The Road Calls
Smoky
Mountains Mishap Bill’s Garage brings trailer back up the mountainside
CHOOSING
On-Scene Lighting
Hourly Billing
for LD Jobs?
Dangerous Hybrid/EV Fires
TowIndustryWeek.com
AUGUST 2020 AmericanTowman.com
$10
Contents
Cover Feature
Volume 44 Issue 8
August 2020 16
Smoky Mountains Mishap
Bill’s Garage in N.C. responds when a trucker follows her GPS down a soft gravel road in the hills and loses her trailer.
by Danielle Hopper Bill’s Garage dispatched two Century 5030 units, a Century 612 and two Jerr-Dan rollbacks to recover a rolled trailer and lost turf.
Features
12
Finding the Right On-Scene Lighting
Consider all the angles, volts and lumens when you need to replace, upgrade or add to your scene lighting. by Paul Stephens
48
Departments 6 The Walkaround 8 News Share 10 Road Tools 12 Tow Engineer 20 Tow Manager 24 Beacons On! 28 Tow Boss 34 Ad Index 46 Towmans Market 48 Tow Americana 50 Lowdown 52 Repo Run N,S 54 Repo Times M,W 55 54 Roy’s Remedies 57 Adventures of AT
Giving the Lord a Lift
It was Flynn’s Towing on the scene to safely move a marble statue of Jesus from a former monastery garden to its new location. by Joyce Powers
4 • August 2020 | Towman.com
First on the scene since 1977
The Walkaround Yes, We Can!
Dennie Ortiz Publisher
We’ve all been trying to adjust to the new normal that I hope becomes the old normal much sooner rather than later. Businesses throughout the country and around the world are struggling to adapt to the ever-changing environment of the pandemic. Edicts and regulations seem to shift from day to day and region to region. So many families are suffering due to job losses and closed businesses. Many parents are faced with the challenges of de facto home-schooling while simultaneously trying to earn a living. We must continue to adapt our businesses in new ways to the latest reality and continue to fight for the future when this terrible crisis is in the rear-view mirror. My only child, Chance, is a high school senior this year and lost the last part of the school year to the COVID-19 lockdowns like so many thousands across the country. He also was infected with the virus, though, fortunately, only suffered mild symptoms and did not transmit the virus to the rest of our family. Chance goes off to college this fall amidst all this craziness, at least that is the plan for now as his school is still planning on opening its doors. The poem “If—” by Rudyard Kipling was shared with me by my mother years and years ago and I’ve tried to engrain its concepts into my son. I believe this poem could offer some words of wisdom to all as we surmount the challenges of today to reach brighter times: If you can keep your head when all about you / Are losing theirs and blaming it on you; / If you can trust yourself when all men doubt you, / But make allowance for their doubting too; / If you can wait and not be tired by waiting, / Or, being lied about, don’t deal in lies, / Or, being hated, don’t give way to hating, / And yet don’t look too good, nor talk too wise; … If you can make one heap of all your winnings / And risk it on one turn of pitch-and-toss, / And lose, and start again at your beginnings / And never breathe a word about your loss; / If you can force your heart and nerve and sinew / To serve your turn long after they are gone, / And so hold on when there is nothing in you / Except the Will which says to them: “Hold on”; If you can talk with crowds and keep your virtue, / Or walk with kings—nor lose the common touch; / If neither foes nor loving friends can hurt you; / If all men count with you, but none too much; / If you can fill the unforgiving minute / With sixty seconds’ worth of distance run— / Yours is the Earth and everything that’s in it, / And—which is more—you’ll be a Man, my son! As I’ve said before, towers are a resilient lot. We must continue to remain strong. In response to Kipling’s poem, our answer will be, “Yes, we can and Will!”
6 • August 2020 | Towman.com
Dennie Ortiz Steve Calitri Brendan Dooley Charles Duke Randall Resch Terry Abejuela Jim “Buck” Sorrenti David Kolman Bill Simmons Mark Lacek Brian Riker
Publisher Editor-In-Chief Editor Senior Editor Operations Editor Field Editor, West Field Editor, Northeast Chassis Editor Safety Editor Repo Run Editor Contributing Editor
Editorial Board Tommy Anderson Roy Carlson Debbie Collins Belinda Harris Bill Johnson Ron Mislan Kurt Wilson
Dallas, Texas Saint Paul, Minn. Las Vegas, Nev. Greensboro, N.C. South Hadley, Mass. Warren, N.J. Creve Coeur, Ill.
American Towman Staff Page Layout Artist Advertising Sales Mgr. Senior Account Exec. VP of Accounts General Manager Publisher’s Assistant Customer Service Subscription Manager TIW Media Director Regional Advertising Sales iMarketing Manager ATTV Producer President
Gina Johnson Dennie Ortiz Ellen Rosengart Norma Calitri Jimmy Santos Toni Vanderhorst Henri Calitri Patrice Gesner William Burwell Peggy Calabrese Ryan Oser Emily Oz Steve Calitri
American Towman Media Headquarters 2 Overlook Drive, Suite 5, Warwick, NY 10990 800-732-3869 or 845-986-4546
E-Mail: Publisher Editor-In-Chief Editor AT’S Digital Edition AT’S Website AT’S Weekly ATTV
dortiz@towman.com scalitri@towman.com bdooley@towman.com itowman.com americantowman.com towindustryweek.com americantowmantv.com
Copyright ©2020 American Towman Magazine is published 12 times a year by American Towman Media, Inc.
Subscription: Single Copy: $10 1 yr: $60 – 2 yrs: $110 International: $75 & $135
All material published through American Towman Media (AT), to include American Towman Magazine, iTowman.com and TowIndustryWeek.com, including advertisements, editorials, articles and all other content is published in good faith. However, AT accepts no liability for any errors or omissions, and does not endorse any companies, products or services that appear. AT does not test or review products submitted for inclusion in its publications. AT does not accept responsibility for the accuracy of content, warranties or claims made or implied by its advertisers. The views expressed are the authors’ alone and do not necessarily reflect the views of AT. The act of mailing or delivering a letter, email or article to AT shall constitute permission to publish that letter or article or any portion thereof. AT reserves the right to edit any and all material submitted. No part of the magazine or websites may be reproduced without prior written consent of AT.
News Share Task Force Targets Industry Violence
In Ontario, Canada, the local government recently assembled a task force to look into overhauling the province’s towing industry amid a deadly turf war the Toronto area for close to two years. Consultations with towing stakeholders will take place over the summer, the source said, and regulatory changes could begin as early as the fall. The commitment to exploring a provincial licensing framework marks a significant shift for the Ontario government, which previously stated that was not on the table. A government source said the Ontario’s position on the need for reform changed when the extent of the violence became clear. The task force will also explore background checks. At least four men with ties to the towing industry have been killed since December 2018. A law firm was run out of town after its office was twice set on fire, and then shot up in broad daylight. Several police officers were charged with towingrelated corruption including accepting kickbacks. Source: theglobeandmail.com.
CTTA’s Eric Gould Passes Away
Eric Gould, media and marketing manager for the California Tow Truck Association, passed away suddenly July 3. CTTA President Quinn Piening spoke of Gould’s contribution to the association: “As many of you know,” Piening said, “Eric played a huge part in so many things we have accomplished in the past and was crucial to many of the current works we have in flight. “He was a model employee as anyone who knew him will attest, but more importantly, he was an example to all of us of what a truly wonderful person looks like.” Gould leaves behind his wife, Dana. A GoFundMe account was established to assist family. Source: CTTA.
8 • August 2020 | Towman.com
Towmen Bid Farewell to Will Ellis Towman Will Ellis died while helping a broken-down vehicle on the Don Holt Bridge on July 1 in Charleston County, South Carolina. Ellis, 45, owned Carolina Roadside Services. Investigators were still piecing together what happened on the bridge, but it’s presumed that Ellis was somehow sent over the edge of the span and into the Cooper River below after the driver of a Ford F-350 pulling a trailer crashed into a deputy’s vehicle. The deputy had pulled up to help Ellis who was assisting a motorist whose vehicle had broken down. Ellis’ body was found July 2 in the water near Daniel Island. A memorial service included a procession of trucks with towmen from all along the East Coast who went to Charleston to pay their respects. A GoFundMe account was established.
Towman Will Ellis. abcnews4.com image.
Jimmy Conroy, owner of Jim’s Towing, was one of them. “When a brother is lost on the side of the road, it’s very tragic to the whole industry,” said Jimmy Conroy, owner of Jim’s Towing. Sources: postandcourier.com; abcnews4.com.
Towman Killed on I-44 in Oklahoma A towman was hit and killed while on the job near the town of Fletcher, Oklahoma, in early July. Bernardo Martinez, who worked at Sergio’s Towing Service since October, died at the scene of a crash on I-44. Martinez was on the westbound shoulder of the interstate, standing next to a 1999 Ford F-350 that was being loaded onto his 2009 Peterbilt wrecker. A car driven by Karen Cole went off the right side of the road and struck Martinez — causing him to be thrown into a ditch — along with the Ford F-350. Cole’s vehicle then partially drove onto the wrecker’s rollback bed and struck the headache rack, the news release states. There is a GoFundMe account to help family. “This guy was a solid, just genuine, great, honest guy, and a good
Towman Bernardo Martinez. kfor.com image.
worker,” colleague Cody Ceballos said. Martinez leaves behind a wife, four children and two grandchildren. Source: kfor.com.
News Share TN Tow Show Cancelled
AT Expos
AT Expo Corp. will be announcing 2021 show dates shortly.
Readying for 2021
In light of the uncertainties surrounding the COVID-19 pandemic, the banning of large social gatherings in the host cities and the concern for the safety of attendees and exhibitors, American Towman has cancelled its 2020 shows in Cleveland, Las Vegas, San Antonio and Baltimore. The decision was made after comprehensive discussions with the convention center team in each host city. “Given the current climate of the pandemic and the edicts of mayors and governors not allowing conventions, it has become impossible to plan and hold our shows in these cities [in 2020],” AT Expo Corp. President Henri “Doc” Calitri said.
However, dates for the 2021 Expos will be finalized shortly, Calitri said at press time. “Tow business owners and industry suppliers are facing unprecedented challenges to their businesses caused by the pandemic,” Calitri said. “Our company, too, has been hit hard. But American Towman plays the leading role in our industry for connecting our industry suppliers with the owners of towing and recovery operations. We know that tow bosses and suppliers alike count on us to be a catalyst to their success and growth. Our commitment to this important role is steadfast.” Source: American Towman.
