The price of a digital shelf label, also known as Electronic Shelf Labels, depends on its size and features. Simple digital shelf labels usually cost $5 to $15 each. Fancier Electronic Shelf Labels with bigger screens or extra features can cost over $20. Some special labels for unique uses might cost more than $100. Other costs, like software or devices called gateways, add to the total price. In 2023, the global market for these digital shelf labels was worth $1,485.10 million. It is expected to grow by 15.8% every year from 2024 to 2030. These Electronic Shelf Labels are popular because they save money and offer long-term benefits.
Key Takeaways
- Digital shelf labels cost between $5 and over $100. Prices depend on size and features. Pick labels that match your store’s needs.
- Buying many labels at once can make each one cheaper. Ask sellers about discounts for big orders to save money.
- Think about extra costs like software, upkeep, and setup. Planning ahead helps you avoid unexpected expenses.
- Digital shelf labels save time by updating prices automatically. This makes store work faster and easier.
- Digital labels are good for the environment. They use less paper and help stores save money while staying green.
Factors That Change Digital Shelf Label Prices
Simple vs. Fancy Digital Shelf Labels
The kind of digital shelf label you pick affects the price. Basic labels are cheap and easy to use. They show simple details like prices and product names. These labels usually cost $5 to $15 each. Fancy labels have extra features like bigger screens or touch options. Some even show colors or work in cold places. These can cost $20 to $50 or more each. Special labels for unique needs, like freezer-safe ones, cost even more. Picking between basic and fancy labels depends on your store’s needs and money.
Discounts for Buying More Labels
Buying more labels at once can lower the cost per label. Vendors often give discounts for big orders. For example, buying 1,000 labels costs less per label than buying 100. Making and shipping many labels at once saves vendors money. They share some of those savings with you. If you need labels for a whole store or many stores, buying in bulk helps save money. Always ask vendors about discounts for buying more to get the best deal.
Vendor Prices and Location Differences
Prices for digital shelf labels change based on the seller and location. Some sellers include software and setup in the price. Others charge extra for these services. Where you live also matters. Labels might cost more in places with high shipping fees. Local sellers may offer cheaper prices than sellers from far away. Comparing prices from different sellers and thinking about location can help you save money.
Detailed Cost Breakdown
Per-Label Pricing
The price of a digital shelf label depends on its type and features. Basic labels, which use e-ink technology, cost $5 to $15 each. These labels show simple details like product names and prices. Advanced labels with bigger screens, colors, or touch features cost $20 to $50. Special labels, like freezer-safe ones, can cost over $100.
Several things affect the price, such as display type, battery life, and setup needs. For example:
- E-ink labels use less energy and are cheaper than LCD ones.
- Larger labels with better displays cost more because they are complex.
- Installation tools, like mounting parts, add to the total cost.
Buying in bulk can lower the price per label. Vendors often give discounts for large orders. This is a good option if you need labels for many stores.
Software and Licensing Costs
Digital shelf labels need software to update and manage them. This software keeps prices correct and links the labels to your inventory. The starting cost for this software is about $500.
You might also pay ongoing fees for updates and support. These fees depend on the software’s features and how many labels it manages. For example:
- Basic software for small stores costs less.
- Advanced systems for bigger stores cost more.
Make sure the software works with your current systems. If it doesn’t, fixing it could cost extra money.
Hardware Expenses (Gateways, Servers, etc.)
Hardware is important for digital shelf label systems to work. Gateways connect the labels to the software. One gateway costs $300 to $400 and supports 1,000 to 3,000 labels.
Big setups may also need servers to store data and keep things running. Accessories like brackets and batteries add to the hardware cost. Here’s a breakdown of common hardware expenses:
| Expense Category | Description |
|---|---|
| Hardware cost | Includes the label device and extras like size, display type, and battery life. |
| Gateway | Connects labels to the system; cost depends on tags and network size. |
| Accessories | Costs depend on the type and number of setup tools needed. |
Maintenance is another hardware expense. This includes checking the system, replacing batteries, and updates. Maintenance fees usually cost around $500 each year.
Installation and Maintenance Fees
Setting up and keeping a digital shelf label system working costs money. These costs include putting the system in place and keeping it running well.
Installation Costs
Putting up digital shelf labels takes several steps. First, you attach the labels to shelves. You might need brackets, sticky strips, or other tools, which add to the price. If you hire experts to do this, you’ll pay labor fees. Professional installation usually costs $1,000 to $5,000. The price depends on your store size and how many labels you need.
You’ll also need to set up the system to link the labels to your inventory software. This step makes sure prices and product details update correctly. Some sellers include basic setup in their price, but others charge extra. If your store needs special software changes, you’ll pay more.
Tip: Ask sellers if they can train your staff to install the system. This can save money and teach your team useful skills.
Maintenance Fees
After setup, digital shelf labels need regular care to work well. Replacing batteries is a common cost. Most labels use batteries that last 3 to 5 years. Batteries usually cost $1 to $3 each, depending on the type and number needed.
Software updates are also important. Sellers often release updates to fix problems or add features. These updates can cost $200 to $1,000 each year, depending on the software and how many labels you have.
You’ll also need to fix or replace broken parts. Damaged labels or gateways may need repairs over time. The cost depends on the problem and the warranty from the seller. Many sellers offer yearly maintenance plans that cover repairs for a set fee.
Balancing Costs and Benefits
Even though setup and care costs seem high, they help your system work well. Good installation prevents mistakes, and regular care makes your system last longer. Planning for these costs early can stop surprises and help you get the most from your system.
