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Industry needs fixes and improvements

Author
RubyPorto
RubysRhymes
#41 - 2013-02-03 21:10:06 UTC
Hemp Invader wrote:
RubyPorto wrote:
Altessa Post wrote:
I approve. T2 BPOs should go. They do give an unfair advantage to old time players.

As a T2 producer, I am well aware of the cost contribution of invention. And just repeating that having a well researched T2 BPO does not help you is either ignorance or just bluntly lying.

And yes, there are several items on the market which cannot be produced competitively even with top skills. This does not appear fair to me.



Do you understand the concept of opportunity cost?

The opportunity cost of using a T2BPO is roughly its sale price. So are you really saying that paying 200b for a 20b/year income is overpowered (or even worthwhile)?


Do you understand the ratio of Reward / (Effort * Risk)?

Making money when using a tech 2 BPO is something like this:
1) Buy stuff from Jita/Rens whatever
2) Haul said stuff 3 jumps to the nearest station
3) Click once
4) Haul tech 2 item, insta sell or whatever
5)???
6) Profit

This kind of income is manly passive income because it involves roughly 2 hours per year. Yes...2 hours of playtime per year. Tell me another activity that can yield you 10 bil per hour in complete safety and no other person can fight back.

Quick question: How many tech2 BPOs do you have if you protect them so dearly?



I own zero, and If I did get one I'd sell it because I understand the concept of opportunity cost.

Head over to MD and you'll find fully collateralized loans (with collateral held and valued by trusted 3rd parties) with interest rates in the 3-5%/month range. Even with simple interest, that's 6-10b/month or 72-100b ISK/year on that same amount of ISK you invested into the BPO.

Besides all that, trying to shift focus towards "whaaa they spend less effort on making money than me" is a pretty ****** argument, since they still do not affect the competitiveness of the market. They provide base supply (which is enormously useful for people who fly uncommon ships as it prevents the price gouging that would otherwise occur) and as soon as the quantity demanded outstrips that base supply, the price shoots up to reflect inventor's costs.

Look at Expanded Cargohold IIs, per CCP Diagoras 80% are built via BPO, and yet each 10 run BPC will earn you 2.5m when buying from sell orders and selling to buy orders and inventing the BPC with no decryptor.

Let's compare the inventor and the BPO owner for that item:
Inventor can produce 180 units/day earning 52m/day profit in an NPC station with a capital outlay of roughly 0 and a raw material cost of 38m ISK/day (90m gross sales).
BPO owner can produce 60 units/day earning 17.5m/day profit in a POS (NPC station is wors) with a capital outlay of 35 Billion ISK, and a raw materal cost of 12.5m ISK/day (30m gross sales). Assuming the POS is free.

If you can't make more than 550m/month by investing 35b ISK for less effort than feeding a POS... Roll

And that is true for any item that does not have a quantity demanded that is lower than the base, fixed supply provided by BPO owners.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

RubyPorto
RubysRhymes
#42 - 2013-02-03 21:10:35 UTC  |  Edited by: RubyPorto
Altessa Post wrote:
If someone has won a T2 BPO, "opportunity cost" flies out of the window.


Nope. If they couldn't be sold, it would, but they can be, so there it is, kicking you right square in the argument.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

Corey Fumimasa
CFM Salvage
#43 - 2013-02-03 21:12:17 UTC
Altessa Post wrote:
If someone has won a T2 BPO, "opportunity cost" flies out of the window. Thanks for you post.

It is true that bulk production can beat a T2 BPO (I once have to calc by how much when you consider that a BPO can be production time optimized). Nevertheless, the T2 owner will make more profit (roi) than you do. She will not suffer from any market shifts because there is a safety margin which others cannot beat.
If this would be pew pew there would be an uproar about the injustice. Math is lost on most...

Your kind of fighting an uphill battle, if the BPO's go away then cost of the items in question will go up. Or at least that's how people will see it. MAybe the thing to do is to lobby to make BPC's that drop in the future more efficient. So that one found on a rat will be as good as one produced by a max researched BPO.

I wonder if they could retroactively code the BPO's so that they could only make copies. That way the people that own them would still have an income from the BPO but they wouldn't be competing directly on the goods market. CCP might have to give them lifetime F2P as well.

