These forums have been archived and are now read-only.

The new forums are live and can be found at https://forums.eveonline.com/

Market Discussions

 
  • Topic is locked indefinitely.
123Next page
 

why do the manufactured ships cost the same as the materials?

Author
Harry Forever
SpaceJunkys
#1 - 2013-05-16 18:16:06 UTC
normally a manufactured ship should be at least 20-50% more expensive, it seems like the manufacturers do not want to have a margin on what they do, for me it does not make sense to manufacture if selling the raw material gives the same profit
Optimus Junkis
Brutor Tribe
Minmatar Republic
#2 - 2013-05-16 18:20:10 UTC
Your assuming that everybody has the set of skills you have. Some people have a number of skills at 5 that decrease the amount of material needed to make said ships. Trust me i have a indy toon and i make a nice profit :)
Harry Forever
SpaceJunkys
#3 - 2013-05-16 18:23:32 UTC
Optimus Junkis wrote:
Your assuming that everybody has the set of skills you have. Some people have a number of skills at 5 that decrease the amount of material needed to make said ships. Trust me i have a indy toon and i make a nice profit :)


ah ok, so for what premium do you seel the ship vs. material cost? +20%? just rough i would like to know...
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#4 - 2013-05-16 19:07:11 UTC
depends on the ship.

And bear in mind, there are still stockpiles of some ships from before they had a chunk added to their material costs.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Vanchelon
Pandemic Horde Inc.
Pandemic Horde
#5 - 2013-05-16 19:08:38 UTC
There are some special cases though, outside the realm of skills and material efficiency.

With some tech 1 ships, especially cruisers, it's also the case that they are below current production costs, because the materials were increased when the ships were given a substantial buff. I.e a cruiser might have cost 4m to build before, but now it costs 8m and you notice the market price is say, 6m. This is because people stocked up on a LOT of ships before the change, and as such theres a large stockpile out there that people are still getting rid of.

Procurers are another example, the old cost was ~3 million, the new cost is around 22 million. Currently they go for 8 million and they've been around that price for the past 5 months :)

The same thing will happen with Dominixes, Armageddons, Typhoons and Scorpions. Currently the production cost is ~80 million and come Odyssey on june 4th, the new production cost will be around 170-190m due to buffs to the ships themselves.
As such, after june 4th, noone will be building these for a very very long time, until the stockpiles run out :)

Rengerel en Distel
#6 - 2013-05-16 19:19:58 UTC
you could probably also google "minerals i mine are free" for another reason/discussion.

With the increase in shiptoasting, the Report timer needs to be shortened.

Riyal
invidious Squid
#7 - 2013-05-16 19:40:09 UTC
Other than the aforementioned mineral changes;

All the cool kids want to build ships.

In hindsight my post should have had more psssshhhh

Drachiel
Mercury LLC
#8 - 2013-05-16 21:04:20 UTC
The usual margin on industry is between 10% and 20%

However, the ships have their own (minor) price swings and trends which are independent of mineral prices

The reverse is also true, swings and trends in mineral prices may not affect a given ship without considerable delay

Dominix for example is VERY profitable to build right now and I envy all Domi BPO owners.
Barakach
Caldari Provisions
Caldari State
#9 - 2013-05-16 21:04:38 UTC
Rengerel en Distel wrote:
you could probably also google "minerals i mine are free" for another reason/discussion.


This.

People will mine minerals, build a ship, and less the ship at the same or lower price of the minerals at market price.
Ruvin
Amarr Empire
#10 - 2013-05-16 21:20:21 UTC
Vanchelon wrote:
There are some special cases though, outside the realm of skills and material efficiency.

With some tech 1 ships, especially cruisers, it's also the case that they are below current production costs, because the materials were increased when the ships were given a substantial buff. I.e a cruiser might have cost 4m to build before, but now it costs 8m and you notice the market price is say, 6m. This is because people stocked up on a LOT of ships before the change, and as such theres a large stockpile out there that people are still getting rid of.

Procurers are another example, the old cost was ~3 million, the new cost is around 22 million. Currently they go for 8 million and they've been around that price for the past 5 months :)

The same thing will happen with Dominixes, Armageddons, Typhoons and Scorpions. Currently the production cost is ~80 million and come Odyssey on june 4th, the new production cost will be around 170-190m due to buffs to the ships themselves.
As such, after june 4th, noone will be building these for a very very long time, until the stockpiles run out :)




with cheap ships was easy , and people really bought A LOT of them ... wonder how many BS are stockpiled in player's hand's :))

Opportunities multiply as they are seized.

Implying Implications
Sebiestor Tribe
Minmatar Republic
#11 - 2013-05-16 22:04:50 UTC
Mining your own minerals helps keep costs down so you can undercut the market.
Airto TLA
Acorn's Wonder Bars
#12 - 2013-05-16 22:11:19 UTC  |  Edited by: Airto TLA
ONe last issue, is it maybe easier to make a ship and fly it to the local trade hub than it is to haul the minerals to the hub, so you can buy the minerals cheaper locally using buy orders, build ship and fly ship to hub, fly shuttle back. So these people are using 10-20 off of local BUY orders, Rather than HUB Sell orders.
Tau Cabalander
Retirement Retreat
Working Stiffs
#13 - 2013-05-17 00:01:43 UTC  |  Edited by: Tau Cabalander
Aside from ship changes that increased costs, so people mass-produced huge numbers of ships before the changes took affect and can now sell below current cost yet still turn a profit, there exists three groups of people:

Group 1: For some reason, some people feel they have a right to a profit making whatever they want to make. They completely ignore the needs of the market (often driving down prices in the process), then come into the forums and complain that the world doesn't spin in their preferred direction.

