Electronic shelf labels (ESLs) often raise eyebrows when retailers first see the price. Compared to paper tags, a digital tag can look costly on the surface. But focusing on the sticker price misses the point. The real question isn’t “How much does a tag cost?” — it’s “What do ESLs save, and how fast do they pay back?”

When measured through total cost of ownership (TCO), ESLs quickly prove their value. They dramatically cut down on the hours spent manually updating price changes — eliminating costly errors and allowing chain-wide updates in minutes. For most retailers, these savings outweigh the upfront spend and turn ESLs into one of the fastest-returning investments in the store.

In this article, we’ll break down ESL costs, explain how to model ROI, and show why ESLs are often more affordable than they first appear.

Key Takeaways

• ESLs aren’t defined by sticker price: Their true value comes from total cost of ownership (TCO), where savings outweigh the hardware cost.
• ESLs cut hidden costs: Automated updates and error-free pricing reduce labor hours, prevent fines, and protect margins.
• ESLs pay back fast: Most retailers recover their investment within 6–18 months, with larger formats seeing the quickest ROI.

1. Why ESLs Aren’t “Expensive”—If You Measure the Right Things

It’s easy to focus on the upfront price of an ESL tag. But that’s like judging a car only by the sticker price without considering fuel, insurance, or maintenance. The real cost of ESLs isn’t just the hardware — it’s the total cost of ownership (TCO), which accounts for what the system costs and saves over its full lifecycle.

For ESLs, that means looking at deployment, ongoing operations, maintenance, and automation savings together. When you take the full picture into account, the perception of “expensive tags” quickly flips into a story of cost-effective systems with many reasons to use.

Where hidden costs add up

Conventional labeling methods can cost more than you realize. Staff can spend dozens of hours each week swapping paper tags, and that labor multiplies during sales events or seasonal changes. 

Errors creep in, leading to compliance fines, lost margins, and frustrated customers. IT departments send truck rolls just to diagnose or fix issues on site — each visit eating into the budget.

2. Breaking Down ESL TCO: One-Time vs. Ongoing Costs

When retailers plan an ESL rollout, it’s tempting to think of the project as a single spend: tags, gateways, and installation. In reality, the picture is broader. 

Costs typically fall into two categories: (1) one-time investments to get the system running, and (2) ongoing expenses to keep it reliable over time. Both matter in shaping total cost of ownership, and both look very different when compared to the hidden costs of paper pricing.

Examples of one-time vs. ongoing costs

• One-time: Tags, gateways, mounting accessories, installation services, and pilot programs for training and change management.
• Ongoing: Platform licensing billed monthly or annually, battery replacements on a 5–7 year cycle, network monitoring, and technical support agreements.

At first, this mix can make ESLs seem like a big commitment (i.e., upfront hardware plus new recurring costs layered onto the budget). But when you look at how these elements fit together, a clearer picture of predictability emerges. Hardware is a one-time investment that rarely needs to be repeated, while most of the ongoing costs are fixed, scheduled, and easy to plan for.

To make this more concrete, here’s a simple template that breaks down the typical line items retailers should consider when modeling ESL TCO:

Cost Component	One-Time or Ongoing	Notes/Assumptions	Impact on TCO
ESL Tags	One-Time	Varies by size, display type	Primary hardware cost
Gateways/Infrastructure	One-Time	Depends on store size, layout	Network foundation
Installation/Setup	One-Time	Professional services	Initial deployment
Software Platform	Ongoing	Monthly/annual licensing	Core functionality
Battery Replacement	Ongoing	5–7 year lifecycle typical	Maintenance component
Technical Support	Ongoing	SLA-dependent	Risk mitigation

However, looking at these categories side by side shows that the cost profile isn’t unpredictable or overwhelming — it’s something you can plan for. One-time investments are clear and limited, while ongoing expenses are fixed and recurring. 

3. Where the Savings Come From

Once the costs are clear, the next question is obvious: where does the money come back? With ESLs, the return doesn’t come from cutting paper or ink. Instead, it comes from removing the everyday tasks and mistakes that quietly chip away at budgets.

