RFID Costs | Tips to Optimize Costs When Investing in an RFID System
Besides quality, RFID costs are a factor that investors pay special attention to. The cost of implementing an RFID system includes hardware, software, RFID tags, and related service fees. So, what is the estimated cost of deploying an RFID system? How can we optimize RFID investment costs effectively?… The following article by IT Nam Viet will help you better understand this issue, so stay tuned!
Rfid Costs
What Does RFID Cost? What’s Included?
Just over 10 years ago, RFID was a relatively unknown technology, not widely recognized, and in reality, the cost of investing in an RFID system at that time was very high. However, in recent years, RFID technology and its applications have been receiving high praise from users, especially businesses in Vietnam. And now, the investment cost to deploy an RFID system is not too high, with strong competition among service providers.
Accordingly, the cost of implementing an RFID system includes:
RFID System Hardware Costs
The hardware structure of an RFID system will vary depending on the specific application. However, fundamentally, an RFID hardware system consists of the following main components: RFID readers and RFID printers.
RFID Reader Investment Costs
An RFID reader (also known as an RFID tag reader or radio-frequency identification reader) is a device used to identify objects and collect information from RFID tags, used to track individual objects. Radio waves are used to transmit data from the RFID tag to the RFID reader.
Rfid Impinj Speechway R420
RFID readers include fixed RFID readers, handheld RFID readers, or mobile RFID readers. Each type has a different structure, advantages and disadvantages, and functionality, so the price of each type will also vary. Fixed RFID readers typically range in price from 2,000 to 4,000 USD, equivalent to about 50,720,000 to 101,440,000 VND.
You can refer to the following fixed RFID readers from many famous brands around the world:
Meanwhile, handheld RFID readers designed with a grip, keypad, screen, and integrated wifi connectivity will have a higher price, typically ranging from 2,500 to 5,000 USD, equivalent to about 64 to 127 million VND.
Check out the following handheld RFID readers currently being distributed at IT Nam Viet:
On the other hand, some mobile RFID readers with a simpler design, containing only the reader and not equipped with a screen or keypad, connect to the server via Bluetooth,… will have a lower price, typically ranging from 1,000 to 2,000 USD, equivalent to about 25 to 50 million VND.
Handheld Rfid Reader
Consider your needs and budget to choose and deploy the right RFID system.
RFID Printer Investment Costs
RFID printers are not just smart printing devices but also powerful assistants that support the management of goods and assets, increasing operational efficiency across various sectors. Currently, RFID printers are the only devices that use radio frequency technology to automate the manual process of encoding each tag, saving time and optimizing costs. Notably, RFID printers can not only print various types of conventional information but also read encoded information such as 1D barcodes, 2D matrix codes, or graphic encoding formats.
Rfid Printer
It’s known that there are three common types of RFID printers on the market: desktop RFID printers, industrial RFID printers, and mobile RFID printers. Each type of RFID label printer will have different structural characteristics and features, so the price of each product will also vary.
If you use fixed RFID labels, you don’t need to use an RFID printer because the labels are usually automatically encoded. In case you need to use an RFID printer, the investment cost for this part can range from 3,000 to 5,000 USD, equivalent to about 76 to 127 million VND (for an industrial RFID printer).
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This is the part with almost the largest investment cost in an RFID system. RFID software investment costs typically range from 5,000 to 15,000 USD, equivalent to about 126 to 380 million VND. The cost of RFID system software depends on the process, complexity, and user needs.
Accordingly, pre-built software often has a lower investment cost, which helps businesses save significant costs. However, later on, you may spend time and money on software maintenance and upgrades. Meanwhile, with a customized RFID system, businesses may have to pay a higher fee, but in return, the system operates flexibly, making it easy for businesses to repair, replace, etc. Therefore, to maximize the advantages of these two RFID system building methods, businesses have tended to combine them at a ratio of 8:2, meaning 80% is pre-built software, and 20% are factors that can be modified later to meet the current needs of the business, while ensuring the needs for important changes in the future.
RFID Tag Costs
RFID tags are designed to store and transmit information via radio waves to identify objects. Currently, there are many types of RFID tags on the market with different shapes, structures, and sizes. Since the microchips in all types of RFID tags are the same, the cost of an RFID tag depends on how it is attached to the object being tracked.
