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K Cup Coffee Not A Good Bargain

8:10 AM, Feb 22, 2012   |    comments
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(WUSA) -- When it comes to making your morning coffee, those Keurig-style brewers and K-Cup may save you time and makes a simple task even easier.  But it won't save you money.

The Keurig brewers from Green Mountain have really taken off.  Green Mountain sent out 4.2 million brewers over the holidays in 2011.  

When it comes to saving money, the old Mister Coffee may be the way to go.

We did some comparison shopping at a Dunkin' Donuts in Arlington, Va.  A pound of Dunkin' Donuts original ground coffee costs $8.99 a pound.  A box of 14 K-Cups of the same kind of coffee sells for $11.99.  A medium cup of hot brewed coffee (with cream and sugar, of course) goes for $1.99.

It's hard to compare until you break down the price by the ounce of liquid coffee each ones makes.  The store-made cup of coffee costs you nearly 12.8 cents per ounce.  The K-Cup is a little better value at 10.7 cents per ounce.  You really save money when it comes to the old-fashioned grounds: that's just 3.7 cents per ounce of coffee.

It means the same cup of coffee made with a K-Cup is three times more expensive than the old-fashioned grounds.

When you break down the numbers by how much the grounds of coffee cost, you really see the savings.  That pound of coffee is $8.99.  If you got a pound worth of coffee in K-Cups, it would come out to $33.42 a pound.  That's a 400% markup just for single-serve convenience.

Of course, this comparison doesn't work if you want to use some of the fancier coffees K-Cups can provide.  This comparison only works for regular coffee.

Motley Fool and Yahoo! recently listed some other money saving advice for people with Keurig machines:

Don't Be Brand Loyal: Shop around for the best price, even if it means you don't always drink Dunkin' Donuts or Green Mountain or Peets.

Buy In Bulk On The Web: Sites like Amazon let you do it and you can end up getting coffee for half the price.  You can also use coupons to buy the K-Cups at office supply stores.

Wait Until The Patent Ends: Green Mountain is about to lose some of its key patents on K-Cups.  When that happens, chances are the market will be flooded with single-serving cups that will sell for a lot less.

Written by Dan Guzman
9NEWS NOW & wusa9.com

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