The reason there is no published pricing for RFID implementation is the same reason there is no price list for an ERP implementation, roof repair, or auto repair.

RFID is not a router sale. It's not a barcode reader sale. RFID is comprised of many components that when they thrown in one basket. Like home theater, someone intelligent still needs to go home and assemble a home theater by fishing wires through the walls and hiding speakers and deciding where is the optimal place to position the components.

Any one can go to bestbuy.com, circuitcity.com and walmart.com to find components, but very few people know how to cut their grass anymore no less install a home theater.

From a cost perspective, the concentration of conversation is on tags. Why ? Because no one understands tags. We don't concern ourselves with reader pricing.. Readers range between $1500 and $5000 depending on the label. We don't care about antenna... they range between $300 and $500. We don't care about cables... $50-200. But tags... we're going to have to buy many and we don't know why they can't be cheap. Like PC's, we don't really know what is the single most expensive component of a PC.

If a PC didn't have an operating chip, the aggregate component value is less than $70. So why are PC's $500-$2000 ?

I am concerned about the price of gasoline. I have to purchase it every week and if I'm a good shopper I can save money by remembering the lowest posted price... but I'm not going to find gasoline at 99 cents a gallon in August 2005 so why keep asking why gasoline is not cheap ? Who cares as long as I buy the cheapest I can find.

I don't ask why there isn't a central publication that tells me where the best price may be. I know my route and I can remember the best price.

It's not like I have a choice. My office is too far to bike, there is no bus that takes less than 2 hours and there is no train less than 90 minutes. I calcualted that I need to get to work, and I need a car, and I need fuel for the car. Otherwise, I have no home and no food.

I determined I need RFID to keep my customer... Wal-Mart, Target, DoD, Ford... I don't have many options except to buy RFID and keep my home and buy groceries. I don't need a published list of prices. I have a phone. There are 4 vendors of consequence and I will find the solution that costs me the least to keep my business going and to keep my job.

Who cares what the initial cost will be. Get it over with and focus on the continued expense of negotiating better prices on tags just as we do with gasoline in our cars.

For those who go to full service, premium gasoline, at $3.00 a gallon... you'll never get a good price on RFID.

Jeff Schaengold
RF Commerce
www.rfcommerce.com

Thanks Jeff! Good point about those involved in mandates -- gotta just get it over with.

But I still think vendors could make it easier on prospective customers to understand the entire extent of the costs of an implementation. They just might sell more if they did.

Best,
Anita

Here it is March 2006 and you are now starting to find published RFID tag pricing. Why is it taken so long? And why doesn't everyone publish their pricing. There are several reasons why we don't publish rates.

The first reason is that we are constantly updating the pricing due to the inlay suppliers changing their prices.

The second reason is that publishing the pricing does not make sense is that the end user needs to answer how the product is going to be used. There are many different variables that need to be addressed that define the end product. Many end users are going to buy price. Price is only one measure of the products value. The RFID label has to meet the environmental requirements plus the inlay needs to meet the application requirements.

Thirdly there is no take from stock product. Product is being made as needed to a specific printer and application. There would be such a selection of product if every combination was produced. And, the price would be more expensive. No one could carry all the different combinations and make them profitable and still give the end user quality and a fair price.

Fourthly it doesn't allow for volume consideration or for business relationship pricing. This means that the buyer doesn't have to make any kind of commitment to buy volume or inlay type. This is important because volume orders get a better price as you all know and the inlay suppliers need a commitment and forecast to be able to deliver a price and quantity.

These are a few of the reason you will not find pricing like you would other types of products. RFID labels are not a commodity item. There are many variables to consider when manufacturing these labels.

The best thing to do is work with your supplier to identify what you need and when you need it. Identify that the inlay that you are buying is going to do the job for you. Work with the supplier to develop a forecast for your needs and continue to work on that forecast. By doing this you will find that you will get the best price, quality and delivery.

The price is coming down and you need to do the best for your company. But at the same time you need to make sure your RFID label supplier has the correct information so they can build your product to your specification and have it on hand when you need it.

With all due to respect to all the readers, RFID labels are not a simple component that everyone wants to make it out to be. Keep in mind, if the RFID label does not work, the whole system doesn't work. I hope that I have put a different perspective on this issue. Good luck to you with your RFID initiative.

Thanks, Joe. Appreciate your point of view and the additional insights.

Anita