SimplyRFiD Retail RFID ROI Calculator

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1	SimplyRFiD Sample Retail Store ROI Calculator to add RFID -- Tangible and Intangible Benefits
2	Version 2 - January 2022		Read-Only version -- please make a copy if you'd like to enter your values
3	Edit 'yellow' highlighted areas -- others are calculated
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6	1. Calculating Labor Savings with RFID
7			Barcode	RFID
8	How many items do you have in each store?		2000
9	Number of labor hours per store per inventory:		8	0.0667
10	How fast can you count items (number of items per minute) (calculated number)	÷	4.17	500	RFID scans 'on average' 500 items per minute. This is mostly because people can't move any faster and still do a thorough job. Things like opening drawers or scanning under table areas.
11	What is your loaded hourly labor rate? The loaded rate is typically 2x your hourly rate.	x	$30.00		Employee cost per hour with benefits (average cost in the USA $30/hour with benefits, leave, training, ...). Typically this is calculated by hourly rate ($15) times 100% (overhead, training, hiring, benefits) = $30 loaded costs.
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13	Labor Cost per inventory / per store:		$240	$2	It costs this much each time you do a store inventory.
14	How many stores do you have?	x	100
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16	Total Cost per inventory:		$24,000.00	$200.00	It costs this much each time all of your stores are inventoried.
17	How many times per year do you take inventory? (12 = Monthly)	x	12		Twice-Daily (730), Daily (365), weekly (52), every other week (26), monthly (12), quarterly (4), yearly (1)
18		=	==============================
19	Total inventory labor cost per year:		$288,000.00	$2,400.00	You spend this much per-year taking inventory at your stores.
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21	Putting in RFID will save you this much, per year, in labor:			$285,600.00	RFID saves 285600 per year
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24	2. Calculating the cost of RFID Technology vs. Barcode
25	Cost of technology:		Barcodes	RFID
26	How many devices do you need per-location to collect your data?		2	1	1 RFID reader can handle about 20,000 items per store before more should be considered. A single handheld can inventory more than 1 million items, but time/speed factors into the overall need.
27	How much does each device at the store cost? (Device, Input terminal, Charger)	x	$1,500.00	$1,695.00	RFID Price includes: SimplyRFiD CSL CS108 RFID Handheld + CS108 Charging Cradle and an iPhone SE vs. barcode handheld terminal and charger (typical price)
28	How many years do you expect this equipment to last? How often do you think you will need to replace it? Most equipment is 3-6 years full-replacement cost.	÷	4		How often equipment must be upgraded? Amortized over x years. 3-5 years is typical. This would typically factor in repair/replacement during that period. SimplyRFID equipment includes a 2-year warranty. Apple provides 1 year. Typical early-break is about 1-2%/month depending on your environment -- which works out to 50% being replaced within 4 years (worst case, your out of pocket), and 50% being replaced beyond that.
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30	Yearly Estimated Cost of Hardware:		$750.00	$423.75	Your cost each year to finance, fix, and buy new hardware per store.
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32	# of devices you specified in 'Number of devices per store' in the first section:		2	1	From your number of devices per store calculation
33	How much do you pay per-device for yearly software fees for your existing barcode system?	x	$1,200.00	$700.00	Yearly fee per device on system -- most ERP systems charge $100-200/mo per device or user. SimplyRFiD charges per-device.
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35	Your yearly software cost:		$2,400.00	$700.00	This is the cost of the barcode system vs. the RFID System, per year basis.
36	How many stores do you have?	x	100
37		=	==============================
38	Your total RFID vs. Barcode yearly hardware and software costs:		$240,000.00	$70,000.00	Yearly hardware and software costs
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40	Hardware and software difference in costs:			$170,000.00	saved with RFID per year
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43	3. Calculating the cost of RFID Tags vs. Barcode
44	Tag cost		Barcode Ticket	RFID
45	What does your RFID tag cost?		$0.010	$0.058	Each tag, on average ($0.048) for RFID tags (off-metal, retail-style). Additional costs to program RFID may add an additional 20% due to encoding risk and waste. This is included as: $0.04 base cost + $0.008 variance + $0.01 handling differential
46	How many times do you use up / replace all the inventory in your store, per year?	x	4		# of times inventory completely exchanges within a store
47	The number of items you indicated are in each store location:	x	2000
48		=	==============================
49	Cost of Tags / year / store		$80.000	$464.000	This is the cost for RFID Tags for each store for the year.
50	Number of stores	x	100
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52	Total tag cost (# of stores)		$8,000.000	$46,400.000	Cost per year in tags
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54	Total Tag cost differential:			-$38,400.000	RFID costs 38400 more than your current method
55	Amortized Hardware / Software Costs or savings:	+		$170,000.00
56	Labor Savings:	+		$285,600.00
57		=	==============================
58	Grand Total Savings using RFID for Inventory vs. Barcode:			$417,200.000	saved with RFID per year
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60	4. Calculating the Effect of Omnichannel/Accurate Inventory (optional)
61	High condfidence in store inventory leads to omnichannel capabilities. This calculates the additional sales expected due to implementing an omnichannel sales strategy.
62	What is your average unit sales price?			$30
63	If you implement an omnichannel strategy, how much additional revenue do you expect to generate?	x		5%	On average, Omnichannel shows a 3-9% overall sales increase
64	The number of items you indicated you have in your store X turns per year:	x		8000
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66	Additional revenue expectation from an omnichannel approach and high-accuracy inventory:			$12,000
67	Number of stores you indicated you have:			100
68	Total visibility of inventory upsell/crosssell/omnichannel			$1,200,000	Additonal revenue potential from high confidence in inventory omnichannel sales. It's possible this could be done with barcodes, but your frequency would need to move to weekly to provide a great experience and it makes RFID even more compelling.
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