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T2 cruiser/ T2 ship general profitability

Author
RubyPorto
RubysRhymes
#21 - 2013-09-14 02:07:46 UTC  |  Edited by: RubyPorto
Bugsy VanHalen wrote:
If you are buying the sub-components to make the ships, yes, very few T2 ships are profitable. But if you have all the component BPO's well researched, and buy the moon materials to build them, then build the ships with that, the profits can be huge.

I have all the component BPO's for the races ships I build, and I can tell you the profits are great, especially with the increased use of HAC's since they were rebalanced. I buy the moon materials, the fullerides, sylramic fibers, nanotransistors, etc. and build the sub components. I have all the sub-component BPOs research to ME 100.



Perfect ME on non-Cap Adv Component BPOs is somewhere between 1 and 8, depending on the component. No need to go nuts.
For instance, Antimatter Reactors are perfect at ME 1.
https://www.fuzzwork.co.uk/blueprints/0/11549/0/0/0/1


Dhuras wrote:
Ginger Barbarella wrote:
Brewlar Kuvakei wrote:
Yeah T2BPO's, CCP have given an unlimited BPO that produces T2 items to selected players, they can produce T2 at a fraction of the cost that you as a pleb/scrub can. It pretty much killed T2 production for a massive part of the game population in most T2 lines, there are still a handful of T2 lines that you can invent and make profits and a tea spoon full where invention is the only way to produce.


You really don't have a clue what you're talking about, do you? That's kinda cute; unfortunately, it's stunningly incorrect information that some noob is bound to think is valid.


Probably why I came here for advice and not condescension.


I don't believe she was offering you any condescension. Seems to me that Ginger was talking to Brewlar there. Since Brewlar is one of the foremost nutjobs grinding an axe on this particular wheel, I don't see any problem with what she said.


T2BPOs provide a vanishingly small part of the supply of most T2 items. Even in the markets where T2BPOs provide significant sources of supply, they don't significantly affect the price, because that's not how markets work (If there's a demand for 20 units, and 10 can be provided for $10/unit and 20 for $20/unit, the market price will be $20/unit, and the guy making it for $10/unit just makes an extra $100. The market price can't be lower, because then the 20 unit firm will stop making them, leaving excess demand which drives the price up.). There are a handful of items that are so worthless that T2BPOs provide the entire supply for them, but that's because the market for those items is miniscule.

"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

Bugsy VanHalen
Society of lost Souls
#22 - 2013-09-16 13:29:40 UTC  |  Edited by: Bugsy VanHalen
If you are only making 1 unit runs, yes perfect ME is very low. If you are making 1000 units at a time the extra ME does have an impact, although it is small.

The difference is much bigger on the Capital BPO's for building jump freighters.( I wish they were used for more than just jump freighters.) When you are burning through millions of units of alloys per ship, that extra ME saves you millions of isk in mats. Still millions is a small percentage when the ships sell for several billion.

The research was done while the BPO's were other wise idle, when I have other wise unused slots in my labs. When I had to keep the labs up for the long research times on the ship BPO's there was no reason not to keep the other slots full. Sure there are probably dozens of ways I could have made better use of those unused slots, but that is all well behind me. I have the component BPO's, I invent the T2 BPC's, I build the ships, I make loads of isk. Without a single T2 BPO.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#23 - 2013-09-16 14:03:59 UTC
Bugsy VanHalen wrote:
If you are only making 1 unit runs, yes perfect ME is very low. If you are making 1000 units at a time the extra ME does have an impact, although it is small.

The difference is much bigger on the Capital BPO's for building jump freighters.( I wish they were used for more than just jump freighters.) When you are burning through millions of units of alloys per ship, that extra ME saves you millions of isk in mats. Still millions is a small percentage when the ships sell for several billion.

The research was done while the BPO's were other wise idle, when I have other wise unused slots in my labs. When I had to keep the labs up for the long research times on the ship BPO's there was no reason not to keep the other slots full. Sure there are probably dozens of ways I could have made better use of those unused slots, but that is all well behind me. I have the component BPO's, I invent the T2 BPC's, I build the ships, I make loads of isk. Without a single T2 BPO.



Really?

I've never seen ME act differently between a thousand runs and one run.

PE does still work with the fractions of a second, but even that's not going to be particularly major.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

RubyPorto
RubysRhymes
#24 - 2013-09-16 14:13:47 UTC  |  Edited by: RubyPorto
Bugsy VanHalen wrote:
If you are only making 1 unit runs, yes perfect ME is very low. If you are making 1000 units at a time the extra ME does have an impact, although it is small.


