GMCR to Raise Prices on Old Brewers? Pigs Must Fly in Vermont.

Yesterday, CEO Larry Blanford of GMCR stated: “but should something like that happen we have a number of tactical responses, one of which could in fact be deciding to raise the price of the K-Cup brewing system. We have it priced right now to continue to drive adoption. At some point one could say we want to now really, really drive the Vue-Cup system more aggressively, so let’s continue to sell K-Cup brewers, but let’s raise the price

I find this very amusing, considering that the Vue brewer, their  “Premium”, “Next Generation” model, is selling on eBay for $185 (tax & shipping included, with receipt), or less. It’s already available at Walmart as well…Walmart apparently is the William Sonoma of 2012.

I find it it even more amusing, considering they quietly lowered their Vue-specific capex guidance by 35% for the full year in Q2.

So much for facts.

Maybe Americans would prefer buying great products, at good prices,such as the Technivorm MoccaMaster

rather than mediocre products, like keurig brewers, that break within 1-2 years, for premium prices? Drinking k-cup coffee seems like eating dollar menu quality burgers, but paying $10.00 for the ‘convenience’,  when you can eat kobe beef burgers for $5.00.

Paying $50/pound for 6 month old coffee, served in possibly carcinogenic plastic = Value proposition. Right…

“What deflation is not is a drop in prices caused by a technology-enhanced decline in the costs of production. That’s called progress” - From a speech by James Grant to the New York Federal Reserve Bank, March 12:

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One Response to GMCR to Raise Prices on Old Brewers? Pigs Must Fly in Vermont.

  1. Pingback: Keurig Offers $50 Rebate, After Saying They Might Raise Prices « thelongshorttrader

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