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TO build something.... or NOT.... the market is the question...

Author
Loriencino
Sebiestor Tribe
Minmatar Republic
#1 - 2012-12-03 07:02:10 UTC
Can someone please explain how the Eve Economy is still functional. Because as it seems to me. There is some sort of Global-Geo-National Government math system at work here that makes no sense to me.

Now in all fairness. I am a industrial mined player. Going out with the intent of only shooting holes in things is not all taht appealing to me. But this is because i use to have this as a career option in the Army. So, it is not such a big deal here.

Okay here we go. I log in start running the basic tutorial missions. Make some ISK, get a coule basic ships to get going with. I spend the next several months mining in the area. This provides the cash flow in order to obtain additional skill books for the various taksings that will be comming up in the future. This also covers the upgrading of equipment, and ships. Als the eventual purchacing of a couple of BPO's.

My intent is to stake my claim in the manufacturing market place by producing AMMO. After all ammo is something that can be used by just about everyone.

Now I have done my researh about BPO's i know that I need to research them to make them better than when they cam off the digital printing press. So this is done via the local station over time. Why the local station. Well taht is because, at this point I have applied to several player corperations. However, membership has been denied. Either I did not have a desired skill point ammount, or did not have access to or own certian ships at the time of application. Which i thought was kind of lame... but whatever.

So now I have my reserched heavy Scourge Missile BPO. I queue up the print for a max run of 1500 at 100 per run. I wait out the time required for the slot to become available and then for the print to run its course. This is going to give me 150,000 missiles. This is going to be good!! I will actually start seeing a positive return on my time and ISK investment here. Yah not so much...

In my area;
the BEST 'BUY' price on the Scourge Heavy missiles = 53.19
the BEST 'SELL' price on the Scourge Heavy missiles = 60.00
So, I can sell my 150000 Scourge heavy missiles for 7,978,500.00 ISK
Or, I can place them on the market for 60.00 and hope to not get undercut and have them just sit there till the time expires. Which is what normally happens.

However, IF I had simply taken the refined resources to the market....

  • Nocxium - 3,000 @ 785.00 = 2,355,000.00 ISK
  • Tritanium - 1,218,000 @ 6.04 = 7,356,720.00 ISK
    TOTAL --------------------------
    9,711,720.00 ISK


So by selling the raw material on the market. I make 1,733,220.00 ISK more than by making the Scourge heavy missiles and selling them.
Now I am taking into consideration that I have acces to ALL of the resources. I have not had to aquire anything else from the market. Because this would throw the whole thing even further out of balance. to the point of insted of making the production of the item a loss of ISK.

Now this is not an isolated incident. Ther are many many items that are like this. Actually almost all of the items I have looked into make are like this.
So I guess the question is this really. Why make anything at all? Or why has this not been fixed some how. because the average / occasional player that like 'building things' can not compete with this sort of thing.
Alright, now I understand the whole concept of Low Sec, Null Sec and WH space. But this should not have that major of an effect on the game over all.
It just seems to me like the game market is upside down, and promotes no real reason to make anything in the game unless it is for yourself, and out of personal enjoyment or sense of achievement.
Vaerah Vahrokha
Vahrokh Consulting
#2 - 2012-12-03 08:14:56 UTC
If you play "solo" then you have to know the game in multiple facets. Else you lose.
In EvE there's no free meal, no sponfed welfare (well, almost), no "level up to success", no granted profit.

Being a sandbox, you have to enter into an enterpreneur mindset but also into a trader mindset.

The former mindset requires you to adapt, to invest (in yourself if you are "solo") and to think in advance etc. etc.
The latter mindset requires you to quickly adapt and to ever changing situations and to use them at your advantage.

Basically EvE is realistic.

This means many many things I don't have the time to detail, but here's a short recap:

- Being realistic it means the hugest majority of players are dumb and know no better than be used and abused by smarter people (like in RL). Some have an "employee / lemming mentality" and are used by their leaders. Others are "do it yourself" guys but being dumb they think only about their immediate surroundings. They consider "minerals I mined are free" therefore they produce stuff that costs less than the components used to make it.

