Most of the cases on our blog are about the blood, sweat and pain that inevitably occur on the path of Internet marketers to high conversions. This case is an exception.
Sometimes things work out so well:
- stars,
- competition in the region,
- demand in the region,
that high-quality development of the campaign at the start is quite enough.
The details of this story are told by:
Our client is a company that decided to test a niche by ordering a board crane in Perm. It was in June 2018, and the customer was specific:
- The client did not have his own equipment; requests were transferred to a company with its own fleet of crane boards and manipulators.
- The park was owned by a friend of the customer, and the customer himself wanted to understand: how much a lead costs from the context, whether it makes sense to purchase crane boards and open a new direction himself. Since this was a niche test, the budget was test - only 4,000 rubles.
What did you do
The client had no background in selling and promoting crane boards, so we set everything up from scratch.
We divided the work into 3 stages:
1. We worked with the site
First of all we:
- brought the application to the first screen of the site;
- removed unnecessary elements from the first screen;
- simplified the application form - removed the “email” field, which was superfluous for this order scenario.
2. Set up advertising campaigns in Yandex.Direct and Google Adwords
A microbudget of 4,000 rubles did not allow us to expand, but it obliged us to do everything so that every ruble invested would be returned in profit. We have carefully worked out every detail:
- We approved with the client the services that we will promote in contextual advertising: ordering a crane board, renting a crane board, etc.
- We collected key queries: we got 105 pieces. At the same time, we collected negative keywords to cut off non-targeted impressions in contextual advertising.
- We set up a search advertising campaign. A tow truck service is needed immediately and on the spot; in such a situational niche there is no point in using the Yandex Advertising Network, Google Display Network or retargeting in any form.
- Both Yandex.Direct and Google Adwords created three ads for each group to conduct A/B testing. After collecting statistics, the advertising systems themselves determined which ad worked better and left only that one.
- A 2nd headline has been added to the ads - expanding the headline makes the ad more noticeable and increases CTR on search.
3. Set up analytics
We understood that despite the noticeable application form on the website, people who order a tow truck would expect an instant response, which means they would probably call. Therefore, we connected the Callibri MultiTracking service, which shows both applications and calls in one report in the Unified Lead Log.
Results after a month
The client considered the experiment successful and asked: “Can you get more leads?” We made a forecast: there is still untapped demand, and with a budget of 10 thousand rubles. per month we can bring 60-80 applications from the site.
conclusions
- In some niches in the region, you can get good results from the very first month, without lengthy iterations of campaign optimization.
- It is always important to correctly analyze the purchase scenario and select the right tool, and in conditions of a limited budget this is doubly important.
- If the target action on the site is a call, you can’t do without call tracking. It will be difficult to track how many actual orders came from advertising.
- Tow truck and cars
- Opinions of real people
- Tow truck services
The car towing business has one feature that is little known to the uninitiated. The fact is that a tow truck is often used not only for transporting broken cars. Tow truck services are often used by private individuals to transport snowmobiles and ATVs.
Tow trucks are ordered by construction companies to deliver small-sized special equipment (rollers, loaders, etc.) to the work site. And that's not all - tow trucks are often used to transport cabins and garages. All this makes the tow truck business very attractive...
Tow truck and cars
However, the main clients of tow trucks are still private car owners. That is why it is logical to associate the growth dynamics of such services with the growth in the number of cars in general.
According to statistics, the number of car owners in Russia is growing every year. And cars have broken down and will continue to break down. Thus, the need for tow truck services will also increase.
Opinions of real people
According to Igor Nasedkin, Deputy General Director of the Autoranger company, several more reasons are influencing the growth in demand for tow truck services. Firstly, more and more women are driving. They call a tow truck even if there are minor problems, such as a punctured tire or a low battery.
A man can eliminate such problems without any problems, but a woman needs help. Secondly, Igor believes, more and more small firms that own one or two tow trucks and are not able to provide services in a timely and high-quality manner are being squeezed out of the market.
