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1% is a decent average margin in a grocery store (http://smallbusiness.chron.com/industry-standard-gross-margi...).

So, it would require a $10 item to break even on a €0.10 tag.




I don't think you can make that conclusion. Presumably this store will be saving money on cashiers by instead using RFIDs.


The article I quoted claims 1% is the _gross_ margin, in which case my argument is valid. I now think that is incorrect, as other high-ranking Google results claim it is the _net_ margin.


But if using RFID saves them more than the cost of the technology its a win.

Basically if Savings from reducing sales persons > Cost of New Technology, you'll add the new tech.


It doesn't have to be strictly cheaper, as it also adds convenience. Not having to wait at the checkout will be worth something to customers, possibly quite a lot in the case of a shop targeting richer customers.




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