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Prices of variations (tech I)

Author
Sam Argo
Brave Newbies Inc.
Brave Collective
#1 - 2014-03-19 21:37:52 UTC
I'm a noob so forgive me if this question has already been covered elsewhere but there's something I don't understand about the prices of variations to common Tech I items.

Take the Light Ion Blaster I

  • Activation cost 1.0927 GJ
  • CPU usage 12
  • Damage modifier 2.953125 x

  • and its variant the Regulated Light Ion Phase Canon I

  • Activation cost 1.0339 GJ
  • CPU usage 9
  • Damage modifier 3.10078125 x

  • by all measures, the second gun is better than the first. Why then is its price almost always lower, often half the price of the first?

    Light Ion Blaster I prices
    Regulated Light Ion Phase Canon I prices

    I can understand that people may not take the time to look though or undestand the variants, or that there might be better liquidity in the "stock" item, but the price differences seem excessive even if these elements are factored in. Does not demand increase for the better product and raise prices?

    What's more, this seems to be a price inversion localised to the bottom end of the tech I scale. As you move up to better variant, prices do increase substantially, as finally the premium product commands a premium price (eg Modal Light Ion Particle Accelerator).

    Modal Light Ion Particle Accelerator prices

    This pricing profile seems to appear time and again. The "next up" variant is almost always cheaper than the "stock" item.

    Small Capacitor Booster I prices vs Small Brief Capacitor Overcharge I prices
    Stasis Webifier I prices vs 'Langour' Drive Disruptor I
    etc....

    Am I wrong in my analysis or is there another explanation to this phenomenon I don't get? Why does this effect persist?
    Lucas Kell
    Solitude Trading
    #2 - 2014-03-19 22:00:17 UTC
    It's because of demand.

    T1 items come in the forms Meta 0 (which are the normal T1 items), then Meta 1 -4.
    As Meta 0 are manufactured, they tend to stay just above mineral price as noone makes them and sells them underpriced.
    When it comes to meta items, people usually don;t bother much with Meta 1 or 2, and get meta 3 if they want to be a bit cheaper or Meta 4 if they want to squeeze the most out of their T1s. There's some fitting differences that change some items too.

    Meta 1-4 items are dropped, and you tend to see more of the lower end, so they can be priced at anything above what they can be reprocessed for. As meta 3 and 4 are more in demand and in less supply, their price naturally increases.

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    voetius
    Grundrisse
    #3 - 2014-03-19 22:16:10 UTC

    As Lucas says, meta 0 is only manufactured and the price of meta 0 items has a floor around the reprocessing price.

    Meta 1 - 4 items have approximately half the mineral value of meta 0 which governs the downside of prices. Drop rates and fitting requirements vs. T2 govern the upside of prices.
    Sabriz Adoudel
    Move along there is nothing here
    #4 - 2014-03-19 22:42:19 UTC
    Production and destruction of items are the main drivers of supply and demand.

    The meta 1 guns are generally considered pretty bad and have no* use. As a result not many are destroyed except to be reprocessed for minerals when that is profitable.

    Meta 0 guns are worse, but have a very important use - every tech 2 (meta 5) gun produced has one of those as an intermediary product. As such, I am sitting on something like 4000 units of Light Neutron Blaster I at the moment and anticipate all of them eventually being used.

    For that reason, the universe-wide consumption of Meta 0 products is actually pretty high.



    * - Meta 1 guns can be consumed in the invention process, but this only becomes worthwhile if they fall under about 10000 ISK, and IIRC their reprocess value is higher than that. Plus doing so adds an extra click to each invention attempt.

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