A lot of towing companies especially those that are not well-established struggle with the idea of charging a higher price. They are afraid that if they do, the clients that have been getting towing services from them will take their business to the competitors. This should not be the case especially if your competitors are charging a higher price or they provide inferior services compared to the services you provide to them.
Below are valid reasons why you should raise the cost of your towing services:
- If you are currently undercharging for your towing services: It is possible that you set the prices without knowing the current market price for towing services and as a result, you are charging very little. You can also note that all the towing companies are charging a particular higher price for their services.[ If any of the above is the case, it is time to raise the cost of your towing charges.
- To enable you to work less and still get a similar amount: If you are sure that there are some customers who will be willing to pay more as long as they get quality services, you can consider raising your rates since you will be able to earn a similar amount while working for less. Raising the towing fees will make some customers look for alternative services and you should raise the price if you are able to bear losing them.
- To maximize your profits: You may realize that you are not getting enough while charging the current fee or you are not able to meet the overhead costs for your company. You should consider the cost of the fuel, the amount that you will pay to the towing driver, the wear and tear of the towing vehicle, and other overhead costs before deciding on the right price to charge your customers.
- Get better clients: If you are looking to work with clients that do not mind paying any amount as long as you provide the quality of services they are looking for, your rates have to be higher. There are those clients who want to stand out because of their social status and to attract such; the rates charged for the towing services have to be higher.
- If the competitors have raised their prices: If the people that offer towing services in your locality have increased their rates, you should also consider raising your charges as well. You can wait for some time to know how the increased price for towing services will impact on the number of clients going to them for their services. If the answer is positive, you can also increase your prices so that you can earn the extra income from the price hike.
Another reason why the towing price will be increased is when there is no competition for the provision of towing services in your locality. Being in such a situation means that despite the amount you will be charging, your clients will keep coming to you for towing services since there is no competition. You can also improve the quality of your services and base the price increase on the better services offered.