The Cost of Doing Business: How Much is GPS?
The Cost of GPS
When asking the question, “how much is GPS?” one must consider the cost of loss due to mismanagement of time and company assets. In weighing the options, using GPS in fleet management is cheaper than going without. On average, companies that have ten or more vehicles can save as much as $6,000 per month with GPS. When compared to the small monthly investment of around $25 to $30 per vehicle, or $300 per month for ten vehicles, the cost of GPS is minimal.
There will also be an initial investment for the tracking device that is installed in the vehicle but this price can vary greatly from one GPS provider to the next. These prices can range from around $200 to over $400, depending on the brand and capability of the tracker.
With multiple, cost-effective forms of tracking and small monthly payments, even small businesses and start-ups are able to afford the service.
The Benefits of GPS
There are several benefits to be gleaned from having a GPS tracker installed in a company vehicle or equipment. These benefits can provide an ROI in as little as 30 days, depending on usage, local fuel costs, and the cost of overtime.
- Employee Management: GPS trackers provide employers with accurate information on a vehicle’s location and the duration of time spent at that location.
- Billing Accuracy: Companies have a third-party system with GPS that gives accurate times and dates for each service call.
- Asset Protection: Management is able to track speeds to reduce speeding and wear and tear on tires. These systems also help reduce fuel costs.
- Lower Insurance Premiums: Companies that have to carry commercial insurance can receive discounted premiums when using commercial GPS trackers.
- Eliminates Unnecessary Overtime: With a live tracking system, employers are able to control overtime.
- Provide Better Service: Dispatchers can utilize company vehicles that are closest to the service call.
- Reduce Mistakes: GPS systems are automated and accurate.
Is Commercial GPS Worth the Investment?
GPS usage is quickly growing in commercial use, especially in the area of ground transportation where companies have to entrust employees with expensive equipment and company vehicles. This industry is growing so fast, it resulted in $1.2 billion in sales in 2005 and $4.2 billion in 2010, according to the GPS Alliance. That is an increase of 39 percent over a five-year span, showing faster growth than GPS sales for other industries. This increase is due mostly to the effectiveness of commercial GPS systems in saving companies money while protecting company assets.
Companies that use GPS are more equipped to maintain control over company assets and operating costs than companies without it. When weighing the cost, GPS is worth the investment.