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Capital Ship Component Outsourcing

Author
Caveat Emptoris
All Goats Must Die
#1 - 2013-09-30 18:44:55 UTC  |  Edited by: Caveat Emptoris
I am curious as to the viability of a business venture. I would be looking for a steady contract to sell capital ship components from my currently small but growing set of BPOs. Rather than seeding market hubs and troubling buyers with trips all the way to Jita/Amarr, I can bring these components to a hi-sec system of a buyer's choice on a regular basis. My hope is that by so doing I can reduce the travel/risk for capital producers by taking on some of the logistics and providing the components in a location of their choice. Long-term I will be building my own capitals, so this is mainly to bridge the gap from subcap to capital production by selling components I make using the BPOs I am acquiring.

I do not own a jump freighter, so this would not be provided to low-sec systems at this time. It would be the buyer's responsibility to arrange shipment to low/null for actual production. Perhaps in the future I might consider "blackfrogging" such items into low-sec, but I can't imagine I would ever do the same for sov null.

Would any capital builders be interested in such an arrangement, or do you find the current methods of compression/JFs etc to be sufficient to get the materials you need?
Elizabeth Norn
Nornir Research
Nornir Empire
#2 - 2013-09-30 18:52:00 UTC
Caveat Emptoris wrote:
I am curious as to the viability of a business venture. I would be looking for a steady contract to sell capital ship components from my currently small but growing set of BPOs. Rather than seeding market hubs and troubling buyers with trips all the way to Jita/Amarr, I can bring these components to a hi-sec system of a buyer's choice on a regular basis. My hope is that by so doing I can reduce the travel/risk for capital producers by taking on some of the logistics and providing the components in a location of their choice. Long-term I will be building my own capitals, so this is mainly to bridge the gap from subcap to capital production by selling components I make using the BPOs I am acquiring.

I do not own a jump freighter, so this would not be provided to low-sec systems at this time. It would be the buyer's responsibility to arrange shipment to low/null for actual production. Perhaps in the future I might consider "blackfrogging" such items into low-sec, but I can't imagine I would ever do the same for sov null.

Would any capital builders be interested in such an arrangement, or do you find the current methods of compression/JFs etc to be sufficient to get the materials you need?


Have you seen how huge capital components are? They are larger than the minerals that are used to build them, make sure you take this into account.
Caveat Emptoris
All Goats Must Die
#3 - 2013-09-30 19:00:29 UTC
Elizabeth Norn wrote:
Caveat Emptoris wrote:
I am curious as to the viability of a business venture. I would be looking for a steady contract to sell capital ship components from my currently small but growing set of BPOs. Rather than seeding market hubs and troubling buyers with trips all the way to Jita/Amarr, I can bring these components to a hi-sec system of a buyer's choice on a regular basis. My hope is that by so doing I can reduce the travel/risk for capital producers by taking on some of the logistics and providing the components in a location of their choice. Long-term I will be building my own capitals, so this is mainly to bridge the gap from subcap to capital production by selling components I make using the BPOs I am acquiring.

I do not own a jump freighter, so this would not be provided to low-sec systems at this time. It would be the buyer's responsibility to arrange shipment to low/null for actual production. Perhaps in the future I might consider "blackfrogging" such items into low-sec, but I can't imagine I would ever do the same for sov null.

Would any capital builders be interested in such an arrangement, or do you find the current methods of compression/JFs etc to be sufficient to get the materials you need?


Have you seen how huge capital components are? They are larger than the minerals that are used to build them, make sure you take this into account.


Yes, the components themselves are quite large. However, I am going to be producing them regardless...whether it is simply to have them for my own use or to make an immediate profit. In a sense, this is anti-compression because it's space wasteful...but my production alts fly frighters and have nothing better to be doing, so moving these things around isn't a tremendous burden since I'll just be doing it on a second screen while I do other things on my main. I am curious about whether this could save time for someone else and therefore be of use/value...which is why I'd love capital builders to weigh in here. I presume that most capital builders are using compression and shipping everything out to null to run their own components on location; this is hands-down the most efficient use of time and space. However, for some builders where the number of available manufacuring slots/alts is a factor, the ability to have the components ready-made and closer at hand than Jita might be of value. If for no other reason than saving on fuel for JFs and picking safer stations for docking/undocking.
RubyPorto
RubysRhymes
#4 - 2013-10-01 00:25:14 UTC
Capital Producers generally build hulls in LS (duh). The cost of transporting the minerals from Jita to the compression site/jump off point is negligible, and the cost of JF runs is large.

