RFID (radio-frequency identification) technology has become increasingly prevalent in various industries due to its ability to track and manage items efficiently. Some studies have estimated that as much as 90% of retailers use RFID technology in the workplace.
However, one of the main concerns among retailers is the cost of RFID tags. Prices can vary significantly depending on several factors, including the type of tag, its functionality, the quantity ordered, and the specific application. This article will examine these factors and provide a comprehensive understanding of RFID tag costs and how much RFID inventory management will cost to implement.
Types of RFID Tags
RFID tags come in various forms, each designed for specific use cases. The primary types of RFID tags are passive, active, and semi-passive (also known as battery-assisted passive). The cost of RFID tags varies significantly based on their kind, as each type offers distinct features and capabilities.
Passive RFID Tags
Passive RFID tags are the most common and affordable type for retail inventory management. They do not have a built-in power source and rely on the energy transmitted from RFID readers to operate. Passive tags are suitable for applications where cost is a significant consideration.
The price of passive RFID tags can range from a few cents to a few dollars per tag, depending on size, material, and volume.
Active RFID Tags
Active RFID tags have their own power source, typically a battery. These tags can transmit signals over longer distances and offer more robust functionality, including real-time tracking and monitoring.
Active tags are less common in retail and are typically used in logistics and supply chain management, where they help track the movement of goods. Hospitals also use these types of tags for patient tracking, for instance.
Their cost is higher than passive tags due to the added components and maintenance requirements. The price of active RFID tags can range from $20 to $50 or more per tag, depending on features and capabilities.
Semi-Passive (Battery-Assisted Passive) RFID Tags
Semi-passive tags combine features of both passive and active tags. This type of tag benefits retailers with large store layouts or warehouse facilities. They have a small battery that provides a limited power boost, allowing for longer read ranges and additional functionality compared to passive tags.
The cost of semi-passive RFID tags falls between passive and active tags, typically ranging from $5 to $20 per tag.
RFID Tag Frequency
RFID tags operate at different frequency bands, and the frequency chosen significantly impacts the tag’s cost and performance. The most common RFID frequencies are low-frequency (LF), high-frequency (HF), ultra-high-frequency (UHF), and microwave (2.4 GHz and higher). Each frequency range has its advantages and limitations.
LF and HF RFID Tags
Retailers often use LF and HF RFID tags for close-range applications like access control and inventory tracking. These tags are relatively inexpensive, with prices ranging from a few cents to a few dollars for passive tags.
DigiKey sells low-frequency Avery Dennison read/write RFID tags for 50 cents each on their website. However, if you buy 500 units, this price drops to around 13 cents per tag.
UHF RFID Tags
Due to their longer read ranges, businesses commonly use UHF RFID tags in supply chain management, logistics, and retail applications. UHF tags are typically more affordable than active tags but cost more than LF and HF tags. Prices can range from $0.10 to $10 or more per passive UHF tag.
For example, these Long Range UHF Gen2 RFID tags from TagtixRFID cost $18.90 for 100 pieces. They read within 7 meters and last up to 10 years.
Microwave RFID Tags
Microwave RFID tags operate at higher frequencies and offer even longer read ranges. These tags suit specialized applications like vehicle tracking and high-value asset management.
Microwave RFID tags are more expensive, often costing $20 or more per tag.
RFID Tag Material and Form Factor
RFID tags are available in various shapes, sizes, and materials to suit different environments and use cases. The choice of tag material and form factor can significantly affect the cost.
Standard Paper or Label Tags
Basic RFID tags are paper or label materials that are cost-effective and suitable for many applications. These tags are commonly used in retail and logistics and can cost as little as a few cents each.
Durable and Specialized Materials
Tags designed for harsh environments or specific industries may use more robust materials like plastic or metal. Some retail verticals will need these types of tags. For example, you need weatherproof tags to run a nursery or garden decoration shop and display products outside.
Depending on features and durability, these specialized tags are more expensive, ranging from a few dollars to over $20 per tag.
Custom Form Factors
Custom-shaped tags or those integrated into products (e.g., clothing, packaging) may cost more. Custom RFID tag prices vary widely based on design complexity and volume.
Several major RFID merchants offer customizability:
Ordering RFID Tags in Bulk
Like many products, RFID tag costs are often inversely proportional to the quantity ordered. Bulk orders typically result in lower unit costs. Suppliers often offer volume discounts to encourage larger purchases.
Small quantities may have higher unit costs, while large-scale deployments can significantly reduce the per-tag price. For many stores, investing in more significant amounts upfront will help save time and money in the long run.
Additional Features and Capabilities
RFID tags can come with additional features and capabilities that impact cost:
Read/Write Capability
Rewritable and updatable tags are more expensive than read-only tags. Retailers can repurpose them multiple times, giving them a longer lifespan and broader usage.
Memory Capacity
Tags with larger memory capacity for storing data command a higher price. High-memory RFID implementation is relatively rare in retail. The most popular application in the retail setting is to track the usage and maintenance of a tool or asset over time.
Security Features
Tags with encryption and authentication capabilities may be more expensive due to the added complexity and security measures. Many retailers are unsurprisingly wary of the possibility of interference or breach of unprotected data from RFID. Hence, secure, encrypted RFID will likely become a more widely discussed topic soon.
Sensors
RFID tags with integrated sensors (e.g., temperature, humidity) provide additional data but come at a higher cost. This type of tagging has practical applications in industries with perishable or sensitive products.
For example, cannabis or tobacco retailers might use sensor tech to ensure their inventory doesn’t dry out or grow mold.
How Much Is An RFID System: Integration and Infrastructure Costs
The cost of RFID implementation goes beyond just the tags themselves. Consider the Total Cost of Ownership (TCO). You will also need RFID readers, antennas, software, and infrastructure setups. Large-scale deployments may require substantial upfront investments in infrastructure. Businesses should expect to spend anywhere from $10,000 to over $100,000 for a complete RFID system.
This cost includes the initial tag purchase and ongoing maintenance, replacement, and integration. Businesses should weigh RFID technology’s potential benefits and ROI against these costs.
Very happy with my decision to use this software and track the performance of my remote stores. KORONA POS is well worth the money. I chose it because it did not require a payment processor. Highly recommend!
-Richard D.
FAQs: RFID Tags Cost
The cost of an RFID (Radio-Frequency Identification) tag can vary significantly depending on its type, functionality, and quantity purchased. Basic passive RFID tags typically range from a few cents to a few dollars each, while more advanced active RFID tags with additional features can cost several dollars to over $50 per tag. Custom or specialized RFID tags may have even higher costs, making it essential to consider specific requirements when determining the price.
RFID tags are precious in applications like inventory management, supply chain tracking, and access control, where real-time data and automation are critical. However, retailers should carefully evaluate their cost and implementation complexity to determine if the benefits outweigh the investment for the particular situation.
Most RFID tags alone are not designed primarily to prevent theft; they are used for tracking and identification. However, when integrated with theft prevention technology and security systems, they can contribute to theft prevention by triggering strategically placed sensors.
Conclusion
Setting up an RFID system relies on integrating a robust inventory management system. KORONA POS has partnered with RFID Enabled Solutions to deliver a comprehensive tagging system for our clientele. This system allows self-checkout terminals and RFID-enabled kiosks for a lightning-fast purchase flow.
Click the button below to learn more about how RFID can help save your business time, labor, and stress.
