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Much has been discussed regarding the effectiveness of GPS tracking devices in helping small businesses monitor employee behavior in company vehicles, keep an eye on company assets, and prevent theft of heavy machinery and other expensive equipment. The question that remains for many is not one of effectiveness, but rather of affordability. Let’s take a look at how you can determine whether tracking equipment is a wise investment for your company.

First, we should consider the three primary ways GPS tracking can save money for your company.

• Save Fuel: Just about all businesses operate at least one company vehicle. Tracking technology can help you monitor how much fuel you’re using and how efficient a company driver is  on the road. This enables you to implement cost-saving measures such as greater employee accountability and reduced fuel consumption.

• Prevent Theft: Installing location monitoring devices can also help you protect vehicles from thieves. If you lose just one vehicle to theft each year, you’ve lost anywhere from twenty thousand to several hundred thousand dollars, depending on the type of vehicle. Thieves target everything from small company cars to heavy construction machinery, meaning that you can’t count on any vehicle being safe if you don’t have the means to find it once it’s been removed from the job site.

• Protect Assets: With tracking capabilities, you can monitor expensive shipments and products whether they’re on site or on the road. If a shipment becomes lost or a product is stolen, the success of recovery efforts will increase dramatically when you’ve taken steps to track the item’s location.

Next, let’s consider the cost of incorporating tracking capabilities into your business operations. Assuming you pay approximately $300 per device, you can determine your total cost based on the number of vehicles or items you wish to track. For a fleet of ten vehicles, you would pay $3,000. Device costs may vary based on the needs of your company, but remember that if you’re equipping a large fleet of vehicles, your cost-saving potential increases along with your total expenditure.

Finally, we’ll do a simple comparison of cost versus net gain. Many companies have reported fuel savings in the tens of thousands of dollars, simply by incorporating GPS tracking into their routine. If the technology allows you to prevent even one vehicle theft, you could save twenty or thirty thousand dollars or more on your yearly budget. With savings like these, most businesses stop asking “Can I afford this?” and begin asking instead, “Why didn’t I do this sooner?”

Article Written by Greg Bartlett