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Player Owned Customs Offices: Math, Markets and Design Problems

First post
Author
Jack Dant
The Gentlemen of Low Moral Fibre
#61 - 2011-11-24 18:26:48 UTC
tengen san wrote:
POCO's are corp asset, once the ROI is completed there is no reason for taxation if you price adjustments will gives you market advantage. Higher prices will be a general outcome. After reiciving the ROI it’s all about who can beat the market price. You’re out of competition against anyone selling on a 0 tax scheme.

What are your costs? PI is not manufacturing, you don't have input costs once you've paid back your setup. So by that theory, prices should be zero?

Quote:
Would you give assurance to the neutral customer to set up a new POCO within the couple month’s period once it was taken down defenseless? Are you willing to repeat the effort continually no matter the cost? (Further infestment)

How do you intent to hold your "tax cows" on the planet. Are you able to come up with the resources to assure uninterrupted production flow? (guarding and defending your POCO) Where is the point you decide to give in after Investment . /. Income drops heavily out of balance.

Sure, there are no assurances, like pretty much anything else in EVE outside highsec. But what's the risk to them? The cost of setting up a PI installation is very small. If the situation changes, they can always switch to another planet. The POCO owner is taking the largest risk.

As I've said from the first devblog, POCOs are a boon to PVP corps. They are small enough to attract small gangs, which bring fun fights, while they don't have the logistics pain of towers. And at their price, they are cheaper than a bait battleship.

However, that's unrelated to their economic sense.

Quote:
They hotdrop you and clear out a system within hours, getting rid of any competition. You will see Merch’s on 0.0. alliances payroll doing nothing but “poff” POCO’s in low. It will become a save source of income for them. You would be surprised on the financial capability of 0.0. alliances and willingnes to bring them in deployment if the make up their expens by gauging the market.

You mean just blowing them up? To do that in a remotely efficient way, they'd have to split up forces. I, for one, would welcome the small fights. If they do it to anchor their own, it's easy to keep harassing them until they give up.

Anyway, the whole 0.0 alliance scarecrow is just a fantasy by people who have never experienced the boredom of shooting structures. If you go into alliance chat and say "Everyone fleet up, we are going to shoot down lowsec POCOs for the next 3 hours", you'll see half the alliance logoff.

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

tengen san
Triton-TC
#62 - 2011-11-24 18:46:49 UTC
Jack Dant wrote:
tengen san wrote:
POCO's are corp asset, once the ROI is completed there is no reason for taxation if you price adjustments will gives you market advantage. Higher prices will be a general outcome. After reiciving the ROI it’s all about who can beat the market price. You’re out of competition against anyone selling on a 0 tax scheme.

What are your costs? PI is not manufacturing, you don't have input costs once you've paid back your setup. So by that theory, prices should be zero?

Quote:
Would you give assurance to the neutral customer to set up a new POCO within the couple month’s period once it was taken down defenseless? Are you willing to repeat the effort continually no matter the cost? (Further infestment)

How do you intent to hold your "tax cows" on the planet. Are you able to come up with the resources to assure uninterrupted production flow? (guarding and defending your POCO) Where is the point you decide to give in after Investment . /. Income drops heavily out of balance.

Sure, there are no assurances, like pretty much anything else in EVE outside highsec. But what's the risk to them? The cost of setting up a PI installation is very small. If the situation changes, they can always switch to another planet. The POCO owner is taking the largest risk.

As I've said from the first devblog, POCOs are a boon to PVP corps. They are small enough to attract small gangs, which bring fun fights, while they don't have the logistics pain of towers. And at their price, they are cheaper than a bait battleship.

However, that's unrelated to their economic sense.

Quote:
They hotdrop you and clear out a system within hours, getting rid of any competition. You will see Merch’s on 0.0. alliances payroll doing nothing but “poff” POCO’s in low. It will become a save source of income for them. You would be surprised on the financial capability of 0.0. alliances and willingnes to bring them in deployment if the make up their expens by gauging the market.

You mean just blowing them up? To do that in a remotely efficient way, they'd have to split up forces. I, for one, would welcome the small fights. If they do it to anchor their own, it's easy to keep harassing them until they give up.

Anyway, the whole 0.0 alliance scarecrow is just a fantasy by people who have never experienced the boredom of shooting structures. If you go into alliance chat and say "Everyone fleet up, we are going to shoot down lowsec POCOs for the next 3 hours", you'll see half the alliance logoff.



Well than, good luck with it.

https://forums.eveonline.com/default.aspx?g=posts&m=402836#post402836



Jack Dant
The Gentlemen of Low Moral Fibre
#63 - 2011-11-24 19:16:03 UTC
tengen san wrote:

Heh. Sieged dreads away from station/pos? \o/

Each of those dreads is worth a dozen POCOs. Without a support fleet, they are easily killed by 10 battleships. You do the math.

