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dealing with deep undercutters

Author
Dasmallredboat
Viziam
Amarr Empire
#21 - 2014-02-21 17:14:29 UTC
btw: i never said it's a bad idea to undercut deep. it makes sense in some situations. but undercutting deep with a sell order that is worth billions and covers multiple days of market volume is.

right now the person in question is selling his stuff at a LOSS (-800k ISK/hr with a good BPO). an even bigger loss if you consider the fact that prices for the intermediate stuff have fallen in the last weeks.
Ginger Barbarella
#22 - 2014-02-21 20:14:19 UTC
Dasmallredboat wrote:
btw: i never said it's a bad idea to undercut deep. it makes sense in some situations. but undercutting deep with a sell order that is worth billions and covers multiple days of market volume is.

right now the person in question is selling his stuff at a LOSS (-800k ISK/hr with a good BPO). an even bigger loss if you consider the fact that prices for the intermediate stuff have fallen in the last weeks.


It seems to me the obvious option here then is to buy his stock up completely, reprocess it, and list your own stuff back at a decent profit. What's the problem? Cool

"Blow it all on Quafe and strippers." --- Sorlac

Gilbaron
The Scope
Gallente Federation
#23 - 2014-02-21 20:18:57 UTC
extra material ?
Soldarius
Dreddit
Test Alliance Please Ignore
#24 - 2014-02-21 20:24:14 UTC
If he is listing his product at less than the material value, you have options, most of which start with buying his stock. What you do after depends on where the most profit is.


  • Relist for easy-mode profit.
  • Reprocess and dump the materials on the market.
  • Hold the stock until he goes away and relist it then.
  • Wait him out.


If he is listing at or above material value and below the market value, your options are to buy him out and relist, or to wait him out.

You can also try contacting the seller and see if he would be willing to just sell directly to you via contract. If he's in a hurry then he will probably say yes.

Personally, I love when people throw out insanely under-priced sell orders.

http://youtu.be/YVkUvmDQ3HY

Dasmallredboat
Viziam
Amarr Empire
#25 - 2014-02-21 20:35:21 UTC
Quote:
Personally, I love when people throw out insanely under-priced sell orders.


so do i, made a few hundred million ISK that way in the last days. however, i still need enough cash to buy his stock without getting myself trapped in having only a single product on the market. not possible right now.


Quote:
Relist for easy-mode profit.
Reprocess and dump the materials on the market.
Hold the stock until he goes away and relist it then.
Wait him out.


relisting is not possible, i don't have enough cash and i really don't like owning almost a week worth of market volume for a single product. i get nervous when i own more than a days volume.

reprocessing is not possible.

holding the stock is something i could do but don't like. i very much prefer cash or running industry jobs.

waiting is probably the best way to deal with the situation. time to give the BPO a few extra levels in PE.
SJ Astralana
Syncore
#26 - 2014-02-22 00:50:25 UTC
Dasmallredboat wrote:
waiting is probably the best way to deal with the situation. time to give the BPO a few extra levels in PE.


On this topic, I've found that researching to the point where you can squeeze even just one more unit per day is worth it, but researching so that you can deliver a day's production a few minutes sooner is probably research wasted.

Hyperdrive your production business: Eve Production Manager

Hasikan Miallok
Republic University
Minmatar Republic
#27 - 2014-02-24 22:37:16 UTC
My solution has always been move the BPO somewhere I can actually be competitive. Alternatively just ship the goods elsewhere.

In some cases the entire market seems to slip below production costs (P4 PI is a good current example, almost all P4s are way below production cost at all trade hubs at the moment). This is generally either a sign of market manipulation or a sudden influx of new and particularly stupid industrialists of the "if I mine it the mats are free" variety. In which case either stockpile or go diversify into something else.
Jonas Staal
Republic Military School
Minmatar Republic
#28 - 2014-02-26 09:35:51 UTC
An option is that he can only log on once or twice per day, and got sick of the -0.01isk.
As long as he's making profit it's better than not selling anything ever.
Noah Vikeen
Doomheim
#29 - 2014-02-26 18:08:47 UTC
So reading through the thread as a newbro, tons of great info to chew on here. I can't really add too much to the conversation but will try.

I think it basically comes down to inventory and cost control. If the market fluctuates violently due to market PvP and you don't want to operate in that fashion yourself, then you have to manage your production flow, acquisition and sales properly.

- How can you reduce the cost to build? Better skils and researched BPOs
- How can you reduce the cost of build materials? Buy from different locations, setup deals to buy directly from industrialists, mine yourself
- How can you maintain the proper inventory to ride out the low profit times? This will require a lot of spreadsheet work but can be done
- What do you do when an item isn't profitable? Use the manufacturing slot to build something that is

Just try to think of it as a real world scenario where you are a manufacturer of multiple product lines and have to balance all aspects from sourcing, building and selling all while maintaining a profitable business overall. Once you have the skills and processes in place to manage your inventory control you can ride out any fluctuations and maximize the profit for each manufacturing line you have running full time.

http://spacevikeen.wordpress.com/ Twitter @NoahVikeen

Erotica 1
Krypteia Operations
#30 - 2014-02-27 03:54:47 UTC
Andromeda basically said what I was going to lol

Stop trying to get inside the head of the guy on the other side, because at best you'll just have a good guess.

My suggestion would be to bypass the market all together and try to find someone who will buy your entire stock at regular intervals for an agreed upon profit margin. You may think you are leaving some isk on the table, but you will free up time and reduce worry. You can either agree on price or cost plus an agreed profit margin.

See Bio for isk doubling rules. If you didn't read bio, chances are you funded those who did.

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