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Manufacturing, am I doing it wrong?

Author
Tyrion Rayder
State War Academy
Caldari State
#1 - 2011-09-19 20:30:07 UTC
So I run missions with this toon, and I have an indy alt for loot/salvage/etc. I have amassed a good amount of minerals from reprocessing junk loot and I decided to get into manufacturing for profit. I thought I would start small and bought some bp's, specifically kestrel and heron as I would like to eventually invent the covops frigs for personal use.

I downloaded EveMeep, plugged in personal data. Manually inputed local mineral prices for the region i am in and the lowest sell price for the finished ship. WTH -100k or so profit per item. Granted my skills need a bit more work and my bp's need some research but are people really underselling things for this much? Or are ships just a bad area to start manufacturing in?
Xylem Viliana
homeless bum
#2 - 2011-09-19 20:36:12 UTC
The market has slumped, those ships are probly not much above mineral cost for a well skilled and researched builder
BornToDieAnotherDay
Tarazed Technology
#3 - 2011-09-19 21:19:03 UTC
Ships aren't the best place, especially frigates. Most people put that down to the 'mined minerals are free' mentality. Just make sure you have Production Efficiency 5 researched, and preferably research your BPOs. Also do the math before you buy/research the BPOs to make sure you actually will make money.

Good luck =)
Tyrion Rayder
State War Academy
Caldari State
#4 - 2011-09-19 21:43:13 UTC
Thanks for the advice. I intend to mostly produce for personal use but figured I would try to make some profit along the way. Ah well.
IonHammer
Brutor Tribe
Minmatar Republic
#5 - 2011-09-19 23:11:46 UTC
I have been playing for a lot of years and i still find it difficult to find good manufacturing items, I tend to work out good things build them for a known price only to find that price has dropped to below build cost.

I then have to wait for the market to cycle before I can sell at a profit.

I tend to make all my own stuff still. if you end up with a lot of loot your can refine it apart from meta items sell those to the market. You can then sell the minerals or keep them to make stuff for yourself.

The main issue with manufacturing is getting slots, that normally leads to having a production pos which gets a little expensive, unless you mine ice.

I used to make ammo for mission runners a long while back not sure what that looks like these days.

If you like missions i would suggest you get into a tengu and a noctis. That seems to be a decent setup.
Raendel
#6 - 2011-09-19 23:32:13 UTC
Unless you:

1) Are in a Corp/Alliance with a research POS
2) Can buy cheap ME slots off another player that you trust
3) Don't mind waiting 30 days per 20 levels of ME research
4) Have perfect refining skills (5's across the board and over 6.0 standing)

Then manufacturing is really not worth it.

Honestly, it's amazing that anyone even bothers to build anything on Eve.

Quick Fact: Some people make buttloads of ISK by purchasing items and reprocessing them. That should tell you something.

Only two things are infinite: the universe and human stupidity, although I'm not sure about the universe. - Albert Einstein

Angsty Teenager
Broski North
#7 - 2011-09-20 02:19:55 UTC
THE MINERALS I MINE ARE FREE!!!111!!!!111
Red Teufel
Calamitous-Intent
#8 - 2011-09-20 21:13:58 UTC  |  Edited by: Red Teufel
when you manufacture you need to find an item that is in high demand such as hurricanes. look at the table stats and you will see quantities and price averages. take into account how fast you want your product sold and how much profit you want to make off of it. look at the average price for the price you want to sell and the quantity. you will see at least once a month the price will hit 26mill but you will see quantity sold of that period of price on average is about 300 units. take a look at the market and subtract the amount of units already on sale near the price you want from the 300 units. so say you see 50 canes being sold for 25.8mill. you manufacture 250 units. in a perfect world all of your hurricanes should be sold in a month at a very reasonable price.

when you do this, you will have more isk to invest in other products rather then waiting a few months for your single giant batch of canes to sell out then you get frustrated and sell at rock bottom prices. when you eventually have enough isk you will be able to base your manufacturing over 3 month periods generating you more profit. remember to invest in a variety of products.
SencneS
Viziam
Amarr Empire
#9 - 2011-09-20 21:20:54 UTC
Raendel wrote:
Honestly, it's amazing that anyone even bothers to build anything on Eve.


It's because Manufacturing is targeted for the more AFK player. I pump 11 slots of manufacturing bulk items that will take 30 days to produce, then 30 days later, I see it. I sell items that I make between 800K and 1.1mil ISK per item. It takes about 40-50 days to sell them all, but I make 30 days worth every 30 days and just stock pile for the next month. I do this across about 5-6 systems in EVE, When I do make them I make at least 4000 of them across EVE.

