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Dedicating to Manufacturing.

Author
Nevaeh Serenity
The Scope
Gallente Federation
#1 - 2012-10-10 07:59:45 UTC
Quick question, i want to create ships and sell them and some times build some for myself, if im going to sell ships which are the ships that are in highest demand in EvE, this would be i think ships that get destroyed the most and that players need to re-substitute the most, in other words ships that sell well and fast!!

Thanks
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#2 - 2012-10-10 09:34:25 UTC
Be very careful of making ships.

The margins tend to be terrible. Sometimes you can make ISK by buying ships, recycling them, and selling the resulting minerals.

Check out the blueprint calculator in my signature, to run the numbers on manufacturing.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Nevaeh Serenity
The Scope
Gallente Federation
#3 - 2012-10-10 09:49:00 UTC
Steve Ronuken wrote:
Be very careful of making ships.

The margins tend to be terrible. Sometimes you can make ISK by buying ships, recycling them, and selling the resulting minerals.

Check out the blueprint calculator in my signature, to run the numbers on manufacturing.


Really that bad? even if i mine the minerals myself?
Sin Pew
Ministry of War
Amarr Empire
#4 - 2012-10-10 10:00:44 UTC
Nevaeh Serenity wrote:
Steve Ronuken wrote:
Be very careful of making ships.

The margins tend to be terrible. Sometimes you can make ISK by buying ships, recycling them, and selling the resulting minerals.

Check out the blueprint calculator in my signature, to run the numbers on manufacturing.


Really that bad? even if i mine the minerals myself?
IB4MineralsArentFree
The thing you'll see often is people saying minerals you mine aren't free. While economicaly true, since you pay the equivalent of a PLEX each month whether you sub via RL money or PLEX, you can run the overall cost of acquiring that mineral as the price of a PLEX divided by the number of hours in a month and count that result as a base hourly ISK cost.
When you'll looking for productivity, you will thus need to account the cost of a PLEX into the expenses.
But if you don't care for the time spent mining, then yeah, minerals you mine are somehow free in the way that you didn't have to buy them to acquire them, so you can consider the building of ships as a pure profit.
However, the variety of minerals available in high-sec will restrict the classes of ships you can build and since anyone can build these, the margins on them are really thin and only yielding a benefit if you have excellent skills, standing, and produce in large quantities.

[i]"haiku are easy, But sometimes they don't make sense, Refrigerator."[/i]

Nevaeh Serenity
The Scope
Gallente Federation
#5 - 2012-10-10 10:10:09 UTC
[/quote]
...
However, the variety of minerals available in high-sec will restrict the classes of ships you can build and since anyone can build these, the margins on them are really thin and only yielding a benefit if you have excellent skills, standing, and produce in large quantities.[/quote]

Well then to counter this i could mine extra Trit for example and with the ISK obtained i would buy the rarest minerals needed this would be even better as i wouldnt have to venture into low sec for rare minerals, right?
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#6 - 2012-10-10 10:15:02 UTC
Nevaeh Serenity wrote:
Steve Ronuken wrote:
Be very careful of making ships.

The margins tend to be terrible. Sometimes you can make ISK by buying ships, recycling them, and selling the resulting minerals.

Check out the blueprint calculator in my signature, to run the numbers on manufacturing.


Really that bad? even if i mine the minerals myself?


The common argument, as mentioned above, is that minerals you mine aren't free. Or cheaper than the ones you buy from the market.

The reason for this is:

If you can get the minerals cheaper by mining them, why don't you just sell them on the market?


Say you have a ship which takes 10,000 tritanium to make.

This ship sells, at the moment, for 60,000 isk.

Trit on the market sells for 6.5 isk per unit.

So, if you were to buy the trit, you'd make a 5000 isk loss, when you sell the ship.

If you mine the trit yourself, some might think: I got it cheaper, so I can sell it cheaper.

But you /could/ sell the trit yourself for 6.5 isk per unit, and make 65,000 isk. So you're not getting the most isk you could. Your wallet is still growing, but not as much as it could. You're adding effort, with no appreciable gain.

The same goes with Buy orders.

Price things as if you're getting everything from the market. All the 'extra' profit you get from mining it, or using buy orders, is gravy.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Nevaeh Serenity
The Scope
Gallente Federation
#7 - 2012-10-10 10:42:13 UTC
Steve Ronuken wrote:
Nevaeh Serenity wrote:
Steve Ronuken wrote:
Be very careful of making ships.

The margins tend to be terrible. Sometimes you can make ISK by buying ships, recycling them, and selling the resulting minerals.

Check out the blueprint calculator in my signature, to run the numbers on manufacturing.


Really that bad? even if i mine the minerals myself?


The common argument, as mentioned above, is that minerals you mine aren't free. Or cheaper than the ones you buy from the market.

The reason for this is:

If you can get the minerals cheaper by mining them, why don't you just sell them on the market?


Say you have a ship which takes 10,000 tritanium to make.

This ship sells, at the moment, for 60,000 isk.

