May 19, 2012

Is GPS The End All Answer to Managing Your Snow Removal Business?

ice cream conesGPS= Global Positioning System.  GPS units have that “cool factor” to them because they are gadgets you can hold in your hand after buying and it’s fun to be able to track trucks on a map.  But you need to ask yourself, “Is this the best way to manage your Snow Business and How much money are spending to do so?”

GPS comes in three basic flavors…

Scoop of Vanilla- go buy a Garmin.  That does not track vehicle hours or anything like that.  This is just for knowing where you are at that moment and having directions to get you to where you want to go.  Some of them do breadcrumbs and timings but not every one of them.  (referring to the Garmin device available at stores for $49.95)

Mint Chocolate Chip- This is the enhanced GPS that a lot of people have on their phones like XORA.  It actually communicates bidirectionally to capture and save information.  You can get vehicle speeds and other data.  This is a little more money plus a monthly charge for the bidirectional access.

Banana Split with extra Whipped Cream- SNOW GPS…this is where you install devices on the truck to monitor things like engine hours or RPM, salting or plow operations.  This is about $1500/truck with an additional monthly communication few.

Positives of GPS:

An upside to using GPS units is that you can tell where your trucks are at any moment, the trucks’ traffic patterns, the routes they drive, capture their driving speed, capture hours used for maintaining the vehicles, you can have it on equipment to see if equipment is being used, and you can purchase as many units as you need.

Negatives of GPS:

The downside to GPS units is that when you add up the cost of having a unit on each piece of equipment, the cost can get really expensive, especially when you have a large fleet of equipment.  If you use subcontractors (which most everyone does), they may not like you knowing their every move, and there is a chance that they won’t return the GPS unit to you.  There are also locations where the signal doesn’t work and the GPS unit does not transfer data like it is supposed to.  Just because the GPS unit can tell you if the equipment is being used, it can’t always tell you how much material has been used and if another application will be needed.

A few questions to ask yourself when buying equipment/software for your Snow Removal Business:

  1. Does this equipment/software keep track of subcontractors and employees?
  2. Does this equipment/software keep track of what properties have been started, finished and missed?
  3. Does this equipment/software integrate with your accounting software?
  4. How much paper work is involved?
  5. Is there double entry of data?
  6. How does this equipment/software help protect you in litigation?
  7. Does this equipment/software know where your crews are at all times?
  8. Does this equipment/software keep track of how much material used on each property?
  9. Does this equipment/software help you forecast materials needed for the next winter event or season.
  10. By using this equipment/software, do you have to buy extra specialized equipment/tools for your whole business to use it?
  11. Does this equipment/software allow the property managers to check your progress?
  12. Does this equipment/software make you hot cocoa and chicken noodle soup? (ha! just kidding! But wouldn’t that be nice)