These forums have been archived and are now read-only.

The new forums are live and can be found at https://forums.eveonline.com/

Science & Industry

 
  • Topic is locked indefinitely.
 

Buying ore to build ships for profit...

Author
David Armstrong Ellecon
D and Z Enterprises
#1 - 2012-12-03 06:22:26 UTC
I have a high SP building alt that is really good, been training him for a long time now but never got to using it for what I intended him to do. I am looking into buying the ore required for a ship with high ML and PE and building, than selling them. I have 10b capital on me to buy research POS's and the originial blueprints, but I have one question. Even with the good skills my alt has at building will I still be able to produce profits from just buying the ore and building the ship (T1 Hull)? I am going to set up buy orders, not go "retail" by just buying the ore straight in jita sell orders. Thank you for helping me out here, I just don't want to invest alot of isk into something to be in a deficite.
Styth spiting
Brutor Tribe
Minmatar Republic
#2 - 2012-12-03 06:32:36 UTC
David Armstrong Ellecon wrote:
I have a high SP building alt that is really good, been training him for a long time now but never got to using it for what I intended him to do. I am looking into buying the ore required for a ship with high ML and PE and building, than selling them. I have 10b capital on me to buy research POS's and the originial blueprints, but I have one question. Even with the good skills my alt has at building will I still be able to produce profits from just buying the ore and building the ship (T1 Hull)? I am going to set up buy orders, not go "retail" by just buying the ore straight in jita sell orders. Thank you for helping me out here, I just don't want to invest alot of isk into something to be in a deficite.



Look up BPO's you would be interested in manufacturing. Look at the material requirements and the total value from buying minerals from Jita sell orders.

If you can profit from it then make it, otherwise move onto a different item.

Also by setting up your own buy orders for minerals and setting up your own sell orders for ships/items your ability to profit goes up considerably. Buying minerals from Jita and selling items to Jita is not going to make very much profit, if any at all.
shar'ra matcevsovski
Doomheim
#3 - 2012-12-03 06:52:16 UTC
David Armstrong Ellecon wrote:
I have a high SP building alt that is really good

means he has production eff. at V, wich is the only relevant skill to ML

.
David Armstrong Ellecon wrote:
Even with the good skills my alt has at building will I still be able to produce profits from just buying the ore and building the ship (T1 Hull)?


honestly? if you have to ask that and cant find that out by yourself, im afraid the answer will be "No"

shar'ra phone home

David Armstrong Ellecon
D and Z Enterprises
#4 - 2012-12-03 06:58:21 UTC
Thanks for the first answer, and to the second one yes I do. I'm pretty sure there is something better to do than to go on someones thread and say something hardly useful. There are other threads for that, not this one.
TheSkeptic
Federal Navy Academy
Gallente Federation
#5 - 2012-12-03 09:14:46 UTC
David Armstrong Ellecon wrote:
Thanks for the first answer, and to the second one yes I do. I'm pretty sure there is something better to do than to go on someones thread and say something hardly useful. There are other threads for that, not this one.


There is a huge difference between useless comments and honest comments.

shar'ra matcevsovski has a valid point... this information, especially when dealing with something as simple as T1 hulls is trivial to get and calculate with a small bit of effort.

And you should never invest your isk based on some randoms suggestion without doing your own math first.

...

Denal Umbra
Coffee Hub
#6 - 2012-12-03 09:23:55 UTC
Yes, it can be quite profitable. With that kind of capital you could be looking at a return of 4-8b per month with some of the better ships after you have finished the basic research. That is assuming you can be bothered to put up sell orders yourself, for the produced goods. If not... then a more realistic 2-5b profit can be expected.

I'd suggest downloading "EVE isk per hour" to see which bpos are profitable and which are not. Currently, there is a mad rush to build cruisers / frigates so the prices of the minerals is skewed a bit, but in a few weeks it should fall back a bit.
Bugsy VanHalen
Society of lost Souls
#7 - 2012-12-03 17:13:48 UTC
Yes, In Jita the difference between buying minerals from sell orders or from setting your own buy orders can be the difference between making a profit or losing money. Like wise selling your end product to buy orders or setting up your own sell orders can be an even bigger difference. That, HAving PE skill to 5, and researching your BPO's all seems to be part of your plan and will put you in a possition to make good profits on almost any T1 item even in Jita.

If you find profit margins are tight you may need to train some trade skills if you have not already to reduce transaction tax and broker fee's. This can make a big difference when selling high value items.

The only problem I see you running into is where will you manufacture? There are plenty of manufacturing slots in Jita. Especially if you are not worried about staying in 4-4 station. But this is not a reliable way to get slots as they can at times be short ques, but can and usually are very long que's from what I have seen.

Another option is manufacturing at your POS. This is of course of you can find a moon near Jita to place the POS at. Then you need to rent a office in a station in system to avoid keeping your valuable BPO's in the POS itself.