Tow truck services
For most currently operating companies, evacuation services, as a rule, are only “one of them.” In order to work more efficiently, companies, in addition to tow trucks, often have repair “flights” or mobile tire changers.
This allows companies to provide a wider range of services, including conducting on-site vehicle diagnostics, carrying out minor repairs and selling the most popular spare parts. Some organizations purchase more expensive tow trucks equipped with cranes capable of loading vehicles with damaged wheels and steering.
You can find an investor in different ways:
All this significantly increases the company’s capabilities, although it requires significant investments into the business.
The cost of a car evacuation service on average across the country ranges from 1,500 to 4,000 rubles, or depending on the distance the car is delivered. Thanks to the general increase in income of the country's population, this amount is no longer “unaffordable” for many car owners.
Those drivers who value their time no longer wait for help from their acquaintances and friends and will certainly order a tow truck in emergency cases. This also applies to minor breakdowns - many people prefer to trust a specialist rather than bother with it themselves. In general, the prospects for the evacuation market are the most optimistic.
What documents are needed to open a business?
A tow truck, like any vehicle, must be registered with the traffic police and insured (MTPL). The tow truck driver must have category B and C licenses and a medical examination certificate.
In addition, it is necessary to register a business activity (individual entrepreneur or LLC) with the local tax service and register with extra-budgetary funds (FSS and Pension Fund) in case of employment of workers. A license to provide tow truck services is not required.
According to representatives of the Moscow company “Angel”, the advantage of any company providing evacuation services is a large fleet of vehicles. It is thanks to the large fleet of tow trucks that it becomes possible to accept any order for execution.
Smaller firms are not able to cope with the flow of orders that do not stop even at night. For this reason, they are forced to refuse many, losing the client once and for all.
Another advantage of large companies is the ability to locate tow trucks in different parts of the city, thereby reducing the travel time to a customer call.
Connecting the vehicle fleet to the navigation and communication system allows the dispatcher to quickly obtain information about the closest available vehicle, thereby reducing the time it takes to provide it.
However, when the fleet of cars increases to 10-15, other difficulties appear, in particular, the complexity of managing the company. The introduction of support structures, dispatch service, accounting, personnel service, etc. is required.
A large amount of equipment simply forces you to open your own car service center, otherwise the cost of car maintenance will hit your finances hard. We have to clearly organize the work of drivers, engage in personnel selection, advertising and business promotion. In general, the further a company develops, the more new challenges arise.
Most market players are convinced that you only need to purchase a new car, and even better, one of foreign origin. And not only for reasons of prestige. Often, tow trucks work in difficult conditions throughout all four seasons.
Tow trucks that are maintained and not strong in their design constantly break down, disrupt orders, thereby causing serious damage to the company’s authority. At the same time, the recommended period of operation of a new tow truck is from two to three years, after which it should be replaced with a new one.
Step-by-step plan for starting a business providing tow truck services
The basis of a successful tow truck service business is careful planning of every step you take in a new business.
- First of all, you need to conduct marketing research, collect information about this area of commercial activity in your region and, using the data obtained, prepare a business plan for the creation and development of your company. Naturally, all this should be done by specialists.
- According to the drawn up plan, you need to go through the procedure of registering an LLC or individual entrepreneur (the second option is suitable for a small fleet in a small provincial town).
- Resolve all legal issues.
- Buy machinery, equipment, find premises.
- Organize an advertising campaign.
- Form a staff.
- Sign contracts with major customers.
In addition to the issues listed, you need to open a bank account, do printing and resolve other issues that affect the productivity and profitability of the business (for example, make a list of additional services for your company).
How much can you earn from providing tow truck services?
Based on the average statistical indicators for this area of commercial activity, we can say that one tow truck brings the business owner $15 thousand (gross income) monthly. This means that a fleet of 10 cars is 150 thousand dollars of gross income per month.