‘And They Went Back In’ Veteran singer-songwriter Mike Corbin recently released a tribute song honoring the front-line workers in the fight against the coronavirus, “And They Went Back In,” featuring lyrics by American Towman Editor-inChief Steve Calitri. The chorus of the melancholy, earnest tribute calls out: “Folk on the front line / Behind the kerchief / Heart their carbine / Ambushed by grief; Staggering through the storm / Adrenaline their gin / The enemy swarmed / And they went back in.” Calitri and Corbin have been collaborating on songs since 2011’s first Towman Ballad, “The Road Calls.” Corbin recently helmed the Spirit RV around the country for two years with his wife, Ilce.
Work the non-traffic side - Stay Safe!
‘Towing’s Troubadour’ Mike Corbin has recorded a tribute song to all those on the front line of the COVID-19 pandemic called, And They Went Back In.” Cover art image.
“And They Went Back In” is available to listen to on YouTube and for purchase on iTunes and Amazon. Source: AT staff.
The 2020 Tennessee Tow Show and International Towing Museum Weekend in Chattanooga, Tennessee, scheduled for Oct. 8-10, has been cancelled. A statement from the event organizers read, “In light of the uncertain health impacts surrounding the coronavirus pandemic, we are announcing the cancellation of this years’ October events. “We are very grateful for the outpouring of support from our Museum Weekend sponsors and Tennessee Tow Show sponsors and exhibitors. … We again congratulate the 2020 Hall of Fame inductees. “We cannot wait to see you accept the industry’s highest honor at the 2021 Hall of Fame induction.” Source: tennesseetowshow.com.
Ordinance Adds City Licensing A recent crash in Chicago, Illinois, involving a tow truck that lost control and caused a CTA bus to veer off the road injured at least six people. That crash along with other incidents has brought the tow industry there under increased scrutiny. Alderman Gilbert Villegas introduced an ordinance recently that would require towers to be licensed by the city in order to work in the city. Villegas said drivers often speed through city streets to arrive at a crash scene and tow a vehicle. “Right now they are licensed by the [Illinois Commerce Commission],” he said. “This would pull back their license (and) their ability to operate within the city of Chicago.” He thinks every ward in the city is dealing with this. “I’ve had upwards of 50 complaints in my ward,” he said. The ordinance would help address that issue as well with stricter fines. The ordinance was in the finance committee with hearings yet to be scheduled as of press time. Source: wgntv.com.
AmericanTowman.com | August 2020 • 9
Road Tools Signs for the Times
New from Anchor Graphics is just about any signage you need during the COVID-19 pandemic to keep employees and customers aware of social distancing requirements and more. Banners, floor decals and available signage include: • Social distancing. • Face masks required. • Business reopening. • COVID-19 construction. • Occupancy. • Wash hands. • Temperature check.
800-875-7859 anchorgraphics.com
Safety Lightbars
614-861-4265 calstowing@sbcglobal.net
The Berkey Arrow Traffic Control Lightbar is a custom traffic-control arrow created for safer accident scenes. The high-visibility lightbar is wide enough to be seen while loading and hauling a truck or SUV. It is easy to install. All aluminum, professional raptor finish. The lightbar features 10 6” oval red lights with 10 LEDs per light, sequential turn signals, three 2” red DOT lights, two 1” amber end lights, 15 chrome light bezels, two 6” oval lights facing towards turn signals, and mounting hardware. Models fit 1-ton to 50-ton.
Gas-Powered Aussie Rimshine Aussie Rimshine’s truck wheel maintenance and polishing machines are available as gas-powered as well as electric. The quick, simple machines polish wheels on the vehicle and are easily portable.
909-476-6068 aussierimshine.com 10 • August 2020 | Towman.com
Tow Engineer You’ll need to consider several factors in finding the right onscene lighting for your company. Coleman Motor Co. image.
Finding the Right On-Scene Lighting by Paul Stephens
Paul Stephens is a towing industry trainer with more than 34 years of towing experience. He has served as a consultant for many automobile manufacturers, equipment manufacturers, and companies for service provider education, towability and road service procedures.
T
he choices in scene lighting can be shocking when planning out a new truck or thinking of upgrading your older units, however choosing the right equipment for your overall purpose will help mitigate the decision time. Having the right lighting will pay dividends when needed, but regulating that available power to make sure it doesn’t wear your system down is just as important. On-scene lighting can take many forms, there are the construction wobble lights, pole lights from hardware stores, battery-operated light poles, pelican lighting, mounted lighting, a lot of options are available but then comes the storage, and cost. Larger companies seem to adjust or absorb the cost associated with these expensive items or at the very
12 • August 2020 | Towman.com
least have figured out how to back charge for their usage. On-scene lighting has gone through many changes over the last few decades where advancements in technology have increased their footprint within the towing industry. The modern light head has evolved into a reliable low-amp-draw tool that, when used properly, can be an asset within a low-light scenario. These lights got a start on the rear of tow trucks back in the early days, but had many drawbacks like killing the voltage system while sitting at idle. Lighting has drastically changed since then and brighter lights on scenes are achieved at much lower amps now. The ability to deploy a light bright enough to see clearly at night, in the rain or under a low cloud ceiling has always
been a challenge in our industry; the brighter the light head, the more distracting and blinding it can be which ultimately can result in an onscene hazard for oncoming traffic, operators and emergency crews. We have used flood lights for many years in a somewhat permanent
can go with in lighting. Ensuring it’s functional for what you need is most important. Keep an eye on the direction you are streaming those light patterns as the more powerful these lights get the more blinding they become and can be a hazard to oncoming traffic
Amp: Unit of electrical current.
Beam candlepower: Measures the brightest spot of luminous intensity in the center of a beam (greatest concentration of light). Beam pattern: How wide and how far a beam goes.
Do not subscribe to the idea that a brighter light aimed at traffic will ultimately slow them down mount with little or no available movement for adjustments, which can cause some additional problems such as directing the light where you want it or having it angled in a not so friendly direction. The modern versions of these lights can be truly worth the upgrade as they now come with swivel bases, LED heads, flood, fog and micro-adjustors; there really are an endless amount of directions you
Light Terms
Candela: A unit of luminous intensity. One candela is equivalent to 12.57 lumens.
which can also affect your on-scene safety. The blinding lights in those eyes cause a deer-in-headlights reaction and jeopardize the scene’s safety. Do not subscribe to the idea that a brighter light aimed at traffic will ultimately slow them down as it could make them speed up to get by faster. The size of the overall light, adjustments, output and lumens all play into your decision to
◀
Halogen, Xenon: Bulbs filled with these gases produce brilliant white light; generally are more efficient than ordinary bulbs.
LED: A Light Emitting Diode bulb is high-intensity and can last up to 100,000 hours on little power. Lumen: Unit of luminance. The amount of light emitted per second from one uniform candela. A flood lamp with a wide dimappearing pattern can have the same lumen rating as a focused intensely bright spot lamp. Reflector: Surrounds the lamp to directs and focus the beam. Voltage: Unit of electrical potential.
TowMate’s Mo-Pro roadside strobe/flare system features a red/blue, red/red or amber/white strobe and white area fill light; mounts using a new magnetic power base. Towmate.com.
Work the non-traffic side - Stay Safe!
Wattage: Unit of electrical operating power; can be calculated by multiplying voltage times amperage.
AmericanTowman.com | August 2020 • 13
Will-Burt’s Night Scan Powerlite HDT light tower illuminates the scene with 120,000 lumens. The remote-controlled light positioner precisely aims the lights at the recovery scene regardless of the position of the rig. Willburt.com.
upgrade, so the first question should be what are you trying to accomplish with your lighting? Clearer vision and adjusting direction of the beam are the main
overall lumen output should be your starting point. The larger the unit, the more area you need for mounting, but as these units get bigger there is usually a
The blinding lights in those eyes cause a deer-in-headlights reaction and jeopardize the scene’s safety. reasons most choose to upgrade and key factors in most lighting decisions. The relative base size is important for mounting however really seeing the light pattern display coverage area and the 14 • August 2020 | Towman.com
need to have a larger coverage area and a longer usage time. These can be more expensive decisions, but they offer more life expectancy and larger coverage areas that will definitely help where there is no
viable natural lighting available. There are many options for surface mounts, which are popular in fire and rescue squads that utilize these lights on their side panels. There are also the options to have full-blown light towers. The towing industry seems to be more accepting of the costs and space needs associated with the more elaborate scene lighting (and are starting to pass those expenses on in fees to the responsible parties for essentially light tower rental fees). So, if you don’t want a permanently mounted larger unit on your truck, there are other options available such as a good portable light tower; sometimes these may be found used from other tow companies, a rental company or government auction. They can still have plenty of cycle life left to facilitate what you need
Lighting Advertisers Command Light .................... see p. 27 Custer Products ................... see p. 36 GoLight ................................. see p. 42 TowMate ............................... see p. 34 Will-Burt ................................ see p. 21 for accidents, recoveries or long-term events. These light towers are portable and have a raise and lower feature for the tower and can be loaded onto a flatbed or pulled behind a truck. They are versatile on coverage types. However you plan on lighting up your scene, pay attention to cost and return on investment as well as power sources — is a generator in your future, or moreexpensive battery units? Plan ahead. Having a way of getting them to you on site is also a question but permanent mount units can be a challenge too. If you need the lights and they are on another truck on another job … uh-oh.
Work the non-traffic side - Stay Safe!
A Command Light tower helps illuminate crews’ response following the 2011 tornado in Joplin, Missouri. Commandlight.com
AmericanTowman.com | August 2020 • 15
Smoky Mountains Mishap Luckily, lost driver only loses trailer down embankment By Danielle Hopper
Bill’s Garage; West Jefferson, North Carolina
16 • August 2020 | Towman.com
Bill’s Garage brought several rolls of turf back up the hill (above), after a driver followed GPS down a small gravel road until she lost her trailer (facing page).
O
n June 15, 2020, the North Carolina Highway Patrol called us to respond to an overturned tractor-trailer. The casualty was on Old Highway 16 just south of Glendale Springs. The driver had been turned around by her GPS and led down a single-lane gravel road until she finally lost the rear tandems over the soft edge and the trailer flipped down the embankment. ◀
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 17
We dispatched one heavy at that time, unaware
that the trailer had rolled down the embankment.