Taking them out of the game entirely would be kind of sad though. They are just a neat part of the game history.
Mortimer Civeri
Aliastra
Gallente Federation
#44 - 2013-02-03 21:15:18 UTC
Altessa Post wrote:
If someone has won a T2 BPO, "opportunity cost" flies out of the window. Thanks for you post.

It is true that bulk production can beat a T2 BPO (I once have to calc by how much when you consider that a BPO can be production time optimized). Nevertheless, the T2 owner will make more profit (roi) than you do. She will not suffer from any market shifts because there is a safety margin which others cannot beat.
If this would be pew pew there would be an uproar about the injustice. Math is lost on most...

AHAHAHAHAHAHAH!

Look, if I can invent, produce, and sell ten of X in the same time Johnny T2 BPO holder, can only produce and sell two, yet with all costs and associated fees I get a profit per unit of say 1 milion ISK, and he with his well researched BPO can make a profit of 4 million ISK per unit, who is coming out ahead? If the market changes to where I don't make a profit on X I don't produce X, and if Y becomes the new hot thing, then Johnny T2 BPO holder is stuck producing X, while I can switch to Y.

"I don't know which is worse, ...that everyone has his price, or that the price is always so low." Calvin

NEONOVUS
Mindstar Technology
Goonswarm Federation
#45 - 2013-02-03 21:28:43 UTC
Mortimer Civeri wrote:
Altessa Post wrote:
If someone has won a T2 BPO, "opportunity cost" flies out of the window. Thanks for you post.

It is true that bulk production can beat a T2 BPO (I once have to calc by how much when you consider that a BPO can be production time optimized). Nevertheless, the T2 owner will make more profit (roi) than you do. She will not suffer from any market shifts because there is a safety margin which others cannot beat.
If this would be pew pew there would be an uproar about the injustice. Math is lost on most...

AHAHAHAHAHAHAH!

Look, if I can invent, produce, and sell ten of X in the same time Johnny T2 BPO holder, can only produce and sell two, yet with all costs and associated fees I get a profit per unit of say 1 milion ISK, and he with his well researched BPO can make a profit of 4 million ISK per unit, who is coming out ahead? If the market changes to where I don't make a profit on X I don't produce X, and if Y becomes the new hot thing, then Johnny T2 BPO holder is stuck producing X, while I can switch to Y.

Actually try running it on the cruiser and above ships, many of them have very poor to negative profit margins.
OTOH most mods are profitable and ammo seems to be 50% which may just have to do with there being one god ammo and one that you have a 20% chance of using when you mistakenly drop it into the guns because you were drunk.

Oh and drones, but I think that has to do with people going off and losing them to fast to the new AI and not enough in PVP (where they just get recycled)
RubyPorto
RubysRhymes
#46 - 2013-02-03 21:37:31 UTC
NEONOVUS wrote:

Actually try running it on the cruiser and above ships, many of them have very poor to negative profit margins.
OTOH most mods are profitable and ammo seems to be 50% which may just have to do with there being one god ammo and one that you have a 20% chance of using when you mistakenly drop it into the guns because you were drunk.

Oh and drones, but I think that has to do with people going off and losing them to fast to the new AI and not enough in PVP (where they just get recycled)


Inventing a Rapier using Operations Handbook will get you 10m profit/unit.
Zealot with Sacred manifesto will get you 8m/unit.

Both regularly are quite a bit better, but the market swings as tons of people pile on, driving material prices up and sale prices down.

If you think T2 BPOs are so overpowered, why haven't you bought one?

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

Mars Theran
Foreign Interloper
#47 - 2013-02-04 01:16:17 UTC
Hemp Invader wrote:

1. So you're telling me that people that have a Tech2 BPO don't have it the easy way?



Of course not. There is no way that a high Material research and Production Efficiency, combined with a lack of need to buy BPC's or generate them over weeks time could have any impact whatsoever on the ability to manufacture a Tech 2 product.

..and no, I feel that it is more appropriate to return Tech 2 BPOs to the game rather than remove them. I'm not sure how you could achieve that with any balance given the current system however. If you changed that system, and allowed players to research Tech 2 BPOs over time, then I could see it being possible without any great impact on the game. It should not be easy though.
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RubyPorto
RubysRhymes
#48 - 2013-02-04 01:27:44 UTC
Mars Theran wrote:
Hemp Invader wrote:

1. So you're telling me that people that have a Tech2 BPO don't have it the easy way?



Of course not. There is no way that a high Material research and Production Efficiency, combined with a lack of need to buy BPC's or generate them over weeks time could have any impact whatsoever on the ability to manufacture a Tech 2 product.

