When a $945 espresso machine makes sense

re: When a $945 espresso machine makes sense

STLMO — Sun, 04 Jan 2009 03:44:41 GMT

A $945 esresso machine isn't about the espresso, it's about conspicuous consumption.

re: When a $945 espresso machine makes sense

MEARY — Fri, 02 Jan 2009 02:24:13 GMT

our kids just got us a krups expreesso machine for xmas. it is like a hundred or less dollars! if the rich want to waste moey let them...but don't come crying to us when you are on the street and hungry!! gosh how wasteful the rich are!! they think that they will always have money to burn!!! a lot of poor people thought so too! you are next!! sa ve money in a safety deposit box ..they are affordable and keep money at home too...it'll get worse before it gets better!! SAVE!!

re: When a $945 espresso machine makes sense

1gratefulthinker — Wed, 31 Dec 2008 09:28:57 GMT

I can't express how refreshing it is to actually read blogs from people that can think and express themselves with intelligence! Thank you, all of you, for actually having the skill to put thoughts into words. This is honestly the first blog I've seen that isn't full of babbling idiots. Happy (and prosperous) New Year to all, and drink what you want.

re: When a $945 espresso machine makes sense

greg — Wed, 31 Dec 2008 09:22:31 GMT

Wally: do a Google search. The Internet is littered with literally hundreds of duplicate examples of this same "folksy" personal finance wisdom about buying home espresso machines over the past several years. It's been regurgitated more times than anyone can count, and it's become a bogus piece of conventional wisdom. And as lindat pointed out, if there's anyone who has done any math, it's Starbucks' marketing department when they prominently display home espresso machines in their stores.

So it doesn't take a rocket scientist to figure out that, like playing the lottery, the odds are against the average person saving any money by following this advice. There are exceptions, but then there are exceptions at the roulette wheel too -- but that's hardly personal finance advice worth reporting. Because businesses like Starbucks are too shrewd to shoot themselves in the foot like that: selling home espresso machines simply makes them more money off consumers than if they didn't sell them.

But not one iota of this "math" is mentioned in the article here nor the one it cites. This missing piece makes the difference between a math equation weighing in a consumer's favor versus weighing against them. Omitting this most critical piece of information is reckless at best, deceptive at worst. If a pharmaceutical company leaves off a detail on their labeling that indicates most consumers get sicker taking their product, that would be a massive lawsuit and the product would be pulled from the shelves. Personal finance wannabes recklessly suggest schemes without telling consumers they are more likely to come out on the losing end, and we just shrug it off.

re: When a $945 espresso machine makes sense

walljasper — Wed, 31 Dec 2008 07:00:55 GMT

Greg - go back and read the last few paragraphs re: doing the math. Your social/financial angst and outrage at "scams" are ...well, a bit out of synch with what the writer is saying.

Re: "Doing the math" - the article states that "It may not make sense for me, but for him it makes perfect sense."

Sounds perfectly democratic to me.

"You could argue that he shouldn't be spending $3 on a double latte every day, but then you're not talking money anymore -- you're getting into personal"

Again, whats wrong with the idea that each of us should look more carefully at how/when/what we spend our hard-earned dollars? And as you mention, in these financially-pressing times...

Happy New Year,

Wally

re: When a $945 espresso machine makes sense

lindat — Wed, 31 Dec 2008 04:34:39 GMT

If anyone has "DONE THE MATH", you can be rest assured that it is Starbucks' marketing department. They know their lifetime customer value, and they sure as heck aren't devoting expensive retail space to home espresso machines because they think they're going to run a net loss of customers and profits because of it.

re: When a $945 espresso machine makes sense

greg — Wed, 31 Dec 2008 03:52:33 GMT

This is really, really sad. People are financially hurting out there because of the economy. And they're being scammed by people with get-rich-quick schemes -- and scammed by people chest-beating over their personal finance prowess with "save-thousands-of-dollars" schemes (such as this one) that ultimately put more people in the poor house.

Do you have any idea how many people have bought home espresso machines thinking that the quality will be as good as what they're used to? That the machine will operate itself and require no time or effort on behalf of the owner? (The biggest cost to coffee retailers is labor, not supplies nor equipment.)

Ask any Starbucks employee about customers who walk in and buy a home espresso machine, dropping hundreds of dollars. Within a few weeks they're back in line at the café again, shelling out $4 a latte with an extra hole burning in their pocket from the home espresso machine now sitting gathering dust in their kitchen. Home espresso machine retailers are making a killing off customers who think they're doing the math, but ignoring all the details of their own likes and habits and laziness.

I just wish personal finance con men like him were more responsible with their advice.

re: When a $945 espresso machine makes sense

Walljasper — Wed, 31 Dec 2008 00:32:01 GMT

All this talk of math...let's break for a dee-licious cup of expresso.

The let's figure out how to make some good vodka. ; -)

Happy New Year's and cheers!

re: When a $945 espresso machine makes sense

jay dilla — Tue, 30 Dec 2008 23:30:03 GMT

"DO THE MATH' who cares if that person has money to spend on a espresso machine let it be

re: When a $945 espresso machine makes sense

Walljasper — Tue, 30 Dec 2008 19:38:35 GMT

3 years ago, we took the expresso machine plunge for about $750.

According to the internal counter of the machine, we have now served or sipped over 8000 shots/cups of coffee and have no doubts that this was money VERY well spent. Do the math and you will see that each of those cups have cost us < .09 cents. If you buy the delicious 3 lb. bag of whole French Roast beans at Costco, you are looking at perhaps a maximum of .10 cents in coffee cost.

'Can’t quite put a valuation on having a superb shot of expresso on demand, topped with a wonderful crema.

And we have not yet calculated the increased productivity from downing a quad-expresso. ;-)

In terms of price and value, it worked for us.