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Home » GPS Tracking Blog & Software News » GPS tracking fits fleets of all sizes
September 09, 2014

GPS tracking fits fleets of all sizes


When prospecting for potential clients for your GPS business, it is important to consider the fleet size of the businesses you pursue. Fleet size is one of the factors that will have the biggest impact on the financial opportunity any one deal will have for your business. It will also have an impact on how complex and challenging it will be to close the deal and implement the solution. GPS tracking is a valuable tool for businesses with a wide variety of fleet sizes. It is valuable for fleets with one vehicle or a dozen vehicles. It is also valuable for fleets with hundreds or thousands of vehicles.

When selecting a software partner to power your GPS tracking business, you need to make sure you select one that has the capacity to scale with and support your largest potential clients. You never want to be put into a position where you have to turn away or lose business because of a limitation on the capacity of the software you offer. You also need to find a solution that will work well for fleets with simpler needs and smaller budgets.

Working with Position Logic will give you a solution that provides all the benefits of an enterprise solution to your clients with only a few vehicles as well as providing the scale for your clients with much larger operations. Also, for clients with specialized needs, Position Logic offers a self-hosted version of the GPS tracking software so your larger clients can have complete control over the system. There is also a hosted version of the software available, making it easy for new clients to get up and running without having to make a large up-front investment in servers and IT infrastructure. The extensive device integration means that your clients can use the system with most of their existing GPS tracking units or with any number of the options in the Position Logic device library.

There are pros and cons to having large or small fleets as clients. The pros of having clients with large fleets are obvious. More vehicles in a fleet mean more monthly revenue from subscriptions and potentially less accounts to manage. However, while clients with large fleets can provide more revenue, it may be at a lower margin if the client successful negotiates a volume discount on their subscription. Also, there can be a concentration risk if your business becomes too financially dependent on a small number of very large clients. You may end up having to spend an inordinate amount of time and effort placating a large client you can't afford to lose. That being said, don't turn away a large client if they come to you for GPS tracking services.

Clients with smaller fleets are good to have in your book of business too. They will typically be well served with the out-of-the-box solution and will not require as much hands-on customization or hand holding. The tracking and automation features will help smaller fleets save money on their fuel and maintenance costs and will help managers verify their drivers are where they are supposed to be. These smaller clients will also probably need less training since there will be fewer people operating the software. They will also typically have higher margins, since they don't have the scale to command volume discounts. The revenue potential is limited by the size of the fleet, but there are many small and medium-sized fleets that have never used GPS tracking before and many others that may have tried one system, but are looking for a more feature rich solution.

If you're thinking about starting a GPS tracking business, sign up for a free demo of the Position Logic platform to learn how the system can benefit and support your large and small clients alike.