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I think RFID tags are too expensive to put on every product. I may be wrong on this.
by stevenmays 10y ago
I think RFID tags are too expensive to put on every product. I may be wrong on this.
- iainmerrick 10y agoI have a feeling you're wrong -- I see RFID tags on almost everything these days, even tiny cheap products.
- mattlondon 10y agoYep, in smallish bulk (low 1000s), you can get them for about 10-20c a tag (and these are "self printed" ones you can print in-store as needed via dedicated RFID printers) (e.g. https://www.atlasrfidstore.com/rfid-label-4x2-for-the-zebra-r110xi4-zt410-420-rz400-rfid-printers-roll-of-1-000/ https://www.atlasrfidstore.com/rfid-label-4x2-for-the-zebra-...) I am sure that amazon/walmart/tesco/whoever will need more than 1000 at a time and so obviously get a larger discount. Probably down to well under a penny or two - starts to make a lot of sense when you factor in the other benefits (lower staff, easier stock-tracking/taking etc)
- jpalomaki 10y agoQuick search on Alibaba shows that on volume these are just $0.01 each (and probably lower when you buy larger volumes). Of course sticking these to each product is inconvenient and I would assume the tags are not yet built in in most grocery product packaging. https://www.alibaba.com/product-detail/China-Professional-manufacturer-providing-low-price_60513577468.html https://www.alibaba.com/product-detail/China-Professional-ma...
- cobookman 10y agoRAIN Rfid tag is < 10cents.
- Someone 10y ago1% is a decent average margin in a grocery store (http://smallbusiness.chron.com/industry-standard-gross-margin-groceries-38121.html http://smallbusiness.chron.com/industry-standard-gross-margi...). So, it would require a $10 item to break even on a €0.10 tag.
- tgb 10y agoI don't think you can make that conclusion. Presumably this store will be saving money on cashiers by instead using RFIDs.
- Someone 10y agoThe article I quoted claims 1% is the _gross_ margin, in which case my argument is valid. I now think that is incorrect, as other high-ranking Google results claim it is the _net_ margin.
- cobookman 10y agoBut if using RFID saves them more than the cost of the technology its a win. Basically if Savings from reducing sales persons > Cost of New Technology, you'll add the new tech.
- Someone 10y agoIt doesn't have to be strictly cheaper, as it also adds convenience. Not having to wait at the checkout will be worth something to customers, possibly quite a lot in the case of a shop targeting richer customers.
- jonknee 10y agoAlso never underestimate Jeff Bezos' willingness to lose money in the short term.
- zenware 10y agoMost libraries RFID all their books now so you can just drop them on a scanner that detects all the books you have, swipe your library card and go. I don't think that's actually what Amazon Go is doing though.