Luckily for the driver, the fifthwheel plate broke out of the trailer during the roll, allowing the tractor to crash back down to the road instead of careening down the bank with the trailer. Following that, the lucky driver was able to continue down the road to find cell service in order to call 911. Original reports from the highway patrol stated that the trailer had just come unhooked from the tractor and we needed to reattach it. We dispatched one heavy at that time, unaware that the trailer had rolled down the embankment. Just before arrival on scene, the highway patrol called back and told us that we were going to need multiple units to respond due to the trailer having rolled down the embankment. We wound up on scene using two Century 5030 wreckers, two flatbeds, one skid-steer with a grapple attachment and a Ford F-550/Century 612 and five operators to get 14 bundles of turf that weighed 3,500 lbs. per roll. We used the Century 612 to bring the rolls up the bank one by one due to the lack of space to work. The skid-steer with a grapple and two flatbeds were used to haul away the large rolls of turf once we brought them up the bank. We then relocated the rolls approximately 500’ down the road in a large bend that we used to stage the load. The lost load was brought back up one by one ahead of rigging for the trailer.
18 • August 2020 | Towman.com
Once the load was recovered, we brought the skid-steer and flatbeds through. Then we sent in the two Century 5030 units (one with XP-850 Side-Puller) to recover the trailer. Due to the way the trailer came to a stop, we decided to slide it up onto the road before turning it back onto its wheels. Once back up to the road, we used the 5030s to barrel-roll the trailer and set it on its wheels back on the road. We then picked the trailer up from each end and carried it out to the closest main road which was the Blue Ridge Parkway. We were then able to tow the trailer to the yard while we finished cleaning the road and loading the last few rolls.
Century 5030 units brought the trailer back to the small road (top), before rotating it onto its wheels (above).
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 19
Tow Manager
Hourly Billing for Light-Duty Work? by Brian J. Riker
Brian J. Riker is a third-generation towman, with 25 years of experience in the ditch as a tow operator, and president of Fleet Compliance Solutions. He specializes in helping navigate the complex world of federal and state transportation regulatory compliance. He can be reached at brian.riker@ fleetcompliancesolutions.net
F
or as long as I have been involved in this industry (going way back before COVID-19), rates and employee pay have been contentious issues. The customers often are confused by our billing practices, especially for recoveries or other jobs that are not as straightforward as a basic tow. Although billing challenges are most prevalent in heavyduty because of cargo spills and other environmental factors, light-duty is not without its challenges when asking for fair compensation. There are many methods to invoice for towing and recovery services, each
20 • August 2020 | Towman.com
with their own merits and detriments. This article is focused on hourly billing for the light-duty segment and how it could benefit the industry. Many towers use a formula for lightduty invoicing that is based upon a basic response rate per truck, distance driven, winching (per foot if applicable) and some accessory fees for any special equipment used or minor cleanup. In many areas, the police towing contract may even combine all these into a single response fee that is designed to compensate based on the average time and effort to respond to a light-duty request for service.
That idea may be unfair to both the tower and the vehicle owner. A company and its employees should be fairly compensated for all the work they do for a call— by the responsible party. Often in our industry, costs are shifted from one call to another or one service to another. While a simple job may pay much more than it is truly worth, the more complex job, invoiced at the same rate as the simple job, is actually completed at a loss. How is this fair to anyone involved? While a flat-fee structure is simple, it may not be equitable to everyone, especially the person actually doing the job! A flat hourly rate charged from the time a truck is dispatched until it is clear and back in service for the next call would eliminate this cost-shifting. This flat hourly rate also allows companies to more accurately predict potential income. Hourly rates are fairly simple to calculate for each piece of equipment … if you know your true costs of operation. Take all your fixed costs, add in the cost of your labor at a per-hour rate, an hourly average for the variables such as fuel, tolls and other uses plus the desired profit for the truck, then divide that number by the hours that piece can be expected (realistically) to work each day.
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Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 21
This will give you a base cost per hour to operate your truck, then you can adjust to market conditions from there to allow for cash or wholesale pricing, fit into state-mandated rate caps and more. Fixed costs include: • Truck payment. • Insurance. • Truck maintenance. • Tools and equipment. • Funding (saving) for replacement. • Building lease. • Parking space. • Marketing. • Dispatch operations. • Management costs. Variable costs can be converted to an hourly representation based on solid records. Based on the average hours you used the equipment over a period of time, all the variables can be converted to hourly rates. The longer you collect data, the more accurate these numbers will be. The industry uses hourly as the standard for heavy-duty recoveries, winching and, in many regions, even towing. Light duty can be done the same way with a little education to your consumers.
22 • August 2020 | Towman.com
With the world open to changes in how we conduct business, now is the time to address issues such as this. Holding onto something just because it is “how we have always done it” is bad business; times change and so must our processes.
ludicrous. It wasn’t until just a few years ago that I began to really think about hourly pay for drivers. I found when I discussed hourly pay with potential new hires, they tended to be put off, as they were used to
Hourly rates are fairly simple to calculate for each piece of equipment … if you know your true costs of operation. I began my career three decades ago as a pure commission driver for a company that predominantly served motor clubs. Coming from a job as a diesel technician that was paid hourly with overtime, it was a shock to learn that I may not be paid for everything I did as a tow operator, or that the same trip could be worth significantly more depending upon the customer that called for service. I found this
commission and wanted to stay with the status quo—even though hourly allows the driver to predict their earnings more accurately. (It is also true that when drivers are paid for everything they do, fighting over the “good” or “bad” dispatches becomes a non-issue. Imagine no more fighting over the cash call vs. the club or wholesale call among your drivers.) Hourly pay isn’t without its
pitfalls either. There will always be a percentage of employees who will take advantage of any pay plan. While commission employees may be tempted to pad invoices or mileages to earn more, hourly workers may have a temptation to slow down to run up the clock. As to efficiency, commissiononly does have a way of making drivers be quick about job tasks, while perhaps hourly pay can encourage drivers to use all their safety equipment and take enough time to do a job safer. Hourly pay may even encourage a driver to take the time to properly do pretrip inspections of their truck and report minor problems before they become major failures. While efficiency is extremely important to the success of any business, it must not come at the expense of safety or employee health. Hourly pay encourages employees to take their breaks, especially if they are not being paid for the break time if they choose to work through their breaks. Hourly pay rates also make it easier to ask drivers to complete non-driving tasks such as washing the trucks, cleaning the lot or helping in the shop between calls. This can make your operation more efficient because you may no longer need a separate person to do these tasks if the drivers have enough down time and it makes sense for them to return to base. When a tower doesn’t have enough work overnight to have a full-time driver on duty it is common to have a driver take a truck home and be on standby. Some states have determined this standby time as compensable time, meaning the driver should be paid for their time waiting for a call even if one did not come in. With commission drivers, some labor hearings have determined Work the non-traffic side - Stay Safe!
that a driver’s standby time should be equal to their average commission payment, while with hourly workers they have allowed standby compensation to simply be set at minimum wage. Paying your drivers by the hour can simplify relations with your state labor board since it is fairly straight-forward to calculate accurate payroll with hourly pay. It also makes calculating sick leave, vacation pay and other
compensation very simple. Even if your local contracts or regulations will not allow you to explore hourly invoicing for your light-duty operations perhaps it is time to discuss revising your compensation plan with your drivers? Imagine the relief your drivers might feel if they knew they were getting paid hourly even when the phone isn’t ringing (like these past few months).
AmericanTowman.com | August 2020 • 23
Beacons
On!
COVID-19 is changing the landscape in what it takes to make customers and operators feel safe.
Making Customer Service Safe By Terry Abejuela
Field Editor Terry Abejuela has 40-plus years of light-duty towing and recovery experience. He is also a light-duty Level 1 instructor for the California Tow Truck Association.
T
he two most important responsibilities of a tow operator at the scene of an incident are to provide for their own personal safety and the safety of their customers. This is a responsibility that must be taken seriously at all times. Towers must anticipate potential hazards, prep and efficiently execute a safety plan. Tow operators should review company policies, procedures and guidelines and ensure they are in compliance with them when it comes to their safety or the safety of customers. This safety plan must be practiced on every call so that it becomes a natural repetitive reflex. Due to the ongoing affect COVID-19 is having on the industry, some of the following recommendations may need to be modified or may no longer apply (such as having a customer in the truck). Providing for the safety of your customer begins with the initial request for service. When collecting pertinent information on the phone, ask about the customer’s safety at the scene. Are they blocking a traffic lane? Are they able to move the vehicle out of the traffic lane? Are
24 • August 2020 | Towman.com
they in an area where they feel unsafe? If they are on the shoulder, how close are they to the traffic lane? Other factors that may contribute to their safety might include the flow of traffic, weather conditions, time of day, and visibility. Make sure to get an accurate location and a cellphone number to call them back if needed. Once you arrive at the scene and make contact with your customer, you have developed a special relationship where you have some responsibility to provide for their safety. You must use your training, experience and tools available to do everything possible to make the scene as safe as possible. Never abandon a customer in an unsafe situation even if they are unable to pay for your services. At minimum, I recommend that you provide the customer transportation to a safer location. This includes situations where traffic is not the hazard but the area where the breakdown occurs is unsafe due to the time of day or it being a high crime area. Customers do not have training or experience and may not identify hazards at the roadside. Most customers will rely on the tow operator to provide
â—€
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 25
guidance. Some customers may not want to follow your instructions. You don’t have law enforcement authority to force people to comply, so you must use gentle persuasion, diplomacy and reasoning to get them to conform in a timely manner. Most customers will be reasonable to your requests if it is for their own safety. If necessary, request the assistance of law enforcement. As a towman with some experience, hopefully you understand the hazards of working near traffic; the customer may not. Based on your assessment at the scene, decide the safest location for your customer to wait while you ask them questions and perform your work on their vehicle. This would normally be in their vehicle or in your tow truck. If the customer is going to wait in your tow truck or in their vehicle, ask them to wear their seatbelt.
