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T1 manufacturing not worth doing?

Author
Fatal pewpew
The Scope
Gallente Federation
#1 - 2014-12-05 20:38:49 UTC  |  Edited by: Fatal pewpew
for background.


have every t1 ammo blueprint fully researched, after running numbers on all the stuff that should be used for missions best profit i was making was 40k an hour.

t1 drones sell under manufacture cost with perfect print currently.

with t1 ships, which everyone and their mother has told me to never touch after taxes etc i'm showing the ability to make 300-900k an hour a slot




just coming back into eve is there something weird with the market currently? i will keep looking but after two hours i have yet to find many profitable t1 items, im about 2 days away from buying t2 bpc's and producing them, and i dont even understand invention and would need to read up, can but a hs pos in caldari and amaar space. have around 4b and a freighter to start it all up.

so i guess question is is something happening with market or was the information i was getting incorrect now, as certain ships seem to be the highest isk/hr/slot income possible.
Tau Cabalander
Retirement Retreat
Working Stiffs
#2 - 2014-12-05 21:01:45 UTC
T1 manufacturing is worth doing.

However it is not worth doing the items you have chosen Blink
Vincent Athena
Photosynth
#3 - 2014-12-05 21:03:40 UTC
What are you using for the cost basis for your minerals?

People who make a profit on T1 get their minerals at lower that normal prices. They set buy orders away from trade hubs that are a little low, and await a market drop that uncovers their order. That way they pick up the minerals (or ore) at a low price, and can make a net profit.

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Elena Thiesant
The Scope
Gallente Federation
#4 - 2014-12-05 21:06:25 UTC
Vincent Athena wrote:
People who make a profit on T1 get their minerals at lower that normal prices..


Not necessarily. With minerals at buy order price in one of the trade hubs and selling items at sell order prices in the same hub, I'm seeing T1 profits of up to 50%.

It's not ammo.
SJ Astralana
Syncore
#5 - 2014-12-05 21:09:26 UTC
Fatal pewpew wrote:
for background.


have every t1 ammo blueprint fully researched, after running numbers on all the stuff that should be used for missions best profit i was making was 40k an hour.

t1 drones sell under manufacture cost with perfect print currently.

with t1 ships, which everyone and their mother has told me to never touch after taxes etc i'm showing the ability to make 300-900k an hour a slot




just coming back into eve is there something weird with the market currently? i will keep looking but after two hours i have yet to find many profitable t1 items, im about 2 days away from buying t2 bpc's and producing them, and i dont even understand invention and would need to read up, can but a hs pos in caldari and amaar space. have around 4b and a freighter to start it all up.

so i guess question is is something happening with market or was the information i was getting incorrect now, as certain ships seem to be the highest isk/hr/slot income possible.


Profit expectation comes from a combination of margin, volume and competition. The only time IPH comes into play is when assessing opportunity cost. From the Eve Production Manager User Guide Market Research article,

Quote:
Sorting

This report sorts only by Profit Factor, not taking Isk Per Hour into account in sorting at all. The reason is that the one has nothing to do with the other. Profit Factor is a measure of item turnover, and Isk Per Hour is a measure of factory efficiency. Isk Per Hour should only come into play as a question of whether an item is efficient enough in the context of your portfolio to be prioritized highly enough to be queued for build on a regular basis. If you routinely build 500k/hr and up, a 1mil item with double the profit factor of a 2mil item will still get built, and will earn you more profits.


Cruisers can be extremely effective when properly researched, but unfortunately with teams going away buying any hull BPO would be very risky because the backsplash is likely to be extreme. However, there are over 800 items a T1 producer might consider, and if you don't use a data mining application, you must instead find one nugget to find more similar nuggets.

Hyperdrive your production business: Eve Production Manager

Fatal pewpew
The Scope
Gallente Federation
#6 - 2014-12-05 22:34:24 UTC  |  Edited by: Fatal pewpew
SJ Astralana wrote:



Profit expectation comes from a combination of margin, volume and competition. The only time IPH comes into play is when assessing opportunity cost. From the Eve Production Manager User Guide Market Research article,

.



i guess i dont see the reasoning behind this.

im not looking at anything low volume, margins are where i work out the iph and competition i get.

if you do not have all your isk tied up and are maximising production slots a lower percent yet higher iph job seems to make the most sense. when i have more accounts and slots to play with is when i would think that would change. im sure i am wrong however.


also for those who said tools to check this, im sure they exist and will have to go looking, for now i am just making api calls to eve central and manually inputting minerals and time for maxed blueprint with some other math for taxes and that new system% thing.

for the person asking where i get my values, from current highest buy order at my nearest trade hub or lowest sell order over x number x jumps away, whichever is lower.
Tear Jar
New Order Logistics
CODE.
#7 - 2014-12-05 23:59:51 UTC
Vincent Athena wrote:
What are you using for the cost basis for your minerals?

