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PI Taxes?

First post
Author
Jaigar
Native Freshfood
Minmatar Republic
#161 - 2011-11-30 07:06:43 UTC  |  Edited by: Jaigar
John DaiSho wrote:

But i will love to read the stories of fights that will be had for POCOs, rising PI collectives and the crumbling of those.
The sandbox is changing, it was all the time and it wont stop, you adapt or you die. If this change is too much for your PI actions you just didnt try hard enough.


While I agree with this statement, planets themselves are already better in null sec, so a lot of high sec PI is done solely upgrading tiers of PI stuff. Now think about this: The old tax was low enough to where there was enough profit margin to do this. So if theres no benefits to having manufacturing planets in null sec, then why would you set them up (outside of necessary POS fuel). Why not pull as much T1/T2 PI as you can off your planet and just sell that every month or two?

Player Owned custom offices in low sec? I don't know. I would have gone with factional COs there and offer maybe a 3% tax rate. At least in null sec you can set up cyno jammers and have some actual control of your system. What do you do if some ******* decides to drop 5 dreads or so on your CO and throw it into reinforced in 2-3 minutes? How does a small corp fight such griefing? At least with POSs you can throw 12+ hardeners on there so it takes more dedication to destroy them, but custom offices have no resists. I guess we can only see how this will play out.

And the inflation/price increase thing: it is inflation when more money is chasing the same amount of goods (IE isk faucets are overflowing,), and a price increase is less specific (think squares and rectangles; not all rectangles are squares, but all squares are rectangles). A price increase can come from increased demand, decreased supply, increase in the "cost of doing business", inflation, etc. In this case, because the cost of using PI is going up, the supply will probably decrease, and the cost of extracting those goods will be reflected directly in their price.

But like John said, adapt or die. People will readjust their PI, make more efficient setups in high sec that don't require as much importing and exporting.
Jarnis McPieksu
Aliastra
Gallente Federation
#162 - 2011-11-30 07:26:20 UTC  |  Edited by: Jarnis McPieksu
There is a solution to lowsec CO system;

Locals who fly in these systems and can protect COs should blow up and replace COs with their own and set the tax to be lower than 10%. Then promote this to the carebears and they'll set up shop. Local "l33t pirates" can then play space police in the area and the PI carebears will make them ISK (through CO taxes).

This does mean that these lowlifes would have to...

..know math so they can figure out the profitability of this
..have a reputation so people dare to set up under their COs
..have enough spine not to randomly block non-blue access or jack up taxes to the moon just to extract tears from the carebears

Third bit is the hard part. In essence anyone setting up lowsec PI under COs owned by someone else is making a risky investment in command centers and other bits that take a while to pay off... and when the owner of the CO is -10 and known to enjoy tears of carebears, it is hard to forge that trust... It would be less of a problem if you could get the ISK you sunk into setting up a planet back (even partially) if you have to abandon a planet.

On the other hand, a local pirate alliance/corp that "controls" (I use that word loosely) 5-10 systems around their home system could make nice passive ISK from the work of carebears just by investing some time and ISK into owning the local COs. Oh, and they would have some structures in space that might attract pew pew over them...
Jarnis McPieksu
Aliastra
Gallente Federation
#163 - 2011-11-30 07:54:57 UTC
Jim Hooknose wrote:
Was going to keep Eve subbed while I played another mmo, but with the changes to PI, I won't be.

Thanks CCP for making this decision easier and saving me $45 a month.


Are you stupid? Or just bad at math?

The taxes may seem "excessive" if you calculate based on the current sell prices of PI goods.

FREE HINT: The "current" sell price of PI goods will spike. By at least 10-15%.

At that point, the buyers of your goods are going to be the ones paying the tax you pay and life goes on. Get a spreadsheet up, calculate what you make now, factor in the taxes you have to pay and figure out the required sell price of the goods to cover that tax (and a bit more, like all good capitalists do), then keep stockpiling your PI end products until the market price reaches that level. Sell. PROFIT.

L2P EVE Market PVP.

Most savy players already saw this coming a mile away and stockpiled on PI goods they need to consume (hence they already went up at least by 5% and they are still climbing).

If anything, bunch of other PI producers who ARE bad at math will give up, reducing supply, allowing you to jack up prices even higher! All you have to do is not to sell at below your cost. Excel (or Google Docs) = the EVE addon.
Jarnis McPieksu
Aliastra
Gallente Federation
#164 - 2011-11-30 08:06:33 UTC
Damasa Cloudwalker wrote:
I just took my tower down, and my subs run for another 20 days then I'm done.

Exorbitant customs duties are one of the many mechanics released with this expansion that is designed to get people to move into nullsec, something which I will not do.

Bye everyone!


One less competitor, more ISKies for me.

People will not move into null sec to milk few million a day per planet through PI. That's peanuts. The vast majority of PI materials will still come from empire space. It is up to you to calculate if it is worth paying the tax or cleaning space for lowsec POCO and paying that (getting you 0% tax and allowing you to tax others on that planet).

