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EVE New Citizens Q&A

 
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Why is manufacturing a Navitas a 30,000% loss?
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Gordon Riddle
The Scope
Gallente Federation
#1 - 2013-06-05 10:24:16 UTC
Total noob question here, I'm hoping you can solve a mystery for me:

Image

So this is a screenshot of a Navitas blueprint, right? They give it out in one of the tutorials. And it lists the BOM so I know what I need to manufacture.

For example, I need 3276 Mexallon. 379 for "materials" and 2897 for "extra materials".

So far so good. But if you check eve-central.com, Mexallon sells for like 55isk. (In my region it is a little lower, but not by a lot). So this is 3276*55=180,180 just in Mexallon costs to produce a ship.

Meanwhile, if you check eve-central again, the final Navitas only costs something like 90k. So you would be losing money on each sale, just from that one element! I did a little math, and I think doing a real production run on this ship is a 30,000% loss!

So I get that "if it's not profitable, just don't manufacture it" (and for the tutorial I just bought one off the market). My question is, how is it possible that the price of this ship is so far removed from the cost to manufacture?

I mean either

A) somebody out there is manufacturing these ships at a profit, and i have no idea how, or
B) somebody keeps manufacturing these ships at a 30,000% loss

What am I not seeing here?
Count of MonteCylon
Anti-Pirate Enforcement
#2 - 2013-06-05 10:31:20 UTC
They changed how much it costs in materials to build frigates several months ago, but back when frigates were super cheap, people built thousands (maybe even hundreds of thousands) of them, so the prices have not gone back up yet in many areas.

For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places. -- Ephesians 6:12
erg cz
Federal Jegerouns
#3 - 2013-06-05 10:31:39 UTC  |  Edited by: erg cz
Player get free Navitas in tutorial (early exploration mission). Players produces another one during tutorial missions. Not many players uses that ship. So many players sell it and I am not sure if there is any reason, why someone would buy it (apart from the fact, that it is cheap and can sustain at least some damage comparing to rocky ship). Market works...

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Marc Callan
Center for Advanced Studies
Gallente Federation
#4 - 2013-06-05 11:56:12 UTC
Fundamentally, you're looking at the result of a glut on the market. The Navitas was a cheap mining ship back in the day, inexpensive to produce, and prior to the introduction of the Venture, it was, as mentioned above, a mission reward in the industrial tutorial. The increased manufacturing cost coincided with the transformation of the Navitas into a logistics frigate, a much more specialized role with greatly reduced demand, so the market's showing what happens with a significant oversupply. The prices probably won't stabilize until the overstock is burned through (you'll probably notice that more pure combat-oriented ships demand prices more in line with their mineral costs, because their pre-tiericide stocks have been burned through).

You'll probably see a similar thing happening with battleships for a while.

"We are what we pretend to be, so we must be careful about what we pretend to be." - Kurt Vonnegurt
Merouk Baas
#5 - 2013-06-05 13:13:41 UTC
People are paying what they can get out of the ship if they were to reprocess it for minerals, namely, 80% or so of the required materials, and none of the extras.

The market is completely player-everything, and as it's been pointed out, you are seeing the effect of over-supply and no demand.

If you're considering a manufacturing career, keep in mind that you will also by necessity have a trading career, as you'll compete with other people to sell your stuff. And the competition is fierce, with the profit margins very slim.
Radius Prime
Tax Evading Ass.
#6 - 2013-06-05 15:53:27 UTC
Yes I produce them with 30000% loss, what gives? It's a sandbox, I can do what I want... Nobody buys them so I see them as my savings.. I would prefer it if you kept the spotlight off my operations.. New generation of all knowing newbs -.-

Reopen the EVE gate so we can invade Serenity. Goons can go first.