Trit on the market sells for 6.5 isk per unit.

So, if you were to buy the trit, you'd make a 5000 isk loss, when you sell the ship.

If you mine the trit yourself, some might think: I got it cheaper, so I can sell it cheaper.

But you /could/ sell the trit yourself for 6.5 isk per unit, and make 65,000 isk. So you're not getting the most isk you could. Your wallet is still growing, but not as much as it could. You're adding effort, with no appreciable gain.

The same goes with Buy orders.

Price things as if you're getting everything from the market. All the 'extra' profit you get from mining it, or using buy orders, is gravy.


This is more complex than i thought, i guess i would always have to check that the sum of the sell prices of all the minerals needed to make the ship dont surpass the sell price of the ship itself once built, right?
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#8 - 2012-10-10 10:54:41 UTC
That's pretty much the idea, yes.

Smile

Serious manufacturing requires running numbers. And I'd recommend having at least production efficiency 4. 5 is preferable. And a researched blueprint..

One of the reasons I put together the calculator on my site.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Nevaeh Serenity
The Scope
Gallente Federation
#9 - 2012-10-10 11:02:13 UTC
thanks a a lot !!!
TheBlueMonkey
Center for Advanced Studies
Gallente Federation
#10 - 2012-10-10 11:10:23 UTC
Also, there's no real "what should I make" in eve.

What you need to do is look at the market in the various regions and work out what's moving, then work out what you can make a profit on.

I'd recommend something that sells for less but sells far far more.
Ammo has always been a good place to start out.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#11 - 2012-10-10 11:59:32 UTC
TheBlueMonkey wrote:
Also, there's no real "what should I make" in eve.

What you need to do is look at the market in the various regions and work out what's moving, then work out what you can make a profit on.

I'd recommend something that sells for less but sells far far more.
Ammo has always been a good place to start out.



Ammo's a good place to start. Good margins, which mean you can make a profit with low skills and low ME on the blueprint.

The only downside is the level of investment you can manage is low. While you might make a 100% profit on investment, you can't invest that much.

One of the reasons many people move away from ammo later on (which is a good way to keep it open for beginners)

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

addelee
KarmaFleet
Goonswarm Federation
#12 - 2012-10-10 13:39:25 UTC
Perhaps a tip, perhaps not, but if you're making ammo, take note of the NPC that occupy the surrounding systems in the region. You'll find that the ammo that damage against the npc will sell better than the other (so, if the NPC is Angel Faction, they are weak against EM therefore EM will sell a little better (or at least quicker)).

I personally make ships from recycled loot so the minerals are free. I normally split the minerals into the required amount needed to build ship X and see if the total is more than the ship and associated costs (i.e. blueprint, factory).
Praxis Ginimic
The Scope
Gallente Federation
#13 - 2012-10-10 14:04:09 UTC
or a simpler answer could be...sell catalyst's in Uedema. The goons throw them away like used tissue
Piugattuk
Litla Sundlaugin
#14 - 2012-10-10 14:21:10 UTC  |  Edited by: Piugattuk
Yeah, it's very very tough to turn a buck in ships, your best bet is mods but even thats nearly impossible I build all the way up to tec 3 and without free (more less) from corp operations or just damn lucky including having very well researched BPC's you will just be putting money into the hands of traders. Best bet, a ferengi once said a wise man can hear profit in the wind/keep your ears open, both are true here, read dev blogs look for coming changes and get there before others.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#15 - 2012-10-10 14:26:10 UTC
Piugattuk wrote:
Yeah, it's very very tough to turn a buck in ships, your best bet is mods but even thats nearly impossible I build all the way up to tec 3 and without free (more less) from corp operations or just damn lucky including having very well researched BPC's you will just be putting money into the hands of traders. Best bet, a ferengi once said a wise man can hear profit in the wind/keep your ears open, both are true here, read dev blogs look for coming changes and get there before others.



/me waits for the glut of procurers and retrievers to clear, so he can cash in for 1000% profit. Blink

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

highonpop
KarmaFleet
Goonswarm Federation
#16 - 2012-10-10 14:31:13 UTC  |  Edited by: highonpop
Steve Ronuken wrote:
Be very careful of making ships.

The margins tend to be terrible. Sometimes you can make ISK by buying ships, recycling them, and selling the resulting minerals.

Check out the blueprint calculator in my signature, to run the numbers on manufacturing.




I did the math on a Megathron over the weekend.



If you were to buy the minerals needed in Jita it would cost you about ~130M

A Megathron will cost you about ~140M

Since the orders you can purchase from are always higher than the orders you can sell to, selling the minerals would net you less than 130M. If you were to buy and recycle a Megathron right now you would lose money, unless you put up your own sell order and waited for someone to buy the minerals.