I know its math and it may be hard, and there may be some risk involved. Welcome to EVE.
Tora Oni
Legendary Sidekicks in Space
#165 - 2011-11-30 08:07:59 UTC  |  Edited by: Tora Oni
Ingvar Angst wrote:
CCP Nullarbor wrote:
Confirming that the base prices were adjusted as well as default tax rates for Concord and Interbus customs offices. The latest and best information is available here:


Confirming it was a bad idea and you screwed up.


What he says ^^^

By turning up the tax to 17% you have killed PI for weeks or worse. People need the time to setup their own POCO's. I can read all the wiki's you post, but that doesn't change the chaos you guys created for PI.
Jarnis McPieksu
Aliastra
Gallente Federation
#166 - 2011-11-30 08:22:34 UTC
Tora Oni wrote:
Ingvar Angst wrote:
CCP Nullarbor wrote:
Confirming that the base prices were adjusted as well as default tax rates for Concord and Interbus customs offices. The latest and best information is available here:


Confirming it was a bad idea and you screwed up.


What he says ^^^

By turning up the tax to 17% you have killed PI for weeks or worse. People need the time to setup their own POCO's. I can read all the wiki's you post, but that doesn't change the chaos you guys created for PI.


PI is not dead. You just have to adjust your sell prices. If you haven't looked at the markets today, they are already doing just that...
Tora Oni
Legendary Sidekicks in Space
#167 - 2011-11-30 08:26:31 UTC
I make robotics and many more stuff. If the prices go up, I might sell it for a higher price, but if I use it for the pos fuel, I am just [paying more to keep it running. Thats why i said for weeks... people need time to setup their own poco's first. And the fact they can be shot is a good thing for me in WH space. Shooting our POCO's = pvp action Blink
Bridget Helm
Science and Trade Institute
Caldari State
#168 - 2011-11-30 08:32:21 UTC
After reading the wiki details I know understand the change. It is a shame that wasn't linked in the patch notes. Also a shame that the fact that they were increasing the base index value so much wasn't detailed.

I agree this most that the market should rebalance but there is going to be a significant change to high sec PI. It will be a while before it can become profitable again. High Sec POSes will I believe reduce in number as the increase price and profit margin shrink.

And before I get the post say go low or 0.0, stop whinning etc. I accept change and embrace it. It will be very interesting to see what sort of effect DUST will have on the low /0.0 PI, maybe that will be the balancing factor we are missing.
Chopper Rollins
hahahlolspycorp
#169 - 2011-11-30 09:20:38 UTC
Cygnet Lythanea wrote:
..

An aside: I have not yet found two systems neighboring each other where you can get everything you need to fuel a POS.



I fueled my POS from two systems next to each other. Just saying. I had one other toon trained that fed me stuff from three more planets in one system so I could make an advanced lab from scratch.

Found a system last week that had everything needed for POS fuel in one system, high sec too. Low volume from the planets would mean you'd have to watch the extractors though, short cycles starting every 6 - 8 hours, too much backside pain but yeah.



Goggles. Making me look good. Making you look good.

Strazdas Unstoppable
The Scope
Gallente Federation
#170 - 2011-11-30 09:20:59 UTC  |  Edited by: Strazdas Unstoppable
electrostatus wrote:

So the new ones(at 10%) compared to the old, its really:
P0: 500%*old
P1: 6579%*old
P2: 10000%*old
P3: 1167%*old
P4: 270%*old


Yeah, i was also debastated by the new taxation. this is really big step up in taxing. Iguess they want to force everyone to go to low/0 security systems, but all it will do is increase price on everything that has PI items in its production chain, so time to hoard t2 items (as PI hoarding already happened so no point for that).


What i think was done wrong is the time period chosen for base price. They chose this month. However due to devblog about the PI changes during this month PI market has experienced a panic, and the prices were heavily inflated (hey, more profit for me), so the base value is also inflated now. therefore when the dust settlers the actual taxation will be more than 10% of your production costs. This does give incentive to go and build your own Customs office in lowsec though (so go and buy the custom office gantry i built)
Ethanole
Native Freshfood
Minmatar Republic
#171 - 2011-11-30 09:26:15 UTC
Awesome fix, this will really make the POCO's a viable option, in fact it my even favorise the creation of "low tax" havens in low-sec areas adjacent to high -sec, corps who want to play on the "organized crime" or "protectorate" style have a lot of new opportunities now.

And of course it equilibrates the difference between null/low-sec and high-sec, god knows they need it.


@CCPDEVS : I don't know if you considered this, but establishing a system in a future patch where the base tax is adjusted to the market price at each downtime would be awesome.


Anyway keep on the good work !
Halloween Harry
Doomheim
#172 - 2011-11-30 09:28:15 UTC
In some 0.0 alliances there have already set tax levels to 10%. This gives a huge rise of price level for the T2 production.
Diotima Saraki
The Waterworks
#173 - 2011-11-30 09:44:26 UTC  |  Edited by: Diotima Saraki
removed
Diotima Saraki
The Waterworks
#174 - 2011-11-30 09:47:23 UTC
Ptraci wrote:
[Would you say that billions of ISK sitting in people's bank accounts doing nothing is part of the economy?