26 • August 2020 | Towman.com
You don’t have law enforcement authority to force people to comply, so you must use gentle persuasion, diplomacy and reasoning to get them to conform in a timely manner. Some customers may want to stand near you while you do your job. You will need to decide whether or not the safety at the scene is sufficient to allow this or not. In almost all situations where traffic is nearby, the customer should wait in their vehicle or the tow truck. Due to your company’s COVID-19 policy, having the customer in the truck may be prohibited. If the customer has another motorist at the scene for transportation it may be safest to allow them to leave the
roadside and meet you in a safer location after you complete your work at the scene. If the customer is going to remain at the scene with you, make sure to monitor their whereabouts at all times to ensure they remain in a safe location. Don’t allow customers to wander around on the shoulder or walk between the tow truck and the disabled vehicle. When a customer needs to enter or exit the cab of the tow truck, provide them with instructions;
if requested and necessary, provide assistance. A customer may not have any experience with a truck the size of your tow truck and be unfamiliar with using trucks steps. You should be at the door of the truck when the customer is entering or exiting it and provide instructions on handholds, truck steps and three points of contact. Customers wearing footwear such as flip-flops or high heels should be forewarned about their safety getting in and out of the cab. Physical assistance should be rendered only if it is requested, necessary and you are comfortable doing it. Do not attempt to provide physical assistance beyond the scope of your training and experience; in those situations with people with disabilities or limitations, you should request additional assistance from someone with the proper training and experience. With the COVID-19 pandemic, we can minimize towers’ exposure to customers. I am sure most tow companies have already taken a lot of these precautions. Towers should follow all the current CDC guidelines. Practice social distancing when possible, wash your hands frequently, wear gloves and a face mask, face shield and safety glasses. If you have not been carrying latex gloves this might be a good time to start doing so. Keep disinfectant supplies in the truck such as disinfectant hand wipes or spray and wipe down the passenger and driver areas of the cab of your truck. Wipe down commonly touched areas such as door handles, window and door buttons and arm rests. Avoid touching the customer’s vehicle as much as possible and wear latex gloves when you can’t avoid touching areas inside the customer’s vehicle. When possible, go as paperless as possible. If you need customers to sign a document or invoice, have pens that Work the non-traffic side - Stay Safe!
have been disinfected beforehand. Disinfect them after each use … or use pens with the company logo that have been disinfected and let them keep the pen. Look into the possibility of installing some type of sneeze/ cough guard between the driver’s seat and the passenger’s. A clear plastic material attached to the top of the cab that hangs down to the seat or floor that separates the driver from the passenger may help prevent transmission
of the virus. Consider posting a sign on the passenger side of the cab that lists all of the precautions your company is taking to protect customers from COVID-19 exposure. Your safety, and the safety of your customers, is of utmost importance. You must have a well-thought-out safety plan and implement it every time you are providing service to your customers.
AmericanTowman.com | August 2020 • 27
Tow Boss
Hybrid/EV Fire Dangers By Randall C. Resch
Operations Editor Randall C. Resch is a retired California police officer and veteran tow business owner, manager, consultant and trainer. He writes for TowIndustryWeek. com and American Towman, is a member of the International Towing & Recovery Hall of Fame and recipient of the Dave Jones Leadership Award. Email Randy at rreschran@gmail.com.
A first-generation 1996 EV1 from General Motors … headed back to the dealer. Randall Resch image.
T
he National Fire Protection Association reports that, in just the U.S. alone, the fire service responds to more than 200,000 vehicle fires annually. Hybrid and electric vehicle technologies have advanced so quickly it now poses safety challenges for firefighters and tow operators responding to incidents involving hybrid/EV vehicles. As a young flatbed operator, I was apprehensive when hybrid vehicles first hit the scene because there was no training for tow operators. There was, however, plenty of rumors suggesting things like if you used J-hook chains to secure a proper four-point tie down on one of General Motors’ EV1 models, you’d be immediately electrocuted. Today’s modern hybrid and EV vehicles typically are equipped with sealed, NiMH or lithium-ion battery banks creating some exposure to high voltage, wires and electricity for first responders and towers; engine fires were simply the tip of the iceberg. Typically, on scene risks are created when a hybrid vehicle is completely submerged, crashed into trees or a pole sideways and other off-the-wall incidents that aren’t typical to non-hybrid recoveries:
28 • August 2020 | Towman.com
• In December 2018, a Santa Clara County (California) fire captain confirmed a Tesla Model S, initially towed for a flat tire, caught fire as many as three separate times over 12 hours including in a tow company’s storage yard. • In May 2019, a boat owner’s hybrid SUV rolled back and sank into water not more than 2’ deep. As the SUV was winched up the ramp, there came a loud boom and the SUV burst into flames. A responding fire department took nearly six hours to extinguish that fire (reportedly started by the accidental immersion of batteries in saltwater). As part of arrival assessment, before beginning hook up and recovery, make a concentrated effort to determine if a vehicle is a hybrid. Badging for this is often difficult to discern from a non-hybrid model. When dealing with hybrid vehicles and recoveries, not only is electrical shock a primary danger, subsequent fire, explosions, acid/toxic release and smoke inhalation should always be considered extremely dangerous. Although the fire department may have put an initial fire out, there’s a solid chance that a smoldering
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Hybrid/EV fires are capable of multiple reflashes in transit or later on the storage lot. nahrs.us image.
hybrid will re-ignite in transit or in storage. Watch for smoke or steam coming from the vehicle’s engine compartment, particularly near the vehicle’s hood seams or proximity of the firewall. (According to a Tesla directive to the tow industry, “Park the wrecked hybrid far away from the company’s building and other stored vehicles in case flames start up again.”)
30 • August 2020 | Towman.com
Tow facilities should consider designating an area where hybrid vehicles are parked as a precaution … especially those involved in an accident or off the highway recovery. For hybrid vehicles experiencing mechanical failure from their mega battery banks, there also is a separate 12V system designed to start the vehicle. For hybrid
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Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 31
vehicles to be 100% non-startable, both systems must be disconnected and the vehicle’s key fob situated away from the vehicle. For safety’s sake, a hybrid/EV battery should always be considered dangerous.) According to specification data from Toyota, an intermittent shock emitted from the basic Prius C could be as high as 610V; more than enough to be fatal. Regardless as to what hybrid vehicle you’re dealing with, never cut hi-vis orange wires as a means to gain a system discharge. For towing, flatbed trucks should be the first choice for all calls involving hybrids. Towing a hybrid or EV on its drive wheels continues the charging process and may ignite a fire. If a carrier isn’t available, a wheel lift and dollies is acceptable. The NFPA states, a single vehicle fire has potential to
32 • August 2020 | Towman.com
Safety Meetings For your next hybrid/EV-themed safety meeting, consider the following sources to add depth to talking points: • nfpa.org; Under the “Training & Certification header you’ll find a unit for towers in the “Alternative Fuel Vehicles Safety Training” section. • youtu.be/8n5Wf7TlGrU; “High Voltage Vehicle Firefighting” by first responder trainer Brock Archer.
generate heat upward of 1,500 degrees F and flames from burning vehicles can often shoot out 10’ or more. Combine that with the potential and threat of explosion or electrocution, hybrid vehicle fires are deadly. There’s no industry expectation for towers to wade into extreme and potentially deadly environments especially for those untrained and not wearing appropriate PPE gear. An attempt
to open a hybrid’s hood or trunk could cause a smoldering fire to flash or hood struts to explode. Still, towers should meet with the on-scene fire captain at a hybrid/ EV scene and ask if they were able to neutralize the electrical system. Hybrid vehicles will continue to pose critical dangers to towers and first responders well into the future. It makes sense to obtain training on hybrids and EVs for working accidents and recoveries.
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 33
AD INDEX Akins Body & Carrier Sales....................37 Allstate Roadside..................................30 Atlanta Wrecker Sales...........................38 Austin Insurance...................................40 AutoReturn............................................15 Beacon Software...................................36 Berkey Enterprises............................M 54 Captain Recovery......................S 56, N 55 Chevron Commercial.............................26 Command Light.....................................27 Crouch’s Wrecker & Equip. Sales...........35 Custer Products....................................36 Deep South Wrecker Sales....................44 Dual-Tech Wreckers & Carriers..............32 Dynamic Towing Equipment & Mfg.........25 East Coast Truck & Trailer...............N, S 51 Elizabeth Truck Center...........................45 ERSCA CTTA..........................................40 G. Stone Commercial......................... N 56 34 • August 2020 | Towman.com
GOLIGHT...............................................42 Hino Trucks...........................................60 Intek Truck & Equipment........................44 Jerr-Dan Corp.........................................7 Kenworth of South Florida.....................33 Legacy Plus Insurance...........................38 Len Zermenos.......................................39 Lynch Truck Centers..............................29 Matheny Towing Equipment...................41 Matjack Jumbo Safelift..........................59 McMahon Truck Center......................M 51 Metrocom.............................................30 New England Truckmaster........M 55, N 54 North American Bancard........................11 OMG Tow Marketing................. M 56, S 54 Pacific General Insurance..................M 55 Peak Wrecker Sales...........................W 51 Performance Advantage........................31 PWOF....................................................33
August 2020 Sanderson Truck Equipment..................31 Santander Bank......................................2 Sea Crest Insurance Agency..............W 51 Select Truck & Equipment..................M 54 Sierra Pacific Insurance.....................W 55 Smyrna Truck & Cargo...........................21 Specialty Vehicle Equip. Funding............43 Steck Mfg. Co........................................22 Tow Industries...................................W 54 Towbook Management Software..............3 TowMate...............................................34 TowTruckLocater.com........................W 54 Urgent.ly...............................................23 Utility Trailer Sales S.E. TX.................W 56 Warn Industries.......................................5 West End........................ M, N, W 56, S 55 Will-Burt Company................................21 Winches Inc......................................W 55
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36 • August 2020 | Towman.com
Supplier Scoop Hino Launches ‘Confidence’ Initiative
Hino Trucks (hino.com), in response to current events affecting the economy, is introducing its Ultimate Confidence Initiative to help and support its customers that includes payment, service and warranty perks. “The COVID-19 situation has resulted in unprecedented financial challenges to our customers’ livelihoods and Hino is pleased to offer positive changes that effect their bottom line,” said Glenn Ellis, SVP of Customer Experience. “We will continue to support our dealers and customers so that when this crisis is over, they are ready for the opportunities ahead.” In conjunction with Toyota Industries Commercial Finance, Hino is offering customers a No Payments in 2020 opportunity for applications made by Aug. 31, 2020, on all new Hino models. The no payments/no interest in 2020 option will include coverage of all required maintenance in 2020 through Dec.
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Supplier Scoop 31. The current, complimentary HinoCare planned maintenance program for Hino’s cabover models (155, 195, M4, M5) will have a 90-day extension added to the end date.
