The Numbers · An Unqualified Advice experiment
Like They Used to Make It
A coffee maker that lasts is good for your kitchen. Is it good for the company that sold it?
Our conversation started with broken appliances and ended with a harder question: what happens after everybody who wants a durable product already owns one? This model follows four alternative businesses for 40 years. Change the assumptions. See which story survives.
01 / The adoption wave
A premium durable product can earn more upfront. A growing installed base eventually becomes a smaller stream of new customers.
02 / The replacement engine
Shorter-lived products earn repeat sales. That does not automatically mean more profit, more cash, or better value for buyers.
03 / The repair economy
Carafes, baskets and repairs can support a long-lived product. Revenue helps only after the cost of supplying it.
The 40-year experiment / 2026–2065
Closing cash before new financing
2026 dollars · today’s purchasing power. All four businesses retain cash; none earns interest on it.
Lifetime (no replacement)
$210.4m
2065 · closing cash
No year-end cash shortfall
3-year replacement
$455.3m
2065 · closing cash
No year-end cash shortfall
4-year replacement
$314.2m
2065 · closing cash
No year-end cash shortfall
5-year replacement
$231.7m
2065 · closing cash
No year-end cash shortfall
Swipe the chart sideways to see all 40 years.
A negative cash balance signals a funding gap, not an automatic shutdown. Cash can rise despite falling profit when working capital is released. The discounted-FCF view is a valuation input, not cash available to pay bills.
Make the assumptions yours
Parts spending is a percentage of the original base-year price, multiplied by average active machines and that year’s inflation factor. These are scenarios, not measured failure rates. Edits stay only until you reset or reload.
Advanced: margins, market share & costs
Parts capture is the fraction of modeled customer parts spending received by this manufacturer. Parts COGS equals captured revenue × (1 − gross margin). Parts production is assumed outsourced or included in that cost; no extra parts factory is modeled. Service expense is separate. Price and market share are independent; the model has no estimated demand curve. Annual costs are entered in base-year dollars.
Method, timing & remaining assumptions
The validated household/cohort engine projects adoption, household exits, reuse and technical retirement. Each alternative starts with the same households. New machines fill the gap between working stock and the adoption target; company share determines its sales and installed base. Demographic quantities are unchanged by inflation.
Year one is 2026 at base-year prices. Later dollar flows scale by (1 + inflation)^(year − 2026). Closing cash = previous cash + operating profit − capital spending − change in working capital − launch payment. Real closing cash = nominal closing cash / price index. Discounted FCF = each year’s cash change / price index / (1 + real discount rate)^(year − 2026), accumulated without starting cash. This uses end-of-2026 as the valuation date; year-one flows are undiscounted.
Default assumptions (editable controls above take precedence): 134.79m opening households; net household additions of 860,000/year for ten years, then 510,000/year. Full eligible-market adoption rises linearly over the chosen period. Starting company share is 1%, overhead $5m/year each, cash $20m each, capital maintenance $1m/year. Launch payments: $10m durable, $5m conventional. Capacity investment: $20 per extra peak annual machine. Working capital: 15% of total revenue, with immediate cash release when it falls.
Opening household ages 20/30/40/50/60/70/80 carry weights 5/15/20/20/20/15/5%. Chosen annual dissolution/merger hazards: ages 0–34: 0.1/0.5%; 35–49: 0.2/0.5%; 50–64: 0.5/0.3%; 65–79: 2/0.1%; 80–94: 6/0%; 95+: 15/0%. These are illustrative household-exit assumptions, not mortality statistics. Household formation reconciles to the selected net path.
Excluded: tax, debt, cash interest, dividends, terminal value, price-demand feedback, warranty shocks, collection delays, inventory write-offs, and energy use. Deterministic technical lives are a simplification, not measured product survival curves.
Exact annual values & download
Table follows the selected dollar view. CSV includes nominal and real cash, discounted FCF, and nominal operating flows.
| Year | Lifetime (no replacement) | 3-year replacement | 4-year replacement | 5-year replacement |
|---|---|---|---|---|
| 2026 | $22,997,783 | $10,791,937 | $10,791,937 | $10,791,937 |
| 2027 | $46,773,589 | $10,793,450 | $10,793,450 | $10,793,450 |
| 2028 | $70,935,133 | $11,024,573 | $11,024,573 | $11,024,573 |
| 2029 | $95,467,563 | $13,183,374 | $11,479,930 | $11,479,930 |
| 2030 | $120,357,159 | $19,732,878 | $13,839,065 | $12,154,428 |
| 2031 | $145,840,640 | $26,546,519 | $20,557,050 | $14,728,450 |
| 2032 | $171,836,474 | $35,283,184 | $27,561,711 | $21,638,991 |
| 2033 | $198,212,916 | $48,261,655 | $34,798,275 | $28,785,178 |
| 2034 | $224,956,088 | $61,507,820 | $43,858,046 | $36,159,580 |
| 2035 | $252,053,046 | $76,638,900 | $57,074,839 | $43,755,237 |
| 2036 | $256,970,982 | $91,380,421 | $66,058,706 | $50,983,342 |
| 2037 | $253,646,374 | $104,587,398 | $73,459,268 | $58,062,292 |
| 2038 | $250,249,732 | $121,677,409 | $84,721,677 | $65,202,127 |
| 2039 | $246,790,721 | $135,778,831 | $97,458,947 | $72,401,551 |
| 2040 | $243,278,336 | $148,408,919 | $105,941,796 | $79,594,403 |
| 2041 | $240,611,500 | $164,784,123 | $113,074,746 | $86,482,762 |
| 2042 | $238,131,378 | $178,374,699 | $123,817,825 | $93,226,464 |
| 2043 | $235,494,878 | $190,478,508 | $135,853,117 | $99,965,804 |