Nope. EVE does all the materials math on a per-run basis. There is no difference. I happen to have some overresearched BPOs myself, so I did a quick test to confirm:
Nanomech Microprocessor, perfect ME: 3, requires 15 Fernite Carbide/unit.
With an ME 62 BPO, 50,000 units calls for 75,000 Fernite carbide. (Exactly as calculated, and exactly what an ME 3 BPO calls for.)

Quote:
The difference is much bigger on the Capital BPO's for building jump freighters.( I wish they were used for more than just jump freighters.) When you are burning through millions of units of alloys per ship, that extra ME saves you millions of isk in mats. Still millions is a small percentage when the ships sell for several billion.


Cap Component BPOs have far higher material requirements, and thus far higher levels required for a perfect ME (And because of that, generally aren't worth researching to perfect). If you notice, I specifically wasn't talking about those.

Quote:
The research was done while the BPO's were other wise idle, when I have other wise unused slots in my labs. When I had to keep the labs up for the long research times on the ship BPO's there was no reason not to keep the other slots full. Sure there are probably dozens of ways I could have made better use of those unused slots, but that is all well behind me. I have the component BPO's, I invent the T2 BPC's, I build the ships, I make loads of isk. Without a single T2 BPO.


I am not saying you should get rid of your overresearched BPOs (though if you could trade them for simply perfect ones and a bit of spending money, that's a good trade for you), I was informing the new guy that these things don't need more than around 8hrs of ME research per print (12hrs or a day of PE research is also worthwhile).

"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

Bugsy VanHalen
Society of lost Souls
#25 - 2013-09-16 14:20:07 UTC  |  Edited by: Bugsy VanHalen
Steve Ronuken wrote:
Bugsy VanHalen wrote:
If you are only making 1 unit runs, yes perfect ME is very low. If you are making 1000 units at a time the extra ME does have an impact, although it is small.

The difference is much bigger on the Capital BPO's for building jump freighters.( I wish they were used for more than just jump freighters.) When you are burning through millions of units of alloys per ship, that extra ME saves you millions of isk in mats. Still millions is a small percentage when the ships sell for several billion.

The research was done while the BPO's were other wise idle, when I have other wise unused slots in my labs. When I had to keep the labs up for the long research times on the ship BPO's there was no reason not to keep the other slots full. Sure there are probably dozens of ways I could have made better use of those unused slots, but that is all well behind me. I have the component BPO's, I invent the T2 BPC's, I build the ships, I make loads of isk. Without a single T2 BPO.



Really?

I've never seen ME act differently between a thousand runs and one run.

PE does still work with the fractions of a second, but even that's not going to be particularly major.

It doesn't act differently, it is the same, but with higher volumes there is more to gain. But yes, the gains are very small.

For example getting that extra 0.1% will save you 1 unit of waste on a 1000 unit stack. If the BPO you are using does not have a material stack above 100, then anything lower than 1% waste will have not impact, but in 1000 runs that 100 stack is now 100,000 so that 0.1% saves you an extra 100 units while on a single run you would gain nothing. Normally this is only apparent with large stacks like tritanium which a few extra units are not worth the extra research time. But for T2 components some of those moon goo materials are worth saving an extra 10-100 units.

Although it has been a very long time since I tested this, perhaps I was just seeing what I wanted to see.
Soldarius
Dreddit
Test Alliance Please Ignore
#26 - 2013-09-16 15:21:53 UTC
Perfect is perfect. It doesn't get better than that. This is why I got into rig production, both T1 and T2. The amounts required for T2 rigs are so small on small and mediums that the ME requires only a couple levels to be perfect. Cheaper decryptors.

For the T1 the same thing applies. But in this case, getting a couple levels of ME (typically 3-5) is perfect.

http://youtu.be/YVkUvmDQ3HY

Elena Thiesant
The Scope
Gallente Federation
#27 - 2013-09-16 16:30:50 UTC
Bugsy VanHalen wrote:
If the BPO you are using does not have a material stack above 100, then anything lower than 1% waste will have not impact, but in 1000 runs that 100 stack is now 100,000 so that 0.1% saves you an extra 100 units while on a single run you would gain nothing.


Doesn't work that way.