..and no, I feel that it is more appropriate to return Tech 2 BPOs to the game rather than remove them. I'm not sure how you could achieve that with any balance given the current system however. If you changed that system, and allowed players to research Tech 2 BPOs over time, then I could see it being possible without any great impact on the game. It should not be easy though.


Any method of seeding an unlimited amount of T2BPOs would murder invention, so no.

T2 BPOs have no effect on inventor's ability to make ISK, and have no negative market impact that I can think of (providing base supply is a good thing for the marked, because it prevents uncommon items from being prohibitively expensive). They're also terrible investments by any measure.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

NEONOVUS
Mindstar Technology
Goonswarm Federation
#49 - 2013-02-04 02:22:37 UTC
RubyPorto wrote:
NEONOVUS wrote:

Actually try running it on the cruiser and above ships, many of them have very poor to negative profit margins.
OTOH most mods are profitable and ammo seems to be 50% which may just have to do with there being one god ammo and one that you have a 20% chance of using when you mistakenly drop it into the guns because you were drunk.

Oh and drones, but I think that has to do with people going off and losing them to fast to the new AI and not enough in PVP (where they just get recycled)


Inventing a Rapier using Operations Handbook will get you 10m profit/unit.
Zealot with Sacred manifesto will get you 8m/unit.

Both regularly are quite a bit better, but the market swings as tons of people pile on, driving material prices up and sale prices down.

If you think T2 BPOs are so overpowered, why haven't you bought one?

Because I do not, surprisingly, have more than 4 billion ISK.
Eija-Riitta Veitonen
State War Academy
Caldari State
#50 - 2013-02-04 02:26:42 UTC
The T2 BPO problem was discussed over and over again ever since the implemention of the T2 invention process. The point is, CCP did their database shenanigans on the T2 market and came up with numbers that support the claims of many of the people in this very thread: they do negligible effect to it, especially if compared to the difficulty of actually obtaining them in the first place. Back in the days of T2 lottery (the original precursor to the invention) people would be gathering the research points from agents to get a hair-thin chance of getting a T2 bpo. CCP decided to leave the T2 bpos as they were in recognition of the amount of work and/or luck involved in the acquisition of the said bpos by the people who hold them.
In short: T2 bpos are, in fact, an easy source of money, but they do not impact the current T2 market in any significant way due to wide availability of T2 bpcs obtainable via the invention system.
RichtPaul
Shadow Industries I
#51 - 2013-02-04 08:05:43 UTC
RubyPorto wrote:
RichtPaul wrote:
Kalle Demos wrote:
1. T2 BPO make very little difference to the market, if you ever did T2 manufacturing you would know this


You should check the prices and profits of inventing Claymores mate.


Wow, one item is unprofitable to invent. That's not the T2 manufacturing market, that's one item.

Know what's great about invention? With literally 0 change in your process, you can switch to building Sleipnirs which will make you 32m/unit.


And about 1 million an hour I know! Which is **** for a T2 item you bogus conceited fool. Not to mention the Absolution, Damnation, Astarte, Eos, Nighthawk and Vulture.
Yolanta Geezenstack
GWA Corp
#52 - 2013-02-04 08:57:40 UTC
Nicolo da'Vicenza wrote:


Whow, that was interesting to read.
Vaerah Vahrokha
Vahrokh Consulting
#53 - 2013-02-04 09:18:48 UTC
Corey Fumimasa wrote:

Markets are not entirely anonymous; especially on the retail level. Sony can charge a premium for the electronics because those items have a higher utility to a larger segment of the market; even though Toshiba has ta very similar QC record. The same holds true with their stock. As for raw materials Bethlehem steel is better than AHMSA , they both stamp their stock and charge accordingly.


Sony and Toshiba have their "stamped" shares and they sell with their ticker, yes. But the huge majority of shares are put on an exchange and they are anonymous (not covering the whole spectrum of shares, I know there are several kinds). The shares are the financial assets, like in EvE you have items as financial assets. Both have a producer / seller but both are anonymous (you don't really care to stamp a share with the middleman exchange or broker name).
In EvE there's no important brand (although you do read who you bought stuff from), the "ticker" is the item name itself.


