One Cool Cat Recovery

Measures of Success

Brian J Riker

Success is something we all strive for but how do we define it? In our business we could argue that success is measured by increasing market share and higher revenues or fleet size.

Obviously we are in business to make a profit and our employees are with us to provide a life for their families. These goals need not be at odds with each other. Happy employees are usually more productive and stay with the same employer for longer periods.

Perhaps more important than top wages or superior benefits is fostering a positive company culture that will keep your team coming back to work, day after day. If they love what they do, who they do it with and the mission of your company - they will give their best. Treat your team fairly and remember that they have their own life outside of their role at the company. If we as owners and managers remember to respect their home life they will return that respect by going above and beyond when it is truly needed. Without them you have no one to serve your customers.

Ask for and respond to their opinions. You may be surprised at what your team sees that you do not. Tell them the truth, even when it hurts it is still better than having them react to unfounded rumor. Perhaps most important for building great culture is integrity. Say what you mean, mean what you say and never tolerate gossip or bad-mouthing. Gossip is a cancer that destroys companies from within quickly. It demoralizes and demotivates people faster than any other single factor.

Public perception is another way I measure success. Our industry has a public image problem, no doubt about it. We are usually the last person a motorist wants to see because we are responding to an event that is out of their control and they feel helpless. How we respond to their request for service or treat them after a non-consent tow is important. If your team is not happy it will be apparent to the customer and may result in a less than a desirable outcome.

Successful tow companies also create a clear brand image. Many companies don’t have super flashy paint jobs or cool graphics, but have consistency across their fleet and clean trucks operated by skilled, well-groomed and uniformed drivers who are supported by professional staff at the office.

How are your phones answered? Does the caller know who they called and instantly get a feel of helpfulness? How you answer the phone may sound trivial but it contributes greatly to public perception. By not clearly identifying your company and the call taker by name the customer immediately, albeit subconsciously, feels like you have something to hide or are somehow trying to be dishonest. Proper phone techniques will lead to a greater call to sale conversion rate, another measure of success.

In conclusion success is measured in more ways than simply making a profit at the end of the day or having the largest fleet of new trucks in your area. Success is providing good opportunities for your team to support their families, creating a positive company culture, and presenting a professional public image with a desire to serve your customers.

Closing Lanes for Recovery Safety

By Randall C. Resch​​

In May 2019, a suicidal jumper threatened to end his life by jumping from a bridge into lanes of California’s SR-99. A CHP spokesperson told FOX40 News: "He could have landed on top of a vehicle which could have hurt somebody else.”

It took ten-hours of negotiation by a CHP officer (who knew the subject) to talk this person into surrendering.

The Sacramento Bee posted a tweet by the CHP saying, “The California Highway Patrol recognizes this closure has caused a significant inconvenience for countless motorists, but the safety of the suicidal person, the officers at the scene, and the motoring public who travel on State Route 99 daily is our foremost concern.”

To Law Enforcement and Traffic Incident Management, I pose this question: if highway traffic is slowed or re-routed for visiting dignitaries, police activity, loose animals, suicidal jumpers, or whatever other reasons, why doesn’t protocol allow for traffic stoppage and blockage for tow operators working critical incidents and accidents?

In another scenario, an experienced carrier operator responded to an upside-down vehicle against a K-Rail where no shoulders existed. The operator advised the CHP officer of his recovery plan by asking that traffic in adjacent lanes be slowed so he could best position the carrier to perform the roll. The officer firmly replied, “No.”

Initiating Plan B, the operator uprighted and loaded the casualty onto the carrier’s deck while working precariously close to moving traffic, endangering himself and others.

California leads the industry with 52-operator fatalities because there’s limited policy in providing traffic breaks or lane closures for towing and recovery. The practice of total blocking for quick-clear provides a much needed safety advantage to lessen a repeated slaughter of tow operators everywhere. I don’t accept that a tow operator’s life, or that of any first responder is any less valuable than someone experiencing unfortunate issues, especially when skilled, highly trained and motivated tow operators can clear highway lanes quickly. Simple math calculates that nine-hours and fifty-minutes would have been saved when compared to the jumper scenario.