The key is to Mine your own minerals and then produce from a BPC and not a BPO. The BPO cost much much much like 10x more than a BPC. Dont ever let anyone tell you that it cost just as much to mine minerals as to buy them. Thats ******* ********. All it cost you to mine minerals is the initial ship cost of you mining ship and your time. You dont have to pay ISK to mine minerals. This thing about "It cost you the equivalent of a PLEX to mine your minerals" is bogus hogwash. If you pay for your game time in real money, then it doesnt cost you 1isk to mine minerals. If you PLEX your account, then yes, your time = ISK.

FC, what do?

Beckie DeLey
Garoun Investment Bank
Gallente Federation
#17 - 2012-10-10 14:59:22 UTC  |  Edited by: Beckie DeLey
It doesn't matter where the mins come from, they are never just free. Their value is always the same. Even if i go ahead and just give 150mill in minerals to you as a gift and you build a ship from it that sells for 120mill where you are producing it, you still lost 30mill by producing that thing and you are still stupid and you should still stay away from the manufacturing screen lest you hurt yourself more.

This should be really, really obvious, but don't build things if the cost of production is higher than the cost of the end product. It is simply astonishing how many people don't get that.


Anyways, back to the topic of producing ships. I disagree strongly with one of the previous posts who suggested that Production Efficiency at IV could be servable, especially when we are talking about T1 ships. It isn't. Train up to V as soon as possible. While it's still at IV, you can make some ammo or something to get the mechanics of producing down. But leave ammo to half-time producers after that.


There is money in producing T1 ships, but you will want to be flexible in what you produce. Keep a good spreadsheet handy that tells you what you can expect in terms of
- ISK per produced item
- ISK per hour while producing that item
- ISK per invested ISK while producing that item
Based on that spreadsheet, buy BPOs and produce from them. Don't use BPCs, those only add unnecessary costs especially when we are talking about T1 ships. When your spreadsheets tell you that another ship is more profitable, resell your old BPO, buy a new one and switch to that. Make sure to keep track of how much you paid for each BPO so you don't lose money on reselling. You can actually make a fair amount of money by shopping around.

Next up, don't haul stuff yourself. It's boring as hell and too risky. It's also difficult to haul a worthwhile amount of ships without a freighter. Luckily, there are enough people in Red Frog, PushX or independent freighter pilots who for some reason will haul stuff for ridiculously low wages from one end of the galaxy to the other while takign all the risk. Abuse the hell out of this fact.

Don't sell your stuff in or around Jita, the competition is too fierce when talking about T1 ships. Go to Hek, Oursulaert or a similar mini-hub.

Remember that trade skills are essential for a manufacturer that wants to earn money.

Also, and this one is more controversial: Once you know what you are doing, don't hesitate to buy 2 or 3 PLEX to get enough money to scale up your production. If you use this injection of ISK to get to the point where the manufacturing can pay for your PLEX each month, then it's very much worth the investment. Sometimes it takes ISK to make more ISK.

This way i made 5b in about 7-9 months after starting the game. I payed for my account the first three months. Then i bought 3 PLEX, using one for my account and two for additional cash that scaled my production up to a level where it could sustain my account. When i created my character, i focused almost exclusively on industry and that's how i got started.

If i have to single out one most important thing in T1 manufacturing, it's the need for a decent spreadsheet to keep you updated on how you are doing. T1 production is fairly simple, some basic understanding of Excel goes a long way here.

One final note: There's good money in destroyers.



Good luck.

My siren's name is Brick and she is the prettiest.

J'Poll
School of Applied Knowledge
Caldari State
#18 - 2012-10-10 15:02:33 UTC
Nevaeh Serenity wrote:
Quick question, i want to create ships and sell them and some times build some for myself, if im going to sell ships which are the ships that are in highest demand in EvE, this would be i think ships that get destroyed the most and that players need to re-substitute the most, in other words ships that sell well and fast!!

Thanks


We can't tell which ship is best to build cause the market:

- Is different for each region.
- The market is player driven, so ships that people want now doesn't mean they want it in 2 months.
- CCP is also overhauling ships as we speak (frigates first in the winter expansion).

Personal channel: Crazy Dutch Guy

Help channel: Help chat - Reloaded

Public roams channels: RvB Ganked / Redemption Road / Spectre Fleet / Bombers bar / The Content Club

Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#19 - 2012-10-10 15:02:35 UTC
highonpop wrote:

Since the orders you can purchase from are always higher than the orders you can sell to, selling the minerals would net you less than 130M. If you were to buy and recycle a Megathron right now you would lose money, unless you put up your own sell order and waited for someone to buy the minerals.



You do know it's possible to sell minerals using sell orders, rather than to buy orders, don't you?

Just like you'd be doing with the Megathron. After all, the Megathron would only fetch 131 million if you sold it to a buy order.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Sin Pew
Ministry of War
Amarr Empire
#20 - 2012-10-11 15:08:34 UTC
Praxis Ginimic wrote:
or a simpler answer could be...sell catalyst's in Uedema. The goons throw them away like used tissue

They likely buy them at a discount already from their own manufacturers.

[i]"haiku are easy, But sometimes they don't make sense, Refrigerator."[/i]

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