- Markets lag. During Christmas there's an influx of players who quickly buy tons of stuff. Minerals are a high velocity market, they rise fast. The rest of the items, expecially the large ones, don't follow up as fast. This creates a typical Christmas situation where minerals appreciate faster than the built goods and thus smart players buy the now underpriced built goods, reprocess them and resell as minerals. You are meant to be one of those smart players during this period. Else you are playing dumb, sorry.

- Traders. Traders are those nasty creatures who buy stuff at low price and (when good) resell it at higher price. If you i.e. face me, you are to buy Zydrine for your stuff at say 830 ISK pu while I bought it at 600 some time ago. Whatever you manufacture, I WILL outcompete you just on that. In other cases, dumb players or very smart players (who valued their marketing time yields less than just losing a bit on the markets while keeping doing their main, profitable activity) dumped tons of stuff at low price. Other traders may buy that low price stock and now can sell below cost for weeks. You won't be able to beat them.

You are then meant to become an active, thinking player and adapt to what happens, in real time. There's no lasting path to riches, as someone finds it, lemmings will rush on the bandwagon and crash it.

You are meant to look at the markets and some days be manufacturer, some days trader, some days recycler but always be a thinker.

Being a thinker is an hard job, it's why there are so few even in RL.
Ruvin
Amarr Empire
#3 - 2012-12-03 09:47:40 UTC
People who are manufacturing for profit also have nearly perfect Skills , so its hard to compete with them as a new player when : from xx res they make profit and you from the same stuff have a loss .
There is money to be made but it requires lots of time and research , and many ppl mine theyre own stuff and build theyre own stuff usually thinking they make a "ok" profit when theyre actually loosing , and because there are so many such ppl its hard to compete with them .

Opportunities multiply as they are seized.

Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#4 - 2012-12-03 10:26:48 UTC
Scourge missiles, with perfect skills and a perfect BPO:
http://www.fuzzwork.co.uk/blueprints/209/147/5/0/5


Profit margin: about 11000 isk/hr, selling in jita. (around 7k if you sell to buy orders)

Not a great margin. Ammo isn't too bad to start with, but it can be heavily oversubscribed (as it's where most people start)


Unfortunately, there's no 'one best thing to make', as if there was, everyone would make it. and then it wouldn't be. You're going to need to do research.



Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

miss eve2006
The New Eden School of trade
Organization of Skill Extracting Corporations
#5 - 2012-12-03 12:01:01 UTC
With heavy missiles, find a good mission hub with level 2-3 missions, where most people fly around in drakes.
they will buy the ammo, often at a higher cost, because they don't want to travel to get it.

You can research how many of each item is sold, buy going into the advance tab, and clicking the "Show tables".


As someone already said, ammo is what everyone starts off with, so there will be a high supply of it, so you need to find an advantage over all the other new manufacturer.
Whang'Lo
Cosmically Irrelevant
#6 - 2012-12-03 12:22:35 UTC
Ok I'll bite, not 100% sure your not trolling but I'll take you at face value.

First thing is your making assumptions about the buy/sell game in eve that are not true.

Your assuming that the low cost leader, 1. Dictates price. 2. Gets all the sales. Both these
assumptions are false unless you are talking about the transactions at a specific station.

Take your example of Scourge Heavy missiles for instance. If you scroll the list of all the sell orders
in a given region you will find sell orders that are easily 50%+ above the lowest cost in the region. You will
also notice that there have been many sales at that seemingly high price. Granted the stuff isn't flying
out the door like it would be in Jita, but nevertheless it is selling.


I was flying around low sec one day doing exploration sites. I was out in the middle of nowhere, and I started
looking at the local market for T1 Ammo. And there was no Ammo within 10 jumps in any direction, and the ammo
that was around far away was sporadic. I noticed there was a station close with a bunch of mission agents. So I
started thinking.