I tested on a reactor unit BPO at ME 1 (5% waste):
1-run: 8 Tungsten Carbide, 2 Fermionic Condensate
100-run: 800 Tungsten Carbide, 200 Fermionic Condensate
10000-run: 80000 Tungsten Carbide, 20000 Fermionic Condensate
http://imgur.com/dpCl9y8

Perfect ME is perfect ME, no matter how many runs are made.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#28 - 2013-09-16 17:34:51 UTC
Elena Thiesant wrote:
Bugsy VanHalen wrote:
If the BPO you are using does not have a material stack above 100, then anything lower than 1% waste will have not impact, but in 1000 runs that 100 stack is now 100,000 so that 0.1% saves you an extra 100 units while on a single run you would gain nothing.


Doesn't work that way.

I tested on a reactor unit BPO at ME 1 (5% waste):
1-run: 8 Tungsten Carbide, 2 Fermionic Condensate
100-run: 800 Tungsten Carbide, 200 Fermionic Condensate
10000-run: 80000 Tungsten Carbide, 20000 Fermionic Condensate
http://imgur.com/dpCl9y8

Perfect ME is perfect ME, no matter how many runs are made.



Thought so. Just didn't want to say so, without being able to back it up :)

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Qolde
Scrambled Eggs Inc.
#29 - 2013-09-18 00:38:38 UTC
Bugsy VanHalen wrote:
If you are buying the sub-components to make the ships, yes, very few T2 ships are profitable. But if you have all the component BPO's well researched, and buy the moon materials to build them, then build the ships with that, the profits can be huge.

I have all the component BPO's for the races ships I build, and I can tell you the profits are great, especially with the increased use of HAC's since they were rebalanced. I buy the moon materials, the fullerides, sylramic fibers, nanotransistors, etc. and build the sub components. I have all the sub-component BPOs research to ME 100. I could make a huge profit just off selling those, but they do not sell near as fast as the finished ships. However producing the sub-components gives me very nice profits on all the T2 ships I build. Buying the T2 sub-components off Jita market, they have about a 50% mark up on them, you will never make good isk building T2 ships that way.

T2 ship manufacturing is complex, if you are doing it right. for each ship you make you should have 2 BPO's of the T1 hull. One well researched to build the T1 hulls from, and one for churning out copies. make only 1 run copies as the decriptors you should be using will not give you multi run copies, even with max run BPC's.

Invent your T2 BPC's yourself, the mark up on these is crazy. And for gods sake, max out your needed research skills. Inventing T2 BPC's with poor skills is like building T1 ships without production efficiency 5, it just cuts into your profits way to much.

Then you need a full set of the T2 sub-component BPO's. The armor plates, reactors, thrusters, micro processors, shield emitters, ect. And research them well. I have all mine to ME 100. It didn't take very long.

You then buy the moon materials and build the sub-components. If you are doing it right, you will find the sub-components are costing you way less than their market value. There is good isk to be made at this stage, and is where I started. Even if you buy the component BPO's one at a time and research them, you can sell the sub-components for a nice profit while you are building up your BPO collection and getting them researched.

Once you have a full set of component BPO's, these components will be used in different numbers for all the T2 ships of that race. So it is not a waste to have them, they will only restrict you buy race, not by the individual ships you will make.

Once you know which T2 ships of your chosen race are the most popular get 2 of the T1 BPO's for those hulls. Get one in the cooker churning out single run BPC's, and the other researching for producing your T1 hulls, unless you plan on buying the T1 hulls, but I recommend building them.

Next step is to get your invention cycles going. Decriptors can be expensive, but if you have good luck with your invention jobs, they can give you a decent boost to the profits of the ships you produce. For frigate and destroyer hulls I find them a waste of isk, but if you plan to build Marauders they are a must.

Just keep building and selling the sub-components until you have a decent stock of T2 ship BPC,s, then you can start stock piling subs and churning out ships. It is at this point you become a T2 ship producer, and will be making very good isk doing it, because you will be doing it right.

If the ships your are making every drop in popularity, and become less profitable to make, you can easily flop back to selling the sub-components while you get the BPO's and invention cycles in place for another hull of the same race. There are always several T2 hulls for each race well worth building. Personally I build Gallente as the subs can also be used for ORE ships (exhummers) giving you more options for what hulls you can produce.


