Breaking Down the Costs of a $90 Electric Kettle

The one thing I noticed about these is that they all cost more than $90, which is way more than what I’m willing to pay for a kettle. My old kettle had cost me something like $10 from K-Mart. I wasn’t very willing to part with so much money for a kettle. So I decided to look for a cheaper version — I was willing to forgo the temperature control — afterall, I had been using a manual thermometer for years and it didn’t affect my making tea or coffee.

My housemate had also mentioned earlier that she would not prefer a plastic kettle and would prefer something metal. And so I went to look for normal electrical kettles. To my frustration — all the basic kettles cost roughly the same price: $39. The branded ones cost slightly more, and the non-branded ones cost slightly less. Why in the world would it cost so much? A kettle is not something difficult to build. The most difficult part is the grounding of it — which metal kettles are in sore need off, lest they give you an electric shock. But it’s really not that difficult to build a kettle, nor does it cost that much.

Chewxy, a “startup guy” and economist based in Sydney, Australia, wanted to know why temperature-controlled electric kettles cost more than $90. In search of an answer, he took his $10, plastic, non-temperature-controlled electric kettle apart, thought about the cost of individual pieces, and calculated profit margins. His post is so nerdy and considered and I love it.

Photo: WCK

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