Sunday, March 11, 2018

Coffee maker analysis or agony?

If I analyzed the purchase of my investments as carefully as the purchase of my coffee maker, I would probably be so much richer. But really, how rich would you be if you used the coffee maker approach to anything you do in live? And… it doesn’t require higher math – just a bit of common sense and an anal attitude 😊
So, I have been humming and hawing about a new coffee maker forever.  I used to have a Saeco Coffee Maker Xsmallplus ®.  After one of my many vacations in Europe, I had seen one at my sister’s in the Netherlands and it made a superb cup of foamy java (americano as the Mexicans say) and it could also make great espresso and cappuccino. It was better than Tassimo or Keurig and the ingredients per cup (coffee beans) in this machine with built-in grinder resulted not only in a great cup of coffee but it also did so at a much cheaper price than a cartridge coffee maker. Even when using high quality coffee beans, I paid 50 cents to $1.00 less per cup than the cartridge machine.  Being a avid coffee drinker of 10 plus cups of coffee, I figured I would save $10 per day or $3650 per year. That is not including supplementary visits to Star Bucks or similar establishments.
I bought the first machine around 2008 on sale for $360. It lasted until last year. In the end, it misfired so often due to wear and tear that the coffee bean bill doubled, and I was tired of struggling with the worn out machine for every cup I wanted.  I looked around and the same machine is still available but around $800-$1100.  Right now, all my cash is destined for a new house and I figured other people make good java from a percolator. I truly hate drip-coffee. The perc was $60 and it makes 4 to 12 cups in one run. Although after a couple of hours of heating time, the taste which is good but not like my Xsmallplus, will deteriorate to outright bitter. Kind of like becoming heavy oil 😊 I have been doing this for half a year, but I miss a good foamy cup of coffee and the occasional cappuccino. The perc has been paid for in the form of saved coffee but not by much more.
Am I going to miss out on my favorite coffee by not spending the $800 to $1100 on a new one? Should I buy a maker with built-in milk foamer?  No, I can do the foaming by hand and even if I made 1 cappuccino each day, I dislike the idea of uncooled milk sitting for days in a machine attached container. So here is a lifestyle choice, my aching to return to a morning cappuccino for $0.5 in coffee in exchange for a 10-year-lasting machine with a price tag of $1100 (worst case scenario). $1100 divided by 10 is $110 that is twice the price of my now 6 months old perc. Hmmm and less visits to the coffee shop. Hmmm  If I saved my self per year 10 coffee-shop cappuccinos or 10 x $3 = $30 then the coffee maker is nearly paid for. Oh.. and the occasional visit of my kids who love cappuccinos!
So there is my lifestyle choice, a near break even purchase (per annum) and the love from (or is it for?) my kids (which is of course priceless).  What do you think I will do? Besides, once my new house is ready, do you think I will still around with a perc?  Now what is the future value of $1100 invested at 10%? Hmmmm, hmmmm.  I think I go into paralysis mode.  Not even the best perceived plans will work if not implemented! Have you ever checked how often a precise and detailed time-value evaluation by an engineer becomes true?  What would Warren Buffett do?

1 comment:

  1. After all the agonizing analysis, I thought: 'Let's try the old Xsmallplus one more time.' It has now been making coffee for close to a week! No new machine required quite yet.