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 inthe future are misguided. There are ways to achieve this!
The money is lying on the shelves, we just have to take it. Andthis is how:
Find out which products are missing, replenish these quickly…now the customer can find everything he wants and products that areadvertised online are guaranteed to be in stock.
And who can do this? RFID can!
Yesterday we were still complaining that implementing RFID is soexpensive, today we know better: implementing RFID brings us moremoney than we can spend on the implementation. Earn money from thebeginning, how great is that?
But let’s be serious.
If finding gaps in product availability and improving customerservice thanks to leaner processes leads to a 2-3% increase inrevenue, then the implementation of RFID is profitable for thetypical fashion retailer. One reason for this is that the prices ofRFID tags have significantly declined in recent years. The standardRFID adhesive labels are now sold for less than 6 cents and inlarger quantities even for less than 5 cents. At this point,considering the implementation of RFID is starting to becomefun.
Nevertheless: the implementation or RFID can quickly costseveral million, which often have to be forked over within one yearfor the roll-out. Not many retailers like the sound of that. Buthelp is in sight.
We’ve met with financial service providers to discuss possibleleasing models and have specified the followingconditions:
- Leasing payments are only due once the roll-out begins
- Costs for tags and service aren’t incurred until the roll-outis completed
We entered the leasing rates provided by the financing companiesinto our ROI calculation tool and lo and behold: it is in factpossible that with such a model the revenue is higher than thecosts from the first day on. If this isn’t earning money in yoursleep, then we don’t know what is!
If you are integrator, please contact us directly; If you are looking for an entire solution, we can introduce you your local integrator to help you out.
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