Monday, July 19, 2010

Dear wreckers: get lost!!!

A bunch of towing services are raising hell with the City of Jackson, claiming they aren't paid enough at $65 a tow. Jackson offered $75 a tow, (I didn't know Jackson had the money to offer raises of any type), but that wasn't good enough for these guys. No, they want $125 a tow. The City of Jackson should tell these guys to go to hell. If they go on strike, I am quite sure there are other towing services more than happy to get some extra business. The price they are demanding is gouging, pure and simple. Don't believe me? Go call a few services and get some quotes on how much they charge. Very few of them will be for $125.

What is despicable is these guys are getting a guaranteed stream of business. In the real world, not the fantasyland these guys inhabit, the customer typically gets a better price for a certain amount of business. These malcontents don't just want guaranteed business from the city but the right to charge high prices as well. They claim Rankin County and others pay them more. It seems to me Rankin County should open up some contracts for some competitive bidding the first chance it gets and Jackson should tell these guys to get lost.

32 comments:

Anonymous said...

Agreed. All the city of Jackson has to do is present a compilation of car towing fees in the area and average them - probably will be less than what these guys are asking.

Anonymous said...

I'm no antitrust expert here or anything, but wouldn't this be a textbook definition of an illegal combination of competitors within a certain market meeting to set prices in violation of state and federal law?

Anonymous said...

$65 is certainly reasonable for a routine tow, such as when an arrest is made. They should be able to charge more for accidents that require extra work.
These companies clean up on the storage fees. They can charge over $100 a day.

Kingfish said...

75 bucks is the market rate. More than enough for them.

Anonymous said...

Anon 4:07, can they really charge $100.00 a day for storage? What wrecker service charges this, I sure don't want them to tow my car.

Ironghost said...

Nearly double the going rate? Heck I'd buy a wrecker.

Anonymous said...

I was married to a service station owner with a wrecker 20 plus years ago, it seems I remember they were getting $65 a towback then on rotation with JPD, unless it was Triple A - those went for $35 a tow. With the cost of diesel now, I think they should get an increase. Storage fees are not always paid to the towing company, most times, not. Anyone can pay an extra $25 bucks a year for auto insurance coverage for towing or get a Triple A membership like I have for my family to offset the expense. Those guys with the tow trucks and emergency road service are on call 24/7. No fun at (our) Christmas, other holidays, and our family's reunions, birthdays, birth of children, etc. --seemed to be when most people get stupid and need help. I'm not sure what the going rate should be today, but hopefully the rest of us are making more dough now than 25 years ago and they should, too.

Kingfish said...

So what? The market rate is around $75-80. These guys are in the city. $125 is not the going rate and is robbery. There are other services out there that would probably love to have the business.

Anonymous said...

I was charged more than that for a towing in a DUI incident in Ridgeland. I think it was $175.00-cash. And, of course, I was wrongfully arrested by Soto.

Anonymous said...

If a tow is made after ordinary business hours, then I can see charging an additional fee. That makes some sense to me.

Jackson needs to tell these price gougers to go tow themselves, and negogiate a mutually beneficial deal with another towing company that would be GLAD to have the business.

Anonymous said...

I think a look at what towing companies charge would reveal the $65-$75 rang would cover a basic tow within a certain radius. Is the price the city is attempting to set intended to be an all inclusive rate intended to cover whatever level of service may be required, or does the company have the right to adjust the price depending on the circumstances? Seems like it would be reasonable to believe the rate is intended to be all inclusive, and using the base charge would not be accurate. Doubtful, given the nature of tow calls, that it would be prudent to open the fees up to negotiations at the time the city would place the call.

Anonymous said...

If soome of the wreckers don't want what the city of Jackson is willing to pay them then they can go elsewhere for their business.

I bet there will be some wreckers who will tow for $65 and be glad to get the busiess.

Anonymous said...

I think that's part of the problem. The city wants a set price, regardless of circumstances. Companies don't think that's fair. I agree, but I also don't think they should be able to raise the cost for a basic tow job any more than could be justified by proven actual expense increases.

Kingfish said...

These same wreckers gouge you if you have to go across county lines. Yeah, go from St. Dominics to River Oaks and you pay an extra fee because of that river yet the same distance in the opposite direction is less. $75 or so with both points in Jackson is fair. As I wrote earlier, guaranteed business usually means lower prices in the private sector. Let them go on strike. Give me a day and I bet I can have some lined up that will do just as good a job.

Anonymous said...

The jsutified rate likely falls somewhere in the middle. To properly determine what that would be, you'd need to examine the history of the types of tows made by the city, and I seriously doubt the city council has made an effort to do any type of legwork in that regard. The one price covers all is likely the way to go; anything else complicates the process and adds to the bureaucracy of Jackson city government, which only hurts the taxpayer. It would also be interesting to know how much guaranteed business there is; how large the pool of companies used is, how often their number comes up, if they can decline a call or if it disqualifies them from future consideration etc.

