Where Do We Draw The Line, Part 2?
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TowZone |
#21 | |||
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You guys may have hit on something there. We are are still talking about volume but that might be a direction for the motor clubs higher rates for lower volume
higher rates at higher volume. Lower rates for higher damage claims, Higher rates for lower damage claims. Co pays of say $10 for service runs and $20 for
Towing Service to $30 for recoveries. Or $20 across the board, after all having a motor club is like having insurance.
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fairway |
#22 | |||
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A $15 to $20 co-pay would make a great impact on the bottom line of the contractors, and it would not cost the club anything.
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ASAPautomotive |
#23 | |||
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I like the co-pay idea, but I have a couple of concerns about it:
First, and my biggest fear, is that if a co-pay were initiated, it would be even more difficult to get a contract raise in the future than it is now. The clubs would find it in their benefit to never raise the contract, but instead raise the co-pay. Does this sound familiar to anyone. How many times in the past 5 or 10 years have your co-pays or deductibles gone up on health and / or car insurance. Second, if the auto clubs were to agree with this concept (and I think that this is one they may actually go for), how long do you think it would take before we would see the benefits? We are rapidly coming up on the mid point in the year. Theoretically, half of all the auto club members we serve still have to renew their memberships this year. With that being said, it would take at least one full year to renew every current auto club member with the new stipulations and co-pays. This may not be as big an issue as I'm thinking right now, but still a potential gap in the transition period. Add to that the complications involved with an auto club attempting to modify a contract with an automotive manufacturer. This may be a bigger obstacle. As I said, I truly believe this is one concept the clubs may go for. But how do WE bring this to the auto clubs attention. As fantastic a tool as Tow411 is for us, I have no doubt that some auto club execs lurk in Tow411 just to get an idea of what we are thinking. Again, this can be both good and bad. But if we could pool the combined strengths of all the state organizations AND TRAA, we might actually have a shot at this. But how many times has this industry as a WHOLE actually gotten together and stayed together to fight for a cause? I believe the time is now... where do we begin? Just my )
Donny
ASAPautomotive "Yesterday is History, Tomorrow is a Mystery, Today is a Gift, That is why they call it the Present"...unk |
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TowZone |
#24 | |||
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The idea needs plenty of holes kicked in it or the motor clubs will not take it seriously. So, I understand the concern! Now I have to ask, looking back in
history would one expect the motor club rates to increase by $20 or around what 70% over the next 5 or 10 years. I can tell you I don't see it happening.
As for the motor clubs they can alter the term with their members just as credit cards alter it with theirs during the service period. They simply send out a
notification.
Keep in mind though, if the drivers are getting tips those will dry up. But, how many are actually getting tips from motor club members. I found those the be the rudest of customers in most cases.
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IowaTower |
#25 | |||
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Sorry to be a turd in the punchbowl, but...
As I recall, AAA reminded its contractors a couple years ago that if they were to charge the customer for anything not approved in the contract for a covered service, the money would be refunded to the customer and deducted from the contractor's next check. And, I'll mention from experience, anything you choose to do in regards to giving a contract re-negotiation some bite, be it a work-stoppage, denial of service, boycott, strike, whatever you want to call it, do it on your own. DO NOT get sucked into group-think, or rely on local, state, or national organizations, because I guarantee there will be companies, even the most vocal yeah-yeah-let's-get-'em, that will take advantage of the opportunity to improve their position in the MC's eyes and there will be companies that have overestimated their own testicular fortitude in making the decisions necessary to withhold services long enough to be effective. Frankly, the only options are to accept the rates they dictate, or quit. |
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TowZone |
#26 | |||
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Oh you bought that lake front property with it's own bridge. Never say never and it does not have to be a group effort. If you were not aware Tow Companies
are already refusing Motor Club calls which are not profitable to them and members are being left stranded by some AAA tow companies that simply call them
drive offs. If find when AAA hears the vehicle is in the roadway we get prompt service. When its out of the road and a officer is standing by prompt service
again. When it's a Road service call about 45 min and a tow 2 hours maybe 3 hour peak. During peak hours there just are not enough trucks available. Is
that accurate and does anyone other then myself think that there is a solution other then accept what you get or quit? I guess after another percentage or two
increase in fuel many will quit. Sad to see a loss of light duty work and trucks sitting idle or worse. At least our percentage of members on motor club
overload doesn't seem to high. For more I expect it will be a loss of a filler. Hopefully the Motor Clubs can find a solution before then.
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IowaTower |
#27 | |||
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And I know that a company will drive 60 (120 roundtrip) miles to pull a customer out of her driveway. And another that will gleefully exclaim how he gets a
whole $50 for driving 32 miles round trip. And a couple others that would be more than glad to sign-up for an MC average that's only $3 less than their
normal in-town rate -- at least they have wreckers & flatbeds, where an actual MC contractor has a 3/4 ton w/ car-tote.
=Someone= will accept the MC's rates, whether it's the one-truck gypsy with low overhead or the multi-truck operation that needs the work to pay for the trucks and the employees who are like family. |
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TowZone |
#28 | |||
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"where an actual MC contractor has a 3/4 ton w/ car-tote."
