Why Do Coffee Makers Cost so Much?
I tried to non-capitalize the “so” in this article subject line to de-emphasize the high cost of coffee machines, but unfortunately there is just no way around it. Coffee makers cost a lot! We will try to justify the reasoning behind the high price of coffee makers (in particular bean to cup coffee makers) worldwide.
Coffee Maker Components
Herein, we’re mainly referring to bean to cup coffee makers. Drip coffee makers and capsule coffee makers are nothing more than little machines with pumps and boilers – and for this reason they’ve been given the boot from our article. The three most expensive components in an any bean to cup coffee maker (automatic or vending) are the grinder, the brewing unit and the pump. All these components are able to be manufactured at low prices but manufacturing these core components at low prices means sacrificing on quality. For this reason, there is still no prominent Bean to Cup manufacturer in China today which has successfully broken into supplying global markets with automatic coffee makers. Unfortunately good components cost money.
Coffee Maker Research and Improvement
Research and development is one of those things that we as consumers don’t really feel we
should pay for but unfortunately any manufacturing and design business has a substantial cost attributed to research which is inevitably passed down to us, the consumers. All the staff and all the tests add a significant cost to a manufacturer’s business which lands up in the eventual price of the coffee machine.
The Middle Men
The coffee maker industry is no different to any other, and unfortunately involves a number of middle men in the process. Almost all coffee maker manufacturers work with distributors in various countries. Each party adds their profit margin onto the final price (usually in the region of 25%) which means that a coffee maker which costs the manufacturer $500 to make is then sold to the country importer for $700. The distributor then sells the machine on to the reseller for $820, who then sells the coffee maker finally to the consumer for $1 000. Ouch!
Coffee Maker Import Duties
Import duties range form 0-20% depending on where the coffee maker is manufactured. Most countries have a trade agreement with the European Union so all coffee makers manufactured in the EU carry zero duty, however, all coffee makers coming from areas of the world like China will attract a 20% duty.
Lack of Transparency
The internet is full with websites boasting “get a free quote now” , but actually finding prices of coffee makers without speaking to someone, or without filling in a hundred contact forms is not an easy task. For this reason there are a number of coffee retailers who charge exorbitant prices, not because there is no competition, but rather because coffee maker prices are not easily obtainable online.
So what do you do if you want to drink good coffee?
Unfortunately having great coffee in your home or office does cost. One way to get around the high price of coffee makers is to opt for a lease package where you don’t pay for the machine and only pay for the coffee. If leasing is not an option for you, then unfortunately there is just no way around that big upfront fee for a great coffee maker.