TowMateTV Set to Launch
TowMate (towmate.com) recently launched TowMateTV, its new online source for product information, company news and highlights. The company said it will be introducing new products with in-depth explanations and details showing them in-studio and in-use on the channel, as well as features on staffers and other industry news. Episodes will be launched on TowMate’s YouTube channel and Facebook page with live broadcasts including live Q&A sessions planned as well.
HONK Partners to Provide Disinfectants
Honk Technologies (honkforhelp.com) has partnered with Spiffy to provide tow operators with access to EPA-approved hospital-grade disinfection solutions. The partnership provides Honk’s service provider network of more than 75,000 vehicles with direct e-commerce access and exclusive discounts at Spiffy’s Disinfection Store (getspiffy.com). “As a result of the current pandemic, our insurance carrier clients are continually asking us about stan-
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38 • August 2020 | Towman.com
Supplier Scoop dards for vehicle cleanliness,” said Rochelle Thielen, EVP Partnerships, Honk. “We’re proud to respond with this vital partnership … to enable continuous access to the highest quality professional chemicals that destroy COVID-19 and other pathogens to both our service providers and our insurance clients.”
Stertil-Koni Names Boyer RSM
Stertil-Koni (stertil-koni.com) recently named Carl Boyer as its Midwest Regional Sales Manager; he most recently served as its Shop Equipment Specialist. In his new post, Boyer brings nearly three decades of client-focused sales management, business development and customer service experience to manage a territory that includes Illinois, Ohio, Indiana, Kentucky, Michigan and parts of Wisconsin. He will be supporting Stertil-Koni’s exclusive distributor network in these states. Most recently, Boyer served as Shop Equipment Specialist at Stertil-Koni.
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40 • August 2020 | Towman.com
Supplier Scoop Propane Online Resource for Fleets
The Propane Education & Research Council (propane.com) recently launched its online learning resources with educational information about propane autogas for fleets and service technicians that are starting to return to work after recent shutdowns while navigating through new challenges. “The pandemic has been a wakeup call and it has many fleets reevaluating their best practices
and operational efficiencies, including their fuel choices,” said Steve Whaley, director of autogas business development at PERC. “For fleets that aren’t familiar with propane autogas, these resources are a great place to start to learn how the energy source can help reduce their costs and emissions. For fleets that already operate with propane autogas, these resources will help them smoothly get back to business.” The pages feature information
about owning, maintaining, and operating propane autogas vehicles and the benefits of the fuel; the fleet-specific page includes information on refueling, emissions studies, customer testimonials and educational videos. Learn more at propane.com/fleet-vehicles.
OMG Guarantees Online Ad ROI
The OMG Tow Marketing Team (omgnational.com) has reported that it can promise specific returns of online ad dollars ahead of time by using its massive data trove from hundreds of active Google campaigns. OMG has created a taxonomy for light-, medium- and heavy-duty search campaigns using live data from hundreds of active campaigns. This information is combined with machine learning to influence where and when ads appear. “As an example, if you knew that $500 in ad spend would yield 13 calls, you could apply a closing rate and estimate your return,” said Jesse Lubar, OMG CEO. “It empowers the Tow Boss and enables the little guy to use Marketing Technology to grow the business.”
Aussie Rimshine Offers Financing
Aussie Rimshine USA (aussierimshine.com) is now offering in-house financing for customers purchasing a new Aussie Rimshine machine kit. The company said it can offer low interest rate financing for its electric- or gas-powered Aussie Rimshine kits.
Muncie Names Doucett RSM-East
Muncie Power Products (munciepower.com) recently named Bob Doucett as regional sales manager for the East. Doucett, who has been with Muncie Power for five years, will focus on leading the field sales team in the East. During his time as field sales manager in the North Central region, the company said Doucett strengthened relationships with key distribution partners, expanded sales growth
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42 • August 2020 | Towman.com
Supplier Scoop and took on additional responsibilities. “He will put an emphasis on understanding our customers’ needs and creating a positive experience through ontime delivery, opportunities and growth,” said a company release.
PurePower Names Gow Director
PurePower Technologies (purepowertechnologies.com), a Stanadyne company in the engineering and remanufacturing of diesel fuel injectors and turbochargers, recently named Stephen Gow as director of business development and sales. He will be responsible for leading all business development, marketing and sales activities and growing the PPT product portfolio in the aftermarket and with OEM accounts and end-user customers. The company’s precision fuel, air-management and after-treatment systems range through light-, mediumand heavy-duty diesel engines.
44 • August 2020 | Towman.com
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46 • August 2020 | Towman.com
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Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • 47
Tow Americana
Giving the Lord a Lift By Joyce Powers New Jersey’s Flynn’s Towing was ready to help when a marble statue of Jesus needed to be relocated.
Joyce Powers grew up in the towing industry. Her family owns Nick’s Towing Service in Rutherford, New Jersey, where she worked and learned every aspect of the business. She is WreckMaster certified, attends many training courses with her husband of 20 years, Jim Powers; she opened her own marketing firm in 2012. She has given several seminars and written numerous industry articles.
I
n the late 1950s, two monks were sent from Italy to New Jersey with orders to open a monastery in the U.S. They established Our Lady of Fatima Monastery in Mount Laurel where they grew vegetables, made wine and served the community ministering to the sick. In 1978, the Catholic Diocese of Trenton donated 100 acres for the monks to build a church, dormitory and a rosary garden with life-size religious statues.
...there was no
margin for error in handling this
immensely important religious piece
48 • August 2020 | Towman.com
Nearly 60 years later, the monastery was closed and the Township of Mount Laurel purchased it and the accompanying land (to block potential development). When the monastery closed in September 2018, they were able to move all statues but one … Jesus. Albert Vanscrier, caretaker of the monastery, called in Flynn’s Towing to assist in moving this large marble statue. Bruce, Flynn’s owner, went to assess the job and come up with a plan because, as one might imagine, there was no margin for error in handling this immensely important religious piece. The statue was hand-carved in Italy from a single block of stone and there was concern to not crack or chip the statue when lifting and moving it. The day of the move, Bruce and operator Justin McGuigan arrived with Flynn’s 2016 Kenworth 660/Century 50ton rotator and 2018 Kenworth/NRC
Irish-Catholic Bruce said a
prayer of thanks following a job well done.
28’ tandem-axle flatbed. The team utilized two winch lines off the rotator to keep the statue completely straight and put straps underneath the arms. One of the winch lines was run to the base of the statue and connected to a strap so all of the weight wasn’t resting on the arms. There was limited room due to the number of cedar trees in the area, which created an additional challenge. Bruce positioned the rotator with just enough room to get the first outrigger down. Once rigged, he feathered the controls to bring the statue around very gently and set it down onto the flatbed truck. Once it was secured on the flatbed, Bruce released the winch lines from the rotator. They then transported the statue to its permanent location, where a new pedestal had been built. The ground was very soft, so boards had to be laid down for the rotator to access the area. Bruce reset the rotator, unstrapped the statue and re-rigged it. The statue was set on wet mortar laid by the mason who was on scene. The statue was kept rigged for about 30 minutes while the wet mortar set. Everything went perfectly and the Irish-Catholic Bruce said a prayer of thanks following a job well done. Work the non-traffic side - Stay Safe!
Flynn’s sent its Century 50-ton rotator and NRC 28’ flatbed to the garden grounds.
During the lift, a line was rigged to the base of the statue as well as the arms so all the weight wouldn’t be on the arms (above). The statue was secured to the flatbed for transport (below).
AmericanTowman.com | August 2020 • 49
Lowdown
Steve Calitri Editor-in-Chief scalitri@towman.com
Two recent songs by Mike Corbin, lyrics by myself. And They Went Back In pays tribute to those on the front line fighting the pandemic. The second song is the new American Towman Anthem, the first ever.
‘And They Went Back In’ They tend to them lying down Without gown just makeshift cover Game smiles upturn the frowns While the Reaper hovers
Charge the invisible onslaught Yee brigade of unsung courage Your Loves are home, you’re not You’re the captive on this stage
Mary and Eliza Don’t know when I’ll be back Give my love to grandpa Pay no mind when he blows his stack
They snooze like spacemen Standing in the midst of nowhere Or off the cot it’s time again To face the lifeless stare
Losses mount from the spread But you can’t cry Lean toward the next bed Pray for blue sky
Bodies blow away the morgue Sorry can’t stand it no more Again it’s Gettysburg Down the street the winds of war
Chorus Folk on the front line Behind the kerchief Heart their carbine Ambushed by grief
Chorus Folk on the front line Behind the kerchief Heart their carbine Ambushed by grief
Chorus Folk on the front line Behind the kerchief Heart their carbine Ambushed by grief
Staggering through the storm Adrenaline their gin The enemy swarmed And they went back in
Staggering through the storm Adrenaline their gin The enemy swarmed And they went back in
Staggering through the storm Adrenaline their gin The enemy swarmed And they went back in
‘Long Live Thee American Towman’ Long live thee / American Towman Long live thee / American Towman
Long live thee / American Towman Long live thee / American Towman
Long live thee / American Towman Long live thee / American Towman
On country roads, highways and streets On bridges and causeways they meet
In the creeks, in the rivers, and fields They work past all they feel
In the pages that mirror their calls They’re masters at clearing it all
The blood, chaos and slaughter On pavement, in dirt or water
In the ditch, on the slope, on the bluff They are called when the going gets tough
Their heroic deeds in the wind They sacrifice time and ag’in
They are legion They battle calamity
They are legion They battle calamity
They are legion They battle calamity
50 • August 2020 | Towman.com
Repo Run
Disruptive Innovation in Repossession By Mark Lacek
Repo Editor Mark Lacek authored the Certified Commercial Recovery Agent certification program and has more than 30 years of recovery experience. He is the former editor of “Professional Repossessor” magazine. Email him at Mark@commercialassetsolutions.com.
I
t is not a question of did the horseless carriage industry disrupt the horse and buggy industry, or if the internet has changed the printed news market. It is simply a fact that it did. In business theory, a disruptive innovation creates a new market and value network from existing ones. The fallout typically hits established firms and products hardest. The repossession industry is the latest victim of disruptive innovation. Long-established repossession companies have grown weak from fighting the war against the repossession assignment forwarding companies (forwarders). These national asset management companies have now amassed more than 80% of the repossession assignments. Lenders have signed up for the “one-stop shop” experience the forwarding model presents. Repossession owners across the country have tried to find ways to make a bigger profit. Some will tell you the road to higher profits is to offer a more qualified, compliant service with certified and trained staff and agents … but it isn’t. Most lenders will hire the agency charging the lowest fees instead of using the company who must charge higher fees because they take pride in regulatory compliance, maintaining trucks and certified employees. Choosing lower fees over quality of service has its drawbacks. I would guess that wrongful repossession lawsuits will increase because of less qualified and noncertified persons performing repossessions. In the past three years I’ve been hired by law firms as a consultant on wrongful repossession cases more than 25 times. I have seen an increase over the last 60 days.
