Comments on: When A $945 Espresso Machine Makes Sense

By: Jon

Jon — Wed, 31 Dec 2008 11:29:48 +0000

1. Get some civets
2. ??
3. Profit

By: Conrad

Conrad — Wed, 31 Dec 2008 01:06:43 +0000

The $945 Machine is a shiny bauble for the rich or maybe the un-frugal or maybe a coffee purist.
Heres why, the socially charged act of jamming in to DAZBOG or PEABODYS is a can’t miss experience especially with friens and acquantences. Plus, when you want to dash out for a quite moment.

Oh, yeah these places are close to work, how convenient

Am I on the right planet?

By: Rich

Rich — Tue, 23 Dec 2008 04:22:10 +0000

My wife and I received a cheepo $100 espresso machine for a wedding present last year. It works fantastic and makes awesome lattes. I keep hoping it will break so we can buy a newer, nicer one like the one above, but when it did break my wife just ordered a replacement part for it for $10. I write the personal finance blog, but sometimes I wonder who is the one that should be giving advice!

By: Jon

Jon — Mon, 22 Dec 2008 21:30:04 +0000

By: Jon

Jon — Mon, 22 Dec 2008 21:29:43 +0000

correct me if I’m wrong, but isn’t the same overhead is built into the espresso machine?

By: Jason H

Jason H — Mon, 22 Dec 2008 19:15:01 +0000

Assuming I had a double-latte habit like that, I would still go to Starbucks to buy my coffee. Even if I pay a bit more for it I can at least feel a tad bit altruistic (and that’s as altruistic as I get). The price of the health, dental, vision, 401k, and other benefits that the employees benefit from are baked (brewed?) into the cup of coffee. At least I am helping others maintain some insurance and retirement while getting my favorite beverage. Of course my wife works at Starbucks, so I’m really just paying her health insurance.

By: Jon

Jon — Mon, 22 Dec 2008 17:58:00 +0000

While I agree with the “do the math” mantra, I think that taking it one step further and figuring your break-even is a better measure for whether or not something is a good bargain.

In this case, the b/e is probably about a year, depending on whether or not they purchase the ingredients from s’ux or not. The maintenance and upkeep of the unit should be taken into account, as well as opportunity costs associated with having the equipment, versus using the money for something else.

If costs + 3% interest doesn’t match the savings, I would look somewhere else, or start bargaining.

It sounds like that’s what this person has done.

By: jim

jim — Mon, 22 Dec 2008 03:29:00 +0000

That’s a good point and I do enjoy life, it’s just not on espresso or espresso machines. I’m enjoying a Dalwhinnie 15 at the moment.

You also make a good point, expiration dates aren’t in stone, but right now my priorities are in saving some of my money, the money I’m not spending on scotch, for kids. Those little guys are expensive.

By: K. Braun

K. Braun — Mon, 22 Dec 2008 03:06:23 +0000

I think it makes perfect sense to buy an espresso machine for someone like Dave. It saves him money that he would spend in a coffee house and also the time needed to get there, stand in the line etc. In addition, with his own machine he can actually make a better espresso than what he can get in most coffee houses.

Another point is whether it makes sense to buy such an expensive model. I would think that it probably does – as long as Dave has purchased his machine after some research as to which brand are good etc. There are much cheaper espresso machines around but they usually don’t last that long and/or are more difficult to use (which will add costs in terms of time). So a higher end model is likely to be better in the long run.

So, all in all – a sound investment.

By: Agile Cyborg

Agile Cyborg — Mon, 22 Dec 2008 02:44:31 +0000

I think it’s about enjoying more as your header plainly states.

You have the money- give yourself a gift. The age of 28 is meaningless since expiration dates aren’t set in stone.

By: jim

jim — Mon, 22 Dec 2008 02:30:20 +0000

I think Greg’s points make sense in general, but to say that buying your own espresso machine is “intellectually bankrupt” is a bit too much. His motives are transparent, he writes coffee house reviews and has a vested interest in people going to coffee houses instead of making it themselves. I agree that for many people, a $1000 machine is a frivolous purchase, but it sounds like for Dave it makes sense and Greg can’t seem to accept that.

By: Tim Clark

Tim Clark — Mon, 22 Dec 2008 01:01:23 +0000

Thanks, Jim, for your thoughtful take on the article that appeared at Soul Shelter. Having been to Dave’s house, I’ve seen for myself that the math definitely works for him, since he derives little economic utility from hanging out in coffee houses, unlike many people who use Starbucks as an office (or simply drive a lot of pleasure from getting away from home for awhile).

Greg’s points do make sense for many people, but at the same time I think we’re all seeing how hard times have had a huge impact on the coffee shop business. You are paying largely for labor (and for a place to sit/atmosphere)–and that’s exactly the point. The cost of goods of the coffee and milk itself is miniscule, so if you just need the coffee, making yourself makes perfect sense.

By: nickel

nickel — Mon, 22 Dec 2008 00:48:11 +0000

Here’s the thing… IF it’s worth it to you to have high-end espresso, and IF you don’t mind doing it yourself, then the argument holds water. Sure, you can save way more money by not buying pricey coffee at all (I don’t drink coffee, so it’s a non-issue for me). I’m not sure that I quite understand the backlash. From my perspective, Jim is just saying that this is an interesting way of looking at things, and I agree. Whether or not buying a coffee machine is stupid is beside the point. I would argue that it’s stupid because you shouldn’t waste your money on coffee. But again, IF you’re intent on wasting your money on coffee, this appears to be a way of wasting less of it.

In many ways, this is analogous to saying it’s worth the price premium to buy an Accord over a Neon because you’ll recoup it in lower maintenance costs, higher re-sale, etc. While one could argue that you should just skip buying a car entirely, that misses the point.

By: jim

jim — Mon, 22 Dec 2008 00:39:16 +0000

I’m 28, I don’t think I have any business spending a thousand dollars on a coffee machine regardless of how prosperous I am. I could have a million dollars in the bank but it’s far more important for me to conserve those funds so I can use it to my advantage with the time I do have. I think it’s about priorities more than anything.

By: jim

jim — Mon, 22 Dec 2008 00:33:04 +0000

You haven’t actually made a point at all, you’ve come off sounding like a jerk who has a vested interest in people not making their own espresso and instead always going to a coffee shop. In your comment on Soul Shelter, you make some generic points that don’t apply to Dave, the person in the article. Additionally, you speak in generalities while the article gave specifics. Comparing an espresso machine to a treadmill on the basis that people buy them and never use them can be applied to almost anything, there’s nothing about the espresso machine that makes it at all like a treadmill.

I, unlike you, believe people are able to make intelligent informed decisions for themselves.