Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

The cup-of-coffee pricing fallacy

blog.gingerlime.com

Post reply on HN
Print view View original

91–100 of 102 posts

Re: The cup-of-coffee pricing fallacy

#91

Post by kaoD »

calaphos wrote: post #59
kaoD wrote: post #37

Earlier quoted context omitted.

Just get an espresso machine (the real ones, no capsules) and a bean grinder. Coffee from freshly-ground beans tastes way better than Starbucks, is still $.03 per cup and takes only a few seconds to make with an electric grinder. Moka pots work too and are cheaper (though espresso machines are real cheap at least here in Europe) but the coffee isn't as creamy and it takes a few minutes to boil (even though it needs n…

As a fan of epsresso I a absolutely agree with that fact that you should consider your own grinder and machine, but mostly for the massive increase in quality, certainly not saved costs. Even with second hand gear you are easily looking at an investment of 600 euro upwards. And as often, the sky is the limit. With the 0.3€ per coffee you mention, that's the equivalent of 2000 drinks, or 5 years of usage. Also fresh h…

> fresh high quality beans often result in costs per coffee a lot higher than your number.

Don't buy high quality beans.

IMHO the end result is influenced mostly by preparation and water quality. I'd had to double blind it, but I've had store brand and expensive beans and the difference is negligible.

Note: I'm in Europe. Market differences might apply.

Re: The cup-of-coffee pricing fallacy

#92

Post by kaoD »

derriz wrote: post #44
kaoD wrote: post #37

Earlier quoted context omitted.

Just get an espresso machine (the real ones, no capsules) and a bean grinder. Coffee from freshly-ground beans tastes way better than Starbucks, is still $.03 per cup and takes only a few seconds to make with an electric grinder. Moka pots work too and are cheaper (though espresso machines are real cheap at least here in Europe) but the coffee isn't as creamy and it takes a few minutes to boil (even though it needs n…

"A few seconds to make" is a slight exaggeration no? I had such a grinder/Gaggia set-up and it took time and effort. Producing good espresso at home without very expensive automated machines, is a commitment. There's a lot of fiddly cleaning involved - the grinder has to be cleaned meticulously after use as do the various bits of the espresso machine. The finely ground coffee is very sensitive to static so tends to j…

That wasn't my experience. The grinder and espresso machines I used just needed rinsing between cups and a quick scrub at the end, plus cleaning the water tank once a week (depending on water quality, tap water is gross).

Moka pots are a pain to clean though, but you can buy a huge one to produce a large quantity.

Re: The cup-of-coffee pricing fallacy

#93

Post by chewz »

nunez wrote: post #29

I hated this assumption too, but for different reasons. First, the price for a plain old cup of coffee at Starbucks differs from region to region, but it usually normalizes at around $1.80 (taxes included). Refills are $0.52. While, yes, Starbucks’s coffee-based offerings (like lattes) are more expensive, coffee from Starbucks is quite cheap and VERY consistent (and cheaper than at a mom and pop coffee shop). Second,…

> While, yes, Starbucks’s coffee-based offerings (like lattes) are more expensive, coffee from Starbucks is quite cheap and VERY consistent

That’s because Starbucks is not a in a coffee shop business but in a coffee based sweet deserts business. You wouldn’t compare Coca-cola to espresso or filter coffee, so why put Starbucks in coffee category?

Re: The cup-of-coffee pricing fallacy

#94

Post by masonic »

dhxudkwjwhh wrote: post #89
kaslai wrote: post #52

Earlier quoted context omitted.

Yeah, around me you can get simple drip coffee from Starbucks for about 1/2 to 1/3 the cost of an espresso based drink. Last I was there, I think the biggest drip cup they offered was around $2.30 and the smallest was about $1.50. It's been about 3 years since I actually got a drip coffee from Starbucks so the prices might be slightly higher now.