North 52 • August 2020 | Towman.com
For the past 10 years, I thought the battle against these forwarding models could be won, but I was wrong. The repossession industry is now an industry reacting to disruptive innovation. With everything the assignment-forwarding model offers the lending communities, it isn’t possible for a small mom-and-pop company to be anything other than that what it is … a small mom-and-pop. Any idea of growth is a slow death. A repossession company can survive if, and only if, the company remains small and receives its assignments from the large assignment forwarders. There, I said it out loud. I don’t like that I said it — and I wish it wasn’t true — but it is true. This year more than ever, repossessors and repossession company owners must come together and decide how to survive in an industry which has just been “gutshot” by the COVID-19 crisis. Banks, finance companies, credit unions, and even subprime lenders have put most repossessions on hold. This abrupt halt in recovery assignments has caused most repossession company owners to rethink staying in business in an already narrow-margin industry. The North American Repossessors Summit is an annual two-day conference hosted by American Recovery Association in October at the Omni Mandalay Hotel at Las Colinas in Irving, Texas. The summit, reposummit.com, is a place for professionals in the recovery and remarketing industry from across the country to come together to address key issues impacting their industry and businesses. I will be there looking for answers and solutions (and probably something cold to drink at the bar).
Saddle up, Cowboy Maxwell Shockly was standing on the roof of a six-story office building directly across the street from Hunts Point Produce Market located in the Bronx, NYC. Shockly held the binoculars firmly to his eyes. A 2019 Peterbilt 389 was just pulling into the trucker’s entrance off of Edgewater Road. The Pete was hooked to a new 2019 Great Dane stainless steel reefer trailer; the total cost of the truck and trailer came in at $250,000. A $25,000 job for Shockly, this assignment would make for a nice payday. From his vantage point, he could clearly see his snitch … sitting in the passenger seat of the bright red Peterbilt. Turning his head just a bit to the left, Max spotted his driver leaning against a telephone pole at ground level, waiting for instructions. At a moment’s notice, the New York State-certified commercial recovery agent would follow the rig out of the produce market to wherever it went. (Hopefully to a nearby truck stop where the driver would stop to fuel up, take a shower and get a decent meal). The trucker, “Cowboy,” had been ducking the finance company for eight months. Before Max received the repo order, two other repossession companies had the assignment … and nary a clue on what to do repossessing semis. About two weeks earlier, Max ran the DOT number on Cowboy’s rig and found out he was involved in a minor traffic accident in Valdosta, Georgia. A female passenger was also in the truck, according to the police report that included her name and date of birth. After a few minutes, Max was looking at the woman’s Facebook page. “Just traveling the country with my new boyfriend,” one post said. “Gonna be with this cowboy until I have enough money to head back home,” her next post said. A few minutes more online and Max had her email address and cellphone number. Shockly decided to go out on a limb and send the girlfriend a text message. “I’m the repo man,” Max wrote. “I’ll pay you $500 cash if you help me repo that truck you’re riding in.” It didn’t take long for her to answer back “Make it $1,000 and you got a deal,” the girlfriend wrote. Max quickly gave her a “Big 10-4.”
Work the non-traffic side - Stay Safe!
The continuing saga of repo man extraordinaire Max Shockly that began in the February 2020 issue of American Towman Magazine.
“Just tell me what you want me to do,” she replied back immediately. In the next few days, the girlfriend kept in touch with Max letting him know when and where the next delivery was going to be. This info led Max up to the Bronx rooftop looking down on the Pete/reefer combo. Through the binoculars, he saw both Cowboy and the girl step out of the Peterbilt. Cowboy walked into the check-in office while the girl stood next to the trailer out of Cowboy’s view. Max immediately heard his phone text alert. “We are here” she texted. “What now?” “Let me know when you’re on your way out of the market … empty,” Max texted back. Four hours later and 50 miles away, Shockly’s certified agent was leaving a truck stop in the bright red Peterbilt and the Great Dane reefer trailer while Cowboy was still inside paying for fuel. Max was around the corner of the restaurant counting out 10 clean, crisp $100 bills and handing them to the girlfriend. A few minutes later, Max was looking at Cowboy. “Hey dude, I just watched some guy drive off in your rig. He yelled at me and said it was a repossession,” Max said. “And I think your girlfriend took off with another trucker,” he added. “Rough day in the saddle, huh?” … To be continued …
AmericanTowman.com | August 2020 • North 53
Roy’s Remedies
Oregano Oil and You By Roy Carlson Sr.
Roy Carlson Sr., Budget Towing; Saint Paul, Minnesota wsptowing@yahoo.com
Editor’s note: He’s back! Some may remember Roy’s regular health columns from years back. Enjoy this return of down-home remedies and health advice from towman Roy Carlson.
I
n these very odd times, you’ve heard about vaccines and miracle drugs being developed to combat the coronavirus. You’re taking precautions — washing hands, wearing masks, social distancing — but you’ve probably heard little about building up your immune system. You may not be in top physical shape, but there still are things you can do to boost your immune system. Besides taking high-potency vitamins (not your typical one-pill-fits-all), there is an oil supplement out there called Oregano Oil that I’ve seen do wonders. Get a bottle of the 1,600-mg gel tabs and take daily; consider the liquid form if you develop a fever or respiratory symptoms. You can put 20 drops of this oil in a gallon of water and shake it up to consume within a 24-hour period. I recently had several friends that used it and fevers and flu-like symptoms disappeared quickly. Ask your health-care provider to advise you on high-powered vitamins to boost your immune system and discuss oregano oil too.
North 54 • August 2020 | Towman.com
Repo Times RISC Waived Fees End
The Recovery Industry Services Co. extended its fee waiver for RISC Pro Membership, including CARS Certification Training, for several months. As of press time, the company planned to resume normal billing as of Aug. 1. RISC said the fee waiver would help members save on monthly expenses as well as allow new members to sign up to take advantage of free education. “We have seen a 40% increase in membership over the last three months. This is a great sign that we are helping agencies during this hard time get the value of membership without any expense,” said RISC CEO Stamatis Ferarolis. “We will continue to monitor how markets are doing and consider additional waivers if the financial strain continues.” Source: autoremarketing.com.
North 56 • August 2020 | Towman.com
Repo Run
Disruptive Innovation in Repossession By Mark Lacek
Repo Editor Mark Lacek authored the Certified Commercial Recovery Agent certification program and has more than 30 years of recovery experience. He is the former editor of “Professional Repossessor” magazine. Email him at Mark@commercialassetsolutions.com.
I
t is not a question of did the horseless carriage industry disrupt the horse and buggy industry, or if the internet has changed the printed news market. It is simply a fact that it did. In business theory, a disruptive innovation creates a new market and value network from existing ones. The fallout typically hits established firms and products hardest. The repossession industry is the latest victim of disruptive innovation. Long-established repossession companies have grown weak from fighting the war against the repossession assignment forwarding companies (forwarders). These national asset management companies have now amassed more than 80% of the repossession assignments. Lenders have signed up for the “one-stop shop” experience the forwarding model presents. Repossession owners across the country have tried to find ways to make a bigger profit. Some will tell you the road to higher profits is to offer a more qualified, compliant service with certified and trained staff and agents … but it isn’t. Most lenders will hire the agency charging the lowest fees instead of using the company who must charge higher fees because they take pride in regulatory compliance, maintaining trucks and certified employees. Choosing lower fees over quality of service has its drawbacks. I would guess that wrongful repossession lawsuits will increase because of less qualified and noncertified persons performing repossessions. In the past three years I’ve been hired by law firms as a consultant on wrongful repossession cases more than 25 times. I have seen an increase over the last 60 days.
South 52 • August 2020 | Towman.com
For the past 10 years, I thought the battle against these forwarding models could be won, but I was wrong. The repossession industry is now an industry reacting to disruptive innovation. With everything the assignment-forwarding model offers the lending communities, it isn’t possible for a small mom-and-pop company to be anything other than that what it is … a small mom-and-pop. Any idea of growth is a slow death. A repossession company can survive if, and only if, the company remains small and receives its assignments from the large assignment forwarders. There, I said it out loud. I don’t like that I said it — and I wish it wasn’t true — but it is true. This year more than ever, repossessors and repossession company owners must come together and decide how to survive in an industry which has just been “gutshot” by the COVID-19 crisis. Banks, finance companies, credit unions, and even subprime lenders have put most repossessions on hold. This abrupt halt in recovery assignments has caused most repossession company owners to rethink staying in business in an already narrow-margin industry. The North American Repossessors Summit is an annual two-day conference hosted by American Recovery Association in October at the Omni Mandalay Hotel at Las Colinas in Irving, Texas. The summit, reposummit.com, is a place for professionals in the recovery and remarketing industry from across the country to come together to address key issues impacting their industry and businesses. I will be there looking for answers and solutions (and probably something cold to drink at the bar).
Saddle up, Cowboy Maxwell Shockly was standing on the roof of a six-story office building directly across the street from Hunts Point Produce Market located in the Bronx, NYC. Shockly held the binoculars firmly to his eyes. A 2019 Peterbilt 389 was just pulling into the trucker’s entrance off of Edgewater Road. The Pete was hooked to a new 2019 Great Dane stainless steel reefer trailer; the total cost of the truck and trailer came in at $250,000. A $25,000 job for Shockly, this assignment would make for a nice payday. From his vantage point, he could clearly see his snitch … sitting in the passenger seat of the bright red Peterbilt. Turning his head just a bit to the left, Max spotted his driver leaning against a telephone pole at ground level, waiting for instructions. At a moment’s notice, the New York State-certified commercial recovery agent would follow the rig out of the produce market to wherever it went. (Hopefully to a nearby truck stop where the driver would stop to fuel up, take a shower and get a decent meal). The trucker, “Cowboy,” had been ducking the finance company for eight months. Before Max received the repo order, two other repossession companies had the assignment … and nary a clue on what to do repossessing semis. About two weeks earlier, Max ran the DOT number on Cowboy’s rig and found out he was involved in a minor traffic accident in Valdosta, Georgia. A female passenger was also in the truck, according to the police report that included her name and date of birth. After a few minutes, Max was looking at the woman’s Facebook page. “Just traveling the country with my new boyfriend,” one post said. “Gonna be with this cowboy until I have enough money to head back home,” her next post said. A few minutes more online and Max had her email address and cellphone number. Shockly decided to go out on a limb and send the girlfriend a text message. “I’m the repo man,” Max wrote. “I’ll pay you $500 cash if you help me repo that truck you’re riding in.” It didn’t take long for her to answer back “Make it $1,000 and you got a deal,” the girlfriend wrote. Max quickly gave her a “Big 10-4.”
