Could a Coffee Maker Be Worth $11,000?
by
ihatethenewlogin
03/05/2008, 12:46 PM #
No.
Well, maybe. If it made 5,000 cups of coffee a day, enough for everyone serving on an aircraft carrier, then sure.
But
do the math-- how many cups of coffee a day can this thing make?
How many cups can it make over it's entire span of uesefulness?
Let's
say you want to recoup the cost in two years. That's $460/month.
Say you're the LL Bean of coffee houses and you're open every day.
That's $15/day. Well, at that rate, say you're open from 7 am til
midnight. That's 17 hours a day. Call it a buck an hour. If
you've got people lined up to pay $3.50 for a cuppa joe, you'll make
back the dough and have a nice bottom line. At $7 you're minting
money and at $10 per cup you should be jailed for price gouging and
excessive chutzpah. But in purely economic terms, is it worth it? Well,
you could amortize it as outlined, but could you make as much dough
with a smaller capital outlay? I bet the answer is yes, which
then makes it a slightly different question, and the answer might swing
back in the "no" direction.
But if the Q is "Could a Coffee Maker
Be Worth $11,000 for an average person?" then the answer is yes and no.
Of course not, because there are plenty of much cheaper ways to make
decent coffee. And yes, because economists assure us that we are
maximizing our utility, and by that method of thinking, any gizmo is
worth what someone will pay for it.