The Cost Of Implementing An RFID System

Are you in the process of considering implementing an RFID tracking system? If so, then you’re likely aware that there are costs associated with bringing such a sophisticated technology into play.

In this blog post, we’ll look at all the costs involved in setting up and operating an RFID system—from initial purchase to ongoing maintenance. Ready to find out what your bottom line will be? Let’s dive in!

Components of an RFID System

RFID tracking systems are complex and require a lot of components to work together. RFID stands for Radio Frequency Identification, and at its most basic level involves tags, RFID card readers, middleware and software.

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The hardware is what makes the identification – it consists of tags and readers. Tags are usually small microchips attached to objects that contain digital information about them (like an ID number or product name). The reader reads the tag’s data by sending out radio waves that activate the tag, which then transmits its information back to the reader.


Middleware serves as a bridge between the hardware and software components of an RFID system. It provides communication protocols so that all of these different parts can talk with each other. This allows data collected from a particular group of tags to be easily routed through your system. Then the data can be analysed or stored elsewhere, such as on a database server or in a cloud computing storage space.


Finally, the software includes several applications explicitly designed for RFID tracking technology integrated into existing programs. This may include inventory management systems or point-of-sale terminals and visitor management.

In addition, more advanced reporting tools like analytics engines are used for generating insights from large datasets derived from reading multiple tags simultaneously across many locations. With efficiently developed software applications, you can track not only individual items but also whole fleets by scanning one item using an RFID tracking reader!

Cost Breakdown of RFID Systems

Understanding the cost breakdown of RFID systems can be daunting, but not impossible. Here’s an overview of the four key components that can make up your overall RFID costs: installation, tag, equipment and software.

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Installation Costs

These fees are associated with setting up your system and include all of the labour required to get everything running, from charging stations to wiring setup. This cost is generally charged hourly since most projects require unique configurations based on their shift timings end.

Tag Costs

Tags are used to identify objects and/or people through Radio Frequency Identification (RFID) technology. You may pick from the RFID tag type with low frequency, high frequency, or ultra-high frequency.

Your total tag costs will depend on how often you need new tags and their particular technical specifications, such as operating distance or read range. Generally, you can expect a unit price between $0.25 – $30 per tag, depending on the type and quantity purchased in bulk orders.

You may use passive tags that cost between SGD 0.1333 and SGD 1.99. If you want protective housing along with extra-long battery life, you may invest in an active tag costing around SGD 33.32.

Equipment Costs

This refers to all hardware expenses needed to implement a practical solution, such as antennas, readers/writers, and gantries. The exact costs will vary according to project requirements, but generally, they start at around SGD 1300 per device installed, including peripherals such as cables or power supplies if necessary. The RFID sensors can run SGD 133 or more with long-lasting batteries.

Software Costs

On the lower end of the spectrum, basic software-only solutions cost as little as SGD 6,664 and are great for businesses just starting out with RFID tracking. For more complex applications or those looking for greater integration with other business systems such as ERP and asset management platforms, prices can be significantly higher – exceeding SGD 200K in some cases.

The key to getting the best bang for your buck is finding a provider that offers solutions explicitly tailored towards your needs and budget. So if you’re trying to decide which RFID system is right for you, research different suppliers’ offerings before jumping into something that’s too expensive or underpowered for your requirements!


Once you get the RFID system working, it pays for itself. Many companies may save up to 25% in labour costs after implementing an RFID system. Additional benefits include improved inventory accuracy (as high as 99%), enhanced asset management capabilities, and increased data safety levels through greater surveillance systems.

These reduce theft or loss of items, all thanks to powerful real-time data from their automated processes! Overall, considering its long-term payoffs–having your own RFID system is worth it.

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