RFID Arena


RFID ROI-consideration. Earning money – made easy …

In the fashion retail the money is lying on the shelves, we just have to take it. Guest blogger RFID Consultant Uwe Quiede from Tailorit tells how that is done!

Earning money - made easy … 

Those who believe that apparel retailers won't be better off in the future are misguided. There are ways to achieve this! 

The money is lying on the shelves, we just have to take it. And this is how:  

Find out which products are missing, replenish these quickly… now the customer can find everything he wants and products that are advertised online are guaranteed to be in stock. 

And who can do this? RFID can! 

Yesterday we were still complaining that implementing RFID is so expensive, today we know better: implementing RFID brings us more money than we can spend on the implementation. Earn money from the beginning, how great is that? 

But let's be serious. 

If finding gaps in product availability and improving customer service thanks to leaner processes leads to a 2-3% increase in revenue, then the implementation of RFID is profitable for the typical fashion retailer. One reason for this is that the prices of RFID tags have significantly declined in recent years. The standard RFID adhesive labels are now sold for less than 6 cents and in larger quantities even for less than 5 cents. At this point, considering the implementation of RFID is starting to become fun.

Nevertheless: the implementation or RFID can quickly cost several million, which often have to be forked over within one year for the roll-out. Not many retailers like the sound of that. But help is in sight.

We've met with financial service providers to discuss possible leasing models and have specified the following conditions: 

  • Leasing payments are only due once the roll-out begins
  • Costs for tags and service aren't incurred until the roll-out is completed

We entered the leasing rates provided by the financing companies into our ROI calculation tool and lo and behold: it is in fact possible that with such a model the revenue is higher than the costs from the first day on. If this isn't earning money in your sleep, then we don't know what is!   

ROI RFID Implementation

 Development of ROI during RFID roll-out.


Owe Quide

Writer: Owe Quide, RFID Consultant Tailorit

47 comments on “RFID ROI-consideration. Earning money – made easy …”

  1. Posted 28 July 2016 at 13:56:54

    Well, if only it could be an easy thing. Actually earning money could be a hard and unstable process.

  2. Posted 01 August 2016 at 08:59:53

    Interesting blog. It would be great if you can provide more details about it. Thanks you.

  3. Posted 14 September 2016 at 05:37:21

    Good blog post. I want to thank you for interesting and helpful information and I like your point of view. Thank you!

  4. Gravatar of KirsikkaKirsikka
    Posted 27 September 2016 at 09:16:46


    thank you for your feedback! If you want to read more about finding ROI in retail, this blogpost might be interesting to you:

    BR, Kirsikka

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