Can't believe that nobody commented on the most wrong part of this post. Something that was stated earlier in the thread even.
It seems that our brains like seeing big numbers, and when you see that 100m profit for building a panther from moon mats up, you think you're doing good. The truth is, if it is not profitable to build with t2 components, it is not profitable to build at all. The reason for this is if you built all the required and profitable t2 mats from moon mats and sold them, skipping the build t2 ship part, you would make more profit in much less time. Same goes for t1 ships. If you could sell the minerals for more than the ship, then don't build the ship. It's that simple.

If someone craps in your sandbox: 1. Light it on fire 2. Grab your shovel 3. Throw it back at them.

RubyPorto
RubysRhymes
#30 - 2013-09-18 00:53:06 UTC  |  Edited by: RubyPorto
Qolde wrote:
Can't believe that nobody commented on the most wrong part of this post. Something that was stated earlier in the thread even.
It seems that our brains like seeing big numbers, and when you see that 100m profit for building a panther from moon mats up, you think you're doing good. The truth is, if it is not profitable to build with t2 components, it is not profitable to build at all. The reason for this is if you built all the required and profitable t2 mats from moon mats and sold them, skipping the build t2 ship part, you would make more profit in much less time. Same goes for t1 ships. If you could sell the minerals for more than the ship, then don't build the ship. It's that simple.


Not quite. Unlike minerals, the bid/ask split for t2 components tends to be very large, and the transaction volume small.

In other words, If you assume you buy anything you buy at ask prices and sell anything you sell to bid prices (a normal pessimistic assumption when running a spreadsheet):

Building components would operate at a loss (because the bids for components are low).
Building ships from components would operate at a loss (because the asks for components are high).
Building ships from raw materials operates at a profit (because you retain the component market bid/ask spread).

If you assume you sell at ask prices, you won't sell significant quantities of components.


If you try to buy your components at or near bid prices, you won't build anything. If you try to buy your components at ask prices, you wont make any ISK.

If you skip that large bid/ask split by manufacturing, you can get the volume you need.

"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

Qolde
Scrambled Eggs Inc.
#31 - 2013-09-18 05:19:30 UTC  |  Edited by: Qolde
RubyPorto wrote:

Not quite. Unlike minerals, the bid/ask split for t2 components tends to be very large, and the transaction volume small.

In other words, If you assume you buy anything you buy at ask prices and sell anything you sell to bid prices (a normal pessimistic assumption when running a spreadsheet):

Building components would operate at a loss (because the bids for components are low).
Building ships from components would operate at a loss (because the asks for components are high).
Building ships from raw materials operates at a profit (because you retain the component market bid/ask spread).

If you assume you sell at ask prices, you won't sell significant quantities of components.


If you try to buy your components at or near bid prices, you won't build anything. If you try to buy your components at ask prices, you wont make any ISK.

If you skip that large bid/ask split by manufacturing, you can get the volume you need.

This is something I've definitely noticed seems to be true in my first real foray into industry. The problem I have is the time it takes to make so little isk. Once you start wasting so many build slots on a precursor to your final product, it seems to me, that you might want to look at some other products that dont take so many alts. I've been refreshing my jita prices daily, and watching as many items as I have patience for, and looking at all ways to improve my isk/effort, as well as isk/hour. Ships just seem horrible for the most part, when you could get many times over the profit per hour from some dumb module with a cheap bpo, and obscene volume. The best part about ships is that might not have to click buttons as often. Is there something else I'm missing?

If someone craps in your sandbox: 1. Light it on fire 2. Grab your shovel 3. Throw it back at them.

Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#32 - 2013-09-18 10:00:04 UTC
If you can't make a decent isk/hr when you look at the whole effort, go make something else.

Making a loss during a single step is fine, as long as that loss is swallowed up by the rest of the process.

Obviously, if you can make someone else eat the loss, that's a better idea Blink

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Bugsy VanHalen
Society of lost Souls
#33 - 2013-09-18 14:05:09 UTC
Qolde wrote:

Can't believe that nobody commented on the most wrong part of this post. Something that was stated earlier in the thread even.
It seems that our brains like seeing big numbers, and when you see that 100m profit for building a panther from moon mats up, you think you're doing good. The truth is, if it is not profitable to build with t2 components, it is not profitable to build at all. The reason for this is if you built all the required and profitable t2 mats from moon mats and sold them, skipping the build t2 ship part, you would make more profit in much less time. Same goes for t1 ships. If you could sell the minerals for more than the ship, then don't build the ship. It's that simple.