Your business plan is proposing vastly increasing the JF cost in exchange for a cut of the profits.

"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

Bad Bobby
Bring Me Sunshine
In Tea We Trust
#5 - 2013-10-01 04:14:42 UTC
RubyPorto wrote:
Capital Producers generally build hulls in LS (duh). The cost of transporting the minerals from Jita to the compression site/jump off point is negligible, and the cost of JF runs is large.

Your business plan is proposing vastly increasing the JF cost in exchange for a cut of the profits.

Only a very special individual could find a use for such a service.
RubyPorto
RubysRhymes
#6 - 2013-10-01 05:03:04 UTC  |  Edited by: RubyPorto
Bad Bobby wrote:
RubyPorto wrote:
Capital Producers generally build hulls in LS (duh). The cost of transporting the minerals from Jita to the compression site/jump off point is negligible, and the cost of JF runs is large.

Your business plan is proposing vastly increasing the JF cost in exchange for a cut of the profits.

Only a very special individual could find a use for such a service.


.... perfect business to advertise in Jita local then. Plenty of special fish in the sea there.

"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

Elizabeth Norn
Nornir Research
Nornir Empire
#7 - 2013-10-01 08:13:52 UTC
Caveat Emptoris wrote:

Yes, the components themselves are quite large. However, I am going to be producing them regardless...whether it is simply to have them for my own use or to make an immediate profit. In a sense, this is anti-compression because it's space wasteful...but my production alts fly frighters and have nothing better to be doing, so moving these things around isn't a tremendous burden since I'll just be doing it on a second screen while I do other things on my main. I am curious about whether this could save time for someone else and therefore be of use/value...which is why I'd love capital builders to weigh in here. I presume that most capital builders are using compression and shipping everything out to null to run their own components on location; this is hands-down the most efficient use of time and space. However, for some builders where the number of available manufacuring slots/alts is a factor, the ability to have the components ready-made and closer at hand than Jita might be of value. If for no other reason than saving on fuel for JFs and picking safer stations for docking/undocking.


You cannot fit even a single freighter or carrier worth of parts into a freighter.
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#8 - 2013-10-01 09:12:51 UTC
Caveat Emptoris wrote:
I am curious about whether this could save time for someone else and therefore be of use/value...which is why I'd love capital builders to weigh in here. I presume that most capital builders are using compression and shipping everything out to null to run their own components on location; this is hands-down the most efficient use of time and space. However, for some builders where the number of available manufacuring slots/alts is a factor, the ability to have the components ready-made and closer at hand than Jita might be of value. If for no other reason than saving on fuel for JFs and picking safer stations for docking/undocking.

There is no way that this will save JF fuel, due to the huge increase in volume involved. Instead it will massively increase JF costs. This will make the builder non-competitive or loss making.
Lord LazyGhost
Sebiestor Tribe
Minmatar Republic
#9 - 2013-10-01 10:06:23 UTC
Only way i can see this working out good for you is this.

Finding low sec build HQ for people makeing caps and build ur componants their. Selling them localy may get some sales but ur margins are going to have to be very tight. very small profit for each sold but a lot over time, as you can very easy price ur self out of the market
Caveat Emptoris
All Goats Must Die
#10 - 2013-10-01 13:51:19 UTC
This is why I asked here, so I appreciate the insights. So in all seriousness, is mineral compression universally used at this point? I am able to sell components in trade hubs still, so some people do seem to find the cost of shipping acceptable. Of course, it may be that these people are making A Big Mistake and should be using compression to ship out the goods from hisec. Thus far I have had acceptable profit margins doing this, but I want to increase volume. A major concern of mine in moving production to lowsec right now is that I don't want to move the BPOs because I have a hisec POS I am using to research them as I acquire them...this is much better than paying for the ME/PE levels on contract, especially when several are researching at once.

At this early point, should I just go ahead and shift to low sec, since I will end up there anyway? Without my own jump freighter (I have the skills, just not the ship) I won't be able to get the resources I need to lowsec safely anyway.

Face of TheOp
Doomheim
#11 - 2013-10-01 14:05:46 UTC
honestly the only people that would buy the components in HS are those that build caps for their own personal use.

No actual cap builder is going to buy your components in HS. Actually almost no Cap builder is going to buy them in LS either unless you have almost no margins.

As for your questions about compression being universal. Yes for the most part it is, and for those that don't do it themselves they contact Infinite or one of the other compression services.