Kingfish said...

$125? No way. Don't take my word for it. Start picking them out of the yellow pages and call.

Anonymous said...

First, check your math; not sure how you get $125 out of "somewhere in the middle" of $65 and $125. And like I also said, if it is an all inclusive rate, you'd need to know the % of the types of calls to come up with that accurate rate. Guaranteed business is definitely worth something, but even in doing work with government, an entity has the right to expect a reasonable profit. Doubtful any of us can determine what a reasonable profit is in this case, without additional information.

Anonymous said...

If the towers have to pay for ever increasing health insurance and higher price of fuel, why cant they pass it on?
How bout the minimum wage that went up to $5.85 in July 2007, then $6.55 in 2008 then $7.25 in 2009. If I were a tower, and didnt need the work, or didnt want it, why would I do it for a lower price? How long does the City take to pay them???

Anonymous said...

What are comparable contracts in Memphis, New orleans, Atlanta?

King Fish, you should let the towers work it out with City Officials. Maybe there is more to the job than you think.

Ironghost said...

I think a lot of towers found KF's site.

Anonymous said...

And obviously everything prior was posted by Big Ken and Chuck Labamba.

KaptKangaroo said...

I get it now "towers"....I thought you were talking about buildings...I made the mistake reading the RSS comments, but thought none-the-less this song was appropriate.

Quit trying to gouge a city already awash in debt, red ink, crime and a lot of broken down cars.

KaptKangaroo said...

Ooops, here is the link. Click my name for more.

Anonymous said...

"Since 1997 to 2010 that's 13 years of no price increase.  Everything else is raised, DUIs, tickets, all that stuff yet we've seen no price increase.  What we're asking for is not outrageous. It's just to match other counties in surrounding areas," said Ward.

Trey Ward, owner of Ward's Wrecker Service in Jackson, said his company and others charge $125.00 for towing.

The city agreement will only increase the towing fee from $65.00 to $75.00.

Wrecker companies complain that there that have been no increase in fees for 13 years.

Some companies, like Wards, said they have years of unpaid city invoices.

Anonymous said...

The fee is $125 for vehicles taken to private lots.

The wrecker companies want $125 for all tows, which is already the going rate in cities in Rankin, Madison and Warren Counties.

“I want the public to know that yes we will pull for our regular customer,“ said Trey Ward, owner of Ward Wrecker Service. “If you call us directly we will come and get you. We’re not going to deny you service.“

Anonymous said...

Trey Ward is a damn fool anyway. He once tried to buy a business from someone with a non-existent trust fund. His daddy must also be a fool for letting him run the business.

Kingfish said...

Like I said, call up several services tomorrow, tell them you want to go from one point in Jackson to another in Jackson, and see if the average is $125.

KaptKangaroo said...

The twin towers, thats what we are talking about here. Its called have your cake and eat it too. You want guaranteed business, guaranteed income, guaranteed prices. Now you want more. Next time I find a business that guarantees me a profit, I will certainly stand up. Hell, I'm thinking of buying one of your used tow trucks and accepting the terms proposed. I might just go put some kid in business who needs a job and make nothing off the deal. This would be my contribution to growing the economy. I'd love to take NO RISK.

Anonymous said...

I did not know so many were against the towing services making a living. Buying a truck is just part of it. There is insurance, accessories, diesel and then paying your employees. Roughly just paying insurance you would need at least 20 calls per month @ $65 per call. Those trucks usually don't get over 9 miles per gallon of diesel. I think the tow truck companies need a raise.

Anonymous said...

I did not know so many were against the towing services making a living. Buying a truck is just part of it. There is insurance, accessories, diesel and then paying your employees. Roughly just paying insurance you would need at least 20 calls per month @ $65 per call. Those trucks usually don't get over 9 miles per gallon of diesel. I think the tow truck companies need a raise.

Anonymous said...

"Like I said, call up several services tomorrow, tell them you want to go from one point in Jackson to another in Jackson, and see if the average is $125."


And like I said, nowhere did I say an "average" of $125. Before I go calling though, what kind of scenario should I price, a pickup of a broken down abandoned car at 10:00 am on I-55, a 6:00 pm wreck on the interstate that requires a car to be wenched out of the woods, or a 3:00 am run to pickup a car from a crackhouse raid in west Jackson?

Anonymous said...

I think y'all should all own a towing service! We get woke up at 4 in the morning! We don't get to live a normal life! An when the truck brakes down I can assure you it cost more then 75 to fix it! The insurance for us to have to tow your car! Is over $500 a month! You add up that, truck notes, fuel, tires, pay roll for the man to leave his family at home, to lay on ye side of an interstate an take a chance of getting ran over for people that have no curtisy! I think you should take your $75 bucks an go to hell, until you figure out what it's actually like!



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