Depending on the Retailer, ROI is usually reached between 12 to 18 months. The number of prices changes per day/ week/ month is an important factor. Stores facing fierce competition from neighboring stores or online retailers that are driven to make frequent price changes, would attain ROI on the ESL system in a very short time.
Other factors that influence the number of price changes include: pricing policies of the retailer, number of promotional campaigns, changes in supplier price lists, fluctuations in raw materials, inflation…
Lower direct costs
Labor costs for changing prices in stores has a direct relationship with the number of price changes required every day of the week. Altierre automates creation, editing, dispatch, installation and verification of paper labels. Besides the labor cost reduction, substantial costs related to consumables (paper, ink) are also eliminated.
Frequent Price Optimization and ability to execute on a dime dramatically improves store margin. Price Change activity that used to take the whole week can now be executed overnight by the Altierre System.
There are several other indirect benefits of the Altierre System that may be difficult to quantify and therefore are not included in our ROI calculations. Some of these intangible benefits include:
– Elimination of price errors => satisfied customers => improved loyalty
– Improved price image of the store
– Product details and promotional details communicated to customer via tags at the POP resulting in increased basket size
– Eliminated stockouts reducing lost sales
When deciding on an electronic shelf labeling system, the Total Cost of Ownership (TCO) must be considered.
TCO includes not only the acquisition cost, but also the cost of installation, use and maintenance.
Altierre system components are easy to install, are reliable over their lifetime requiring little support
A 50,000 sq. ft. store requires only one radio access point connected only to the store POE, thus simplifying and reducing installation cost.
The deployment of the ESLs is similarly simple: install at shelf edge, scan ESL ID and scan product ID and the Altierre System takes over. The tags have proven to work reliably day in and day out and a 5 year battery life has also been proven.
The Altierre System is truly an “install and forget” system.