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PI Taxes?

First post
Author
SpaceSquirrels
#201 - 2011-11-30 15:09:20 UTC
Via Shivon wrote:
Prince Kobol wrote:
I'm just glad I went and brought a shed load of P4 products the second CCP released information about POCO's.

Checking the prices at Jita just before DT and I have already doubled my isk :)
]



you are my hero .... not Oops


!991 called it wants its catch phrase back, as well as its one strap overalls, and the show Blossom.
Ingvar Angst
Nasty Pope Holding Corp
#202 - 2011-11-30 15:11:58 UTC
pmchem wrote:
Jowen Datloran wrote:

True, PI could have used more player generated conflict but I still think the best approach would have been to make that conflict on the planets instead of coating PI with completely different mechanics and game play.


Planets and POCOs need to be very economically important to Eve players for people to fight over them... in DUST 514. These tax changes are way overdue and will be a good thing for the game long-term.

Taxes were always there, now people actually notice them. Adjust your spreadsheets.


This is what makes Dust so damned dangerous to Eve. If people can't maintain the style of play due to things completely out of their control (Dust mites on their consoles) they'll simply get frustrated and find a more appealing game. Making the tie-ins interesting and fun, that would work. Making them mandatory or fatal... it's failure waiting to happen.

You can't force people into playstyles they have no interest in. Sadly, CCP fails to realize this, and it's rather discouraging for the future.


At least the warp-tunnels are cool.

Six months in the hole... it changes a man.

Lord Zim
Gallente Federation
#203 - 2011-11-30 15:27:36 UTC
Dust 514 will flop and die a horrible death.

Cyno's lit, bridge is up, but one pilot won't be jumping home.

RIP Vile Rat

Vio Geraci
Viziam
Amarr Empire
#204 - 2011-11-30 15:37:50 UTC
Ptraci wrote:
Would you say that billions of ISK sitting in people's bank accounts doing nothing is part of the economy? Or do rising prices cause people to spend more thus expanding the money supply? Oh dear oh dear. I DO understand the situation very well. Money idling in someone's wallet is not part of the economy, just like money in unsubbed accounts is not part of the economy. But when people have an excuse to shove more ISK into the system, you will see fireworks. And yes it is inflation.


Inflation is a constantly active force in EVE, but it is not why planetary materials will cost more. PI costs more to produce, and will in some ways become more scarce due to POCO destruction and players eschewing it for other activities. That's not inflation, sorry to disappoint you!
Mariner6
The Scope
Gallente Federation
#205 - 2011-11-30 15:53:12 UTC
+1 CCP to the taxes and whole new approach. Plus love the tears. Build your own stuff if you don't like the taxes.
Jowen Datloran
Science and Trade Institute
Caldari State
#206 - 2011-11-30 16:30:01 UTC
pmchem wrote:

Planets and POCOs need to be very economically important to Eve players for people to fight over them... in DUST 514. These tax changes are way overdue and will be a good thing for the game long-term.

Taxes were always there, now people actually notice them. Adjust your spreadsheets.

Maybe it is because I have tonnes of ISK that I do not care about making more... I care about getting engaging and challenging game play.

In some way I am actually happy that PI provide so limited game play that I have not ended up investing anything important into it before the feature became inaccessible to me. It would have been much harder to give up, say, a named colony with thousand of residents that I had spend months cultivating by running aggressive recruitment campaigns among neighboring colonies and millions of ISK in infrastructure and facilities to keep spies and sabotages to a minimum.

Mr. Science & Trade Institute, EVE Online Lorebook 

Ingvar Angst
Nasty Pope Holding Corp
#207 - 2011-11-30 17:08:55 UTC
Mariner6 wrote:
+1 CCP to the taxes and whole new approach. Plus love the tears. Build your own stuff if you don't like the taxes.


Please, close your mouth... you're leaking stupid on the carpet.

It's people building their own stuff that are currently being hit with this asinine increase in taxes.

Six months in the hole... it changes a man.

Ad'Hakim Tahous
Science and Trade Institute
Caldari State
#208 - 2011-11-30 17:09:40 UTC
The changes have caught many producers flat-footed. There is a fair amount of frustration at the sharp increase in production costs compared to current market prices. The most unpleasant short-term impacts will fall upon under-prepared POS owners (fuel) followed by T2 producers.

Fair enough. Might I suggest that a bit of patience may be in order?

The "market" will need time to adjust to this new mix of production costs: various tax rates per planet, volatility in the quantities of PI/T2 items actually reaching the market, sell off of stockpiles, and margin buy/sell orders by wealthy middle-market traders.

The "market" will adjust! It will take time. In the interim, keep track of the net weighted average cost of production for the PI and T2 items you now stockpile rather than send to market. Even POS owners who run PI to fuel their stations should have some level of surplus production to allow for stockpiling of both fuel and manufactured T2 products.

While profits may or may not match current levels, over time these costs, combined with short-term scarcity, will drive up product prices.

For those who are either understocked or cash-flow challenged, my courteous best wishes in riding out the market turbulence.