Group 2: Then there is also the "it's a game crowd". They've posted that they don't care about making profits, because they just like building stuff. They are almost like the "Minerals I Mine Are Free" (MIMAF) crowd, except they do know what they are doing, but they just don't care. They don't put a value on their time.

Group 3: Lastly there is the MIMAF crowd. I like to think they simply don't know better, unlike group 2.
Tauranon
Weeesearch
CAStabouts
#14 - 2013-05-17 00:23:17 UTC  |  Edited by: Tauranon
Airto TLA wrote:
ONe last issue, is it maybe easier to make a ship and fly it to the local trade hub than it is to haul the minerals to the hub, so you can buy the minerals cheaper locally using buy orders, build ship and fly ship to hub, fly shuttle back. So these people are using 10-20 off of local BUY orders, Rather than HUB Sell orders.


Ships get stacked into a freighter and dragged to the hub in bulk. buy orders for minerals at the hub are the same as buy orders for minerals elsewhere but they usually fill faster, and since the freighter is hauling to the hub anyway, hauling the mins back is not an issue - both way loads for a freighter are desirable. Although ships are smaller than their mins, and thus could take less trips, if you do that, you add risk (and you end up with empty freighter trips).

In fact my main efficiency issues is that one mineral order won't fill and that one mineral will inevitably not be a highsec mineral. The next biggest efficiency issue is that I own more bpo's than I currently have characters building, and I own some currently unprofitable bpos, so I often have capital tied up in stuff that isn't making me money.
Tauranon
Weeesearch
CAStabouts
#15 - 2013-05-17 00:26:39 UTC
Tau Cabalander wrote:
Aside from ship changes that increased costs, so people mass-produced huge numbers of ships before the changes took affect and can now sell below current cost yet still turn a profit, there exists three groups of people:

Group 1: For some reason, some people feel they have a right to a profit making whatever they want to make. They completely ignore the needs of the market (often driving down prices in the process), then come into the forums and complain that the world doesn't spin in their preferred direction.

Group 2: Then there is also the "it's a game crowd". They've posted that they don't care about making profits, because they just like building stuff. They are almost like the "Minerals I Mine Are Free" (MIMAF) crowd, except they do know what they are doing, but they just don't care. They don't put a value on their time.

Group 3: Lastly there is the MIMAF crowd. I like to think they simply don't know better, unlike group 2.


None of those matter - MIMAFs and game builders, never have the capital to do suffcient construction to actually take up demand, and by not profit seeking effectively, they don't increase their capital base to the point where it will take up demand.
Adunh Slavy
#16 - 2013-05-17 00:26:58 UTC
Low barrier to entry.

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

Marsan
#17 - 2013-05-17 01:04:15 UTC
In addition realize that mineral prices tend to go up and down a lot, and vary from place to place. Not mention the difference between buy and sell orders. So it's possible the minerals for a ship were bought at a lower price. In my experience tech 1 ships are generally sold at ~5% above mineral cost at most trade hubs.

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

Sir Marksalot
Aliastra
Gallente Federation
#18 - 2013-05-17 04:00:25 UTC
Harry Forever wrote:
normally a manufactured ship should be at least 20-50% more expensive, it seems like the manufacturers do not want to have a margin on what they do, for me it does not make sense to manufacture if selling the raw material gives the same profit


There's a very large amount of people who play this game and don't value their time at all. So they're willing to sell their goods at razor-thin margins.
Mallak Azaria
Caldari Provisions
Caldari State
#19 - 2013-05-17 04:12:52 UTC
Sir Marksalot wrote:
Harry Forever wrote:
normally a manufactured ship should be at least 20-50% more expensive, it seems like the manufacturers do not want to have a margin on what they do, for me it does not make sense to manufacture if selling the raw material gives the same profit


There's a very large amount of people who play this game and don't value their time at all. So they're willing to sell their goods at razor-thin margins.


This happens in every game. People say that they gathered all the materials so they can sell it for whatever price they want. They don't value their time spent at all & often end up selling the item for less than what it costs to produce, lining someone else's pocket in the process.

This post was lovingly crafted by a member of the Goonwaffe Posting Cabal, proud member of the popular gay hookup site somethingawful.com, Spelling Bee, Grammar Gestapo & #1 Official Gevlon Goblin Fanclub member.

Lemok Sonji
Odd Fluffy Bunnies
#20 - 2013-05-17 07:58:35 UTC
You are also assuming that everyone are getting the minerals at market price.

Most high-sec corporations are giving their members a "ore buy program", which means their members mine, and the indy people are buying those minerals at market minus a certain percent, between 5 to 10.
Add to that the manufacturing profit %, and you get those 10-20% profit margins.

Just a simple math.
123Next page