If you want to get into the cap building business faster do what I did. Use the BPOs as collateral to secure a loan (3rd party will take CEO spot of your corp and lock them down), then use the ISK from the loan to buy minerals for your caps.
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#12 - 2013-10-01 14:19:00 UTC
Caveat Emptoris wrote:
So in all seriousness, is mineral compression universally used at this point?

No. It is not universally used.

I use it for all of my capital and super capital production tasks and strongly advise it to the people who I consult for.

Popular alternatives include:

1. Moving the minerals from trade hub to build site in uncompressed form either in freighters or jump freighters. This is far superior to moving the built components in almost all cases.

2. Placing competitive mineral buy orders at the build location and letting other people deal with how the minerals get there. The success of this method will depend on the location, but it can work very well.

3. Building where large stocks of minerals are already readily available. This is particularly relevant to faux-capital ships (Orcas, Freighters, Jump Freighters) that can be built in hi-sec.

Other methods that have worked at times, but may or may not be viable now:

4. Buying cheap capital ships, moving them to the build location, reprocessing them and then re-using the materials.

5. Using compressed ores from a Rorqual.

Caveat Emptoris wrote:
I am able to sell components in trade hubs still, so some people do seem to find the cost of shipping acceptable.

There is no guarantee that components you sell in trade hubs are getting shipped anywhere. They may be being used on site.

Also, capital builders can sometimes find themselves short of a component or two due to miss-calculations and in such as situation it may be better to buy a few assembled components from a nearby hub than to delay production by getting the minerals, compressing them, transporting them and building the components.

There is also the "personal use" capital builder who is generally building their capital with no regard for the economics of so doing. Such a person will often pay far more than the price of a completed capital in order to produce one for themselves.

Finally, there is also the peculiar case of the wormhole capital builder. By necessity a wormhole capital builder often has to behave in ways that would make no sense in normal space. They haven't the option of compression as they have no suitable refinery. Their transportation issues are entirely different from a normal space builder and if building in a low-class wormhole they may have to resort to moving minerals or components using small haulers through multiple wormhole entrances. Such a person is more often that not only interested in building a single capital, have no concern for profit and will use whatever methods they understand best.

Caveat Emptoris wrote:
Thus far I have had acceptable profit margins doing this, but I want to increase volume.

The more you look for volume, the less you can rely on unusual behaviour and niche capital builders.

Caveat Emptoris wrote:
At this early point, should I just go ahead and shift to low sec, since I will end up there anyway? Without my own jump freighter (I have the skills, just not the ship) I won't be able to get the resources I need to lowsec safely anyway.

Do you have a low-sec location in mind? I ask because there certainly are low-sec capital building hotspots where multiple operations are running out of the same system or cluster of systems. You would need to choose one of these if you want to be successful with this venture.
Bad Bobby
Bring Me Sunshine
In Tea We Trust
#13 - 2013-10-01 14:22:05 UTC
Face of TheOp wrote:
If you want to get into the cap building business faster do what I did. Use the BPOs as collateral to secure a loan (3rd party will take CEO spot of your corp and lock them down), then use the ISK from the loan to buy minerals for your caps.

You don't even have to have the BPOs.

You can take out a loan to buy the locked down BPOs through a third party or you can rent a previously locked down capital BPO set. There are many services like this available and some are reasonably priced and flexible enough to make owning the BPOs yourself a bad idea.
Tigerras
Smash Incorporated
#14 - 2013-10-01 16:27:16 UTC
Bad Bobby wrote:
Face of TheOp wrote:
If you want to get into the cap building business faster do what I did. Use the BPOs as collateral to secure a loan (3rd party will take CEO spot of your corp and lock them down), then use the ISK from the loan to buy minerals for your caps.

You don't even have to have the BPOs.

You can take out a loan to buy the locked down BPOs through a third party or you can rent a previously locked down capital BPO set. There are many services like this available and some are reasonably priced and flexible enough to make owning the BPOs yourself a bad idea.



Or you can scam the whole MD community into giving you the cash to buy a handful of titan BPOs.