Now, in most rollouts, the biggest savings fall into four buckets:

1. Automated price updates: Tasks that once took days during resets or sales events shrink to minutes, freeing staff for higher-value work.
2. Accurate pricing: Errors that erode profits, frustrate customers, or trigger fines are eliminated, while markdowns stay aligned with inventory.
3. Remote monitoring: Many platforms now solve most issues off-site, lowering service costs and avoiding disruptions.
4. Centralized control: Chain-wide promos and price changes roll out in minutes, ensuring consistency and keeping pricing tied to stock.

These particular savings and ROI’s matter because they are ongoing, repeatable, and cumulative. Every week of avoided labor, every compliance fine not issued, and every service visit skipped adds weight to the ROI case. 

In fact, they often outweigh the entire set of one-time hardware costs discussed earlier.

4. Modeling ROI: Payback Timelines for Different Store Profiles

So, with those savings in mind, how long will it actually take to earn back the investment? The answer depends on factors like store size, how often prices change, and local labor costs. But across formats, the payback is often measured in months, not years.

To make the differences clear, the snapshot below shows how ROI typically plays out for three common store types. It’s not a one-size-fits-all model, but it gives a useful benchmark for what most retailers can expect:

ROI Scenario Snapshot

Store Type	Key Assumptions	Estimated Payback Window	Top Savings Driver
Small Format	500–1,000 SKUs, daily updates	12–18 months	Labor reduction
Standard Grocery	15,000–25,000 SKUs, 3x/week updates	8–15 months	Error + labor reduction
Large Format	50,000+ SKUs, dynamic pricing	6–12 months	Operational efficiency

The point of this table isn’t to show winners and losers — it’s to show consistency. Whether a retailer runs a handful of small shops or a nationwide network of big-box locations, the system pays for itself within a predictable window. 

That reliability is rare in enterprise tech, where ROI often takes years to materialize. 

Additionally, details like update frequency, wage rates, or battery cycles can shift the exact timeline. But even conservative models show ROI calculations payback within 12–18 months. 

That’s why ESLs are best understood not as a new cost line, but as a predictable operational upgrade. 

5. Buying Options That Improve Affordability

Ultimately, even with a strong ROI case, the first reaction to ESLs is often the same: “That’s a big upfront cost…” The good news is you don’t have to treat adoption as one giant spend. There are practical ways to spread the investment out and make it easier on budgets, including:

1. Capex or Opex: Basically, you can buy ESLs outright, like any other piece of store equipment. Or, you can treat them like a subscription service. That second option turns the single big spend into smaller, predictable payments that slide neatly into annual budgets.
2. Start small, then scale: Instead of rolling out everywhere at once, many organizations test ESLs in a few stores first. Once the results are clear, it’s easier to expand, spreading the investment over multiple fiscal periods.
3. Choose systems that fit: Integration is where “hidden costs” often appear. Picking a platform with clean compatibility (like with our EnGage) avoids custom IT work and keeps the project on budget.

What’s great is that none of these strategies reduces the value ESLs bring, but they do make adoption less intimidating. They turn what looks like a major hurdle into a series of manageable steps that any business could implement.

How Comqi Keeps ESL Costs Predictable

If ESL costs swing up and down after rollout, then the ROI story falls apart. That’s why predictability matters just as much as payback. Comqi helps by giving retailers one platform to run every store, tools that fix most problems remotely, and service agreements that keep support costs clear from the start.

Specifically, Comqi can provide:

• One platform, less overhead: ESLs across 100+ locations can be managed from a single control point, reducing vendor complexity and lowering per-store costs.
• Remote fixes, fewer truck rolls: With many issues solved remotely, Comqi cuts service visits and avoids the downtime that disrupts sales.
• Clear service terms, no surprises: Agreements guarantee response times and support levels so costs stay predictable and budgets stay intact.

In practice, this combination of centralized control, remote fixes, and predictable service terms keeps long-term costs steady. That stability often makes the difference between seeing ESLs as a risk and treating them as a safe, proven investment.

Conclusion & Next Steps

Once you look past the sticker price and measure ESLs by total cost of ownership, the math becomes obvious. What once seemed like a costly upgrade turns into one of the fastest-returning investments in the store. ESLs save time, prevent errors, and keep operations running in sync across every location. 

And because most retailers see payback in months, not years, the decision isn’t whether you can afford them — it’s how soon you want the benefits to start.
To find out what the numbers look like for your own stores, you can talk to a Comqi expert today! We’ll walk through your current operations and show you how ESLs can deliver predictable ROI at scale.