I make more then enough profit to continue to "Play for free", and I have next to zero effort put forth since I can do everything remotely. You have to look at manufacturing as a BULK business otherwise you're doing it all wrong.
Marsan
#10 - 2011-09-23 02:56:47 UTC
In general most T1 gear and ships is worth more in minerals than the gear itself. Even more strange often the low end named gear is often cheaper than the t1 players make. For real amusement price building a Carrier vs buying it. I commonly place buy orders for mission loot just to reprocess it. I then sell the minerals., r make ammo and drones (if no is sell it at reasonable rates). Where you can make money with t1 stuff is in rigs, and ammo in mission running hubs. You just have to be careful that someone else isn't actively supplying the area.

Other wise the money is all in the t2, and t3 gear/ships these days. Making t2/t3 gear is fairly involved....

Former forum cheerleader CCP, now just a grumpy small portion of the community.

rodyas
Tie Fighters Inc
#11 - 2011-09-23 10:28:28 UTC
Yeah will definetly want researched BPO's or buy BPC that are already reserached. Also produciton effy 5 will help. That not really alot of skills but if new is harder, but wil need them to compete or pull a profit, otherwise be hard. Then popular ships and stuff. NOt really sure how open the invention market is, but also need more skills as well.

Market might be slumping or so, but even then, if you did combat missions with lvl 2-3 gunnery skills would be making negative isk as well.

Signature removed for inappropriate language - CCP Eterne

Atima
Inevitable Outcome
E.C.H.O
#12 - 2011-09-24 14:20:11 UTC
IonHammer wrote:

The main issue with manufacturing is getting slots, that normally leads to having a production pos which gets a little expensive, unless you mine ice.


This should explain your problem fairly clearly.
Atima
Inevitable Outcome
E.C.H.O
#13 - 2011-09-24 14:22:05 UTC
SencneS wrote:
Raendel wrote:
Honestly, it's amazing that anyone even bothers to build anything on Eve.


It's because Manufacturing is targeted for the more AFK player. I pump 11 slots of manufacturing bulk items that will take 30 days to produce, then 30 days later, I see it. I sell items that I make between 800K and 1.1mil ISK per item. It takes about 40-50 days to sell them all, but I make 30 days worth every 30 days and just stock pile for the next month. I do this across about 5-6 systems in EVE, When I do make them I make at least 4000 of them across EVE.

I make more then enough profit to continue to "Play for free", and I have next to zero effort put forth since I can do everything remotely. You have to look at manufacturing as a BULK business otherwise you're doing it all wrong.



Back to top form I see sencnes !

yup bulk building at a loss is doing it right as opposed to just building at a loss.
Adunh Slavy
#14 - 2011-09-24 18:15:43 UTC
There's another thing to consider, supply of old ships. The majority of ships that are built and purchased, looking Eve wide, are not destroyed. They either collect dust in a hangar someplace or they are sold off.

Also, and this is subjective, in the real world, most people are accustomed to the idea that a vehicle, or anything with lots of moving parts, purchased will end up being resold at a lower price, except perhaps collector's items. So, to sell off an old ship for less than it was purchased, is not a "bad thing" for a lot of people. To them it is simple depreciation, even though the functional value of a repackaged ship is zero depreciation in the land of Eve. You are making ships and selling them, but do not ignore those who have buy orders, who is selling them their ships? And notice some of those buy orders are under your estimated mineral value.

Also, you are perhaps estimating the value of your minerals at what price you think you can sell them today. Perhaps a better way is what cost you would incur long term. A wise ship builder is going to have long term buy orders on the market and be buying minerals on the dips. Doing that alone will bring a competitor's costs down below yours if you are estimating the value of your minerals at current prices. Perhaps you should estimate your mineral values at the long term price peaks. I think you will find that the difference between the highs and the lows consumes your 100K estimated profits.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Tauranon
Weeesearch
CAStabouts
#15 - 2011-09-25 11:15:32 UTC  |  Edited by: Tauranon
Adunh Slavy wrote:
There's another thing to consider, supply of old ships. The majority of ships that are built and purchased, looking Eve wide, are not destroyed. They either collect dust in a hangar someplace or they are sold off.


I doubt it. Set the map to ships destroyed in the last 24 hours. I believe there are 4 systems that are starters that newbies lose 2 ships in, (replaced by agents), the rest are largely actual losses with occasional rookie ships thrown in.