Consequently, BB, I am still a fan.
X ATM092
Science and Trade Institute
Caldari State
#15 - 2013-10-01 18:01:13 UTC
This is like selling petrol in the middle of a desolate wasteland. Nobody wants your service and even if they did you're adding massive overheads to them. I hope one day you understand how silly you've been.
Caveat Emptoris
All Goats Must Die
#16 - 2013-10-01 18:06:05 UTC
I think that the volume I have been able to maintain thus far is mostly due to capital builders who approach some sort of constraint, either due to miscalculations or simple mismanagement. As a result some of these components do sell, but it's streaky and seems largely dependent on these mistakes being made. Of course, people always make mistakes. Since my goal is to slowly bridge up into capital production, I am not interested in taking out a loan or renting: the interest rates alone would make this more of a job because of the need to make the venture produce. As of right now I can take time away from EVE as needed while letting the queues grind away, and if I miss a login or 2 to kick off new jobs it isn't going to get my knees capped. Plus, truth be told I doubt I have the collateral yet to secure the 30-50-70B loan needed to really make this happen. I am getting there, but it's taking time.

As always, fantastic help on these forums. I can see that this idea won't fly, so I will keep plugging away at invention and T2 while doing this on the side and acquiring/researching the BPOs I need for my eventual move to lowsec. The margins have been acceptable so far, and I love the long build times. Less logging in on indy characters means more pewpew. :)
Caveat Emptoris
All Goats Must Die
#17 - 2013-10-01 18:13:23 UTC
X ATM092 wrote:
This is like selling petrol in the middle of a desolate wasteland. Nobody wants your service and even if they did you're adding massive overheads to them. I hope one day you understand how silly you've been.


Everyone has to learn. I am choosing to learn by doing what I want to do in small, manageable pieces...all while asking questions about ways that I might improve.

For example, I only learned a few weeks ago about mineral compression...about 2 weeks after I got started with the preliminaries on this. It's a damned silly mechanic, frankly. Imagine if in the real world we processed steel into cars that were somehow denser than steel, and then disassembled the cars to recover almost every molecule of steel. It's utterly illogical and CCP needs to come up with something sensible. At least have something that's actually called compression for the minerals, like we have for ore...shipping 100k railguns as a proxy for minerals is ridiculous.

Chances are you've known about this for years. And even though I have read lots of wikis and these forums, I managed to miss that and it impacts my future plans because players that can take advantage of this have a significant advantage in margins over me. Not a problem: I will adapt and start doing it myself!

I too hope I will get past the silly questions and find my niche. When I do, hopefully you'll get to fly one of the ships I build. :)
IHaveCandyGetInTheVan69
Crouching Woman Hidden Cucumber
#18 - 2013-10-02 10:01:29 UTC
To put mineral compression into perspective, it takes about 500 / 1000 425mms per carrier / dread respectively. Using this method it is possible to fit about 10 capitals in a single JF run. The cost to compress the minerals is typically less than 1m per ship. Compare this cost to JF fuel prices and cyno costs and it really is negligible.

In the past people have run 425mm / 800mm mineral compression services but I doubt they are so popular now when it is very easy for people to aquire the blueprints, however that could be something you want to look into.


I know as this method cuts down my monthly hauling from about 20 JF jumps to about 2 so I am very biased, however I don't see why mineral compression particularly needs nerfing. The standing and skill requirements are not insignificant, it actually introduces a bit more geography into the game, for instance as only 1 of my characters has the required skills to reprocess and only a few high standings, this coupled with the need for a high-sec neighbouring low-sec, with manufacturing from the correct corp means I only have about 4 stations where I could build caps.
Huttan Funaila
Caldari Provisions
Caldari State
#19 - 2013-10-02 14:25:17 UTC
Mineral compression was cobbled up by players to cope with the faulty ore/mineral distribution in the game. With the asteroid changes, the mineral distribution now supplies a better distribution of minerals so that null sec regions can do a better job of being independent. The limiting factor is now mex instead of the previous trit.

As for a highsec capital parts business, the only capitals you can build in highsec are freighters and orcas. The margins for those are pretty slim, but you might find a niche.
Claire Voyant
#20 - 2013-10-03 00:11:09 UTC
Huttan Funaila wrote:
Mineral compression was cobbled up by players to cope with the faulty ore/mineral distribution in the game.

Mineral compression is an artifact of the tech 1 production chain. More expensive modules require more minerals to justify their expense, but if they were as large as their component minerals they would be cumbersome to haul. CCP has already "fixed" mineral compression once, and I doubt they will do it again, but I guess they have a few tricks up their sleeve that they could still use:
1. More highend minerals for expensive modules.
2. Nerfing the reprocessing of modules like they did for ships.
3. Big ass battleship modules.

I don't think any of these are worth doing just to make the lives of capital ship producers miserable, but you never know.
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