I went and got me about 15 or so different types of ammo and carefully hauled it all in. Setup sell orders that were
pretty high at a minimum of 50%+ of the mineral costs.

30 days later, most it was sold.










[u]A Paranoid is just someone with all the facts - William Burroughs[/u]

Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#7 - 2012-12-03 12:51:21 UTC
Whang'Lo wrote:
Ok I'll bite, not 100% sure your not trolling but I'll take you at face value.

First thing is your making assumptions about the buy/sell game in eve that are not true.

Your assuming that the low cost leader, 1. Dictates price. 2. Gets all the sales. Both these
assumptions are false unless you are talking about the transactions at a specific station.

Take your example of Scourge Heavy missiles for instance. If you scroll the list of all the sell orders
in a given region you will find sell orders that are easily 50%+ above the lowest cost in the region. You will
also notice that there have been many sales at that seemingly high price. Granted the stuff isn't flying
out the door like it would be in Jita, but nevertheless it is selling.


I was flying around low sec one day doing exploration sites. I was out in the middle of nowhere, and I started
looking at the local market for T1 Ammo. And there was no Ammo within 10 jumps in any direction, and the ammo
that was around far away was sporadic. I noticed there was a station close with a bunch of mission agents. So I
started thinking.

I went and got me about 15 or so different types of ammo and carefully hauled it all in. Setup sell orders that were
pretty high at a minimum of 50%+ of the mineral costs.

30 days later, most it was sold.


Time is money.

Or to be honest: People are lazy. you can make money from that.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Ruvin
Amarr Empire
#8 - 2012-12-03 13:25:06 UTC  |  Edited by: Ruvin
Steve Ronuken wrote:
Whang'Lo wrote:
Ok I'll bite, not 100% sure your not trolling but I'll take you at face value.

First thing is your making assumptions about the buy/sell game in eve that are not true.

Your assuming that the low cost leader, 1. Dictates price. 2. Gets all the sales. Both these
assumptions are false unless you are talking about the transactions at a specific station.

Take your example of Scourge Heavy missiles for instance. If you scroll the list of all the sell orders
in a given region you will find sell orders that are easily 50%+ above the lowest cost in the region. You will
also notice that there have been many sales at that seemingly high price. Granted the stuff isn't flying
out the door like it would be in Jita, but nevertheless it is selling.


I was flying around low sec one day doing exploration sites. I was out in the middle of nowhere, and I started
looking at the local market for T1 Ammo. And there was no Ammo within 10 jumps in any direction, and the ammo
that was around far away was sporadic. I noticed there was a station close with a bunch of mission agents. So I
started thinking.

I went and got me about 15 or so different types of ammo and carefully hauled it all in. Setup sell orders that were
pretty high at a minimum of 50%+ of the mineral costs.

30 days later, most it was sold.


Time is money.

Or to be honest: People are lazy. you can make money from that.


I agree with " time is money"
and disagree with 2 line . Ppl may not be lasy , its just more profittable pay 50% more and do next mission asap then go and get the stuff = more proffitable for them pay more , sounds strange but sometimes its true .

just saying .

Opportunities multiply as they are seized.

miss eve2006
The New Eden School of trade
Organization of Skill Extracting Corporations
#9 - 2012-12-03 13:32:51 UTC
I currently make upto 600% on skillbooks, people can go 7 jumps to get... these are of cause the lower end books, and the NPC books are in another region, so doesn't show on market. :)

Researching the market is something you absolutely need to do, when you want to turn a profit.
Victory Vinco
Science and Trade Institute
Caldari State
#10 - 2012-12-03 16:26:33 UTC
Vaerah Vahrokha wrote:

- Markets lag. During Christmas there's an influx of players who quickly buy tons of stuff. Minerals are a high velocity market, they rise fast. The rest of the items, expecially the large ones, don't follow up as fast. This creates a typical Christmas situation where minerals appreciate faster than the built goods and thus smart players buy the now underpriced built goods, reprocess them and resell as minerals. You are meant to be one of those smart players during this period. Else you are playing dumb, sorry.