Rfid Tag Costs
It’s worth noting that RFID tags with adhesive backing are preferred for use on clean, soft, and non-metallic surfaces. The cost of this type of tag typically ranges from 0.15 to 0.4 USD, equivalent to about 3,800 to 11,000 VND. For RFID tags used for metal objects or items that need to be protected by a chip, such as electronic devices, the price usually ranges from 1 to 5 USD, equivalent to about 25,000 to 75,000 VND.
Related Service Fees
These are costs for issues related to the RFID system, such as survey costs, tag type identification costs, system installation support costs, system deployment costs, etc. These costs typically range from 200 to 300 USD per day, equivalent to about 3 to 8 million VND, depending on the complexity and scale of the RFID system. In addition, businesses need to plan for other costs such as project management costs, warranty, security systems, etc.
Calculating the Return on Investment (ROI) of Implementing an RFID System
RFID chips or RFID technology allows you to optimally track and manage goods, assets, etc., with high accuracy and efficient labor cost optimization. However, before deciding to invest in an RFID system for your business, it’s important to know what you want from this technology and how RFID technology will affect your business processes. Of course, before every decision, you have to consider the return on investment (ROI).
Roi RFID
Return on investment (ROI) is the amount of profit you receive after spending money investing in something. To determine ROI in an RFID system, you need to consider how the system can save on labor costs. Implementing RFID also allows businesses to reduce the time it takes to locate lost items or inventory.
Besides the cost reduction factor, managers often evaluate the ROI of RFID in many different ways, including improving service quality and enhancing the customer experience. Therefore, you need to determine the ROI you expect from using RFID technology because if the ROI is not significant, investing in an RFID system is not valuable for your business at this time.
Top 9 Tips to Optimize RFID System Investment Costs
Investing in an RFID system is not cheap, especially for small and medium-sized enterprises. Therefore, when investing in deploying an RFID system, investors should keep in mind the following 9 things:
Take the time to review and assess your needs for an RFID system, including the scope of deployment, whether it’s small or large scale, etc. This helps you plan in detail to avoid unnecessary investments, wasting money and time.
Research and choose the right type of RFID tag, which can be single-read tags, multi-read tags, from cheap RFID tags to high-end lines with high data encryption capabilities. Choosing tags that suit your needs will help businesses save significant costs while ensuring operational efficiency.
You can use standardized RFID products offered by suppliers, including RFID tags, RFID readers, management software, etc. Available RFID solutions will often be more affordable and easier to deploy.
Carefully consider the location of RFID readers to avoid buying and installing too many unnecessary readers, causing waste.
Instead of using high-end software, you should consider and choose open-source software, which can be customized to the specific needs of the business.
Before making a large investment in new equipment such as new readers, new tags, etc., check their compatibility with your current system.
The RFID market is very dynamic with the increasing emergence of service providers, so you should research and choose a reliable supplier with many years of experience and clear warranty commitments. IT Nam Viet is a “golden” unit in the RFID “village” that you should choose when in need.
You must ensure that your employees are properly and fully trained on how to use and operate the RFID system.
After the RFID system is deployed and operational, you need to continuously monitor its effectiveness and evaluate it to detect and promptly fix related problems.
Rfid Warehouse Management System
IT Nam Viet – The Best RFID Solutions in Vietnam
IT Nam Viet is considered one of the pioneers in providing comprehensive RFID solutions in Vietnam. We specialize in supplying a wide variety of RFID readers, RFID tags, RFID antennas, and more, as well as genuine barcode equipment and office equipment at the most competitive prices on the market.
With over 10 years of experience and as a trusted partner of thousands of customers nationwide, IT Nam Viet is confident in bringing customers the best service at the most reasonable cost. We are ready to support customers 24/7, accompanying every project for life. Just give us a call, and we will be there to assist you promptly.
Comprehensive Rfid Solution
Before consulting with customers, IT Nam Viet always carefully studies the needs of each client. This provides the foundation for proposing the most optimal solution, saving costs, and bringing high efficiency.
The above is the most basic information about RFID costs; readers can refer to it to get the most general overview. Thank you for your interest and attention. Don’t forget to contact IT Nam Viet via Hotline (+84) 962.888.179 for advice on deploying an RFID system at a good price!
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