GPS Tracking Contracts

18 Mar

Clients need to be wary when looking to purchase a GPS tracking solution when it comes to agreeing to a contract.  I was working with a company that had an existing solution for almost 2 years.  They were for the most part satisfied, but had some frustration using the administration side of the application.

My company offers a solution that had several enhancements over their legacy system and we offer a hardware exchange credit at no cost for customers looking to change to our application.

The client assumed that their obligation had been fulfilled.  They were shocked when the provider informed them that they still had 13 months to go and they were on the hook for the full monthly amount times 13.  There wasn’t a one-time early disconnect fee.  We had no choice but to put this hold and we will contact them in a year as 18 vehicles @ $32.95 per month x 13 months is almost $8,000.00 dollars.

Our agreements are for 6 months – after that, they are month to month.  There is no cancellation fee, we just require 30 days notice.  While our churn rate is very low, we have had clients who downsized their fleet for one reason or another and were able to cancel their unused GPS devices.

Get the full details of any agreement – don’t sign for more than 2 years and make sure that once the contract is fulfilled, it goes  month – month and doesn’t automatically renew for an additional 1 or 2 year term.

Tim Doyle

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: