Thursday, January 14, 2010

Some Creative GPS Vehicle Tracking Deals Are Risky

As industries go, the GPS vehicle tracking industry is relatively new. As such, many providers are quickly coming up with creative pricing models to attract new customers. Some have even gone the way of cellular providers, offering high-tech devices (tons of apps!) at highly reduced prices, but with a lengthy contract.

Two questions arise for businesses with the need to track their vehicles:
(1)What to you really need in a device, and
(2)Should you enter into a service contract…even if you get enormous up front discounts?

To address the first question, think about what you are trying to accomplish.
Do you want to stop unauthorized driving?
Do you want to reduce the number of "Where are you calls?"
Do you need to know who is closest to an address right now?
Do you want to log stop times for billing or cost accounting?
Do you want to log mileage for billing or cost accounting?
Do you want to spot overlapping or inefficient routes?
Do you want your drivers to know you can see what they're up to?

Situational awareness is the real necessity for most businesses. Bells & whistles are nice, but not a must-have, and often a distraction. With today’s technology, businesses can purchase devices that provide enough information to answer the questions above for under $150.

Now to our second question, “Should I enter into a contract…for any reason?” No! The answer is “no”. The list of reasons is long but includes:
1.You shouldn’t have to…there are GPS vehicle tracking providers that offer service with NO contract
2.In today’s economy, you never know when you’ll have to scale back. In fact, it’s good business practice to be prepared to do just that. A contract locks you in, and by nature is not flexible.
3.You may have a future need that your existing provider can not support
4.You may simply find a better deal
5.Technology changes quickly. So do payment options in new industries. Your device, and payment plan, may be obsolete before long.

A GPS vehicle tracking system is an investment when you have more than a few vehicles. Make sure you reduce your risks by choosing a plan doesn’t lock you in.

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