Personally, I find that the problem is exactly because it's way too cheap. Even the most basic mass produced thermoblock machines go for 2-300 dollars.
The Arist includes an adjustable burr grinder. Then there's going to be multiple sets of circuitry, mechanisms and motors for adjusting the grind, dose and pressure thru the app. I can't imagine how they manage to keep the price at $400...
Somemore, their website has no contact numbers or address apart from a facebook page and an email address. All the "media links" are just pictures without links to actual articles.
Then there's wifi, nfc,milk chiller and dispenser. And it also comes with free international shipping.
Can make money lidat meh?
they removed the shipping cost.
well, its kickstarter project. May not be all about making money.
most basic mass product stuff has alot of overhead too, logistic stuff and marketing, etc
just look at a mechanical watch going for $3K, according to some report I saw on watchtime the profit on those is like 80-90% of their selling price to distributor! when distributor sell it to say Hour glass there is another mark up.
even with Audio equipment like speakers, employee can get them at > 70% discount off retail and companies can still make a profit.
lets go low tech like Tires, employees can get them at >70% discount and see a profit.
the mark up around us is insane.
website with no contacts etc, its normal for many new kickstarter programs. U have to get yours thru kickstarter and there are some rules on kickstarter. if U fear faud walk away, its just $400 not a whole lot of money to sweat over. or U could message the team asking them for sources. All HK sites, u have to google in chinese.. or cantonese.
http://www.cnet.com/products/arist-coffee-machine/
http://techcrunch.com/2014/10/28/arist/