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

tengen san
Triton-TC
#64 - 2011-11-24 19:36:28 UTC
Jack Dant wrote:
tengen san wrote:

Heh. Sieged dreads away from station/pos? \o/

Each of those dreads is worth a dozen POCOs. Without a support fleet, they are easily killed by 10 battleships. You do the math.



Its not about the dreads, its about the change of CO's in player hands was intended to foster 0.0. income with low sec carring all the disadvantage.

From my math the risk/ reward ration in low sec is at 80/20 may be even 90/10. after 29. Nov
Yea, I do have exclusive low sec PI running atm.
Jack Dant
The Gentlemen of Low Moral Fibre
#65 - 2011-11-24 19:42:39 UTC
tengen san wrote:
Its not about the dreads, its about the change of CO's in player hands was intended to foster 0.0. income with low sec carring all the disadvantage.

No, it was intended to create more player conflict, and the dreads are very much about conflict.

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

Xen Solarus
Furious Destruction and Salvage
#66 - 2011-11-24 22:39:14 UTC
Errm, no-one has mentioned Wormholes. Surely now people will be blowing up these custom offices just for the hell of it? Jesus, you get a kill mail for it for christs sake. And what would be the point in spending loads of isk to replace them, when they'd still just be big floating targets for people to blow them up just for the hell of it?

And everywhere else, you're basicly putting the taxation into the only groups able to effectively hold them, big alliances. Everyone else is going to get screwed!! And lots of industry orintated people get alot of enjoyment out of managing their planets (such as me). Now they're going to have serious problems.

At the very least we should be able to build defences at them, make them slightly self-sufficent in looking after themselves.

I was really looking forward to this expansion. Now, i'm not at all! Cry

Post with your main, like a BOSS!

And no, i don't live in highsec.  As if that would make your opinion any less wrong.  

Shana Matika
KDM Enterprises
#67 - 2011-11-25 08:45:41 UTC
Jack Dant wrote:
tengen san wrote:
Its not about the dreads, its about the change of CO's in player hands was intended to foster 0.0. income with low sec carring all the disadvantage.

No, it was intended to create more player conflict, and the dreads are very much about conflict.


Maybe that is the intention - but what Jack wrote is what happened.

Again: Conflicts are only possible as long as 2 or more Groups show up. I don't see this happen here. Group A will chose a time where they are most comfort with - which will be some time while Group B (CO Owner) is not arround and start shooting their CO just to kill their CO.

On a side Note:

tengen san wrote:


Making Low sec. as secure as high sec won’t cure the problem.

High sec = as intended
Low sec = POC holding corps can’t refuse to take or deny customers, so consequently eliminate any standing prerequisite for low sec.
This at least would gain a theoretical interest to use the POC by any others than members of the holding corp to add anticipate tax income, theoretically of course. If a corporation set up in low sec (what I truly do not believe) they focus mainly for their own PI production, so any tax issue is irrelevant anyway as charging no tax gives your own products an price advantage on the market.

For 0.0.; Of course you want to keep your foes off your lawn. So implementation as intended, zero tax for corp members and renters receive an “out of system “taxation, probably % share of the product to keep prices in balance. Problem solved for 0.0.!



But it won’t work as intended anyway!

Still any tax income is just theoretical but bears no practical relevance as even lucrative Planets in 0.1. /0.2.won’t attract more than 5 foreign installations. For now even less, as none of the “public” users ever can be sure to use them in a productive sense in the long term.

WH holders will go into PI big time (zero tax) if the earnings bear any merits what is to be expect once the prices go to spike.

So again, no matter which taxation you imply it a.) never will pay off the investment as.) no one will set up a PI installation and willing to pay the requested tax on his export to a foreign corporation while his sales price (based on the higher export tax) is heavily under bided by corporations with zero taxation on their export.

It certainly was a nice idea to hand the CO’s over in players hands. But unfortunately it will not work out as intended.

Weather you scrap the tax, or make them defendable, otherwise they will lose any and all attraction in low sec.


While Lowsec should involve some risk a not-destructable CO in NPC hand won't do anything about the risk itself of warping to and away from there. The Interbus fleet is just a point that would be possible to turn the stick arround, or just untargetable CO :)
Jack Dant
The Gentlemen of Low Moral Fibre
#68 - 2011-11-25 09:20:37 UTC
From the devblog thread, the wiki page listing the new base tax values is up:

http://wiki.eveonline.com/en/wiki/CustomsOffice

I'd say this changes things a lot. POCO income for P1 or P2 extraction planets is now 144mil/BIF or 3.2mil/AIF per month, at 10% taxes. On a busy planet, that should repay the office in a couple months.