Work the non-traffic side - Stay Safe!
The continuing saga of repo man extraordinaire Max Shockly that began in the February 2020 issue of American Towman Magazine.
“Just tell me what you want me to do,” she replied back immediately. In the next few days, the girlfriend kept in touch with Max letting him know when and where the next delivery was going to be. This info led Max up to the Bronx rooftop looking down on the Pete/reefer combo. Through the binoculars, he saw both Cowboy and the girl step out of the Peterbilt. Cowboy walked into the check-in office while the girl stood next to the trailer out of Cowboy’s view. Max immediately heard his phone text alert. “We are here” she texted. “What now?” “Let me know when you’re on your way out of the market … empty,” Max texted back. Four hours later and 50 miles away, Shockly’s certified agent was leaving a truck stop in the bright red Peterbilt and the Great Dane reefer trailer while Cowboy was still inside paying for fuel. Max was around the corner of the restaurant counting out 10 clean, crisp $100 bills and handing them to the girlfriend. A few minutes later, Max was looking at Cowboy. “Hey dude, I just watched some guy drive off in your rig. He yelled at me and said it was a repossession,” Max said. “And I think your girlfriend took off with another trucker,” he added. “Rough day in the saddle, huh?” … To be continued …
AmericanTowman.com | August 2020 • South 53
Roy’s Remedies
Oregano Oil and You By Roy Carlson Sr.
Roy Carlson Sr., Budget Towing; Saint Paul, Minnesota wsptowing@yahoo.com
Editor’s note: He’s back! Some may remember Roy’s regular health columns from years back. Enjoy this return of down-home remedies and health advice from towman Roy Carlson.
I
n these very odd times, you’ve heard about vaccines and miracle drugs being developed to combat the coronavirus. You’re taking precautions — washing hands, wearing masks, social distancing — but you’ve probably heard little about building up your immune system. You may not be in top physical shape, but there still are things you can do to boost your immune system. Besides taking high-potency vitamins (not your typical one-pill-fits-all), there is an oil supplement out there called Oregano Oil that I’ve seen do wonders. Get a bottle of the 1,600-mg gel tabs and take daily; consider the liquid form if you develop a fever or respiratory symptoms. You can put 20 drops of this oil in a gallon of water and shake it up to consume within a 24-hour period. I recently had several friends that used it and fevers and flu-like symptoms disappeared quickly. Ask your health-care provider to advise you on high-powered vitamins to boost your immune system and discuss oregano oil too.
South 54 • August 2020 | Towman.com
Repo Times
Survey: 100M Debtors at Risk
Resolvion recently conducted an email survey of auto finance providers inquiring about repossession activity once the coronavirus pandemic abates and recovery efforts intensify. While auto defaults currently are trending lower, more than 100 million consumer-credit accounts are in some form of modification program. One of the telling findings from the survey uncovered the depth of concern that finance companies have about the capacity for the repossession industry to handle the volume of assignments that could be on the horizon. Most of the institutions who responded were independent finance companies (43%), followed by credit unions (35%) and banks (14%). Most respondents who were not currently issuing invol-
untary repossession orders did not know when they expect to resume. Source: autoremarketing.com.
MBSi, Resolvion Completing Integration
MBSi Corp. and Resolvion announced recently that they reached an agreement to complete full integration of Resolvion’s Wombat system with MBSi’s new RecoveryConnect platform. Both firms have been in transition during the past year. Resolvion completed a merger with Del Mar and in doing so created one of the largest repossession/ skip management companies in the country. MBSi, which acquired MyRecoverySystem and Vendor Transparency Solutions in 2019, has been working to merge legacy systems to create the new RecoveryConnect
Work the non-traffic side - Stay Safe!
platform with mapping and post-recovery scheduling capabilities. Executives explained the Wombat-RecoveryConnect integration will provide agents the ability to receive and work all Resolvion repossession assignments in RecoveryConnect without the need to log in to Wombat. Source: autoremarketing.com.
Agent Attempts Same Repo 17 Times
An Idaho Falls, Idaho, man was arrested recently after he reportedly used a gun as he threatened a man attempting to repossess his car. According to the probable cause affidavit, Troy Terry, 47, and the victim were familiar with each other after the victim had made previous attempts to repossess a 2017 Kia Soul. The car had been up for repossession for 135 days because
Terry was behind on payments. The victim said he had been to the residence 17 times in attempts to repossess the car. The victim told the Idaho Falls Police Department he was loading the car onto a tow truck when Terry threatened him with a rifle. The victim said Terry pointed the gun at his chest and said, “I’m going to (expletive) kill you.” Terry told police he was only threatening to shoot the victim’s tires, not the victim himself. He said the gun wasn’t loaded. The victim said Terry threatened him with the gun as he was driving off with the car. Terry was charged with aggravated battery; he posted bond and was released from jail. A no-contact order was issued between him and the victim. Source: postregister.com.
AmericanTowman.com | August 2020 • South 55
South 56 • August 2020 | Towman.com
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • Midwest 51
Repo Run
Disruptive Innovation in Repossession By Mark Lacek
Repo Editor Mark Lacek authored the Certified Commercial Recovery Agent certification program and has more than 30 years of recovery experience. He is the former editor of “Professional Repossessor” magazine. Email him at Mark@commercialassetsolutions.com.
I
t is not a question of did the horseless carriage industry disrupt the horse and buggy industry, or if the internet has changed the printed news market. It is simply a fact that it did. In business theory, a disruptive innovation creates a new market and value network from existing ones. The fallout typically hits established firms and products hardest. The repossession industry is the latest victim of disruptive innovation. Long-established repossession companies have grown weak from fighting the war against the repossession assignment forwarding companies (forwarders). These national asset management companies have now amassed more than 80% of the repossession assignments. Lenders have signed up for the “one-stop shop” experience the forwarding model presents. Repossession owners across the country have tried to find ways to make a bigger profit. Some will tell you the road to higher profits is to offer a more qualified, compliant service with certified and trained staff and agents … but it isn’t. Most lenders will hire the agency charging the lowest fees instead of using the company who must charge higher fees because they take pride in regulatory compliance, maintaining trucks and certified employees. Choosing lower fees over quality of service has its drawbacks. I would guess that wrongful repossession lawsuits will increase because of less qualified and noncertified persons performing repossessions. In the past three years I’ve been hired by law firms as a consultant on wrongful repossession cases more than 25 times. I have seen an increase over the last 60 days.
Midwest 52 • August 2020 | Towman.com
For the past 10 years, I thought the battle against these forwarding models could be won, but I was wrong. The repossession industry is now an industry reacting to disruptive innovation. With everything the assignment-forwarding model offers the lending communities, it isn’t possible for a small mom-and-pop company to be anything other than that what it is … a small mom-and-pop. Any idea of growth is a slow death. A repossession company can survive if, and only if, the company remains small and receives its assignments from the large assignment forwarders. There, I said it out loud. I don’t like that I said it — and I wish it wasn’t true — but it is true. This year more than ever, repossessors and repossession company owners must come together and decide how to survive in an industry which has just been “gutshot” by the COVID-19 crisis. Banks, finance companies, credit unions, and even subprime lenders have put most repossessions on hold. This abrupt halt in recovery assignments has caused most repossession company owners to rethink staying in business in an already narrow-margin industry. The North American Repossessors Summit is an annual two-day conference hosted by American Recovery Association in October at the Omni Mandalay Hotel at Las Colinas in Irving, Texas. The summit, reposummit.com, is a place for professionals in the recovery and remarketing industry from across the country to come together to address key issues impacting their industry and businesses. I will be there looking for answers and solutions (and probably something cold to drink at the bar).
Saddle up, Cowboy Maxwell Shockly was standing on the roof of a six-story office building directly across the street from Hunts Point Produce Market located in the Bronx, NYC. Shockly held the binoculars firmly to his eyes. A 2019 Peterbilt 389 was just pulling into the trucker’s entrance off of Edgewater Road. The Pete was hooked to a new 2019 Great Dane stainless steel reefer trailer; the total cost of the truck and trailer came in at $250,000. A $25,000 job for Shockly, this assignment would make for a nice payday. From his vantage point, he could clearly see his snitch … sitting in the passenger seat of the bright red Peterbilt. Turning his head just a bit to the left, Max spotted his driver leaning against a telephone pole at ground level, waiting for instructions. At a moment’s notice, the New York State-certified commercial recovery agent would follow the rig out of the produce market to wherever it went. (Hopefully to a nearby truck stop where the driver would stop to fuel up, take a shower and get a decent meal). The trucker, “Cowboy,” had been ducking the finance company for eight months. Before Max received the repo order, two other repossession companies had the assignment … and nary a clue on what to do repossessing semis. About two weeks earlier, Max ran the DOT number on Cowboy’s rig and found out he was involved in a minor traffic accident in Valdosta, Georgia. A female passenger was also in the truck, according to the police report that included her name and date of birth. After a few minutes, Max was looking at the woman’s Facebook page. “Just traveling the country with my new boyfriend,” one post said. “Gonna be with this cowboy until I have enough money to head back home,” her next post said. A few minutes more online and Max had her email address and cellphone number. Shockly decided to go out on a limb and send the girlfriend a text message. “I’m the repo man,” Max wrote. “I’ll pay you $500 cash if you help me repo that truck you’re riding in.” It didn’t take long for her to answer back “Make it $1,000 and you got a deal,” the girlfriend wrote. Max quickly gave her a “Big 10-4.”
Work the non-traffic side - Stay Safe!
The continuing saga of repo man extraordinaire Max Shockly that began in the February 2020 issue of American Towman Magazine.