Corey Fumimasa wrote:

Maybe Eve markets should be anon, but your argument about RL materials being anon is not entirely true.


RL commodities are commodities, that is precise contracts specifying how they are made, how / if they are delivered and so on. In some cases the manufacturer is also indicated but the large majority ignore it, since the precise specification makes all those commodities identical anyway.


Corey Fumimasa wrote:

And the function of markets is to maximize utility not value. Utility is a subjective valuation that varies from person to person. If someone is bothered by decimal pricing they may well be happy to pay more for a similar product, hence utility has been maximized.

If the idea of non anonymous markets in Eve bothers you it might be better to just explain why it bothers you personally. Rather than misrepresent easily verifiable facts in order to try and support a position.


Markets maximize utility has been considered a strawman by some.

What I live every day by trading the RL markets is that the markets can't care the less to maximize utility, they usually minimize spread, close gaps and work in function of value. Value in the pockets of the market makers.
Vaerah Vahrokha
Vahrokh Consulting
#54 - 2013-02-04 09:22:20 UTC
Nicolo da'Vicenza wrote:


How does this relate to exchange traded commodities at all?
Revajin
Doomheim
#55 - 2013-02-04 09:28:21 UTC
This is EVE, not some socialist nanny-state. Sorry you came to the T2BPO game late, adapt to the market, don't cry to the dev-gods to change the game to suit your needs.
Corey Fumimasa
CFM Salvage
#56 - 2013-02-04 10:30:10 UTC  |  Edited by: Corey Fumimasa
Vaerah Vahrokha wrote:


Markets maximize utility has been considered a strawman by some.

What I live every day by trading the RL markets is that the markets can't care the less to maximize utility, they usually minimize spread, close gaps and work in function of value. Value in the pockets of the market makers.


Only on the Eve forums could you want to put specific ID tags on identical products to differentiate them, then get into an argument about utility theory in order to support the idea.

I always want so badly to believe the Austrians, but they are wrong. A deflationary monetary system causes risk to be hideously over weighted, instead of creating wealth and opportunity it strangles innovation and development as capital gets locked up in the most conservative "investments" possible, buried in a safe under the house. I wonder what the old gnome would say about mudflation =-D

Commodities markets create insurance for the producer while allowing investors to profit from well managed risk. Wall street markets are just a government subsidized Ponzi scheme. Eve markets are a combination of retail and speculation. Pork bellies, consumer electronics and afterburners are different animals and our conversation has started to look at them as though they are the same.

Maybe what should happen is that the consumer markets in eve should be separated from the investment markets. As it stands now they are the same interface. But it would be kind of neat if there was a difference; consumer markets could be set up to simplify and expedite the process of fitting ships and gear while the investment markets could be be given more tools for estimating things like future costs or transport expenses.

Regardless of the homogeneous nature of rl commodities those items do list source and transfer points for purposes of transparency and safety. Eve goods are also homogeneous, that fact in no way precludes the individualization of those items with specific information about source and history. In fact it would make the game a richer more interesting place. That by itself is enough reason to consider implementing such a thing; but the added bonus of allowing traders and manufacturers more options for interaction and conflict makes it a great idea that should be implemented.
Corey Fumimasa
CFM Salvage
#57 - 2013-02-04 10:35:35 UTC
Along with graffiti. That would be awesome! Players could write stuff on modules and have those notes become part of the item. Reading through old names or battles or space poetry would be way more fun than ship spinning.
RichtPaul
Shadow Industries I
#58 - 2013-02-04 10:56:21 UTC  |  Edited by: RichtPaul
I think T2 BPO owners need to admit that they make really really good money. For that Sleipnir bit for instance, if you have a ME 100 PE 50 Sleipnir, which is reasonable. You can make 5,162,779.89 ISK PER HOUR. That's 123,906,717.36 ISK per day from one T2 BPO. It's because you can produce 1.166 ships per day, (with a 4% industry implant) as well as pay for less materials compared to invention.

