From cost, tell you why you should use electronic shelf labels
Cost is the issue that retailers are most concerned about when operating retail stores. As China ’s demographic dividend is gradually fading, labor costs have begun to increase, which has challenged the traditional retail industry, which was already under intense competition pressure and reduced profit margins.
In the information age, the evolution of the entire society is developing in the direction of improving efficiency and reducing costs. In 1993, an electronic shelf label that could replace a paper price tag appeared. The electronic shelf label successfully incorporated the shelf into a computer program, eliminating the situation of manually replacing the price label, and quickly completing the price change operation to achieve real-time dynamic pricing.
In terms of efficiency, paper price tags need to be replaced frequently, and manual replacement of a price tag for at least two minutes is inefficient and affects the timeliness of promotional activities. The MTag electronic price tag can remotely change the price on the cloud platform with one click. The price refresh of a price tag takes less than 1 second. The fast price update speed makes it easier for merchants to implement price strategies and gain a leading edge in the competition.
In terms of cost, in the long run, electronic shelf labels have more advantages. The specific analysis is as follows:
According to the electronic shelf label of 70 yuan each, it costs 350,000, plus peripheral accessories and installation of 60,000, and a total of 410,000 facilities; the rate of change is 15,000 units / h, only one employee is required, and the five-year labor salary : 5000x12x5 = 300,000 yuan, the rough total cost is: 710,000 (Plan 2: The overall price change takes 0.033h at a time, and the total time spent in 5 years: 0.033x365x5 = 60 hours, according to 20 yuan / hour, the total cost is 1200 yuan , That 5 years rough estimate total cost: 411,000 yuan).
Paper price tag 0.12 yuan / sheet (0.07 yuan / sheet for a single copy, 0.05 yuan / sheet for printing), 5 years will cost (0.12x500) x (5x365) = 109,500; three employees are required, then 5 years Labor salary: 5000x12x5x3 = 900,000, rough total cost: 1.0095 million (Plan 2: the price of labor is 2min / piece (0.033h / piece), labor cost is 0.033x500x (5x365) x20 = 602,250 yuan, rough Calculate the total cost: 717,175 yuan).
Calculated according to 2 different schemes over 5 years, the cost of the two is actually about 300,000!
Therefore, the short-term investment of using electronic shelf labels may seem huge, but it is a one-time investment. Convenient operation minimizes labor costs, and there is basically no need to re-invest in the later stage. In the long run, the overall cost is low. However, because of the large amount of labor required for quality price signing, the cost gradually rises over time, and the hidden costs are huge, and domestic labor costs will become higher and higher in the future.
In the future, as the pace of ultra-intelligent transformation of traditional retailers accelerates, paper price tags will be gradually eliminated, and electronic shelf labels will be more widely used in various retail stores.