“Just tell me what you want me to do,” she replied back immediately. In the next few days, the girlfriend kept in touch with Max letting him know when and where the next delivery was going to be. This info led Max up to the Bronx rooftop looking down on the Pete/reefer combo. Through the binoculars, he saw both Cowboy and the girl step out of the Peterbilt. Cowboy walked into the check-in office while the girl stood next to the trailer out of Cowboy’s view. Max immediately heard his phone text alert. “We are here” she texted. “What now?” “Let me know when you’re on your way out of the market … empty,” Max texted back. Four hours later and 50 miles away, Shockly’s certified agent was leaving a truck stop in the bright red Peterbilt and the Great Dane reefer trailer while Cowboy was still inside paying for fuel. Max was around the corner of the restaurant counting out 10 clean, crisp $100 bills and handing them to the girlfriend. A few minutes later, Max was looking at Cowboy. “Hey dude, I just watched some guy drive off in your rig. He yelled at me and said it was a repossession,” Max said. “And I think your girlfriend took off with another trucker,” he added. “Rough day in the saddle, huh?” … To be continued …
AmericanTowman.com | August 2020 • Midwest 53
Roy’s Remedies
Oregano Oil and You By Roy Carlson Sr.
Roy Carlson Sr., Budget Towing; Saint Paul, Minnesota wsptowing@yahoo.com
I
Editor’s note: He’s back! Some may remember Roy’s regular health columns from years back. Enjoy this return of down-home remedies and health advice from towman Roy Carlson.
n these very odd times, you’ve heard about vaccines and miracle drugs being developed to combat the coronavirus. You’re taking precautions — washing hands, wearing masks, social distancing — but you’ve probably heard little about building up your immune system. You may not be in top physical shape, but there still are things you can do to boost your immune system. Besides taking high-potency vitamins (not your typical one-pill-fits-all), there is an oil supplement out there called Oregano Oil that I’ve seen do wonders. Get a bottle of the 1,600-mg gel tabs and take daily; consider the liquid form if you develop a fever or respiratory symptoms. You can put 20 drops of this oil in a gallon of water and shake it up to consume within a 24-hour period. I recently had several friends that used it and fevers and flu-like symptoms disappeared quickly. Ask your health-care provider to advise you on high-powered vitamins to boost your immune system and discuss oregano oil too.
Midwest 54 • August 2020 | Towman.com
Repo Times Survey: 100M Debtors at Risk
Resolvion recently conducted an email survey of auto finance providers inquiring about repossession activity once the coronavirus pandemic abates and recovery efforts intensify. While auto defaults currently are trending lower, more than 100 million consumer-credit accounts are in some form of modification program. One of the telling findings from the survey uncovered the depth of concern that finance companies have about the capacity for the repossession industry to handle the volume of assignments that could be on the horizon. Most of the institutions who responded were independent finance companies (43%), followed by credit unions (35%) and banks (14%). Most respondents who were not currently issuing involuntary repossession orders did not know when they expect to resume. Source: autoremarketing.com.
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • Midwest 55
Midwest 56 • August 2020 | Towman.com
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • West 51
Repo Run
Disruptive Innovation in Repossession By Mark Lacek
Repo Editor Mark Lacek authored the Certified Commercial Recovery Agent certification program and has more than 30 years of recovery experience. He is the former editor of “Professional Repossessor” magazine. Email him at Mark@commercialassetsolutions.com.
I
t is not a question of did the horseless carriage industry disrupt the horse and buggy industry, or if the internet has changed the printed news market. It is simply a fact that it did. In business theory, a disruptive innovation creates a new market and value network from existing ones. The fallout typically hits established firms and products hardest. The repossession industry is the latest victim of disruptive innovation. Long-established repossession companies have grown weak from fighting the war against the repossession assignment forwarding companies (forwarders). These national asset management companies have now amassed more than 80% of the repossession assignments. Lenders have signed up for the “one-stop shop” experience the forwarding model presents. Repossession owners across the country have tried to find ways to make a bigger profit. Some will tell you the road to higher profits is to offer a more qualified, compliant service with certified and trained staff and agents … but it isn’t. Most lenders will hire the agency charging the lowest fees instead of using the company who must charge higher fees because they take pride in regulatory compliance, maintaining trucks and certified employees. Choosing lower fees over quality of service has its drawbacks. I would guess that wrongful repossession lawsuits will increase because of less qualified and noncertified persons performing repossessions. In the past three years I’ve been hired by law firms as a consultant on wrongful repossession cases more than 25 times. I have seen an increase over the last 60 days.
West 52 • August 2020 | Towman.com
For the past 10 years, I thought the battle against these forwarding models could be won, but I was wrong. The repossession industry is now an industry reacting to disruptive innovation. With everything the assignment-forwarding model offers the lending communities, it isn’t possible for a small mom-and-pop company to be anything other than that what it is … a small mom-and-pop. Any idea of growth is a slow death. A repossession company can survive if, and only if, the company remains small and receives its assignments from the large assignment forwarders. There, I said it out loud. I don’t like that I said it — and I wish it wasn’t true — but it is true. This year more than ever, repossessors and repossession company owners must come together and decide how to survive in an industry which has just been “gutshot” by the COVID-19 crisis. Banks, finance companies, credit unions, and even subprime lenders have put most repossessions on hold. This abrupt halt in recovery assignments has caused most repossession company owners to rethink staying in business in an already narrow-margin industry. The North American Repossessors Summit is an annual two-day conference hosted by American Recovery Association in October at the Omni Mandalay Hotel at Las Colinas in Irving, Texas. The summit, reposummit.com, is a place for professionals in the recovery and remarketing industry from across the country to come together to address key issues impacting their industry and businesses. I will be there looking for answers and solutions (and probably something cold to drink at the bar).
Saddle up, Cowboy Maxwell Shockly was standing on the roof of a six-story office building directly across the street from Hunts Point Produce Market located in the Bronx, NYC. Shockly held the binoculars firmly to his eyes. A 2019 Peterbilt 389 was just pulling into the trucker’s entrance off of Edgewater Road. The Pete was hooked to a new 2019 Great Dane stainless steel reefer trailer; the total cost of the truck and trailer came in at $250,000. A $25,000 job for Shockly, this assignment would make for a nice payday. From his vantage point, he could clearly see his snitch … sitting in the passenger seat of the bright red Peterbilt. Turning his head just a bit to the left, Max spotted his driver leaning against a telephone pole at ground level, waiting for instructions. At a moment’s notice, the New York State-certified commercial recovery agent would follow the rig out of the produce market to wherever it went. (Hopefully to a nearby truck stop where the driver would stop to fuel up, take a shower and get a decent meal). The trucker, “Cowboy,” had been ducking the finance company for eight months. Before Max received the repo order, two other repossession companies had the assignment … and nary a clue on what to do repossessing semis. About two weeks earlier, Max ran the DOT number on Cowboy’s rig and found out he was involved in a minor traffic accident in Valdosta, Georgia. A female passenger was also in the truck, according to the police report that included her name and date of birth. After a few minutes, Max was looking at the woman’s Facebook page. “Just traveling the country with my new boyfriend,” one post said. “Gonna be with this cowboy until I have enough money to head back home,” her next post said. A few minutes more online and Max had her email address and cellphone number. Shockly decided to go out on a limb and send the girlfriend a text message. “I’m the repo man,” Max wrote. “I’ll pay you $500 cash if you help me repo that truck you’re riding in.” It didn’t take long for her to answer back “Make it $1,000 and you got a deal,” the girlfriend wrote. Max quickly gave her a “Big 10-4.”
Work the non-traffic side - Stay Safe!
The continuing saga of repo man extraordinaire Max Shockly that began in the February 2020 issue of American Towman Magazine.
“Just tell me what you want me to do,” she replied back immediately. In the next few days, the girlfriend kept in touch with Max letting him know when and where the next delivery was going to be. This info led Max up to the Bronx rooftop looking down on the Pete/reefer combo. Through the binoculars, he saw both Cowboy and the girl step out of the Peterbilt. Cowboy walked into the check-in office while the girl stood next to the trailer out of Cowboy’s view. Max immediately heard his phone text alert. “We are here” she texted. “What now?” “Let me know when you’re on your way out of the market … empty,” Max texted back. Four hours later and 50 miles away, Shockly’s certified agent was leaving a truck stop in the bright red Peterbilt and the Great Dane reefer trailer while Cowboy was still inside paying for fuel. Max was around the corner of the restaurant counting out 10 clean, crisp $100 bills and handing them to the girlfriend. A few minutes later, Max was looking at Cowboy. “Hey dude, I just watched some guy drive off in your rig. He yelled at me and said it was a repossession,” Max said. “And I think your girlfriend took off with another trucker,” he added. “Rough day in the saddle, huh?” … To be continued …
AmericanTowman.com | August 2020 • West 53
Roy’s Remedies
Oregano Oil and You By Roy Carlson Sr.
Roy Carlson Sr., Budget Towing; Saint Paul, Minnesota wsptowing@yahoo.com
I
Editor’s note: He’s back! Some may remember Roy’s regular health columns from years back. Enjoy this return of down-home remedies and health advice from towman Roy Carlson.
n these very odd times, you’ve heard about vaccines and miracle drugs being developed to combat the coronavirus. You’re taking precautions — washing hands, wearing masks, social distancing — but you’ve probably heard little about building up your immune system. You may not be in top physical shape, but there still are things you can do to boost your immune system. Besides taking high-potency vitamins (not your typical one-pill-fits-all), there is an oil supplement out there called Oregano Oil that I’ve seen do wonders. Get a bottle of the 1,600-mg gel tabs and take daily; consider the liquid form if you develop a fever or respiratory symptoms. You can put 20 drops of this oil in a gallon of water and shake it up to consume within a 24-hour period. I recently had several friends that used it and fevers and flu-like symptoms disappeared quickly. Ask your health-care provider to advise you on high-powered vitamins to boost your immune system and discuss oregano oil too.
West 54 • August 2020 | Towman.com
Repo Times Survey: 100M Debtors at Risk
Resolvion recently conducted an email survey of auto finance providers inquiring about repossession activity once the coronavirus pandemic abates and recovery efforts intensify. While auto defaults currently are trending lower, more than 100 million consumer-credit accounts are in some form of modification program. One of the telling findings from the survey uncovered the depth of concern that finance companies have about the capacity for the repossession industry to handle the volume of assignments that could be on the horizon. Most of the institutions who responded were independent finance companies (43%), followed by credit unions (35%) and banks (14%). Most respondents who were not currently issuing involuntary repossession orders did not know when they expect to resume. Source: autoremarketing.com.
Work the non-traffic side - Stay Safe!
AmericanTowman.com | August 2020 • West 55
West 56 • August 2020 | Towman.com
Episode 187
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