Fortune still favors the prepared mind.
Teamosil
Good Time Family Band Solution
#209 - 2011-11-30 17:44:08 UTC
Ingvar Angst wrote:
Please, close your mouth... you're leaking stupid on the carpet.


Dude, quit being a ****. As a general rule of thumb on the internet, it's the guy who is calling everybody else stupid in every post that is the one that isn't quite following the arguments people are making and that seems to be the case here.
Teamosil
Good Time Family Band Solution
#210 - 2011-11-30 17:48:47 UTC
Ad'Hakim Tahous wrote:
The "market" will need time to adjust to this new mix of production costs: various tax rates per planet, volatility in the quantities of PI/T2 items actually reaching the market, sell off of stockpiles, and margin buy/sell orders by wealthy middle-market traders.


I actually think the market already adjusted before the expansion came out. For example, robotics is up some 80% since they announced the changes. That's more than the cost of the tax even if you calculate in that you have to export, import to a factory planet, and re-export.
Lord Zim
Gallente Federation
#211 - 2011-11-30 18:12:11 UTC
Ingvar Angst wrote:
Please, close your mouth... you're leaking stupid on the carpet.

What do you really expect to get with this comment? Insightful counterpoints? Roll

Ingvar Angst wrote:
It's people building their own stuff that are currently being hit with this asinine increase in taxes.

Not if they've replaced the POCO with their own, or if they look at the prices and think "I'm still saving money".

Cyno's lit, bridge is up, but one pilot won't be jumping home.

RIP Vile Rat

Ad'Hakim Tahous
Science and Trade Institute
Caldari State
#212 - 2011-11-30 18:24:40 UTC
Teamosil wrote:
Ad'Hakim Tahous wrote:
The "market" will need time to adjust to this new mix of production costs: various tax rates per planet, volatility in the quantities of PI/T2 items actually reaching the market, sell off of stockpiles, and margin buy/sell orders by wealthy middle-market traders.


I actually think the market already adjusted before the expansion came out. For example, robotics is up some 80% since they announced the changes. That's more than the cost of the tax even if you calculate in that you have to export, import to a factory planet, and re-export.



A fair criticism Teamosil. To clarify:

-- The production cost spike seems to have shocked a number of producers.... just look in some of the S&I and MD threads... lol
-- It is my experience that a significant minority of producers (particularly PI producers) have a hyper focus on cash flow. As long as the ISK flows those producers are happy campers buying their PLEX, shiny stuffzzz, etc.
-- IMHO T2 producers have an even more careful eye on market trends, and are more mindful of cash flow to maintain production.

Once the initial shock of the short-term reduction in cash flow has worn off, and these producers do what they must to meet their cash requirements, I'd expect to see these producers stockpiling as much as possible until average Buy order price > weighted average net cost of stockpiled items.
-- Some selling to meet cash-flow needs? Sure...
-- Further price spikes in T2 gear and high-end PI products? Yep. IMHO, if they're smart.... producers stockpile and shortages on the market will move prices quickly enough.

Would not be at all surprised in the prior run-up in price was largely driven by the better prepared POS owners and T2 producers, with some enthusiastic help from the middle-market traders.
Doctor Ungabungas
Doomheim
#213 - 2011-11-30 18:34:47 UTC
Halloween Harry wrote:
Doctor Ungabungas wrote:

Absolutely, people are definitely going to stop flying T2 and supercapital ships just because they cost 17% more.


You should really learn the math.


The math is completely irrelevant. People will fly T2 and supercaps regardless of the cost.
Ingvar Angst
Nasty Pope Holding Corp
#214 - 2011-11-30 18:35:35 UTC
Lord Zim wrote:

Ingvar Angst wrote:
It's people building their own stuff that are currently being hit with this asinine increase in taxes.

Not if they've replaced the POCO with their own, or if they look at the prices and think "I'm still saving money".


Replacing the customs offices with your own simply incurs a what... 160M or so isk hit right away that will take many months (pre-patch levels) to recoup in savings from a 0% tax rate. You take the blow all at once, then have to look at this damnable object that's nothing more than an isk sucking worthless piece of crap floating in your wormhole. They add nothing to the experience of Eve at all from a wormhole perspective, and denigrate it for the lesser spaces outside wormholes.

Six months in the hole... it changes a man.

Sombre Asesinos
Doomheim
#215 - 2011-11-30 18:38:44 UTC
GhettoChick wrote:
stop bitching about the taxes and go around them by jet canning


Pardon my ignorance but how does one jetcan planetary items?
Jade Constantine
Jericho Fraction
The Star Fraction
#216 - 2011-11-30 18:38:51 UTC
Ingvar Angst wrote:
Lord Zim wrote:

Ingvar Angst wrote:
It's people building their own stuff that are currently being hit with this asinine increase in taxes.

Not if they've replaced the POCO with their own, or if they look at the prices and think "I'm still saving money".


