Examining The Real Cost Of Fleet Tracking Solutions

09/25/2018
A business man doing paperwork for fleet tracking

As you consider the investment of fleet tracking solutions for your business, focus on the bottom line. The cost of GPS fleet tracking services must be taken into consideration with your business’s growth. After all, the goal for using fleet management systems revolves around increasing customer confidence and business opportunities. To help you decide, here is a breakdown of the average cost for fleet tracking comparable to the benefits.

Factors Affecting Fleet Management

When shopping for fleet management and GPS tracking systems, the size of your fleet will determine how much you pay for fleet management software. If you have a small trucking operation with less than five drivers, your needs will vary from an enterprise client with 1,000-plus trucks. Another consideration is whether you want a simple, bare bones management system or the full works. If you are just starting with fleet management, a no-frills platform is ideal. You gain the basics needed to set up your fleet tracking system.

However, if you are a fleet manager with existing methods and software, such as GPS tracking units in trucks, you will need to integrate the old with the new. Consider where your company currently stands in terms of fleet management. Rather than re-inventing the wheel, you can save money by finding fleet tracking solutions that meet your existing needs.

Average Cost for Fleet Tracking

Taking into consideration the level of fleet tracking your company needs, you can get a sound estimate on service. The average cost of GPS fleet tracking solutions that offer everything most managers need ranges from $30 to $55 a month. In addition, there is a one-time installation fee. This varies from free to $150, depending on promotional offers or discounts.

For the first year, the average cost for advanced fleet management for one vehicle is $360 to $810. By the second year, that drops between $330 to $660 for fleet management for 12 months. How does this fare for small and midsized businesses versus enterprise customers? If you have an enterprise business with more than 1,000 trucks, expect to pay a flat fee of approximately $10,000. With enterprise businesses, the GPS fleet tracking cost typically includes concierge services, such as a dedicated account manager for your business.

Value of Fleet Tracking Services

Fleet managers who make the leap to fleet management systems immediately begin to reap the benefits. Having everything from route information to purchase orders and driver CDLs in one place when you need it is a major time saver. In addition, you are able to pinpoint your drivers and equipment at any time.

This eliminates a whole host of issues ranging from driver behavior concerns to travel times. You are also in a position to provide freight tracking services for your shipping customers. This increases customers’ confidence with the ability to check their load independently using fleet management apps and technology.

Reduced Fuel and Emissions Costs

Fleets that operate using fleet tracking systems are also reducing diesel emissions. Part of this corresponds with the speed monitoring aspect of fleet tracking software. When you are able to monitor your drivers’ speed, they are far less likely to put the hammer down.

This leads to fewer emissions, as well as less fuel use. Fuel expenses account for 40 percent of a fleet budget for a company of any size. Cutting down on fuel costs increases your revenue, which improves the overall cost of GPS fleet tracking services.

Extended Fleet Equipment Life Span

An additional benefit of fleet management systems is the ability to extend the life span of your equipment. Trucks, vans, buses and other commercial vehicles operate more efficiently when drivers put less stress on them. By managing your freight loads, drivers and routes in a centralized platform, everyone on your team is on the same proverbial page.

Your fleet operators are more prepared to make seamless trips, thanks to better planning and coordination. Along with using less fuel and producing fewer diesel emissions, the engine life on your equipment gets a new lease. All of this equates to the savings you will gain from the total GPS tracking cost.