Long-Term Benefits of Digital Shelf Labels
Automation and Cost Savings
Digital shelf labels update prices automatically, so no manual work is needed. This saves time and lowers labor costs for stores. For instance, Busy Beaver used electronic shelf labels (ESLs) in 24 stores and cut expenses. Small, unmanned stores also save money with cloud-based ESL systems.
Switching to digital labels reduces spending on materials. Paper tags need constant replacing, but digital ones don’t. Over time, this change saves a lot of money. Digital updates also make prices more accurate, which builds customer trust. Connecting these labels with other store tech improves efficiency and reduces mistakes.
Efficiency and Reduced Labor Costs
Digital shelf labels make stores run better by saving time. Workers don’t need to replace paper tags or check prices by hand. Updates happen instantly on all labels at once. This frees up staff to help customers or manage stock.
A grocery store using ESLs saw higher profits and better sales of short-life items. Quick price changes, like discounts, help manage inventory better. Real-time updates stop pricing errors, making shopping easier for customers.
Sustainability and Environmental Impact
Digital shelf labels are better for the environment by cutting waste. Paper tags need frequent printing, which creates trash. Digital labels don’t use paper, reducing waste and carbon emissions. Many are made with recyclable parts for eco-friendly disposal.
These labels have long-lasting batteries, often up to 10 years, reducing e-waste. Instant price changes also lower food waste by marking down items quickly. For example, perishable goods can be discounted to avoid spoilage. Using digital shelf labels saves money and helps the planet.
Better Shopping Experience
Digital shelf labels make shopping easier and more enjoyable. They show correct prices, so customers always see the right cost. This removes confusion and helps shoppers trust your store. When people trust your prices, they are more likely to come back.
These labels are clear and modern, making information easy to find. Some advanced labels show extra details like product info, sales, or QR codes. Shoppers can scan QR codes to learn more or read reviews online. This helps them decide what to buy faster.
Prices on digital labels update instantly. If you have a quick sale or change prices, the labels show it right away. Customers see the newest deals without waiting. This keeps shopping exciting and can lead to more purchases.
Some labels also help people with vision problems. They may have bigger text or colorful displays, making them easier to read. This makes shopping better for everyone.
Using digital shelf labels makes shopping smooth and fun. Customers like the accuracy, ease, and modern feel these labels add to your store.
Evaluating Costs vs. Benefits
Total Cost of Ownership (TCO)
When looking at the total cost of ownership (TCO) for digital shelf labels, think beyond the starting price. The first costs include buying hardware, software, and setting up the system. For example, you’ll need to get gateways, servers, and the labels. Training your staff is another cost to consider so they can use the system well.
There are also ongoing costs to keep in mind. These include fixing issues, replacing batteries, and getting tech support. If you need the system customized for your store, that might cost extra too. Many suppliers give detailed TCO estimates to help you see the full costs. Planning ahead for these expenses helps avoid surprises and makes smarter choices.
ROI Analysis for Businesses
Spending money on digital shelf labels can bring good returns over time. Even though the starting costs seem high, the long-term savings make up for it. Stores save a lot on labor because workers don’t have to change prices by hand. Most stores recover their costs in about 12 to 18 months.
Here’s a simple look at the benefits:
| Benefit | Description | Payback Period |
|---|---|---|
| Cost Savings | Big drop in labor costs from no manual price updates. | 12 to 18 months |
| Increased Profitability | Long-term gains outweigh the upfront spending. |
Over time, the system saves money by cutting labor and material costs. The savings make the initial spending worth it, especially for stores aiming to grow and work better.
Real-World Examples of Savings
Real-life stories show how digital shelf labels save money and improve stores. For example, a grocery store used these labels to cut labor costs by automating price changes. This let workers spend more time helping customers and managing stock. Another store had fewer pricing mistakes, which made customers trust them more and boosted sales.
The savings go beyond labor. By not using paper tags, stores save on materials and reduce waste. This helps save money and supports eco-friendly goals. Over time, these advantages make digital shelf labels a smart and cost-saving choice for modern stores.
Digital shelf labels cost $5 to $50 each. The total cost also includes software, hardware, and setup fees. While the starting price is high, the benefits last long. Stores save money on printing and labor. They work faster and make customers happier. Labels update prices instantly, keeping them correct. Using less paper helps the environment. Some stores using these labels saw profits grow by 20% per square foot. To get the most out of this, check your store’s needs and ask vendors for advice.
FAQ
How long do digital shelf labels last?
Digital shelf labels usually work for 3 to 5 years. Their batteries are made to last a long time. How often you update prices can affect battery life. Some advanced labels use less energy and last even longer. This means fewer replacements are needed.
Which stores benefit the most from digital shelf labels?
Grocery stores, retail shops, and electronics stores benefit the most. These labels handle frequent price changes and large inventories well. Small stores with few workers also find them helpful. They save time and make work easier.
What should you do if a digital shelf label breaks?
If a label stops working, check its battery or connection. Many sellers offer warranties or repair plans to fix problems. Regular system checks can stop issues before they happen. This keeps your labels working properly.
What features should good software have?
Good software should work with your inventory system. It should update prices quickly and handle bulk changes. Easy-to-use controls are important too. Advanced tools like analytics or remote control can improve store operations.
Are there extra costs with digital shelf labels?
Yes, there are extra costs like software licenses and hardware. You may also pay for installation and maintenance, like replacing batteries or updating software. Planning for these costs helps you stay on budget and avoid surprises.
