When it comes to GPS fleet tracking, the first thing that comes to mind is, “What does it cost?”. That’s a fair question, because GPS tracking systems are a cost center. GPS tracking systems do not directly produce revenue streams for a business. So how do fleet managers justify the investment?
The benefits of a GPS tracking system are subtle but often significant in terms of reduced expenses and increased productivity leading to revenue gains. In preparing a GPS Tracking cost benefit analysis, here are some key considerations to determining if the system will produce a positive return on investment (ROI).
GPS Tracking System Costs
GPS Trackers: This is an upfront cost if GPS trackers are purchased. For a large number of trackers the cost can be significant. There is a wide variety of GPS trackers on the market to meet every need. Vehicle GPS tracking devices of the plug-in variety are installed in a few seconds and can be concealed with a Y-cable splitter. Hardwired trackers carry the added cost of installation, which can run from $75 – $100 depending on vehicle type. GPS vehicle trackers can cost anywhere from $30 to $175. GPS fleet tracking devices can run upwards of $250 or more, may or may not require some installation, and are designed to support peripherals and add-on applications.
Some considerations to keep in mind:
- A more expensive GPS tracker usually provides more data, has a more powerful signal, lasts up to 5 years and longer, and is more accurate.
- A lower-priced, economy GPS tracker has lower quality components. The modem might last a year or two before it burns out and the tracker needs replacing.
- 2G tracker models are inexpensive now, but most 2G networks are expected to shut down around 2021. Use 3G+ (HSPA) or LTE trackers to avoid replacing trackers in a couple years.
- Some GPS tracking providers include the GPS tracker cost in the monthly service fee with a two or three year contract, helping spread out the cost over time. The service fee itself may be discounted with a larger number of units tracked and a longer term agreement.
Real Time GPS Tracking: Vehicle GPS tracking, such as that offered by Btracking, starts at $17.95/month, asset tracking starts at $13.49/month, and phone tracking starts at $9.95/month.
GPS Tracking System Savings
A full-featured GPS Vehicle Tracking Tracking System will improve the visibility, safety and productivity of the mobile workforce. For example, Btracking GPS Tracking gives fleet managers and business owners tools to:
- Complete more jobs in less time, and earn more revenue with lower labor costs and fuel consumption through better route planning and scheduling with Workflow Dispatch
- Improve driver safety and productivity using Driver Scorecard and SpeedGauge tools and training to develop better driving habits and cut down on tickets and accidents
- Provide more accurate reporting and timekeeping with Easy GeofencesTM
- Identify and prevent frequented stops in unwanted places using Hot Spots
- Streamline planned maintenance with maintenance scheduling
- Avoid unauthorized use of vehicles outside work hours
- and much more.
Once the costs are determined and benefits (in terms cost reductions and revenue increases) estimated, it’s easy to do a GPS Tracking cost benefit analysis that results in a positive ROI for the business.
Get Started Today
To find out more about our GPS fleet tracking solutions, call Btracking at 1-866-233-0953 or fill out the contact form today!