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

Jack Dant
The Gentlemen of Low Moral Fibre
#69 - 2011-11-25 09:25:12 UTC
Shana Matika wrote:
Again: Conflicts are only possible as long as 2 or more Groups show up. I don't see this happen here. Group A will chose a time where they are most comfort with - which will be some time while Group B (CO Owner) is not arround and start shooting their CO just to kill their CO.

Slightly derailing thread, but anyway...

There's a reinforcement timer that ensures it comes at a time Group B is comfortable with. And, even if Group B doesn't come, the timer is visible system-wide for the 24+ hours the POCO is reinforced. This provides an excellent beacon to any PVP group in the area to come shoot at group A, group B, or both.

What happens in lowsec, stays in lowsec, lowering the barrier to entry to lowsec PVP: https://forums.eveonline.com/default.aspx?g=posts&m=476644&#post476644

Scrapyard Bob
EVE University
Ivy League
#70 - 2011-11-25 13:37:11 UTC
Jack Dant wrote:

I'd say this changes things a lot. POCO income for P1 or P2 extraction planets is now 144mil/BIF or 3.2mil/AIF per month, at 10% taxes. On a busy planet, that should repay the office in a couple months.


Yes, the numbers seem a lot more sensible across the tiers.

(running numbers) Lo-sec PI harvest colonies, figure somewhere between 4-8 BIFs. 50 ISK/u export fee for P1 at 10%. A single BIF outputs 48 times a day, producing 20 units each time. Figure 30.5 days in a month.

1 BIF = 1,464,000/mo export tariffs at the 10% setting.

4 BIFs = 5,856,000/mo
6 BIFs = 8,784,000/mo
8 BIFs = 11,712,000/mo

Which indeed means that lo-sec POCOs for PI harvest planets might be economically viable now. Even if you charge a bit less then the standard 10%. As long as you have 10-12 extraction colonies on the surface of your planet, you can pay off the POCO in about 30-45 days.

Sov Null and W-Space residents would be smart to charge about 3-5% tariffs, which would help the corp coffers and help pay for the POCOs while still letting your residents have a cost advantage over the hi-sec folks who are paying 10% tariffs.
Scrapyard Bob
EVE University
Ivy League
#71 - 2011-11-25 13:41:04 UTC
Xen Solarus wrote:
Errm, no-one has mentioned Wormholes. Surely now people will be blowing up these custom offices just for the hell of it? Jesus, you get a kill mail for it for christs sake. And what would be the point in spending loads of isk to replace them, when they'd still just be big floating targets for people to blow them up just for the hell of it?


In w-space, the attackers (unless *really* dedicated) will probably not stick around long enough to actually destroy a POCO (due to the reinforce timer). They will probably destroy any Interbus COs as those don't have timers.

(But as with most structures - the only way to keep a structure from being killed is to bring a fleet of defenders. The problem with structure-only defenses is that they are static and the attacker can easily plan out a fleet to neutralize/deal with the defensive modules.)
pmchem
Brutor Tribe
Minmatar Republic
#72 - 2011-11-25 17:46:03 UTC
Jack Dant wrote:
From the devblog thread, the wiki page listing the new base tax values is up:

http://wiki.eveonline.com/en/wiki/CustomsOffice

I'd say this changes things a lot. POCO income for P1 or P2 extraction planets is now 144mil/BIF or 3.2mil/AIF per month, at 10% taxes. On a busy planet, that should repay the office in a couple months.


Excellent changes. This is the "first step" from my initial post -- a straight up rebalance of reference tax values. Hopefully they continue to change them in the future, as their market values float.

POCOs are now competitive with Interbus COs. I'm not sure which I'd prefer to have in my system. We'll see!

https://twitter.com/pmchem/ || http://community.eveonline.com/news/dev-blogs/community-spotlight-garpa/ || Goonswarm Economic Warfare Cabal

electrostatus
Center for Advanced Studies
Gallente Federation
#73 - 2011-11-25 20:01:28 UTC
Jack Dant wrote:
From the devblog thread, the wiki page listing the new base tax values is up:

http://wiki.eveonline.com/en/wiki/CustomsOffice

I'd say this changes things a lot. POCO income for P1 or P2 extraction planets is now 144mil/BIF or 3.2mil/AIF per month, at 10% taxes. On a busy planet, that should repay the office in a couple months.


That does simplifies the taxes. However, I still see some lingering form of the old tax system (see info on command centers and launchpads) on sisi. I doubt those will change, as it looks like its rather needed. I should have this updated in my program shortly.

Asteroid Timer: Know exactly when that roid depletes! PI Profit Calculator: calculates your profits and taxes of any PI product depending on how you built them!

