Return of Investments with GPSControl
With modern life developing, we are beginning to think what is the most convenient way for our investment repayments. This article will help to determine in what way and in what period you will be able to return your investments if you have invested your money in vehicle monitoring system.
In shortest period, with help of this system you will see obvious result of safety and productivity increasing. All suggestions are universal and acceptable for both - large and small fleet.
What should we expect by using GPSCONTROL?
- Reducing fuel expenses
- Increasing productivity
- Raising costumer satisfaction
Those advantages above are obvious, which we can’t say about Eco drive or increased safety levels; because it’s quite difficult valuing given results by controlling driver manners.
Investment Withdrawal (ROI) is calculated by using following formula:
ROI = (Revenue-Expenditure) / Cost
The higher the ROI, the better it is. This means that you earn more than you invested in.
For calculating ROI in this particular case, you will need to know how much will it cost you to connect your vehicles in GPSControl system. Price for GPS device at current time is approximately 50 USD; monthly fee 1 USD per vehicle. Let's say you have 10 vehicles, so the cost of 10 cars in first year is:
50 * 10 = 500 for GPS Trackers
(2*10) 12 month= 240 for Subscription
This means 74$ per vehicle per year.
According to statistics 30% of fleet costs consists of fuel expenses. Therefore, it can be said that the most marketable function in the GPSControl system is fuel consumption control which aims to control and reduce fuel costs.
We don’t use additional fuel sensors that are installed in fuel tank, as far as their accuracy are not guaranteed.
Following parameters are used to calculate fuel consumption: average fuel combustion, fuel combustion while standing on fuel, fuel combustion under load, fuel combustion in summer and in winter, as well as automatic fuel combustion adjustment according to speed.
Let’s move from theoretical explanation to real example:
One of our customer whose fleet consists of 10 vehicles, decided to activate additional package that consists of following additional modules:
- Fuel management
By setting up limits for vehicles, you are able to reveal how much fuel is being consumed for 100 km
- Route planning
Optimal planning of routes and controlling of tasks
- Transposing control while nonworking hours
Sending alerts to both the manager and driver via alarm module:
1. Moving while non-working hour
2. Idling more than 10 minutes
Result was following:
|Before GPSControl||With GPSControl|
|Mileage||53041 km||46315 km|
|Average fuel consumption||19.6 l/100km||17.5 l/100km|
|Total fuel consumped||10396 liter||8105 liter|
|Fuel cost ( 1 USD per Liter )||10396 USD||8105 USD|
Monthly savings 10396 - 8105 = 2291 USD
ROI for this company is following:
Income (2291) - Cost (740) / Cost (740) = 200%
As you can see company could not only refunded all expenses but, also gain profit.
Surely, numbers are different for each company, but according to our 11-year experience, we can make you sure that result will be obvious in first 6 months.
If you need more your information or you sector, contact us immediately and our stuff will give you detailed information according your business and requirements.