There is an intensively competitive atmosphere among retail stores for they often win by razor-thin margins. Therefore, most retail store managers are digging for whatever margin they can.
Applying electronic shelf labels (ESLs) can help businesses gain substantial technical advantages, improve the efficiency of store management and save plenty of costs, which may be a double victory in saving human and material resources.
For store managers who haven't yet thought of using such tags, this article will introduce to you how much electronic shelf labels cost, and you'll make a wise decision by yourself.
How Much Do Electronic Shelf Labels (ESLs) Cost
Why Do Electronic Price Tags Become Popular?
The global market for retail price tags is predicted to reach $3.14 billion by 2027. The demand for electronic shelf labels continues to grow, and the market prefers to display product prices in an advanced way, that is, electronic ink screens and centralized pricing systems that show product information and prices to consumers. In addition, ESL allows dynamic pricing, so you can set flexible prices based on market demand. To sum up, the benefits that electronic shelf labels can bring include cost-effectiveness, fast update speed, and price tag security.
As stressed by stores, the drive for electronic price labels' need is mainly aroused from the advantage of much better user experiences concerning precise and also constant pricing. The change in lifestyle and the growth of the organized retail sector in arising countries are likewise adding aspects as well as the advancement of the internet in various countries.
MinewTag's ESL Used in Retail Store
How Much Do Gateway and ESL Management Software Cost?
In addition to electronic shelf labels, ESL systems also require gateways and management software. The gateway connects the electronic price tag to the management software to send and receive data.
The cost of a gateway is approximately US$300 to US$400, and approximately 1,000 to 3,000 price tags can be updated. A 1,000 square meter retail store requires 3 to 4 gateways, which means the total cost of the gateway is approximately US$1200.
As for ESL management software, the cost varies from the company. However, its general cost is about $500, which usually includes maintenance costs. If you sum it up, a retail company wants to apply 10,000 electronic price tags on the shelf, it needs about 61,700 to 102,100 US dollars, and the return on investment is about one and a half years.
Full-set ESL Solution
Want to know whether digital shelf labels are worth spending so much money on? MinewTag can reveal your return on investment.
Obtaining a positive ROI in such a short period of time requires providing sufficient motivation to consider ESL, but there are many other benefits to properly considering these systems. Let's take a look at some of the biggest advantages you have to consider your service status and final decision.
Reasons Why ESL Solutions Worth The Cost
Enhance the Scientific Research of Rates
Although ESL does replace paper shelf labels, the main benefit of the system is that its software makes more complex pricing strategies possible. Although the retail price has always been regarded as an art, studying it as scientific research is the key to determining the ideal price. Software applications that raise interest rates can help regulators design an interest rate strategy that neither keeps cash on the table (interest rates are too low) nor keeps excess inventory on the shelves (overpriced). This means higher income.
The innovation in Electronic Shelf Labels allows grocery managers to implement AI-based rate optimization applications in their stores. With this software program, managers can find out where the flexibility lies by readjusting interest rates.
When something has interest rate elasticity, a minor higher adjustment in interest rates will result in fewer people getting it. However, products that do not price elastic will not be affected by price increases—just like a specific point.
This means that stores can charge higher than current prices for certain products, but not charge excessively high prices for other products.
The most effective part is how cost-optimized software programs handle ESLs. The software program allows supervisors to adjust the exchange rate almost instantly, adjusting the labels that appear on the shelf of the POS system in less than a minute. Simplicity and speed allow them to check their new interest rates and make adjustments immediately, without staff labor costs or lost time.
The overall benefit is that stores can apply price methods based on difficult information rather than intuition. This allows store managers to identify better benefits and see the return on their financial investments more quickly.
Executing instantaneous rates can also assist grocers lower waste by assisting managers with the management of perishables. As a disposable thing approaches its expiration date, the manager can promptly and easily drop the cost on the product to make the product relocation, without sustaining labor or printing expenses.
Implementing instant rates can also help grocers reduce waste by assisting managers in managing perishables. When the disposable items are close to the expiration date, the manager can quickly and easily reduce the cost of the product and move the product without having to bear labor or printing costs.
Grocery store's price tags
Obtain the Very Same Appearance without the Paper
Since it was developed, ESL has made progress and enhancements. Nowadays, one of the benefits of ESLs is that they can be provided in various sizes and shapes. Earlier generations of products were smaller in size with limited text options, but the current labels various outlooks.
Take MinewTag products, for example, we have 2.9-inch labels, 7.5-inch double-sided labels, and large-size labels of 11.6 inches. Similarly, merchants also have some ready-made shadow blends and have extra space for text, and some ESLs can also be composed of pictures. This provides exactly the same alternatives, just like paper labels, but with the ability to change them at one minute's notice.
Closer to these new sizes and more advanced software applications, the latest ESL variants also have lighter facilities, making them less complicated to set up compared to earlier versions. Apart from retail applications, ESLs applications have been extended a lot including healthcare, office, warehouse, etc. In addition, since ESL itself uses only a small part of the energy of earlier versions, their batteries can last 3 to 5 years, which makes them more worthwhile.
Lower Printing as well as Labor Costs
Grocery store managers who have installed ESL will definitely see future cost savings in labor and material expenditures. With paper labels, every cost change on the shelf requires paper, ink, printing tools, and team time to set up new labels on the shelf. Shelf labeling is a slow and cumbersome process, and some stores have to change the cost of up to $3,000 per week, and the cost of materials and staff will soon increase.
However, most of these prices are completely removed with the ESL system. Only one person needed to modify the POS and upgrade the countless tags on the shelf within a few minutes, reducing operating costs to almost zero. Without printing products and labor, businessmen will certainly see significant cost savings.
Although ESLs can be slowly launched in different branches, if you convert the entire store at once, you will definitely see the best cost optimization advantages and price financial savings. When combined with AI-based interest rate optimization software and change price processing to take advantage of the flexibility of demand, a grocery store with 30,000 labels can see a return on investment within a year.
MinewTag's ESLs used in retail stores
Why MinewTag’s Electronic Shelf Tags?
MinewTag provides electronic shelf labels, which are now supported by the brand-new ESL Cloud Platform, which enables more functions than any other labels:
Longer battery life of 5 years with BLE 5.0 technology
7-color loops to indicate the status of items
Support Black-White, Black-White-Yellow, Black-White-Red Colors
2.9-inch to 11.6-inch labels are available
Support 7.5-inch DOUBLE-sided labels