Exer Toralen
The Big Push
#74 - 2011-11-25 21:26:30 UTC
Some things I haven't noticed in thread:

1. Concentration of PI resources is higher in null-sec than in low-sec. But cost of POCO is going to be the same. So POCO building in low-sec is going to be less profitable than in null-sec.

2. It seems that PI was designed current way as job for people unable to spend a lot of time in game, as some mean for them to do something and to not get left completely behind all other carebears. Doubt such people would be able to draft some fleet to protect their assets. At least it would be harder in anarchy low-secs than in sovereignty null-secs as you have to be part of some big alliance to work in null-sec, but can be alone in low-sec.

3. The absence of CONCORD/Navy is the only actual difference between high-sec and low-sec at the moment, meaning low-sec is free-pirating zone. There is no place for pirates in high-secs (as NPC law present) or null-secs (replaced there with alliance wars).

Introducing "aggressive marketing" in form of fleets of null-sec alliances roaming around low-sec to eliminate PI competition would destroy remains of profit from pirating (for those doing it for profit and not just for griefing) as null-sec alliances are better organized and equipped than low-sec ones and would wipe low-sec pirates clean.

4. Doubt pirates would care enough to build POCOs, but a lot of pirates would actually love to destroy everything because that's the only thing the most of them do. And low-sec carebears are now already at disadvantage: they have all cons of null-sec carebearing (danger), but not those profits/protection.

5. Low-sec POSes are now at least partially fueled using low-sec PI. Even now it might be pretty hard to find enough Noble Metals for all POSes, but with PI becoming less possible in low-secs, some POSes will have to be simply removed because of lack of local fuel and complexity of its transportation from other places.


As a result, such changes to PI would probably lead to even more people leaving low-secs for high- or null-secs and low-secs as game concept losing even more interest.

P.S. If CCP already talking about "replacing NPC with PC wherever it possible", why not remove NPC stations/sentries from low-sec as well and make low-secs just some part of null-sec battlefield with only difference of actions affecting your Security Standing?
tengen san
Triton-TC
#75 - 2011-11-25 23:09:42 UTC  |  Edited by: tengen san
pmchem wrote:
Jack Dant wrote:
From the devblog thread, the wiki page listing the new base tax values is up:

http://wiki.eveonline.com/en/wiki/CustomsOffice

I'd say this changes things a lot. POCO income for P1 or P2 extraction planets is now 144mil/BIF or 3.2mil/AIF per month, at 10% taxes. On a busy planet, that should repay the office in a couple months.


Excellent changes. This is the "first step" from my initial post -- a straight up rebalance of reference tax values. Hopefully they continue to change them in the future, as their market values float.

POCOs are now competitive with Interbus COs. I'm not sure which I'd prefer to have in my system. We'll see!



Bravado! See you again in 6 months.
tengen san
Triton-TC
#76 - 2011-11-25 23:14:01 UTC  |  Edited by: tengen san
Exer Toralen wrote:


3. The absence of CONCORD/Navy is the only actual difference between high-sec and low-sec at the moment, meaning low-sec is free-pirating zone. There is no place for pirates in high-secs (as NPC law present) or null-secs (replaced there with alliance wars).


Ah......,what is the news now.... really! Beside history counts. But I see your learning the game well!
pmchem
Brutor Tribe
Minmatar Republic
#77 - 2011-11-26 02:28:45 UTC
To anyone reading my thread, I have no idea what this tengen san guy is talking about. After Interbus COs were announced he still seemed to think all lowsec/nullsec COs were disappearing on patch day (they are not). He also wanted lowsec COs to be 0% tax for whatever reason, and of course POCOs have had that option since they were first announced.

I am guessing he's just a highsec guy with a bunch of alts doing PI in lowsec who doesn't actually want lowsec groups to be able to exert some control over their home turf. Who knows!

https://twitter.com/pmchem/ || http://community.eveonline.com/news/dev-blogs/community-spotlight-garpa/ || Goonswarm Economic Warfare Cabal

Kaaii
Kaaii-Net Research Labs
#78 - 2011-11-26 09:42:30 UTC


I still haven't found in any of these threads how many runs the bpc has......


anyone know?
RubyPorto
RubysRhymes
#79 - 2011-11-26 10:52:17 UTC
Kaaii wrote:


I still haven't found in any of these threads how many runs the bpc has......


anyone know?


Probably safe to assume 1, then be pleasantly surprised if it's more.

"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

pmchem
Brutor Tribe
Minmatar Republic
#80 - 2011-11-26 17:20:32 UTC
On sisi they are 1-run BPCs.

https://twitter.com/pmchem/ || http://community.eveonline.com/news/dev-blogs/community-spotlight-garpa/ || Goonswarm Economic Warfare Cabal