Ever heard the slam on penny pinchers who spend dollars per cup of coffee each day? I walked through my neighborhood to pick up my venti latte this morning, then read an article tweeted by Inc. on ‘Money Myths That Make Success Harder.’ One of the five myths is “Take care of the pence and the pounds will take care of themselves.” Go all out on the $400 espresso machine instead of spending $1300 a year in lattes, he says. I checked the Internet for espresso machines on sale.
Now, I’m on the fence. Buy the pot? Or walk the walk? Time for data and analysis…
The average coffee drinker consumes 3.1 cups per day. The average price of an espresso drink is $2.45. Assuming you are “average” on the espresso drink consumption scale, you’ll spend roughly $2772.17 a year at the local coffee shop. That’s $894 per year for every cup of coffee you consume per day. Ouch.
Now let’s say you buy the $400 expresso machine. A pound of coffee makes about 24 cups of espresso. That’s roughly 47 pounds of coffee per year. At one favorite coffee shop, a pound of espresso beans is $13. That’s $611 for coffee beans (or $197 in beans per year for every cup of coffee you drink per day). With the machine, you’ll spend about $1000.00 in year one.
OK, but before I push the “buy it” button on the new espresso machine, how do I calculate what percent of my coffee consumption occurs during meetings with prospects, clients, and friends at neighborhood coffee shops? Can’t bring my own machine. Then there is the value of the walk – fresh air, exercise, leaving my computer, allowing the dog time for her business. A coffee shop means seeing people and having conversations, and for those of us with a home office, that is our water cooler. A tough decision!
Meanwhile, due to weather changes and a coffee disease, the price of coffee is going way up by 2015. An excellent tea bag costs under $.50, which is only $547 per year, no pot required. Hmm…. A local tea shop might be a great business idea…
Time to get back to work on winning new clients, providing services, invoicing, and otherwise running a business.
All the best!