The Insight Source Blog
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Author: Jenny Malcolm
Content Marketing Specialist
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What’s The Cost of GPS Tracking?
The first question many fleet managers and owners have is, “what is the cost of GPS tracking software?” when they begin researching this technology. Although it’s an important question, it is more important to first learn about the potential return on investment (ROI). Check out our Savings Calculator.
To address the question of price, there are some basic costs to consider and then there are some add-ons that more than likely come at an additional cost.
GPS Tracking Costs:
Purchase or Rental: : First, you need to decide if you will purchase or rent the devices. There are benefits to either option and it really depends on your business’s preference which works best. From a cost aspect, renting devices will eliminate the larger upfront cost by bundling the device and monthly service fee. Additionally, devices and sometimes service can be discounted based on volume (the more you buy, the less the unit/monthly service cost is per vehicle or asset).
Type of GPS Tracking Device: The type of GPS tracking devices that you need will also adjust the cost. If you are purchasing a basic vehicle or asset tracking device, the cost is about the same, but the monthly service fee varies greatly between vehicles and assets. In most cases tracking vehicles costs more per month than tracking assets.
Here is a breakdown of what you can expect the cost of GPS tracking service to start at:
• Vehicle tracking pricing ranges from $19.95 – $29.95 per month depending on the level of complexity to your tracking needs.
• Asset Tracking starts at $14.95 per month.
Some providers may offer service at a lower price, but it’s important to keep in mind that you get what you pay for with GPS tracking. When you implement any type of business software, you want to ensure it will solve your challenges and provide the most accurate and reliable data. It’s strongly recommended never to select a system just because it’s the cheapest.
Update Frequency: Your monthly service cost can also vary based on how frequently you need your GPS tracking device to update (update the vehicle or asset’s location on a map or alert/report). Industry standard update frequencies for vehicles are typically every 2 or 5 minutes. For assets, it is much less frequent, which drives the monthly cost down. Update rates for assets are measured as pings (on-demand communication) instead of by time e.g. 2 minutes. The more pings per day that you want, the higher the cost per month.
Most GPS tracking companies use an installation network to complete customer installs of the GPS devices. This comes at an additional cost to the customer, typical per vehicle installation ranges from $75 – $100 depending on the vehicle type, how hidden the GPS device needs to be, and if there are any additional add-ons to install.
Some companies, like GPS Insight, will provide installation guides and installation support/troubleshooting for those that want to manage the installations on their own. This is something worth considering in order to save on the upfront costs of rolling out GPS tracking for your fleet. Of course, to make sure that the installations are done correctly the first time, it is best practice to use the installation network that the GPS fleet tracking company uses.
Keep in mind that these additional costs are minimal and are far outweighed by the savings your business will receive from GPS fleet tracking software.