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You are here: Home > Resources > GPS 101 > 4 reasons why wildlife GPS cost thousands of $$

4 reasons why wildlife GPS cost thousands of $$

A new iPhone costs $200 so why are wildlife GPS collars priced in the thousands? Does this make sense to you or does it seem out of whack? Here are 4 factors that drive our prices.

  1. One income stream. For wildlife telemetry companies, revenue generated is from the sale of hardware only. Unlike cellular phone companies that generate revenue through monthly service fees.
  2. Customization. Not knowing for what species the sale will be made, we can't stock product so we build to order and that drives up the cost.
  3. No economy of scale. "Ramping up production" here may mean a whopping 20 units to produce for an order. In terms of reducing production costs, manufacturing in these quantities doesn't help.
  4. Massive overhead. The cost of a GPS collar is more than the sum of its parts. Don't forget these other costs: labor comes in at #1 and normal overhead items such as advertising, insurance, R&D, rent, taxes... oy... taxes... don't get me started and a warranty.

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