Why Are Coffee Machine So Expensive?
A typical bean to cup coffee machine – an entry level home-user model – normally starts within the price range of close on R 10 000.00 to buy. This is a lot of money – no matter how you look at it. But what exactly drives up the price of an automatic coffee machine?
What Makes Automatic Coffee Machines Costly?
- Components of the machine.
Automatic coffee machines have many, many internal components. Think of the grinder, the thermoblock, the brew group – all the things that work to make your favourite drink inside the machine. Then think of the finishing’s – stainless steel, brushed chrome – all these costs add up. This is the first aspect of the high cost of coffee machines. Cheaper coffee machines often use more affordable material, which is also oftentimes of inferior quality. The components used to structure a coffee machine are more often than not the biggest deciding factor in determining the price.
- Research and Development
This is the aspect that we as consumers don’t really feel. Every machine needs to undergo rigorous development, research and implementation – more costs which add up over time. Higher quality coffee machines have more research input, and as such will cost more. 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. That being said, would you want your machine any other way? Knowing your machine is mechanically sound, and doesn’t run the risk of exploding into a thousand tiny pieces when you make your hundredth cup is something I’m sure we can all appreciate.
- Middle Men
The coffee machine business is no different to any other business and unfortunately “middle men” are involved a number of times in the process. Almost all coffee machine manufacturers work with distributors in various countries. As a “middle man”, you cannot be expected to work for free; each of the middle men will add a bit onto the original price, which adds up quite quickly by the time it reaches the end user.
- Import Duties In South Africa
Import duties in South Africa range form 0-20% – depending on where the coffee machine is manufactured. South Africa has a trade agreement with the European Union so all coffee machines manufactured in the EU carry zero duty however all Coffee Makers coming from areas of the world like China will attract a 20% duty.
If buying is out of your reach, why not consider renting a machine? They are tax deductible for businesses – and you can cancel after a year if you see it isn’t working for you.
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