The problem is those T2 components that seem to be worth so much do not sell well. Unlike minerals T1 ships are built from. The T2 sub-componets can not be used for anything but building that races ships. If building the ships is not profitable, the subs do not sell either. As you say, with the mats at that price the ships are not worth building, and thus the sales of mats at that price is very limited. However, if you are building the "right" ships, they will sell as fast as you can make them.

As far as the research levels go, as I already said, I may have been just seeing what I wanted to see. However, over researched BPO's or not, I make very good isk building and selling T2 ships. But you have to make the right ships. Sometimes I am best off putting my resources into exhumers, sometimes HAC's, sometimes recon ships, it all depends on the demands of the market. However I rarely see any profits in co-ops frigates, or stealth bombers. Also Jita is often not the best place to sell these ships. Faction wars mission hubs are much better.

I will agree however that I do not gain much profit from converting the components into ships, at least not if I cover the invention costs, but the ships do sell way way faster than the sub-components. I have tried it both ways.
RubyPorto
RubysRhymes
#34 - 2013-09-18 14:50:09 UTC
Qolde wrote:
This is something I've definitely noticed seems to be true in my first real foray into industry. The problem I have is the time it takes to make so little isk. Once you start wasting so many build slots on a precursor to your final product, it seems to me, that you might want to look at some other products that dont take so many alts. I've been refreshing my jita prices daily, and watching as many items as I have patience for, and looking at all ways to improve my isk/effort, as well as isk/hour. Ships just seem horrible for the most part, when you could get many times over the profit per hour from some dumb module with a cheap bpo, and obscene volume. The best part about ships is that might not have to click buttons as often. Is there something else I'm missing?



First: Doing your market research manually is rough. Really rough. Don't watch items manually.
Second: Start with modules and drones. The BPOs are cheaper, the % margins are better, but invention times are an hour instead of 12 (in a POS).
Third: Get a POS. While you can do invention in stations (there are usually slots), you need the copy slots.
Fourth: You can do a heck of a lot with 1 invention toon and one quick-to-train copy monkey. The components take most of the manufacturing time of a T2 item, and if you account for that when measuring the ISK/slot*hr, you can compare the profit of building T2 with T1. Go with whichever's profitable.
Fifth: Then get your Frigate BPOs, they're not too pricy.
Sixth: Don't try to watch ISK/effort, it's too hard to measure directly. Go for the best ISK/hr at an effort level you find acceptable.

For instance, I know I can make far more ISK flipping things in Jita than manufacturing things, and it's better ISK/hr and better ISK/clicks. But, I don't enjoy any part of it, so trading is high effort for me.

"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

Vexed Nova
NovaTech Holdings
#35 - 2013-09-20 20:14:03 UTC
Steve Ronuken wrote:
If you can't make a decent isk/hr when you look at the whole effort, go make something else.

Making a loss during a single step is fine, as long as that loss is swallowed up by the rest of the process.

Obviously, if you can make someone else eat the loss, that's a better idea Blink


I work in sales. We had a salesman (for a very short time) who said he needed to sell plywood at a loss to beat out a competitor. The salesman said we would make it up in volume...

He doesn't work here anymore.

Please check out my blog! EVE Industrialist Blog - http://bit.ly/1m9Oegu

Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#36 - 2013-09-20 20:41:09 UTC
Vexed Nova wrote:
Steve Ronuken wrote:
If you can't make a decent isk/hr when you look at the whole effort, go make something else.

Making a loss during a single step is fine, as long as that loss is swallowed up by the rest of the process.

Obviously, if you can make someone else eat the loss, that's a better idea Blink


I work in sales. We had a salesman (for a very short time) who said he needed to sell plywood at a loss to beat out a competitor. The salesman said we would make it up in volume...

He doesn't work here anymore.



Which is nothing like what I said.

I am making Thing A

Thing A needs a thing B to manufacture.

Thing A makes 100 million in profit.
Thing B costs me 1 million to make. I cannot get it cheaper from the market. I cannot sell it for what it costs me to make. So I make a 'loss' making thing B.

So I make Thing B, then make thing A. Overall, I profit.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Sheri Angela
#37 - 2013-09-21 09:02:13 UTC
Best to think of tech 2 hull as a way to sell tech 2 components in bulk. You sell the hull at less than the market value of the sum of its components, but still at a higher price than it cost you to build the components and invent the bpc.

TIDI = Increasing profit while decreasing service level to the customer disguised a nicely marketed benefit. What would Amazon have done here.

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