As you research telematics providers, it's essential to keep one thing in mind - you get what you pay for in a solution.
It's not the number that matters; it's the value that comes along with that number. Low-cost solutions may save you on upfront costs, but will most likely not be able to scale with your business and provide basic features and solutions. More robust solutions may cost more, but they have the flexibility to scale with your company and offer more value.
While many variables can impact telematics pricing, there are a few that factor in more than the rest.
Telematics Pricing Breakdown
The top three variables that impact telematics pricing are:
1. Feature requirements.
2. Purchasing vs. renting hardware.
3. Professional vs. self-installation (of devices).
Anyone can find and implement a low-cost solution, but is that the best answer for your business in the long run? The following are considerations when understanding these impacts on telematics pricing and making the best decision for your business.
1. Understanding Your Business Challenges
The business challenges you need to solve determines what features you will require out of a telematics solution, and in turn, how much it will cost. If you need visibility into your fleet operations, are you looking for a simple dots-on-a-map solution? If your drivers are receiving speeding tickets or getting involved in crashes, do you only need to monitor speed, or are in-cab/dash cameras a part of that solution as well?
Answering these types of questions will help create a more accurate checklist of features and requirements. Approaching a telematics provider with a clear vision of the challenges you face will paint a better picture of the types of features and the overall solution you need and how much it will cost.
2. Purchasing vs. Renting Telematics Equipment
3. Professional vs. Self-Installation
The crux of determining the success of a telematics solution is the installation of the hardware. If it's not done right, it can cause a host of frustrating issues down the road (literally and figuratively) that usually leads to buyer's remorse and loss of trust in telematics in general.
There are two options to install telematics hardware - professional or self-installations. Some providers charge for professional installation while others include it as a part of their offer. If they include it in their proposal, this could mean their monthly service is higher than other options.
The cost of professional installations depends on many variables, including:
- Location (and if there are multiple locations).
- Number of vehicles.
- Type of equipment - GPS tracking device, in-cab/dash cameras, temperature sensors, electronic logging devices (ELDs), etc.
All these factors add cost to a professional installation. There are still costs associated with self-installing telematics hardware even though you are not paying a professional upfront to do it. There is an investment of working hours it takes for your people to complete them, as well as the amount of non-productive downtime your vehicles will accrue.
Much like deciding whether to purchase or rent the equipment, there's no right answer how to perform installations. It's crucial to understand all the associated costs to make the best decision.
What Telematics Will Cost You
Understanding your business challenges to know what features you require, what your pricing options are, and how you will install telematics equipment are considerations to keep top of mind when choosing a potential provider. Take the first steps towards implementing a telematics system into your business today and receive free quotes from top suppliers at businessfleet.com.