Quote:


Also, and this is subjective, in the real world, most people are accustomed to the idea that a vehicle, or anything with lots of moving parts, purchased will end up being resold at a lower price, except perhaps collector's items. So, to sell off an old ship for less than it was purchased, is not a "bad thing" for a lot of people. To them it is simple depreciation, even though the functional value of a repackaged ship is zero depreciation in the land of Eve. You are making ships and selling them, but do not ignore those who have buy orders, who is selling them their ships? And notice some of those buy orders are under your estimated mineral value.



Owners generally rig ships that they are using these days, and therefore they rarely get repackaged. Most of the plain market orders are either traders or builders, and its pretty rare to see the bulk of the orders for things like hurricanes in single orders. Quite a bit of the ship reselling is because the owner doesn't want the rig setup.

Quote:


Also, you are perhaps estimating the value of your minerals at what price you think you can sell them today. Perhaps a better way is what cost you would incur long term. A wise ship builder is going to have long term buy orders on the market and be buying minerals on the dips. Doing that alone will bring a competitor's costs down below yours if you are estimating the value of your minerals at current prices. Perhaps you should estimate your mineral values at the long term price peaks. I think you will find that the difference between the highs and the lows consumes your 100K estimated profits.


I can't see the sense of that strategy. If there is no margin between the mins and the hull when you sell it, all you are doing is limiting the percentage of capital you can apply to the profitable action (buying mins on lows), because of the money sunk into BPOs. If there is no margin with BPOs for the hulls, then obviously BPCs are completely out of the question - you'd be losing money, so yes there has to be capital sunk in the BPOs.
Trush
Liberation By Annihilation
#16 - 2011-09-25 12:29:58 UTC
I have to agree with Adunh's points. There is relatively high surplus of ships that shreds into margins. Just because the map says "12 ships Destroyed in the last hour" doesn't necessarily mean that they were anything but t1 frigates. It's a matter of views unless we can see some data.

Quote:
So, to sell off an old ship for less than it was purchased, is not a "bad thing" for a lot of people


Couldn't be closer to the truth. There is a "Fat Wallet" syndrome that exists in most players. If they have to take a 2 or 3, or even 10 to 15m hit just so they can change up ships w/o creating a hole in their bankroll - they will. That moves onto the next point, contracts w/ rigged ships. Rarely, if ever, do players offer enough incentive to purchase a rigged ship. They are either not rigged in preference to the demand, or overpriced. What happens? See the beginning of this paragraph.
Lady Zarrina
New Eden Browncoats
#17 - 2011-09-25 17:13:32 UTC
many people will sell ships at "cost" just to move minerals without affecting the market as much. If you have excess minerals, this is just another way to sell them.

EVE: All about Flying Frisky and Making Iskie

Raendel
#18 - 2011-09-25 21:38:13 UTC
Atima wrote:
SencneS wrote:
Raendel wrote:
Honestly, it's amazing that anyone even bothers to build anything on Eve.


It's because Manufacturing is targeted for the more AFK player. I pump 11 slots of manufacturing bulk items that will take 30 days to produce, then 30 days later, I see it. I sell items that I make between 800K and 1.1mil ISK per item. It takes about 40-50 days to sell them all, but I make 30 days worth every 30 days and just stock pile for the next month. I do this across about 5-6 systems in EVE, When I do make them I make at least 4000 of them across EVE.

I make more then enough profit to continue to "Play for free", and I have next to zero effort put forth since I can do everything remotely. You have to look at manufacturing as a BULK business otherwise you're doing it all wrong.



Back to top form I see sencnes !

yup bulk building at a loss is doing it right as opposed to just building at a loss.


Beat me to it.
+3 Eve-peens for you.

Only two things are infinite: the universe and human stupidity, although I'm not sure about the universe. - Albert Einstein

Adunh Slavy
#19 - 2011-09-25 22:43:06 UTC
Tauranon wrote:

Stuff


I'm glad you disagree, one less person in the ship market for me to fuss over. Blink

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

EvilCheez
Garoun Investment Bank
Gallente Federation
#20 - 2011-09-25 23:06:14 UTC
When you are starting out -- Buy Bpc's - you dont have a large initial outlay like with bpo's and you can always switch items on the fly.

Try larger ships, and look at the graph. At first when you can only build a few at a time you will want to build ships that have the highest profit margin, then later when you are building dozens or hundreds at a time you will want to be building the ships with the lowest margins---those are the ones no one else will be building so you will have a nice stack when the price inevitably rises.

Also be sure you are realistic regarding how many of the item you can sell in your area. The graph will tell you alot........
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