What, no mention of Nespresso (invented in '76) ? Is it just because the american startup audience is more familiar with Keurig?
I do like his core point that the Keurig (/Nespresso) business model is psychologically different from razor+blades. I understand 3D printer manufacturers have also been trying to apply it, to limited success: the primary audience of hackers and tinkerers are by nature adverse to embracing such a business model.
There is some funny math going on here. You are comparing single use consumables against multi use consumables. I can use a water filter for a few months before I need to replace it. The equivalent amount of k-cups (a few months worth) would be in the $100's (at least at the rate that I drink coffee). Additionally, most people probably buy bulk boxes of k-cups (in the $40 range), so the psychological argument isn't particularly valid (at least when comparing to the cost of the equipment price).
So the entire point of the article is that the price ratio of one coffee pod to the cost of the machine is much greater than the cost of printer cartridge to the printer itself?
Hence consumers don't balk at paying for the consumable parts?
The continuation of the quote paints it in a slightly less humble light: "Quite honestly, we were wrong. We didn't think our customers would notice how they were getting screwed."
I do like his core point that the Keurig (/Nespresso) business model is psychologically different from razor+blades. I understand 3D printer manufacturers have also been trying to apply it, to limited success: the primary audience of hackers and tinkerers are by nature adverse to embracing such a business model.