Towing company saves $50k in annual overhead and optimizes efficiency.
Over the course of an eight-year period, RoadOne West Towing expanded its business through acquisitions, adding extensively to its service offerings. And as the company grew, so did general and administrative expenses. Now one of the nation’s largest towing operations, fuel costs and other industry-related commodities heavily impact RoadOne’s operating budget. Unwilling to pass these cost increases on to their customers, RoadOne needed to evolve in order to weather these economic fluxes. A loyal CUSTOMatrix client since 2002, RoadOne CEO, Dale Wineteer, turned to us for assistance in cutting costs and improving their bottom line.
Beginning with a review of RoadOne’s finances, our cost reduction and expense control team zeroed in on RoadOne’s telecommunication and payroll expenses. Because so much of the business’ growth had come from acquisitions, their telecomm services were an outdated patchwork of lines and accounts from numerous service providers. By streamlining RoadOne’s telecomm services, they significantly reduced expenses in addition to improving efficiency by giving them access to online reporting and diagnostic tools. Our team also identified payroll services as a key area for cost savings. By creating competitive tension, we negotiated with RoadOne’s existing payroll service to offer a more attractive package including fewer charges as well as price guarantees.
Our cost reduction strategies provided RoadOne with a repeated annual savings of $50,200, in addition to a one-time savings of $33,800. We also helped them cap increases on their payroll contract for improved cost control, as well as boosted efficiency through streamlined telecommunication systems. Moreover, because of our consultancy model, they received expert advice without needing to hire additional staff. With our help, RoadOne is now free of unnecessary expenses as well as operational headaches.
About RoadOne West
With a fleet of 300+ trucks and heavy-duty transports, RoadOne offers a full range of towing, hauling, transport, storage, lien, salvage and auction services. Customers include law enforcement agencies, commercial fleet operators, motor clubs, automobile dealers, insurance companies and individual motorists. RoadOne is the largest auto auction provider in San Diego County and every week they auction over 300 vehicles.
Our relationship with CUSTOMatrix has provided the highest degree of financial advisory expertise coupled with the added benefit of driving cost savings to our bottom line. The continued ability to have access to CUSTOMatrix executive talent, who all have high levels of integrity, is invaluable to RoadOne West.