Don't lie to the new bros. Last two years mineral prices dropped like an ugly baby during Christmas time.
Ave Volta
Perkone
Caldari State
#11 - 2012-12-03 17:25:29 UTC
There's nothing wrong with making a 10% margin while manufacturing. In fact, it's pretty good. There are lot of successful t1 industrialists out there making 4 - 8% per cylce.

If you want to get rich from manufacturing, there's a very simple thing you have to keep in mind: scale.

7% of 9M isk isn't much to write home about. On the other hand, imagine making 7% on 20B worth of mins every week? Of course, you can't build that kind of capital overnight. But once you get there, it's pretty easy to just buy and sell everything you need in Jita, while having Red Frog haul everything for you. Low time investment for good returns.

Black Frog Logistics - Lowsec/Nullsec Logistics Services. Join ingame channel 'Black Frog' for more info.

Ruvin
Amarr Empire
#12 - 2012-12-03 18:14:31 UTC
Ave Volta wrote:
There's nothing wrong with making a 10% margin while manufacturing. In fact, it's pretty good. There are lot of successful t1 industrialists out there making 4 - 8% per cylce.

If you want to get rich from manufacturing, there's a very simple thing you have to keep in mind: scale.

7% of 9M isk isn't much to write home about. On the other hand, imagine making 7% on 20B worth of mins every week? Of course, you can't build that kind of capital overnight. But once you get there, it's pretty easy to just buy and sell everything you need in Jita, while having Red Frog haul everything for you. Low time investment for good returns.



i see what you did there Cool

Opportunities multiply as they are seized.

Vaerah Vahrokha
Vahrokh Consulting
#13 - 2012-12-03 19:00:35 UTC
Victory Vinco wrote:
Vaerah Vahrokha wrote:

- Markets lag. During Christmas there's an influx of players who quickly buy tons of stuff. Minerals are a high velocity market, they rise fast. The rest of the items, expecially the large ones, don't follow up as fast. This creates a typical Christmas situation where minerals appreciate faster than the built goods and thus smart players buy the now underpriced built goods, reprocess them and resell as minerals. You are meant to be one of those smart players during this period. Else you are playing dumb, sorry.

Don't lie to the new bros. Last two years mineral prices dropped like an ugly baby during Christmas time.


Well, the minerals I dealt with worked. See this chart for one of them.
Zelda Wei
New Horizon Trade Exchange
#14 - 2012-12-03 19:47:18 UTC

Simple, there are too many industrialists producing stuff nobody wants.
Loriencino
Sebiestor Tribe
Minmatar Republic
#15 - 2012-12-03 20:41:04 UTC  |  Edited by: Loriencino
To start with I was no expecting this many people to have good things to say about my posting. I initianlly thought after the posting that it was going to go badly.
Perhaps I am just not all that suited for a Large scale industrial game plan. I will continue to make the thngs that I need for myself tho, and fellow Corp members.
~ Vaerah as you pointed out, reactive production is not going to win over proactive production. Learning how to see infront of the curve accurately is going to take some time.

~Ruvin you have a point here as well. Because when taking into consideration the 'total' cost of producuing something will just about always come out to a loss, at least initially. Once the 'start up" costs are figured in.

~Steve thanks for the link but I am running on max productivity skills and a max print. I have been using a different BPO calulator, but it dose verify that my calculations were correct. Although, I can see where if i were not that would be yet another factor.

~miss eve2006 a market angle like this is actually something I did not fully think about. I will have to try looking into this further.

~Whang'Lo... I am or was not "trolling". I was asking a question. Further more, I did not, nor have not assumed anything. I used the information that was on the screene in front of me. Lastly as I stated, I do not have access to Low Sec, or Null Sec, or a Corp that is a member of a massive alliance. Or a Corp that has the numbers to take and hold a portion of Low Sec or Null Sec on its own. So I see the vast majoity of what your posted as 'invalid', sorry. However, keeping the marketing angle in mind will be useful.

