March 20, 2008 // Franchising.com // - DEER PARK, NY – As the cost of crude oil exceeds $100 per barrel, gasoline prices continue to rise. According to AAA (www.aaa.com), the average price of gasoline is at a national average of $3.28 per gallon. Analysts expect these prices to rise with the arrival of warm weather to above $3.50 per gallon. As fuel costs rise to record levels, more and more businesses look to GPS fleet tracking to moderate these costs.
According to a recent study by the Aberdeen Group, the implementation of a GPS system provides an average 13.2% reduction in fuel costs. The same study found that nearly one-third of service companies are using GPS-based location data to improve service response times, workforce utilization, and service profitability.
John M. Cunningham Jr., President of Vehicle Tracking Solutions, a New York based fleet management company, has seen an increase in interest in GPS tracking from companies that operate fleets. "Fleet operators can minimize the impact of rising fuel prices by installing a VTS tracking system in their vehicles. Our customers realize an average of 11% to 13% savings in fuel costs after implementing our system," Cunningham stated.
Sources state that an hour of engine idling results in the consumption of one gallon of fuel. GPS tracking provided by Vehicle Tracking Solutions allows fleet operators to monitor engine status, to ensure vehicles are not wasting gas by idling.
Vehicles are most efficient at 50-55 mph; exceeding these speeds expends gas at an increased rate. The VTS system provides exception based text notifications that can alert fleet operators when a vehicle exceeds set speed limits, as well as when it starts moving or enters a designated area.
Although reducing fuel costs is a major factor in purchasing a fleet tracking system, the VTS solution also provides benefits such as reduced overtime pay and increased deliveries or service calls. The Aberdeen Group reports that implementing a GPS system reduces overtime costs by an average of 13.4% through increased efficiency and driver accountability.
Cunningham adds that "as fuel costs continue to represent a higher proportion of operating expenses for fleet companies, the investment in a GPS system provides a faster ROI (return on investment). Many of our customers see savings in fuel costs, insurance rates and overtime pay in as little as 30 days."
A recent study of the fleet tracking industry found that only 10% of the 20 million business vehicles in the United States are equipped with fleet tracking systems, and this number is expected to grow. In addition, industry sources report that by 2010, there will be 17 million GPS fleet management subscribers generating more than $2.5 billion in revenue in the fleet tracking industry. Vehicle Tracking Solutions is the only company in the AVL industry to offer franchise opportunities. VTS franchisees will have access to the fastest growing market in the B2B industry.
For questions about the VTS franchise opportunity, contact Ed Teixeira, VTS Chief Operating Officer, at 631-586-7400 x31 or email@example.com.
Vehicle Tracking Solutions is a leading provider of Automatic Vehicle Location (AVL) devices and fleet management solutions. VTS tracks nearly 10,000 vehicles 24 hours a day for clients in 32 states. Entering its sixth year of operation, VTS has experienced double-digit growth over the past four years. VTS operates offices in New York and New Hampshire, and is the only company in the AVL industry to offer franchise opportunities.