Even if you are aware of the many benefits vehicle tracking can offer, you may still wonder whether the associated cost is worth it. If you are new to the idea of tracking every vehicle your business uses, you may have no firm figures in your mind at all.
That’s what we hope to resolve in this article. We’re going to look into the costs involved in vehicle tracking and the associated benefits you should bear in mind when looking for the right product to invest in.
You may not be aware of this, but there are two ways you can buy into a system like this. It is possible to buy the equipment you need outright, in which case there will be a larger initial cost to bear per vehicle. You’re probably looking at paying at least £200 per unit in this case, but it can be almost double that. Once you’ve added the installation cost of around £50 as a minimum per vehicle, you can see the costs soon start to add up.
That’s why most businesses will lease the service. This means you will pay a fee per month per vehicle. Pricing is quite competitive at the moment. You could find a service for around £7.49 per month if you shop around. Doing this means you don’t have to worry about a large initial outlay – especially if you are unsure how much you will get in return.
Obviously tracking a whole fleet of vehicles is going to be more expensive than tracking just one or two cars. Oftentimes you will pay a monthly cost per vehicle that works out to around £100-£150 a time. It could cost much more than this though, depending on a variety of factors. For example some companies provide bespoke tracking systems that are designed specifically for a particular business. This will always cost more than a standard system.
There are plenty of benefits wrapped up in vehicle tracking. For example you can actually save money by investing in tracking. This holds true whether you go for real-time tracking (active) or get all the data at the end of each day (passive). You can plan your delivery routes better for example, using less mileage and therefore paying for less fuel. You might also be able to direct your vehicles more easily on a daily basis. This is perfect if you run delivery services or a taxi service – both of which would benefit from better control over your vehicles on a minute-by-minute basis.
There are lots of advantages for other businesses too though. You may be able to identify personal use of vehicles that is not within the remit your business has. You also have a chance to quickly resolve the theft of a vehicle if you have active vehicle tracking in place. For example if the driver reports a vehicle as stolen, you can track it live and relay that information to the police.
Reducing the amount of mileage your vehicles put in also means you can reduce your CO2 emissions – something many companies are trying to do. Many people choose companies that are eco-friendly and actively trying to reduce the impact they have on the environment. Vehicle tracking could help your business do just that.
You can also find new ways to become more efficient. For example, how long does each delivery typically take when your drivers are out and about delivering parcels (or collecting them for that matter)? Information such as this may help you identify which employees are working well, and which ones aren’t.
This is perhaps the most important thing you should do prior to making a firm decision on whether or not to use vehicle tracking. Whatever method you go for with regard to leasing or buying the system, you need to consider whether you are going to save enough money to make that investment worthwhile.
Of course a lot will depend on how you use the data you gain from the system. The data in itself will not help your business – it’s the way you use it that will decide that. However assuming you make the most of the data and analyse the reports your trackers will give you, you may be surprised at the amount of money you could save. One company estimated the likely savings in fuel and other costs amounted to around £1,000 per year – and that is per vehicle as well.
Charges will vary depending on which company you use and which system you go for (and of course how many vehicles you have tracked). Tracker is a well-known company offering corporate systems in the UK. Their current pricing is around £300 plus VAT for the system and installation. There is also a £140 subscription cost that renews every year. This is for an entry-level system.
You can also get the trackinapack system for £149 that also provides you with real-time active updates on where your vehicle is. This is the cost per vehicle that you wish to have a tracker attached to.
Live Track from the Road Angel Fleet company reckons you will make back what it costs you to install it in six months at the very best level. However no pricing is included on the website. (This is something you will find with many companies providing this equipment and service. They do not all provide you with any cost information until you get in touch with them or send them your details.)
Fleetmatic offers three options depending on the size of your business, but again, you have to get in touch with them to receive a quote.
Finally, bespoke systems will always incur a specific price tailored to whatever system you decide to have in place.