~Ave I see where your comming from. However with the time I have available, not to mention the funding, I can not see this being viable for me. Thank you for the idea tho. Perhaps some time in the future.

~Zelda I am not real sure what your intent was with this.

Again I want to thank you all for responding. While I am still a bit up in the air (or floating in 0-G) on the idea of how much to manufacture. I do have some new ways to look at the over all issue.
Herr Hammer Draken
#16 - 2012-12-04 02:00:51 UTC  |  Edited by: Herr Hammer Draken
Loriencino wrote:


Now I have done my researh about BPO's i know that I need to research them to make them better than when they cam off the digital printing press. So this is done via the local station over time. Why the local station. Well taht is because, at this point I have applied to several player corperations. However, membership has been denied. Either I did not have a desired skill point ammount, or did not have access to or own certian ships at the time of application. Which i thought was kind of lame... but whatever.


So by selling the raw material on the market. I make 1,733,220.00 ISK more than by making the Scourge heavy missiles and selling them.
Now I am taking into consideration that I have acces to ALL of the resources. I have not had to aquire anything else from the market. Because this would throw the whole thing even further out of balance. to the point of insted of making the production of the item a loss of ISK.

Now this is not an isolated incident. Ther are many many items that are like this. Actually almost all of the items I have looked into make are like this.
So I guess the question is this really. Why make anything at all? Or why has this not been fixed some how. because the average / occasional player that like 'building things' can not compete with this sort of thing.
Alright, now I understand the whole concept of Low Sec, Null Sec and WH space. But this should not have that major of an effect on the game over all.
It just seems to me like the game market is upside down, and promotes no real reason to make anything in the game unless it is for yourself, and out of personal enjoyment or sense of achievement.


This research of the "BPO" in your first paragraph, is where you went wrong. After the fact when you did your market research was the right move. Which should have been done before you bought the BPO.
And then what did you learn from your mistake? I think you learned the wrong lesson.

The majority of the Scourge missiles on the market were probably made when the value of nocxium was around 600 isk.
Now that the value of nocxium has jumped and if you can find buyers at 750+ isk then guess what you take advantage of what the market gives you. This is PvP in the market place. As you now have an investment in Scourge heavy missile BPO to protect. So you buy up any Scourge heavy missiles on the market that you can reprocess and sell the minerals for more and or reprice them and put them back on the market. Not enough isk to do the job? Then buy what you can afford repo and sell the minerals for cash. Rinse and repeat. Also price the trit component. Obviously only do this if you can make a profit from the sale of the minerals.

That is how markets find the right price for items. You the player make the market work. Do not come here and complain about someone elses low ball pricing. Do something about it to profit from their mistake. That is the nature of EVE.

Herr Hammer Draken "The Amarr Prophet"

Beckie DeLey
Garoun Investment Bank
Gallente Federation
#17 - 2012-12-04 05:43:10 UTC
May i point you to my blog? It's still work in progress, but i like to think that a new manufacturer can already gain a few insights from the posts i made there. Link is in my sig.

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

Ziggs Enaka
Zerulian Luxuries Inc.
#18 - 2012-12-04 06:16:02 UTC
Great Blog Beckie. I wish I had a monocle...
Vaerah Vahrokha
Vahrokh Consulting
#19 - 2012-12-04 07:32:10 UTC
Loriencino wrote:
~Zelda I am not real sure what your intent was with this.


She was saying that market is driven (also) by supply and demand.

In a game where producing has basically no cost and where so many like to build "for building's sake", it's easy to overload the markets and make their prices tank.
Prophet Avater
Imperium Technologies
Sigma Grindset
#20 - 2012-12-04 11:11:27 UTC
There are different ways of making isk, my favorite way is getting access to large area and setting buy orders, I make a lucrative income from it which supports my pvp activities without doing pretty much nothing besides moving it, 0.0 is very profitable, I suggest you join a big Alliance, there is always a demand for pvp gear/ammo and miners are always willing to sell you minerals at cheaper prices and since most 0.0 alliances don't tend to seed there areas very well.
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