, that person will already know what options are available for you and how to get you the help you need to weather the storm. Be forewarned though. Downgrades to coverage and premium reductions will impact your agent financially too. Just not in a good way. If you are with the wrong agent, he may duck your calls or drag his feet getting you help or possibly tell you “my hands are tied here.” If that is happening to you, you need to start looking for another agent immediately. If you and your agent have the type of partnership you should have, he should be willing to share in the short-term financial pain with you with a focus on long-term survival and prosperity. His prosperity is directly tied to yours! If you have questions, need advice, or possibly a new agent, drop me a line at scott@kresseragency.com or my boss Hal Kresser at hal@kresseragency.com

Towing – The Future

Dan Messina

Heavy duty wrecker hauling a truck that broke down

I want to use the expression, “It can’t get any worse than it is,” but if it did get worse, well, I could not even imagine that. The past three months have been hard for the towing industry from both a revenue and employee standpoint. All companies are scrambling to keep employees and make money to pay the bills. The customers that I am going after lost 70% of their volumes. They were moving people around and cutting cost wherever they could.

My customers are motor clubs, so if the volumes were down there, I know the tow companies’ revenues were down as well since that is who a lot of tow companies tow for. The government tried to help with stimulus packages that allowed you to keep employees, but they also created a problem when they overpaid everyone to stay home, and now employees do not want to come back to work. As I finish out this year and go into next, I am optimistic about adding revenue. When this virus hit, I lost three investors that would have helped me tremendously, and I lost customers because they were trying to figure out how to move their call centers to the employee home.

Since I cannot change what happened this year, I am looking to 2021. Here are my goals for next year:

Customer Base – I am working with three customers to bring them on by the first week of June. These customers will be motor clubs that will generate tows for the tow companies in my network. I have talked to no less than 8 other potential customers, and once TowTrax goes live, the potential growth will increase tremendously. Keep in mind as I grow TowTrax, this generates tows for tow companies in my network. There is no cost for the tow company to register and use TowTrax. I will be sending you tows you never had before.

By June 1st, we want to offer TowTrax to the consumer. Imagine you are traveling anywhere in the U.S., and you breakdown. You do not have to worry about what to do. TowTrax will give you a phone number to call, and TowTrax will find a tow company to help you. Whether you are traveling cross the state or across the country, TowTrax will be there to rescue when you have car troubles.

Drivers – One of the biggest problems that face the industry today is the lack of drivers to support your business. I talked to tow companies all over the country and, they all are facing the same problem. Who will drive my truck? You can have two generations of towers in the family, and it will soon come to a halt. The family members coming up have different interests and want to do their own thing. Hiring drivers off the street is nearly impossible. They would rather make YouTube videos and other social media stuff than drive a tow truck. I am not sure that the younger generation can even change a flat much less drive a tow truck. I cannot begin to tell you how many companies told me that drivers will be our biggest problem. The good thing is they recognized it, and they want to help solve that problem.

Texas Tow Academy – By the first of the year, I hope to open our first ever tow school that is college certified. I am talking with a university now to set up a curriculum for the school and make it a credited program. I had several tow companies volunteer their services to help me with the material for the class, and some will also be instructors. As I start to roll this out, I will reach out to tow companies for suggestions and ideas on how to approach it.

I am working with several organizations on providing students or future drivers. One program is using ex-military that need a career. This would be a good source along with people coming out of prison that want to get back into the working society again. When I mentioned this, the first thing I hear is “we can’t hire convicted felons,” and in most cases that is true. The catch is thiswill be a federal program, and laws will be changed to accommodate this group of drivers.

When successful, I would like to open at least four more schools across the U.S. When this works, I know I will get a lot of help from tow companies nationwide because we all need drivers. I will keep you posted on the progress of this program.

Driver Certifications – One thing that will change in 2021 is the type of car being manufactured. There will be several types that will require a certain way to be towed. An electric car is a good example. If not hooked up properly, you could get electrocuted. High-end cars also require certain instructions on how to hookup to prevent damages.

What I want to do is set up certain certification programs to educate your existing drivers on changes next year. I talked to a company in Chicago last week, and he showed me at least 15 different types of certifications mostly coming from dealerships that require the know how to tow their cars. We will discuss further once I get started. I do want to highlight that I do not want to interfere with associations which are offering towing education. I want to be a support and resource to the association by creating programs they can offer through their association to generate revenue.

Revenue Program – TowTrax set up a new program that allows the tow company to generate a new revenue stream. I learned a long time ago you can only make so much money with your hands, and then you must use the old noggin. I set up a few companies already in this new program. Not only will they add revenue through the program, but they will also get tows they never had before. If you would like to know more about this revenue program, give me a call or e-mail me at dan@towtrax.net

As you can see, I have my work cut out for me over the next 12 months, but I am looking forward to it because I get to work closely with the industry. Things will get better, so be safe and wash your hands.

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