You seem to have a good plan in place to ensure decent profits off your manufacturing. The tricky part of selling manufactured items in Jita is not just building them at a profit, but keeping the logistics from cutting into those profits.
Kara Books
Deal with IT.
#8 - 2012-12-03 17:57:32 UTC
Your going to need repro skills

your going to need to train your eye to catch the BIG isk losers and the BIG isk winners

have at it, have patience.
shar'ra matcevsovski
Doomheim
#9 - 2012-12-03 18:33:03 UTC
Kara Books wrote:
Your going to need repro skills

...lol, nope

shar'ra phone home

Iosue
League of Gentlemen
The Initiative.
#10 - 2012-12-03 19:41:41 UTC
general rule of thumb is that T1 ship hulls are not the place to start manufacturing. i haven't looked it up in a while though, so maybe things have turned around as of late. grab a manu calculator and use EVE Central, you should be able to get an idea pretty quick as to whether it will be profitable. just a word to the wise, everyone and their mom can produce T1 items with no loss, so you're gonna have a lot of competition if you try to break into some of the larger markets. gl.
Salpad
Carebears with Attitude
#11 - 2012-12-03 19:42:04 UTC
David Armstrong Ellecon wrote:
I have a high SP building alt that is really good, been training him for a long time now but never got to using it for what I intended him to do. I am looking into buying the ore required for a ship with high ML and PE and building, than selling them. I have 10b capital on me to buy research POS's and the originial blueprints, but I have one question. Even with the good skills my alt has at building will I still be able to produce profits from just buying the ore and building the ship (T1 Hull)? I am going to set up buy orders, not go "retail" by just buying the ore straight in jita sell orders. Thank you for helping me out here, I just don't want to invest alot of isk into something to be in a deficite.


Some T1 hulls have modest profit margins of 8% to 15%. Some may be very profitable (if you find any such, please tell me). Others are at a negative profit margin.

The buy-ore-for-cheap-haul-refine-sell-the-minerals routine can give you a profit of between 7% and 15%. Maybe a bit more (25% 'ish) at times like these when the mineral prices are crazy. There's a lot of hauling involved in this routine., though, and a lot of it is many, many short trips so you can just go AFK and come back and it's over.

If you do production on top of that, using the minerals for that instead of selling them directly, then that'll add to your profit margin, but not much. And you really have to look out for what to produce. It is not the case that all T1 hulls have the same profit margin. And probably that's not the case with T1 modules or T1 ammo either.
Salpad
Carebears with Attitude
#12 - 2012-12-03 19:44:21 UTC
shar'ra matcevsovski wrote:
Kara Books wrote:
Your going to need repro skills

...lol, nope



The Op states quite clearly that his plan is to buy ore, not to buy minerals. So yes, he is going to need ore reprocessing skillz.
shar'ra matcevsovski
Doomheim
#13 - 2012-12-03 20:25:53 UTC
Salpad wrote:
shar'ra matcevsovski wrote:
Kara Books wrote:
Your going to need repro skills

...lol, nope



The Op states quite clearly that his plan is to buy ore, not to buy minerals. So yes, he is going to need ore reprocessing skillz.


im affraid, your mixing up refining and reprocessing....

shar'ra phone home

Salpad
Carebears with Attitude
#14 - 2012-12-03 20:33:56 UTC
shar'ra matcevsovski wrote:
Salpad wrote:
shar'ra matcevsovski wrote:
Kara Books wrote:
Your going to need repro skills

...lol, nope



The Op states quite clearly that his plan is to buy ore, not to buy minerals. So yes, he is going to need ore reprocessing skillz.


im affraid, your mixing up refining and reprocessing....



Not really. I'm just refusing to make a distinction.
David Armstrong Ellecon
D and Z Enterprises
#15 - 2012-12-04 02:03:30 UTC
Thanks for the comments, I have further looked into this and found a profitable ship that will make a good amount of isk and be able to pay for logistics. I am looking to talk to corps instead of buy orders, it is less of a ***** compared to sitting at Jita fighting a trade bot over it. I actually do have Eve Isk Builder, the app, I have already mapped out some ships and found profitable and not so much ships so far, including some modules, this being in response to the comment up top about getting the application. I am working a logistics plan out now and should be fine, not undermanned. Keep the comments and opinions coming though, really helping me out here and I'm pretty sure there are other people out here looking to do the same thing as me!
Salpad
Carebears with Attitude
#16 - 2012-12-04 09:14:23 UTC
Be wary of fluctuating prices, though. The ship that's nicely profitable to build today may be buildable only at a hefty loss tomorrow. Hull prices change. So do mineral prices. Isogen has increased a lot, recently, for instance. And with drastic speed.

Make sure you update the hull prices in your spreadsheet often, and update your mineral prices very often.
Nu Genesis
Doomheim
#17 - 2012-12-04 17:55:24 UTC
David,

T1 Hull Manufacture is easily profitable. The problem is anyone with Industry 1 can build the same thing you're building.... when you think of it in those terms the competition is ENORMOUS! I just want to suggest you research very carefully before you sink 10 Billion into a swamped market.

Nu
Skorpynekomimi
#18 - 2012-12-04 20:04:09 UTC
Personally, I advise you to sink that 10 billion ISK into a wide variety of BPOs. Start with ammo and useful modules, then move on to drones, small ships, and PoS fuels.
Then a PoS for yourself, to cut down on research time. Pick a moon, set it up, research your BPOs. Then buy up materials and start manufacturing smaller things first; higher volume is better. Find somewhere nice and empty to build things.

Invest in an orca, or maybe a freighter. At the very least, a big industrial. Get some smaller ships as well; a fast frigate for setting undocks and scouting routes, a smaller industrial for short small hauls (I keep one in the ship bay of my orca at all times), maybe a blockade runner for lowsec PI.

Consider picking up ore rather than refined minerals if you can refine it perfectly. Check the prices and crunch numbers before you do so.

That's as much as you're getting; I don't want to lose my edge to someone with a bunch of PLEX to blow and no idea.

Economic PVP

David Armstrong Ellecon
D and Z Enterprises
#19 - 2012-12-04 22:40:09 UTC
I have not looked so much into modules and ammunition so while I got some time to spare I am going to take a look, I am training this guy to a Obelisk to help out but of course I am going to need more logistics to make it more easy on me in which I am working on now.Thanks for the answers.