| 2044 | $232,727,092 | $206,199,623 | $143,868,040 | $106,706,976 |
| 2045 | $229,849,818 | $219,197,212 | $150,607,929 | $113,396,150 |
| 2046 | $228,085,631 | $230,957,835 | $160,913,354 | $120,000,688 |
| 2047 | $226,590,284 | $246,065,552 | $172,363,172 | $126,487,867 |
| 2048 | $224,906,250 | $258,533,815 | $180,040,378 | $132,889,251 |
| 2049 | $223,055,497 | $269,803,447 | $186,451,769 | $139,203,881 |
| 2050 | $221,057,797 | $284,284,799 | $196,152,622 | $145,457,107 |
| 2051 | $220,325,139 | $296,426,563 | $207,071,545 | $151,712,801 |
| 2052 | $219,771,019 | $307,385,351 | $214,541,782 | $157,978,035 |
| 2053 | $218,851,454 | $321,218,642 | $220,724,264 | $164,066,878 |
| 2054 | $217,622,336 | $332,818,738 | $229,833,446 | $170,006,152 |
| 2055 | $216,131,625 | $343,314,634 | $240,169,860 | $175,818,857 |
| 2056 | $215,514,011 | $356,595,912 | $247,390,307 | $181,736,104 |
| 2057 | $215,020,967 | $367,834,760 | $253,425,135 | $187,731,006 |
| 2058 | $214,253,512 | $377,930,641 | $262,079,936 | $193,504,260 |
| 2059 | $213,246,425 | $390,695,120 | $271,791,374 | $199,084,257 |
| 2060 | $212,030,290 | $401,466,549 | $278,615,666 | $204,495,830 |
| 2061 | $212,029,814 | $411,363,542 | $284,576,073 | $210,177,661 |
| 2062 | $212,162,667 | $423,663,249 | $292,930,039 | $215,981,587 |
| 2063 | $211,891,980 | $434,003,255 | $302,135,274 | $221,483,383 |
| 2064 | $211,281,778 | $443,492,284 | $308,590,106 | $226,725,608 |
| 2065 | $210,386,549 | $455,293,725 | $314,233,068 | $231,744,637 |
What the discussion sent us to check
Is 1–2% a reasonable parts assumption?
It is a useful sensitivity range, not a measured industry average. We start at 1.5% of the machine’s original, base-year price per active machine-year: $6 on a $400 brewer, before inflation. Think of this as an expected average across a fleet, not a bill every owner pays each year. Published Moccamaster parts include a $22.50 brew basket, a $24 outlet arm and $35–40 glass carafes. Those prices establish scale, not how often parts fail. No reliable annual purchase rate was established for this model.
The model applies the same starting percentage to conventional machines ($1.20 on an $80 machine) so the comparison does not quietly give the durable maker an exclusive aftermarket. Separate rates, manufacturer capture and parts margin are editable. The 50% margin and 100% capture defaults are illustrative, not Moccamaster economics. Paper filters, coffee, descaler and repair labor are excluded from the default component rate. If you add them, use only incremental spending the manufacturer actually captures, net of its associated cost.
Can repair become a business instead of a replacement?
Yes, it can be offered: Moccamaster lists eligible out-of-warranty repairs at $99 including parts, labor and shipping both ways. That demonstrates a repair channel, not its profitability or customer take-up. Our model’s parts margin covers variable fulfillment cost; the separate annual service expense remains a cost. Do not count the same repair twice.
Does inflation change the answer?
Future purchases and costs are inflated from the base year, including overhead, service, capital spending and replacement components. Retained cash earns no interest. “Today’s purchasing power” divides the actual nominal closing balance by that year’s price index; it does not simply add deflated annual profits. The 2% default is a scenario anchored loosely to the Federal Reserve’s PCE inflation goal, not a forecast of appliance prices. The optional discounted cash-flow view answers a different question and is not a bank balance.
Are old products necessarily better?
Stories about a decades-old appliance are not a failure-rate study. Surviving old machines are a selected sample, and newer products can use less energy: the Department of Energy reports that clothes washers use 70% less energy than in 1990. The FTC has also documented concerns about repair restrictions, finding scant evidence for many manufacturers’ justifications. Neither source proves that every modern product is deliberately designed to fail.
What about second owners and fewer households?
Replacing your own appliance is not the same as destroying it. The reuse control lets working machines find another household after a household exits. Household demand is not population: the UN’s 2024 projection has global population growing into the mid-2080s. The model’s household formation and exit assumptions are scenarios, not a claim that the world is already shrinking. Saturation can happen while households still grow.
Read this as a thought experiment
The four lines are mutually exclusive business scenarios, not divisions to add together. This is manufacturer cash, not a household’s total cost of ownership, a stock valuation or an environmental life-cycle assessment. Price does not reduce demand automatically. Adoption, market share, service needs, household hazards and product life are chosen inputs. No taxes, borrowing, cash interest, dividends, terminal value or energy costs are modeled. Negative cash means additional financing would be needed; the model does not silently provide it. Break-even years are conditional results, not universal laws.
Sources & methodology
Reviewed November 8, 2026. Retail prices and policies can change. These sources support the discussion, not the unobserved failure and purchasing rates.
- Moccamaster replacement-parts catalog ↗
- Moccamaster repair eligibility and pricing ↗
- Moccamaster cleaning and descaling guidance ↗
- Federal Reserve: why the inflation goal is 2 percent ↗
- FTC: 2021 report on repair restrictions ↗
- Department of Energy: appliance efficiency ↗
- UN World Population Prospects 2024: key messages ↗