Replacing the customs offices with your own simply incurs a what... 160M or so isk hit right away that will take many months (pre-patch levels) to recoup in savings from a 0% tax rate. You take the blow all at once, then have to look at this damnable object that's nothing more than an isk sucking worthless piece of crap floating in your wormhole. They add nothing to the experience of Eve at all from a wormhole perspective, and denigrate it for the lesser spaces outside wormholes.


Don't you think its kind of ridiculous that there are customs offices around unknown planets anyway. Perhaps wormhole PI should start with an expensive program of settlement and colonization and terriforming before you could use the planets in the first place.

The True Knowledge is that nothing matters that does not matter to you, might does make right and power makes freedom

Sombre Asesinos
Doomheim
#217 - 2011-11-30 18:39:18 UTC
GhettoChick wrote:
stop bitching about the taxes and go around them by jet canning


How does one jet can planetary resources?
MR DEMOS
Pyke Syndicate
Solyaris Chtonium
#218 - 2011-11-30 18:40:43 UTC
Lol EPIC TEARS Love it
Teamosil
Good Time Family Band Solution
#219 - 2011-11-30 18:44:25 UTC
Ad'Hakim Tahous wrote:
Once the initial shock of the short-term reduction in cash flow has worn off, and these producers do what they must to meet their cash requirements, I'd expect to see these producers stockpiling as much as possible until average Buy order price > weighted average net cost of stockpiled items.


Yeah I think that's right. But, where people will get in trouble is if they stockpile until their profits per unit would be equal to what they were immediately before crucible. That would be a mistake because immediately before crucible the market had already adjusted to the new costs. Right before crucible the prices were the market's estimate of what they should be AFTER the patch, but their costs were still what they were BEFORE the patch. So they were able to basically reap a windfall for a while and that won't continue to happen. The folks posting that they were making 1bil/month in high sec just doing PI shouldn't expect to make that now. It'll return to a normal level of profitability, not the windfall profits they got from the transition.

But, yeah, it's possible the market didn't fully adjust. As you pointed out, a lot of people didn't expect this big of a spike. The dev who made the blog post was apparently not aware they were adjusting the base price. He claimed that a 5% tax post crucible would cost the same as a 5% tax before, which was off by orders of magnitude. The wiki did specify the new rates, but heck, even for folks that noticed that, who is to say whether the wiki or the dev blog post is the accurate one. That said though, I think in a transition like this the market factors in a fair amount of uncertainty. 80% is a big jump. I'm still not sure we'll see it go up beyond that. If POCOs end up working out and people set reasonable tax rates, we might even see the price fall.
Jade Constantine
Jericho Fraction
The Star Fraction
#220 - 2011-11-30 18:47:00 UTC
Jowen Datloran wrote:
I disagree, Jade.

True, PI could have used more player generated conflict but I still think the best approach would have been to make that conflict on the planets instead of coating PI with completely different mechanics and game play. The core PI mechanics still consists of simplistic clicking and moving dots around and does in no way match the engaging game play that was presented at the fan fest prior to PIs introduction.


Well I'm a fan of that heroic PI 2 suggestion they have over in features and ideas - but hey, that would take best part of a full expansion to implement. In the mean time I'm happy that PI begins to be an engine that can bring some population to lowsec and gives my corp and I something to do to positively construct a friendly trade environment.

Quote:
Further, that CCP has to so strongly manipulate the market to make POCOs a viable game play speak tons about how little POCOs add to the game by themselves. As example, CCP has not needed to increase construction prices of all tier 1 and 2 battlecruisers for people to become interested in buying a tier 3. And synth booster production? Well, that game play element has been completely sacrificed for the sake of POCOs.


Well just so you know where I stand on the issue. I think NPC corps should have a big tax rate that makes it economically disadvantageous to remain in them shielded from wardecs while player corps are not. It kinda goes the same for hisec PI - its essentially risk free so it should have higher taxes than lowsec PI (which comes with the risk of enemy player action.) this stuff is just simple dynamics in the eve sandbox.

Quote:
While the increased PI costs can mostly be directed to increased prices for the final products, there is no way people will buy these boosters at all now. I find it really hard to support introduction of new game mechanics when they come at the direct cost of others when there are so many other things CCP could have been improving upon.


What about synth boosters manufactured in lowsec? Won't they be cheap easy to distribute now? Why don't you come to our home system and make them :)

Quote:
Finally, the POCO mechanics support the "numbers=win" and "nap feast" game play types that tire many people in zero sec. I am a firm opponent of promoting these game play types any more than necessary.


The sad truth is that numbers matter everywhere. My industrial director can control regional markets because he can throw 100billion isk at buying out rivals. There's no getting away from this stuff entirely in a multiplayer game.

But lowsec is a decent opportunity for people to make increased PI profits. It is relatively easy to travel into and if you are careful you'll rarely get ganked or ganged up on. The Customs structures are relatively cheap and easy to put up and you'll find plenty of outfits going the lowtax route. Sure its a bit of jarring step to leave the safety blanket of guarenteed npc facility profits - but in the long run interacting with other players is what the game is about.

The True Knowledge is that nothing matters that does not matter to you, might does make right and power makes freedom