It's important for small and medium-sized businesses to keep costs low and revenue high, but when margins are tight, investing in new tools and software that promise to do just that can seem unnecessary and even wasteful. When you take the plunge and adopt a new tool, make sure it's one with a proven track record.
In Part 2 of the Ultimate Guide to GPS Tracking for Business, we'll explore how GPS tracking devices give fleet managers in any industry the ability to reduce costs and increase earnings by providing detailed data on how their drivers behave in the field. In fact, the data collected by GPS tracking devices is so comprehensive that many businesses see a 1-4x return on the initial cost of installing their tracking devices.
One of GPS tracking's most powerful benefits is its ability to save businesses money. And not just pennies – GPS tracking can help fleet managers realize significant savings across the board, including reduced fuel use, more accurate payroll and decreased overtime. Here's how:
"I have more control over the use of the vehicle. I can see if the truck is in the driveway all weekend. Now they call and ask if they need to use the truck on the weekend, instead of just taking it."
GPS tracking devices can also help you identify opportunities to negotiate more savings for your business. Jeremy, the operations manager at One Way Inc., a residential and commercial waste collection business, has used GPS tracking to negotiate better pricing from a landfill his business regularly works with:
"My trucks can sometimes sit in line at the landfill for a long time, costing us money. When I used to call to discuss it with the manager, he would ask how long the drivers were sitting, and I would have to say ‘I don't know.' So he would only give me a nickel off the price. Now I have hard data. I can say exactly how long the trucks were sitting and what it is costing me, and I can ask for 50 cents off."
The data provided by your GPS tracking devices helps you keep operating costs low without compromising your fleet's ability to deliver excellent service. When you track your vehicles using GPS devices, you can feel confident that you're making decisions using reliable data and start focusing on earning new business.
In addition to reducing costs, GPS tracking empowers businesses to increase their revenue by boosting productivity and enabling you to deliver better service.
GPS tracking can increase your fleet productivity by 10-20%. When it takes less time to reach a service call, businesses are able to answer more calls every day. And when a business provides fast, quality service, they can count on more customer referrals – that means increased revenue.
Here's a real-life example of a company that increased their earnings after they installed GPS trackers in their vehicles:
Tri-County Power Sweeping provides parking lot sweeping and maintenance services to property managers. Patrick, the company owner, recognizes the value of GPS tracking for providing reputable work:
"I wish I had [GPS fleet tracking] five years ago. I lost four accounts worth a total of about $80,000 because guys didn't show up to do their job. The potential business I lost was even higher, because I lost relationships with clients who owned multiple properties."
GPS tracking keeps Patrick's employees' standards high and his customers satisfied, and increases the likelihood of earning repeat business and positive customer referrals.
Reducing costs and increasing revenue are compelling reasons to install GPS tracking devices in your vehicles, but that's not all GPS devices can do for your business. Stay tuned for Part 3 of the Ultimate Guide to GPS Tracking for Business to learn three more ways tracking and monitoring driver behavior can benefit your business.