Cost
Passive RFID tag cost factors
by passive on Sep.02, 2009, under Cost, Overview, Passive RFID tags
Active RFID tags generally cost at least double figures, although they provide greater range and typically more functionality than their passive counterparts. RFID passive tags cost far less, although price can vary depending on a range of factors.
The amount of memoryon the chip is a major factor, and different sizes are suitable for different applications. Lower cost tags might only offer 96 bits of storage. That’s 12 characters, assuming 8 bits per character. While this might be enough to hold a product key or a unique serial number, it will need an external database to hold further details, which your reader will need to be able to connect to. A tag with 512 bits providing 64 characters might negate the need for database connectivity, while larger chips storing 1-8 Kb could store both current and historical data directly on thechip without ever needing to refer to an external source.
High frequency tags can cost from twice to four times as much as ultra high frequency tags with the same characteristics.
The tag housing needs to be considered: tags embedded in fobs or cards will cost more than a simple tag mounted on a substrate. Another common tag format is smart labels: RFID passive transponders inserted between printed labels and an adhesive backing.
Tags which are shielded to function in harsher conditions, or to work near metal surfaces which would normally interfere with the signal, will be more expensive.
Increasing the range of the transponder will add to the expense, particularly as RFID passive tags have a much shorter range than active tags, due to their need to draw their power from the RFID reader.
Quantity, as always, can be a major factor. Bulk order of hundreds of thousands might save as much as 20% against order measured in the tens ofthousands.
These are some of the main factors influencing the cost of passive RFID tags. The other side of the RFID cost equation is the cost of RFID readers.