Controlling Costs in 2021

By Brian J Riker

I have no doubt that 2020 was a difficult year for many tow bosses around the world. With travel disrupted and only essential services being provided for more than half the year it was anything but business as usual. What is in store for 2021 is yet to be seen; however, the prudent business owner will be cautiously optimistic as they enter the unknown.

Not all towers had terrible years. The heavy-duty market was only off a little for last year, light duty was down significantly in most parts of the US as was road service, but towers that were diversified into other transportation segments or provided a wide range of services found room for growth in 2020. Several towers even added entirely new service offerings to their operation to leverage the surplus labor they had available rather than furloughing these employees. To those towers I extend a hearty thank you for looking out for your team.

Regardless of the year you had, one thing that is always important is controlling costs. Several towers I have spoken with have noticed a reduction in call volume and gross revenue yet they have been able to maintain the same operating margin as last year or even slightly improve their margin. The one thing they all have had in common is a focus on controlling costs. All businesses need to periodically review their expenses and reevaluate the return on investment they get from each line item in their budget.

You do have a budget, right? If not, now is the time to learn to develop a budget as a tool for business survival. A budget does not need to be complex, just realistic, based on your actual experience as a company. Budgets are quite liberating once you have a good grasp on how they work. They don’t restrict you from spending but instead give you the freedom and peace of mind to spend on a plan without regret or guilt.

When deciding which costs to cut and which to increase for 2021, the prudent tow boss will look at the data available for the past several years, not just 2020, since last year was an anomaly. Knowing your actual cost of operation, in near real time, helps you decide what work is worth accepting and keeps you from undercutting your profitability just to keep busy.

There are several areas you should not skimp on in the name of cost control. Number one is payroll since a good operator is hard to find, expensive to hire and train, and will make you much more than they cost you. Don’t cut hours just for the sake of cutting hours - do your best to keep key personnel at or near their normal earnings. If you must reduce hours or staff, I suggest making your cuts on facts instead of emotions. The most expensive employee may not be the one with the highest pay rate but instead the one with the worst safety record or the most damages. Similarly, the best employee to keep may not be the most senior but rather the most versatile member of the team. Look deep at all factors when deciding to layoff employees.

Insurance is another area that needs to be examined but not skimped on. It is always a good idea to shop your policy before renewal each year but be sure you are comparing apples to apples. Always make sure your policy provides enough coverage that you will survive a catastrophic loss. It does you no good to have a lower insurance premium if you can’t afford to cover the losses not included in the cheaper policy. Higher deductibles are a popular way of reducing premium if you have enough cash on hand to cover the higher exposure.

Examine equipment maintenance and replacement cycles closely. Just because the budget is tight it may not make sense to extend the replacement cycle on your equipment if the cost of the additional maintenance will outweigh the costs of replacing something. Consider reducing fleet size, or perhaps exchanging one type of equipment for another - especially when adding or revamping service offerings. Maybe you can do better with a few less pieces of spare or support equipment. Does it make sense to exchange some of your traditional fleet for something new like a roll off container chassis or dump truck?

You may even be able to use equipment purchases to offset tax liabilities which will have a bigger impact on your overall financial health than simply cutting out a truck payment from the budget. Consult with your tax or financial advisor to learn what makes sense for your specific situation.

Safety pays. Please don’t stop training your team. It is more important now than ever before to have safe and competent operators on the roadway, technicians in the shop and the best resources to keep them out of harm’s way whenever possible.

Lastly, now is not the time to skimp on advertising or marketing budgets. The customers are out there if you are creative enough to find them. It may be a good time to reevaluate the services you offer and cut unprofitable services or adjust rates before you cut advertising from your budget. It is the time to reevaluate how you spend your advertising dollars, that old yellow page ad just isn’t cutting it anymore, so be wise with how you spend your limited resources.