Yes.

What you want to argue is that the velocity of money increases (and that this outweighs the effect of the reduction in money supply caused by the higher taxes).
Doctor Ungabungas
Doomheim
#175 - 2011-11-30 11:18:04 UTC
Ptraci wrote:
pmchem wrote:
No: the cost is passed on to the consumer.



Yeah, and at one point the consumer stops flying. It's called "demand destruction".


Absolutely, people are definitely going to stop flying T2 and supercapital ships just because they cost 17% more.
Halloween Harry
Doomheim
#176 - 2011-11-30 11:35:37 UTC
Doctor Ungabungas wrote:
[quote=Ptraci][quote=pmchem]

Absolutely, people are definitely going to stop flying T2 and supercapital ships just because they cost 17% more.


You should really learn the math.
Ingvar Angst
Nasty Pope Holding Corp
#177 - 2011-11-30 11:38:56 UTC
pmchem wrote:
Ingvar Angst wrote:
pmchem wrote:
This thread is like a honeypot for people bad at economics. It's pretty awesome.

The markets will adjust to the new taxes. The tax changes secured the important future of PI in Eve.


Of course, the Goonies are failing to realize that this increase in PI prices will result in smaller corps finding their cost of maintaining their pos in high sec, low, whatever too expensive should the PI prices "adjust" accordingly.

Taking away people's ability to play how they want is bad for Eve.


So, so bad at economics. What do you think happens to airfare prices in the real world when the price of crude oil goes up over a sustained period of time? Nothing, and planes all just stop flying? No: the cost is passed on to the consumer. Producers reliant on POS can also increase their sales price and continue making profits -- and they will.

Nothing is being taken away from people. The economic value of a certain activity is being increased. In time, markets will adjust.


You're really not very bright, are you. If you're going to be silly enough to use real life as a comparison for the game, then the economic impact is felt in other areas of the economy where people have to choose between either not traveling at the increased rates or not spending disposable income in other areas. If you have to save more for the airfare, you spend less eating out, shopping, etc. You'll have a similar effect with small corps and POS ownership now... more isk spent fueling means less available for other things. Corps near break even on what they're doing with the POS will find themselves pushed into the red. Likely a good number will go alternate routes.

Six months in the hole... it changes a man.

Ingvar Angst
Nasty Pope Holding Corp
#178 - 2011-11-30 11:43:01 UTC
Scrapyard Bob wrote:
Ingvar Angst wrote:

Of course, the Goonies are failing to realize that this increase in PI prices will result in smaller corps finding their cost of maintaining their pos in high sec, low, whatever too expensive should the PI prices "adjust" accordingly.

Taking away people's ability to play how they want is bad for Eve.


POS fuel costs already yo-yo up and down +/- 20% over the course of a year. Some months, isotopes cost 300-400 ISK, then they cost 500-600 ISK. Some months it costs you 350M ISK to fuel that large tower, other months you pay closer to 450M ISK. So you either learn to live with that uncertainty, or build up a strategic stockpile of the fuel-components when prices are low and live off of them when prices are high. And you always include those variable costs in your profit/loss calculations and make sure that your margins can survive a 20% spike in fuel cost.

If you find the PI-sourced fuels on the market to be too expensive, then a few of your corp-members should setup a few PI harvest planets. It's not hard and they'll still give you 1-2M ISK of P1 product per day per planet. So if you have 7-10 PI harvest planets (in low/null), you've just paid for that single large POS tower's fuel bill. If that amount of effort isn't worth it to you, then you'll have to pay the market price for the fuel.


I make all my own pos fuels, so once the gantries are set up in the holes this change actually will have no effect whatsoever on me aside from a wasted cost building these damnable objects and the increased taxes in the meantime.

I'm also willing to admit that the game doesn't revolve around me and others will suffer needlessly due to a stupid, unnecessary addition to the game added solely because someone had a bad idea and convinced others it was a good one.

Six months in the hole... it changes a man.

Roime
Mea Culpa.
Shadow Cartel
#179 - 2011-11-30 11:47:54 UTC
A living universe is not stagnant.

You either ride the wave or inhale the whitewater.

.

Iceni
Doomheim
#180 - 2011-11-30 12:04:58 UTC
Yeah these taxes suck.

If POCO's become viable in lowsec, then Hi-sec sole operators will become an endangered species. But I doubt this will happen. All the scallys will have their new sport of POCO bashing crawls and cloaky POCO camping in their pursuit of tears... will probably make the whole POCO concept unviable except in protected null space.

The key thing for me is whether these changes are permanent or not. If permanent, the markets will rebalance in time... just expect to pay and extra 20-25K iskies per unit of robotics, for example. (That's i.r.o. a 40% price increase btw).

But If CCP decide to un-nerf this, then they should say so soon, so people know how to manage re: when to export their PI stuffs.

My CQ door will open - Soon™