Just like any business owner or manager out there, you want to see your impound business grow and succeed, right? The fact is, the more profitable you are, the closer you get to reaching that goal. That’s why it’s always a good idea to proactively look for ways to improve efficiency and build your customer base in order to grow your profits, and in turn, your business. Here are 4 ways you can do just that:
01: Increase Impound Lot Profitability by Increasing Referrals
Let’s face it, the more cars in your lot, the more money in your pocket. That means constantly bringing in new customers, and a great way to do that is by building relationships with other businesses that can boost your referrals.
For example, partnering up with an auto body repair shop can be mutually beneficial. They can send customers who call for a tow your way, and you can return the favor by referring them to customers whose cars are in need of repair. It’s a win-win.
Other examples of profit-building alliances include:
- Corporations with vehicle fleets, like rental car or taxi businesses, that often need help with storage or towing.
- Property management businesses that might need non-tenant cars to be towed away.
- Government entities that need a go-to towing and impound business to help remove damaged cars from accidents.
- Repossession businesses who impound cars on a regular basis.
02: Increase Impound Lot Profitability by Increasing Inventory
The more cars you can fit in your lot, the more profit you make. Yes, you only have so much space to work with, but are you using it as wisely as possible? Take a look at your lot design and see if there are any ways you can fit more cars safely, without inhibiting your ability to move them. You might be surprised by the difference a few simple adjustments to your design can make.
Extra tip: If you have the space, but not enough cars to fill it, consider renting extra spots for parking or storage to ensure your lot is always full.
03: Increase Impound Lot Profitability by Increasing Efficiency
Finding ways to increase your lot’s efficiency goes hand-in-hand with increasing your profits. After all, the faster you can move cars in and out of your lot, the more money you make. Look into software that can help you identify and process inventory quickly. Consider fitting trucks with GPS systems to help your crew locate vehicles fast. Also, because moving cars around is a constant in the impound industry, it’s always a good idea to invest in equipment that can do so efficiently.
A Forklift Wrecker, for instance, is compact which makes it easy to maneuver and as a result, move cars faster. It also saves time since you don’t have to worry about dealing with dead batteries or searching for keys.
04: Increase Impound Lot Profitability by Decreasing Costs
This one’s a no-brainer — the less money you spend, the bigger your bottom line. You should continually look for more cost-effective ways to do things, from comparison shopping for insurance and services you outsource to using technology to your advantage.
Those GPS systems we mentioned before? They’ll not only save time, but also save you money on gas. Because management software decreases inefficiencies, it also decreases costs. And with an affordable up-front cost that pays long-term dividends, equipment like the Forklift Wrecker is worth every penny since it ends up saving you so many!
Want to Increase Your Impound Lot’s Profitability?
Contacting our team is a great place to start! Learn more about how a Forklift Wrecker can help — visit us online or dial 877-593-6959 today to grow your profits and your business!
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