I have heard of those, but never really seen them.
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IowaTower |
#29 | |||
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I keep meaning to take pictures.
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Wade200 |
#30 | |||
Frankly, the only options are to accept the rates they dictate, or quit. I agree and motorclubs aren't even worth typing about to me, but I'm bored. I can't tell you how huge of an impact quiting clubs has been for our company. Think of all the nice companies you see out here that you can only dream of being like, you will NEVER accomplish that on motorclub rates. I won't even use them as a filler. The money simply isn't there when working for $23-35 per call (especially when fuel alone cost $15-20 per call.) Also, when you have more completely oblivious towers out there than smart towers how are you ever going to work up some uniformed demand for the clubs? Do you think the clubs are going to work to unite towers so they can pay us more? Do you think you will get every tower in the country on board? Sorry, but none of these things are going to happen. Maybe some areas are dependent on clubs, but we have never relied on club work. If you aren't making money, quit them. Why does every tower feel that they are the pivoting club provider that has to "take a stand" to improve the industry for everyone? Seriously, why even bother with the lowest paying calls you do? If everyone spent as much time keeping good shops/customers happy as they did trying to turn club work into something profitable, they wouldn't need the clubs to begin with. Club work is a classic example of spending a dollar to make a dime. Daniel Wade |
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jal70 |
#31 | |||
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Ron,
Regards, Joseph Licciardi, Road America
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Kam |
#32 | |||
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Posts: 6288 05/18/2008 11:52
July 2007 2007 Tow411 Member-of-the-Year
Michigan |
The client is the end result. The client is the one who suffers. Whether it be long ETA's or co-pays, the client is the one YOU have to impress. They
are the ones paying YOU the premiums.
In 1982, I had PL/PD insurance on my 73 Buick Lesabre. I had towing with $50 coverage. I see way too many insurance companies offering $50 coverage for towing. That's a joke. It's like having a liability policy on my tow truck that's good up to $20,000. It's not just realistic anymore. Now, I have Farm Bureau. They offer $50, $75, $100, or $150 per tow. And, my agent always tell them to take the maximum, it's very reasonable. Sorry, I don't work for minimum wage. Besides, I cannot work for MC rates because Kia don't sell tow trucks!
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CB200T |
#33 | |||
TowZone wrote: there are several around here. one guy runs assurain calls in a chevy venture with a single axle trailer.
Friendship is like peeing on yourself: everyone can see it, but only you get the warm feeling that it brings.
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TowZone |
#34 | |||
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Point taken as some of us attempt to understand now the motor clubs can be salvaged in a tow companies business plan. This as the client services are
economically impacted by the additional costs to the tow company. But, then many of us have realized over the years a good number of providers have no business
plan. This alone impacts tow companies that do.
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bbyers |
#35 | |||
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as long as we tower keep towing for them and new ones or old beg for work at the present rates we will never go any where . we had a motor club come to
Michigan the other day for a vendors appreciation breakfast what a joke there was 8-10 company's there that is for the whole state we see where we stand.
then they told us that due to the fact there are so many company's begging to work they are going to lower the rate by $2.00. i think it would be very
funny if this weekend everyone stopped doing MC calls what a memorial
Byers Wrecker Service, Inc. "Locations in Rochester, Lapeer and Clarkston, Michigan" 399 South Street, Rochester, Michigan (248)651-4180 |
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jlmnjem |
#36 | |||
Wade200 wrote: This is, perhaps, the most profound statement regarding motor clubs that I have heard in quite some time. Wade, you hit the nail on the head.
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BROTHERSANDSONS |
#37 | |||
jlmnjem wrote: It is profound, and very very true, except for the fact that a percentage of those towing clubs, will do "regular" work at a rate higher than the
club rates , but no where near a true profitable amount...after losing their butt at $35 or so per call +mileage, they think 45+ mileage is a raise . Then the
entire market area gets price depressed until they either learn or still go out of business.
There are no traffic jams along the extra mile
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gpwtowing |
#38 | |||
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This is a very interesting thread. Thanks TNTDon for starting it. I like the proactive approach that you have presented. The comments presented by others
were useful as well. As someone that is new to the industry, this forum has been indispensible. I have already dropped a company that I felt was totally
unprofitable. ( I just stopped accepting their calls and subsequently they stopped calling.) The other companies have made some concessions on gas surcharges
and/or renegotiating our contracts. My goal is to build our private book of business. This is taking a lot longer than I anticipated and therefore, we rely
heavily on MC calls. I will certainly use some of the ideas presented in obtaining new contracts. Thanks again.
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hal17000 |
File a Class Action | #39 | ||
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Ken,
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Wade200 |
#40 | |||
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Heather, no offense, but it's kind of hard to file suit on the "motorclubs" for not paying enough. Especially when they have a contract and rates
that towers (at one time or another) agreed to work for.
Even so, there are still companies out there that would be on the motorclubs side. Some will even fight to continue working for free. Are we also going to sue the oil companies and truck salesmen because there increased costs are effecting our rates and profit? P.S. - Don, have you quit them yet...I'm guessing you are almost at $5.00 now. Daniel Wade |
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