Protecting your fleet is an excellent investment, whether you have a few trucks or a large fleet you want to protect. So, how much does GPS tracking cost?
This is the main question that fleet managers and company owners ask if they want to protect their investment. A good fleet management system won’t only protect your goods and drivers; it also guarantees the smoothest operation of your business by increasing productivity, streamlining routes, and reducing operational costs. Keep on reading to learn about the actual cost of GPS fleet tracking in 2021.
What is Fleet Tracking?
Knowing where your trucks and vehicles are at any point in time will help you better manage your business operations. This is why a fleet tracking system should be a fundamental part of your business management costs.
Fleet tracking refers to an installed device or software connecting your vehicle to a computer or a cloud-system to gather data. The information collected is related to:
- Distance traveled
- Vehicle location
- Speed
- Fuel usage
- Idle time
- Any usual stops
- Driver Behavior
The data collected is sent from tracking devices through Wi-Fi, cellular, or satellite services to prepare business reports. This will also guarantee the safety of your valuable cargo and drivers.
Can GPS Tracking Save Your Business Money?
Asset tracking refers to keeping an eye on the vehicles your company owns using GPS trackers. Fleet management is a smart solution that allows you to know your vehicles’ whereabouts and how fast your goods will be delivered. Moreover, tracking your assets can provide you with several cost-saving benefits.
- It reduces the cost of fuel and maintenance as you can choose the most cost-efficient route. Companies that use fleet management systems can reduce fuel costs for at least 25 miles per week.
- The company will be able to reduce the cost of employee overtime, with at least 1 hour of reduction, which costs an average of $30.
- With a live GPS tracking system, employees’ productivity will increase by doing extra stops or deliveries.
- With drivers knowing that a fleet management system is tracking their vehicle, there will be a reduction in average speeds and the overall risk of accidents.
- A fleet tracking system will help eliminate guessing when it comes to fulfilling service calls.
- Drivers will have to reduce or even eliminate the time spent at unauthorized locations when they know that there’s a vehicle tracking system installed. If you’re suspecting that your drivers are making unauthorized stops that cost the company money and time, vehicle tracking will help solve this problem.
- Insurance companies offer discounted premiums to companies that use real-time GPS.
- Vehicle tracking will eliminate human error risk, as all data will be recorded and processed by the server without human intervention.
- Customer service response will be improved because, as a manager, you’ll be able to locate your vehicles at all times. You can also avoid compensation claims by proving that your vehicles were where they were needed.
- GPS systems will also reduce idling. The company’s owner or manager will be able to keep track of idle times and minimize them to increase efficiency.
How Much Does GPS Fleet Tracking Cost?
Fleet tracking costs are affected by the costs of hardware and software. As a fleet manager, you have to consider both before choosing a GPS fleet tracking solution for your business.
Hardware and Installation
There are 3 different hardware alternatives that you can pick for your business.
Mobile Tracking
The company is able to track the truck through the driver’s smartphone. If you have to buy a phone for the driver, this will be the only cost endured besides the new cell and data plan you will need to buy as well with that new phone.
Mobile tracking has no hardware cost unless you have to pay for the app. As long as the app is installed on the phone, it will keep on working.
Plug-In Device
Plug-in devices can be installed to track your trucks and plug into the vehicle’s diagnostic port. Some plug-in devices are quite affordable; however, business-level devices are usually more expensive and cost between $200 and $500. These devices offer more detailed information about the truck, including problems with the vehicle and driving habits, allowing you to keep a better track of your business.
Most plug-in devices are plug-and-play and can be installed in minutes. You might have to check an online tutorial or even hire a professional to install the device to your vehicle.
Hardwiring
This is the most advanced and also the most expensive hardware option. Nevertheless, it might be the only option available if the truck is too old or if you don’t wish to track the driver’s personal phone.
Other reasons to use hardwired devices are if you are looking to monitor different inputs such as door sensors, seat belt sensors, power take off switches, ELD Tablets, temperature monitoring and more.
