It’s an interesting look at pricing strategies and how Keurig suceeded. Kind of fits in perfectly with the Pico brew Pro/C and the Genesis fermenter. I thought the point about pricing the consumable correctly is key, as well as making the the consumable something you actually WANT. A little weird that some of the things are called the “Keurig of ____” when they came out first. Also a little bit of sales pitch for their own product, but an interesting read nevertheless.
I don’t think the Pico quite fits the model. K-cups are quick, idiot proof and have a low per unit price. Pico-paks are priced a bit over what I consider fair, have room for error, and take at least a week for the payout.
If you were to look at the profit margin on a K-cup against the other products they compare it to I bet the K-cup is similar if not greater. It’s a small amount of low quality coffee run through a mill and packaged in dirt cheap packaging. Commercial grade coffee sells for around $1-1.50/lb. wholesale and roasting coffee is a relatively cheap process compared to mass manufacturing on some of the other products discussed. It’s a very easy product to sell cheaply but still see great returns.
Yeah, that’s one thing that keeps popping up in the reviews I’ve read. Beer isn’t the end product of the Pico, wort is and people seem generally unsatisfied with that. The cost comparison between that and craft beer is too close as well.
I’m not disagreeing, Steve. People are making beer in so many ways now (not a bad thing), that it comes as more a reflex to say that people should brew how they want. Should be a given, right? Just don’t want to ignite an unintended fire.
I think the Pico is a good fit for Brewers limited on space. I think the Pico-C is a ripoff. Their pods are $20-$30 ea and it makes a gallon. You could do small batch BIAB on your stove for a fraction of the cost
I have a Zymatic and it is a lot of fun but, after dozens of batches I can attest I really feel I make better beer on my old 12 gallon homebrew system. I can’t understand the sense in “pico paks” unless you are just very rich and don’t know what to do with your money.
Keurig is just pure idiocy IMO. My mom bought me one years ago and after I used the initial pods I strictly used it for hot water until it died. OTOH I actually like to drink GOOD coffee so there’s that.
Couldn’t agree more, Keith. The Keurig trades ease of use (I guess) for subpar s**t coffee IMO. We have one at work and every single pod has that bitter instant coffee bite, even with creamer. Once you get used to really good coffee, that crap’s unacceptable. And the pods are overly expensive to boot. Each his own.
That’s true, I honestly have no idea how prevalent these things are. I don’t know if anyone in my area that has one, although I’m not going to pretend I know all the homebrewers in my area.
Just a business choice-trade off availability for reduced profit per unit. If love to hear a talk from some of these equipment manufacturers, similar to what some brewers have done recently (Zymurgy live maybe?).
Although I can’t really say much, I can tell you that there are a lot more pout there than you may be seeing. If you look at only the US market, you’re seeing only a fraction if the units sold. Also, I’m pretty sure Paks are made as they’re ordered to keep them fresh. That would make ot tough for someone like Morebeer to stock them.
No nitrogen flush and seal? It does keep inventory low anyway, I asked wonder how long some of those Brewers best kits sit around.
Keep talking engineering to me Denny… Sometimes I think the real reason I can’t buy one I’d take it apart and void the warranty… Might have to see if I can get a tour next time I’m in that region.