The crazy part, speaking from So-Cal, is that daily black coffee drinkers at Starbucks can even save a few cents on top of that if they buy one of the monthly refillable tumblers. I think you only get one free refill per day but I've been to a lot of places that don't care enough to refuse me another refill so mileage may vary.

The special tumbler is an annual holiday offer that bundles free coffee/tea for the entire month of January for $40.

Starbucks accounts (free registration) get free refills.

Own-cup gets a $.10 discount.

Re: The cup-of-coffee pricing fallacy

#95

Post by SllX »

imtringued wrote: post #71
SllX wrote: post #60

Coffee is cheap. Anytime you go to a coffee shop and purchase coffee, you’re paying for everything that isn’t coffee: lease, labor, worker’s comp, milk, sugar, taxes, syrup, whipped cream, cups, lids, sleeves, straws, equipment maintenance, etc.

That's not really what the article is about. Getting coffee is low risk. Apps are high risk. There are so many garbage apps that aren't worth a single cent and choosing the right one is very difficult.

And there are many “coffees” that people are overpaying for because the coffee itself is so cheap. I think we’re in agreement here.

Re: The cup-of-coffee pricing fallacy

#96

Post by OJFord »

gvjddbnvdrbv wrote: post #53
OJFord wrote: post #47

Earlier quoted context omitted.

> First, the price for a plain old cup of coffee at Starbucks differs from region to region, but it usually normalizes at around $1.80 (taxes included). Refills are $0.52. That sounds really cheap, or what's a 'plain old cup of coffee' - does Starbucks sell filter coffee over there?

Starbucks sells filter coffee in the UK.

Oh, so they do. Sorry I've just never been aware of that.

Re: The cup-of-coffee pricing fallacy

#97

Post by QuantumGood »

NikkiA wrote: post #2

I've always hated it because it makes the assumption that everyone is at the same position in the class hierarchy - I'm poor, the last time I drank a coffee shop coffee was something like 8 years ago and even then it was bought for me by my psychologist, your 'cup of coffee a day' price just sounds extravagant to me.

> "...anchor against another online service."

So this isn't really against the idea, only against using coffee in the analogy.

One of the underlying principles, "Present costs as small pieces, and rewards as a large sum" is important, but there are many other relevant approaches, e.g. free trial, money-back guarantee, etc., etc. Effective marketing usually combines approaches. Analogizing to other small costs can NOT be the whole pricing strategy.

Re: The cup-of-coffee pricing fallacy

#98

Post by monadic2 »

tomnipotent wrote: post #79
monadic2 wrote: post #66

Earlier quoted context omitted.

The absurdity of an “essential price”... essential to what, class?

To doing business? Doesn't seem absurd at all. Do you think business should just land in your lap for free without having to spend anything for it? That what seems absurd to me.

"business" is just one mode of industrial production, even in a marketplace. So, essential for business, perhaps, but hardly essential in a general sense.

Re: The cup-of-coffee pricing fallacy

#99

Post by [deleted] »

monadic2 wrote: post #98
tomnipotent wrote: post #79

Earlier quoted context omitted.

To doing business? Doesn't seem absurd at all. Do you think business should just land in your lap for free without having to spend anything for it? That what seems absurd to me.

"business" is just one mode of industrial production, even in a marketplace. So, essential for business, perhaps, but hardly essential in a general sense.

[deleted]

Re: The cup-of-coffee pricing fallacy

#100

Post by perl4ever »

NikkiA wrote: post #2

I've always hated it because it makes the assumption that everyone is at the same position in the class hierarchy - I'm poor, the last time I drank a coffee shop coffee was something like 8 years ago and even then it was bought for me by my psychologist, your 'cup of coffee a day' price just sounds extravagant to me.

Pretty much nobody buys a cup of coffee every day. If people who think they do or might actually did, then places wouldn't sell those "bottomless" cups.

Also, what's a "coffee shop coffee"? Does that mean a place that charges more than $2 for a large?

Post reply on HN