People who make a profit on T1 get their minerals at lower that normal prices. They set buy orders away from trade hubs that are a little low, and await a market drop that uncovers their order. That way they pick up the minerals (or ore) at a low price, and can make a net profit.


Thats a terrible business model. If the minerals are more valuable(or equally valuable) to the finished product at a major trade hub you could just ship the minerals to a major trade hub and sell them.
SJ Astralana
Syncore
#8 - 2014-12-06 00:40:10 UTC
Tear Jar wrote:
Vincent Athena wrote:
What are you using for the cost basis for your minerals?

People who make a profit on T1 get their minerals at lower that normal prices. They set buy orders away from trade hubs that are a little low, and await a market drop that uncovers their order. That way they pick up the minerals (or ore) at a low price, and can make a net profit.


Thats a terrible business model. If the minerals are more valuable(or equally valuable) to the finished product at a major trade hub you could just ship the minerals to a major trade hub and sell them.


Try selling a billion units of trit per week on sell orders and see why that doesn't scale. I move about 150 BILLION isk per month in materials.

Hyperdrive your production business: Eve Production Manager

SJ Astralana
Syncore
#9 - 2014-12-06 00:52:35 UTC  |  Edited by: SJ Astralana
Fatal pewpew wrote:
SJ Astralana wrote:



Profit expectation comes from a combination of margin, volume and competition. The only time IPH comes into play is when assessing opportunity cost. From the Eve Production Manager User Guide Market Research article,


i guess i dont see the reasoning behind this.

im not looking at anything low volume, margins are where i work out the iph and competition i get.

if you do not have all your isk tied up and are maximising production slots a lower percent yet higher iph job seems to make the most sense. when i have more accounts and slots to play with is when i would think that would change. im sure i am wrong however.


Many things in production are simply counter-intuitive. Historically, my highest profit items haven't been the highest IPH items, they've been the highest turnover * margin items. Back in its day, I would have happily sold 11 items that performed like the Large Trimark at its 1mil/hr over any of my 2mil/hr battleships, as its margin was triple the bs and it was my most profitable item. The combination of it being efficient enough to get queued and its turnover * margin drove its profit.

Take your 11 slots on one toon. Say you buy the Rokh, Apoc and Dominix because the IPH is very high. You'll need 10s of billions in isk to build them. You don't have 10s of billions, so now you're not building 8 per day of anything. At best you'll build any particular large hull on average 3 days a week. You have 77 slot days to fill and your capital is crapped out trying to sell at 5% margins when with less capital you can sell more than double the margin.

If you can't max out your slots, you're better off selling something you CAN max out that gives you a higher margin and good turnover. When you have 11 slots that you actually can max out AND you have a healthy capital/sales ratio, then and only then do you transition to higher capital/IPH items. You WILL build your capital faster this way.

Hyperdrive your production business: Eve Production Manager

Myst3rious En1gma
Deep Core Mining Inc.
Caldari State
#10 - 2014-12-11 04:12:02 UTC  |  Edited by: Myst3rious En1gma
Vincent Athena wrote:
What are you using for the cost basis for your minerals?

People who make a profit on T1 get their minerals at lower that normal prices. They set buy orders away from trade hubs that are a little low, and await a market drop that uncovers their order. That way they pick up the minerals (or ore) at a low price, and can make a net profit.


This is why there is such low margin in T1 items. Cost basis should always be the market value of the input goods not "what I got them for". I grant that your "profit" is based on the actual variance from material cost and sell price minus expense, but the decision to build or not to build should be based on the market value of the raw goods.
Civ Kado
State War Academy
Caldari State
#11 - 2014-12-12 19:18:30 UTC
Myst3rious En1gma wrote:
Vincent Athena wrote:
What are you using for the cost basis for your minerals?

People who make a profit on T1 get their minerals at lower that normal prices. They set buy orders away from trade hubs that are a little low, and await a market drop that uncovers their order. That way they pick up the minerals (or ore) at a low price, and can make a net profit.


This is why there is such low margin in T1 items. Cost basis should always be the market value of the input goods not "what I got them for". I grant that your "profit" is based on the actual variance from material cost and sell price minus expense, but the decision to build or not to build should be based on the market value of the raw goods.

agreed, but it's hard to make people realize that maybe it's not worth building those T1 mods if you get the same profit or higher much faster if you simply just sold those minerals that you got on the cheap.
Gilbaron
The Scope
Gallente Federation
#12 - 2014-12-13 02:22:47 UTC
i currently build 25 different items with 40 slots

all are t1

all have a margin of 15% or more

none are ammo or ships

the average isk/hr is somewhere well above 250.000

i quite literally make billions a week from T1