How much do Electronic Shelf Labels (ESLs) cost? - Part 2

Last week we looked in detail at the most influential element when determining the cost of an Electronic Shelf Label (ESL) project, the labels themselves – quantity, size, specifications and more. This week we’ll move onto the other elements that influence the cost of an ESL project.

1. How many square metres is the store?

In order to populate the labels, wireless access points (AP’s) are required to be installed in each store. As a general rule of thumb, each label that you wish to update should be within 15 metres of an AP. To be safe you should always allow for a small overlap, as per the best practice diagram below, where the radius of each circle is 15 metres.

A retail shop floor plan, with Electronic Shelf Label Access Points plotted out, for optimum RF coverage.

The larger the store, the more APs that are required, and of course, each AP comes with a cost. The diagram above is for a large supermarket or department store. Smaller stores will only require 1 or 2 APs, to cover the entire shop floor.

In order to get an idea, take a 2D plan of your shop and do a quick diagram to estimate.

2. How will I attach the labels to my shelving?

Clients are generally charged per accessory. Shelf strips are the most effective approach if you are putting 6+ products on a 900mm shelf. If you are only placing one or two products onto each shelf, an alternative accessory will prove more cost effective. These accessories include clips, hooks and stands.

Installation method

Clips, hooks, clamps and stands are quite easy to self-install. Shelf strips are a little trickier, so professional installation is recommended (but not essential), when choosing this option.

It is recommended that the Access Points sit on the roof to maximise coverage. We encourage clients to use their own electricians, who are familiar with their stores, to run the necessary cabling and keep costs at a minimum.

3. Software integration

Generally speaking, the setup of the first store within a network of stores, requires the most amount of work. Integration between the electronic pricing software and the stores existing ERP or POS system, is essential for a successful and optimised project. At FutureShelf, we can create an integration between any existing system, so there’s no need to worry that your chosen POS won’t be compatible. On top of that, we may have already productised your integration, if it’s a system that we’ve worked with before. Just contact us to find out.

As such, the bulk of the cost is in the initial setup. Once the first store is on board, subsequent stores should require lower investment, to get up and running. This is encouraging for franchises, if head office can fund the initial set up, independent stores can then benefit from the technology at a lower cost.

4. Handheld computer

A handheld computer with an inbuilt scanner is strongly recommended, as it allows for easier setup and management of the system. During setup, you can simply scan the barcode under or behind each electronic label, with the product barcode, to bind them in the system.

The handheld computer also allows you to change pricing and product descriptions at the shelf edge. And, it assists in moving products around the store, without having to move the electronic price tickets.

It’s likely that you will already be using these within your store, in which case the E-Pricing software can simply be installed.

5. Ongoing costs

a) Hosting

To allow your chosen ESL supplier to support you, it is imperative that the software and pricing system are hosted on the cloud, so that someone from the supplier’s IT team can access the system, to make any required changes, or to help in the unlikely event that something goes wrong.

Your data should ALWAYS be hosted in Australia or the country you are based in. Hosting costs are charged as long as your system is operational. If you have 20+ stores using an electronic pricing system, you should be able to ask your provider for a discount in this area, due to economies of scale.

b) Support

If a company sells you electronic pricing hardware without an ongoing service charge or agreement, this should be seen as a red flag. Electronic pricing systems require an ongoing commitment from your supplier, who ultimately becomes a partner to your business.

Electronic pricing systems are tailored solutions which should meet your specific needs. These needs change over time so you’ll need a reliable partner, to go on the journey with you, for years to come.

c) Software

The software behind the electronic ticketing system, is just as important as the hardware. The software needs to be reliable, easy to use and have all of the features that you need to meet your requirements.

Even if you are not using a specific feature like click and collect today, knowing that your ESL software can help make your store more efficient, at no additional cost, makes having a more robust software at your disposal more valuable, even if the initial outlay is slightly higher.

Thanks so much for reading, we hope that it was insightful. If you have any further questions or would like a quote for your store, please contact us or download a brochure.