The expenses of this enterprise will be at the level of 120-130 thousand dollars. That is, the potential profit of the company (with the right marketing policy and equipment utilization at 70-80%) can be 20-30 thousand dollars / month.
How much money do you need to start a business?
The cost of “entry” into the business of providing tow truck services depends on the size of the future company and the region where it will operate. Another important factor is the possibility of cooperation with leasing companies.
If you can conclude an agreement to purchase 10 tow trucks with phased payment of their cost, you will need several times less money than if you purchased equipment without the help of leasing companies. The minimum amount required to organize this business, according to experienced entrepreneurs, is 50-80 thousand dollars.
To open an average company, financial investments of at least 500 thousand dollars are required. The main expense item is the purchase of tow trucks, arrangement of an office, organization of parking for equipment, etc.
Professional business plans on the topic:
- Business plan for a tow truck (15 sheets) - DOWNLOAD ⬇
- Business plan for cargo transportation (21 sheets) - DOWNLOAD ⬇
Which OKVED code to indicate when registering a business?
The provision of tow truck services is classified as an activity under OKVED 49.91 (cargo transportation by road).
Which taxation system to choose for business registration
If you are planning to organize a small company, then you can write an application to the Federal Tax Service about choosing the simplified tax system. This tax regime does not create problems with reporting, and allows you to pay 6% of revenue or 15% of the company’s profit to the treasury. For a large company, a general tax regime is more suitable, allowing you to work with government agencies and pay VAT.
Do I need a permit to open a tow truck service?
If your company will provide services only for passenger cars (up to 3.5 tons), then you do not need to obtain any licenses or permits. But for emergency transportation of cargo vehicles (over 3.5 tons), you need to pay for a license.
Based on materials from the magazine “Truck”
Currently, a significant part of automobile services provides car towing services. This type of activity is quite profitable in terms of its profitability; it also has a positive effect on the image of the organization itself. But you can also approach this business from a different angle, by first opening a 24-hour car tow truck, and in the future begin to expand the range of services provided. In this article it is worth finding out what a tow truck is as a business. A forum will be organized here, which will allow us to gain special experience for conducting this activity. But it’s worth talking about everything in order.
Let's talk about registering a case
First you need to legally register your activity. To do this, you must register as an individual entrepreneur or LLC. The registration form will not have much impact on the future activities of the company. You should always focus on the circle of your potential clients. If the tow truck service provides services to private individuals, you can register as an individual entrepreneur. This is exactly what will help you get small savings on bookkeeping. If the overwhelming number of future clients are companies or firms, then you should register in the LLC form. This is what will help you give a high formal status. And if the company goes bankrupt, then it will be able to answer to its creditors only with the size of the authorized capital, without involving the founders. the main difference in taxes paid is not significant; for both forms of activity a simplified taxation system is provided, which amounts to 6 percent of total turnover or 15 percent of income.
Which car to buy
The request for a private tow truck cheap will always be relevant. Then you should definitely think about such a business. The machine plays an important role here. Before purchasing a car, you first need to decide what type of transport you want to work with. A vehicle for towing trucks on a ZIL vehicle platform costs from 1.5 million rubles. a passenger car can easily transport a Gazelle. It will cost you approximately 900,000 rubles. all operating costs of the Gazelle are much lower. for this reason, it should be used every time a call comes in. The best option for the company would be to purchase three cars at once - 2 passenger cars and one heavy one. You will have to spend around three million rubles to purchase this vehicle. Besides all this, it is better to equip each car with a winch. This will increase the price of the kit to four million. The whole point is that not all competing companies have this equipment available. They mainly deal with car delivery. But, alas, they will not be able to try to pull the emergency vehicle out of the ditch. In theory, you don’t have to purchase a car, but simply rent or lease it. Renting one tow truck will cost you approximately 2,000 rubles per day. It's not very profitable. But as for leasing, it will cost only 5-10 percent per annum. But, in this case, you will need to insure the car under CASCO, plus another 8 percent.