Hardwiring can cost an average of $250- $1000, in addition to the cost of lost business while getting the vehicle ready. Repair costs are also higher or at minimum take a little longer to complete due to the more complicated installation compared to the other 2 methods.
Software Service
The second component of the cost of the fleet tracking system is related to the software service. Fleet tracking is connected to a satellite or cellular service, so you will have to pay for a SIM card or an all included special vehicle tracking service.
There could also be an installed program that collects data from your vehicle and generates reports to help you track your fleet better. This software program will also be supported by a successful customer support system that solves technical problems and suggests better business solutions.
Tier Plans
Tier plans are monthly plans that are similar to cell-phone services tiers. You should pick the most suitable level and pay accordingly. Some tiers can cost as little as $25 per month. The cost depends on the features provided with the plan and might increase up to $50 or more per month.
Customized Plans
This will apply when you have special business requirements. As a fleet manager, you’ll only be paying for the features that you’re using, and you might ask for a few add-ons that suit your business.
You can go for this solution if you feel that you’re paying for features you’re not using. A customized monthly service plan might be cheaper or more expensive than a standardized plan, depending on the features you choose.
How Much Does It Cost to Fit a Tracker?
This depends on the hardware and software options you choose. The most expensive hardware option is wiring your vehicle to collect data about your truck, and the most affordable hardware option is to use a smartphone that the driver already owns but that comes with its own set of challenges.
Business owners and fleet managers have the option to choose between renting or buying systems. More expensive fleet management systems can be rented, so you can only use them on demand.
In some cases, the cost of continuously renting several tracking systems ends up being more expensive than buying the system itself. In most cases, the cost of hardware can be anything between $100 and $500, while the cost of running the GPS tracker is anything between $25 and $100.
The overall cost will also be affected by several factors like:
- How sophisticated is the system?
- Does it transmit information in real-time or at lesser intervals?
- How large is your fleet?
- How frequently do your trucks work?
- How much do you plan to pay per month for the tracking service?
How Much Does a GPS System Cost?
The overall cost of a GPS system can be anything between $100 and $1000 or more, depending on the types of the GPS tracking system used and the service used to operate it.
As a manager, you need to choose the most suitable hardware option based on the nature of your business, the number of vehicles, and how often you’ll be using your trucks. Hardwiring your trucks is the most efficient GPS tracking option but is more expensive than the other systems. Also determine which system can best solve your specific business challenges that made you look into GPS in the first place.
You should also decide whether you’ll be devoting an in-house department to analyze the data delivered from your GPS tracking system, or you will depend on the GPS company’s resources. In most cases, companies will provide you with efficient reports that you can analyze and use to track your business operations.
Do You Have to Pay Monthly for GPS?
This depends on whether you decide to lease or buy the GPS tracking system. When you buy a GPS tracker, you’ll be paying upfront. If the cost is too high, you might consider renting a system for a temporary time.
When you choose to rent, you will be paying for the GPS tracking system’s rent for a year or a few months, depending on the nature of your business operations. Renting a tracking system isn’t always the most cost-efficient option.
Whether you choose to buy or rent, you’ll have to consider the operational costs of GPS tracking. You might have to pay monthly for a service to record, store, and process data from the GPS device. You can contact us to suggest the best GPS fleet tracking software that works for your business.
There are some options without a monthly subscription but they usually just pay the service upfront and typically have limited capabilities and need to be manually retrieved to collect the data and charge the battery.
What is the Smallest GPS Tracking Device Available?
GPS tracking devices keep on improving by providing better features in more compact models that can be easily concealed in your truck.
The smallest GPS tracking device is currently the size of a grain of dust. However, this tracking device might be a little too much to install if you wish to track your business fleet.
You can contact us today to learn more about our fleet management solutions. Our company will offer the most suitable business solutions that suit your operations to help you manage your fleet effortlessly.
Wrapup
Fleet management by tracking your trucks is an excellent way to protect your assets and keep track of your business. Installing the right GPS device and choosing the right plan offers your business several benefits. Although the initial cost of setting up a fleet tracking system might be high, the rewards are always higher.
