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.
this article will introduce to you how much electronic shelf labels 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.
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.
Want to know whether digital shelf labels are worth spending so much money on?
Reasons Why ESL Solutions Worth The Cost
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.
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
Customizable design
2.9-inch to 11.6-inch labels are available
Support 7.5-inch DOUBLE-sided labels
More
If interested, please contact us for a free quote. We will reply to you as soon as possible.
