GPS Fleet Tracking Pricing

What Determines GPS Fleet Tracking Pricing

 

There are a wide variety of variables that determine the cost of a GPS tracking solution. There are low cost GPS tracking services, low cost GPS tracking devices and everything above. Most of the cheapest GPS tracking services are temporary in that the profit margins are not high enough to sustain a business for the long run and eventually have to be increased or the provider goes out of business.

 

Variables In GPS Tracking Pricing

 

  • The type of communication network can vary the price greatly. Cellular communication is less expensive than satellite communication. Most fleets operate well on cellular communication.
  • The cellular network used will vary. T-Mobile is generally less than Verizon but the coverage area is also different.
  • The more detail or data used, the higher the monthly service fee.
  • The physical size and quality of construction of the GPS tracker impacts price. Large solar tracking devices are more expensive than OBD GPS units. Devices that are IP rated  for environmental factors are more expensive than other trackers.
  • The technology in the GPS tracker can be very simple or very complex and capable. Pick a tracker that matches your needs. The Geotab GO9 runs a Linux operating system making it the most advanced telematics system available.
  • The quality and capabilities of the web portal impact price. The more robust the online features, the more they cost to develop, thus the more expensive to use.
  • Purchasing a GPS tracker may seem more expensive but it is always less expensive in the long run. It is similar to purchasing  a car vs leasing it. Sometimes a lease makes sense or is simply preferred for the convenience. In the fleet management industry we call this a software as a service (SaaS) model. In a SaaS model you never own the tracker and must return it at the end of the relationship.

 

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