Additional services
Quite often, a car breakdown can be repaired on the spot without using the services of a service station. As a rule, the cars are driven by women, who, in turn, do not want to spend time fixing the car and getting their hands dirty. For this reason, providing small auto repair services can provide excellent profits and thus gain a loyal customer. In order for a tow truck to bring income from repairs to a business, you must first purchase a set of equipment. It will cost approximately 30,000 thousand rubles. To this you also need to add a powerful jack. As a result, the amount will be 100,000 thousand rubles.
Advertising
The main goal of any advertising campaign is to ensure that in difficult times the driver has a helpline at his fingertips. To do this, you need to start posting advertisements on literally every pole. As for these advertisements, they will not cost you very much. But this case is not consistent with the established legislation. But it is worth noting that you will not receive a significant punishment for this, but you may receive a fine for damaging city property. Banners and billboards are quite expensive. This may be suitable for enhancing your image. At the start of creating your own business, renting space for advertising a tow truck makes a lot of sense. In the future, it will be unprofitable for you from an economic point of view. Advertising on a car radio also makes sense, especially at the very beginning of work. In the future, you can move on to other advertising options, for example, business cards that can be placed under the windshield wipers of parked cars. Currently, almost every driver has a smartphone with Internet access. This is what opens up another great channel for you to attract future clients. You just need to create a small one-page website and place advertising in the Google and Yandex search engines.
Staff
In order for a tow truck to generate income, you need to organize everything correctly. It is important to understand where to start in this matter. In order for your company to work around the clock, you need to hire two drivers for each car - mechanics for shift work. you won’t be able to hire experienced people for less than 20,000 rubles. To this you also need to add taxes, for each employee, another 7,000 for each. To ensure that the entrepreneur does not have to spend working time mastering all the basics of accounting, he can hire a visiting accountant, and a dispatcher who will work from home can coordinate the work of the crews and receive orders. Based on this, you can run a business providing tow truck services without opening an office, and all costs for service personnel will not exceed fifteen thousand rubles.
Repair and parking
Each car will require periodic repairs and maintenance from you. Negotiate with service station
It is also possible on barter terms - the entrepreneur supplies them with clients and provides evacuation services. For this service, the mechanic repairs his car. In this case, not only comfortable working conditions will be created for each driver, but fuel and lubricants will also be saved. The tow truck platform and vehicle take up too much space. you will have to pay around 4,000 rubles for one car.
Calculations
To open your own business you will need around 4.5 million rubles. Of them:
Four million - cars and necessary equipment.
- 50,000 – preparation of the necessary package of documents.
- 100,000 – tool.
- 50,000 – unforeseen expenses.
- 50,000 – advertising.
Every month you will spend:
- 50,000 – parking and fuel.
- 180,000 – wage fund.
- 10,000 – advertising.
Total: 250,000 rub.
All prices for tow truck services vary depending on the region. On average, they are determined according to the following scheme - five hundred rubles per call and 30 per kilometer. In one day, the car can service about 12 calls. This will give you 10,000 in income. In one month, 3 cars will bring you 900,000 rubles. Of course, all this is in the ideal case, when the business is at one hundred percent capacity, and there is not even a day of downtime. As for stitching, everything is much more complicated here. Downtime will be around 60 percent of working time. Based on this, a businessman can count on a profit of 540,000 rubles. after subtracting all overhead costs, you will receive 190,000 income. Taxes will still have to be subtracted from this, 15 percent. As a result, you will receive a net income of 160,000 rubles.
conclusions
A businessman who decides to open a business providing tow truck services can count on making a good profit, but still the payback period for this project cannot be called short. This business is quite stable. It scales well. In the future, the vehicle fleet will expand and profits will grow accordingly. Even if the niche of one town is saturated, you can transfer part of your company to nearby settlements. Even a small town with a population of 40-50 thousand inhabitants can feed several tow trucks.
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