Invention made BPCs have to be invented which limits the amount of BPCs you can get in one day. Their ME values range from -6 to -1. And their PE values range from -4 to PE 1. Best comparison you can get is 1.042 (PE 1), or 0.469 (PE -4) Sleipnir ships a day (for invention values), or always 1.166 Sleipnir ships a day for a PE 50 BPO whenever you produce it.

Paying for materials for a ME-1 Sleipnir BPC, (the best you can get), costs 189,883,804.80 (costs taken on 26th January 2013), for a ME 100 BPO it costs 158,666,609.14 -31,217,195.66 ISK less. The question also remains is how many T2 BPOs are there? There are upwards of ten Claymores sold per day (volumes taken from Jita) and yet to invent at optimal costs it you lose millions. So there must be at least eight or nine Claymore T2 BPOs out there, and only for Jita.

It's no wonder that a lot of people defend T2 BPOs. They have a lot to lose. But you need to look at this from the stand point of the betterment of gameplay. The core purpose of inventing or making T2 items is for their consumption. And these things will continue being produced even if you remove (or dismember) T2 BPOs. They're not needed but they do benefit very few players. There are a lot of lies repeated about T2 BPOs for some strange reason, ie, it's not profitable to use T2 BPO's that's just flat out wrong. You can research them and for high material cost items you can produce ships or modules for millions less than an inventor can, and at higher volumes. Will you stop talking out of your collective arses please.

I don't feel happy about being stepped upon. Why should I approve the use of T2 BPOs when they're seemingly going to be used for years to come and I need to struggle up hill?

TL;DR BPOs need no invention, produce things quicker and for much less, (saved costs depend on how expensive the item is (obviously after BPO research)). Not needed. Benefit select few. They do restrict certain markets to the point of being a money pit for inventors, (like certain command ships being one). At the core unfair and not needed for EVE Online.

Thanks for reading! Donate ISKies if you're feeling generous about the cause of T2 inventors!
Yim Sei
Ontogenic Achronycal PLC
#59 - 2013-02-04 11:10:28 UTC  |  Edited by: Yim Sei
Hemp Invader wrote:
Industry's not broken beyond repair but it needs some much needed fixes:

1. Remove Tech 2 BPOs
Nobody can compete with that guy that has an uber researched tech2 BPO and can produce stuff without the need for a pos, pos fuel, laboratories, invention jobs, datacores, a vast number of BPCs and other consumables. If you can compete, you will gain far less for a way greater effort. This removal is needed because players that have joined eve since 2006(?) can't obtain these tech2 BPOs via a game mechanic.

2. Ability to create a shopping list in-game
Please add this so we don't need to create a google docs spreadsheet with what we need to buy, etc. If it can be corporation shared that would be great.

3. Embargo
Let us see who we're selling, from whom are we buying. If we don't want to help a corporation/alliance, so be it.

4. Ability to buy/sell from a specific market order
The current mechanic allows bots to do the 0.01 isk games. You put the item up for sale at 100 million isk and some bot puts it in the next 5 seconds to 99.999999 million. If i want to buy from the 100 mil guy, let me do it.




1. Agreed.

2. Nope - lets not dumb it down.

3. Interesting idea though not sure it would really make a difference. This could howver be tweaked to remove the single trade hub issue (Jita) If made more compulsory due to factions standings and Tax ;).

4. Anything that stops automatic manipulation of the game in any way would be good - thats if it exists (awaits pointless retorts from tin foil trolls)

Post with my main? This is my main - I just overtrain and overplay my alts.

Pisov viet
Perkone
Caldari State
#60 - 2013-02-04 13:45:06 UTC
Gee, you people are so silly, of course T2 BPOs are wortless, just look at a -1/-1 curse BPC, it only cost 139m to produce from one, when a curse only costs 138. Clearly it cannot be because a 10ME BPO, at this price, produce the same ship with 20m profit.
Clearly the fast that the BPO owner could sell it for 10* his yearly profit TOTALLY negates how it fucks up the market for anyone who would like to invent it.

The existence of a finite quantity of T2 BPO which can only change hand if their current owner whish to is bad for eve's economy, period. Weither or not it's worth it to own one is irrelevant to the damage they cause to the game.

Maybe if they were not superiors to invention in every possible ways their existence wouldnt be as harmful. But they are, and parasite the T2 market with lower costs (both in player's time and in materials).