Profit maximization and cost reduction is the top most priority for any business or fleet owner. And, a fleet owner is well aware about how the overhead expenses hamper the profit maximization. However, considering GPS tracking as an expense is nothing but a contribution to problem mentioned above. Having this mindset ruthlessly discard the fact that GPS tracking is NOT an expense at all. In fact, there’s nothing wrong to perceive GPS tracking as an investment. Because eventually, GPS tracking does make a good ROI for useful expense. And the results can be seen in both terms i.e., money and goodwill.
No one can underestimate the fact that every small amount spent unnecessarily is a contribution to the overall expenses. And with the help of GPS tracking, many such extra costs would just dissipate.
This article will cover the facts that are enough to BUST THE MYTH that GPS tracking is an expense. It will also give you an idea about why considering GPS tracking as an investment will benefit you. And how does GPS tracking help in saving MONEY and TIME which is equivalent to money. Let’s dish out the reasons why GPS tracking can be considered as an investment.
Table of contents
Insurance rate are quite high as compared to others for this business. The reason for insurance rate being high is the risk and liability involved in this business. But what if I tell you that GPS tracking can literally minimize these high rates.
How? Well, the quality features of GPS tracker include live tracking and alerts. Live tracking helps you to be in touch with the real time movement of the vehicle and people. And alerts through push notification are sent to you about incidents that occur in real time. The possibility of vehicle recovery remarkably increases because of these features. And therefore, these features serve as an assurance for the insurance companies. Which means insurance companies do not have to worry about the high pay-outs. Which in turn motivates them to provide you the benefit of low premium.
Fuel, Maintenance & Other Costs
Fuel and maintenance are one of the biggest costs for any business which has any kind of transportation involved. The cost meter remains on even when the vehicle sits idle. Moreover, the other factors like driver’s driving style, division of labour, routing also contributes to these costs.
With GPS tracking, the cost of fuel and maintenance can substantially decrease. Features like accurate calculations of KM travelled, geofence, playback history create a huge impact on decreasing the costs.
Geofence is a feature that helps in creating essential boundaries for the expected movement of a vehicle. It also creates the reports & alerts about entry and exit of a vehicle with the help of GPS location.
With the help of playback history feature, you have access to the past movements of vehicle on a map for a certain period.
To explain further in detail, let me share a glimpse of how much our customers saved using the features of SenseNxt GPS trackers.
KM based savings
A fleet owner having 5 vehicles saves 40 KMs per day. So, when the cost per km is 15/- and no. of working days in a month are 25, the net monthly savings per vehicle after deducting the monthly cost per vehicle i.e. 444/- (Hardware cost and Recurring charges) is 14,556/- That means the net monthly savings for 5 vehicles will be 72,780/- and if we calculate it yearly, it goes to 8,73,360/-
Time based savings
Once again, Assuming the fleet size is 5. The GPS cost per month is 444/- and the average cost per vehicle is 5500. If the no. of idle days saved per month is 4, then the net extra revenue saved per vehicle per month will be 21,556/- And for a fleet size of 5, the net amount saved per month will be 1,07,780/- and when calculated yearly, the total amount goes to 1,293,360/-
Now if I ask you what would you do with these savings? The answer is A LOT; really a lot more. These huge savings can contribute so much into your Business Growth and Development. It can be anything like increasing your fleet size, make smart investments or hire new staff & technicians.
Precise Reports for Operations Management
This feature is specifically designed to make the operational work easy. And why not? Who wouldn’t wish to have precise reports with zero chaos? The Report feature generates various reports which becomes a helping hand to the operational management. They’re useful while making decisions for operational level. These reports are generated either on demand or as per the schedule
Insurance claims for Accidents
Accidents are the harsh reality of this business. When you have no analytical data in hand, the risk of false claims remains intact. But when you have a GPS tracker, you have all the information and awareness of behind the scenes that is enough to prove your point.
Goodwill of your Business
The benefits of GPS tracking are not limited to tangibles such as savings by reducing the fuel and maintenance costs. It also benefits in the form of ROI for intangibles. One of the examples of this is it helps to level up the customer service.
GPS tracking helps to improve the experience of customers with the help of on time arrivals, real time notifications and so on. This helps to build an excellent reputation of your business. As they say happy customers, happy us. Intangibles like Goodwill is equally important for any business to thrive. gps tracking is an useful expense that reality of your business.