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Industry - why do people sell below cost?

Author
Charax Bouclier
Silvershield Universal
#21 - 2014-08-20 12:54:53 UTC
Quote:
On some items such as T2 ships you have null sec cartels and t2 BPO owners undercutting you as I unfortunately found out back in the day when I did some T2 inventing and building for my alliance.


Speaking of T2 BPO, I was reading about these things and understand that early in the game, there was some sort of lottery and these were distributed out to players. Since that time, they implemented invention where the rest of us can make limited run versions (though, this costs time and money).

As a new player, I just don't get WHY T2 BPOs are even in the game years later. It seems like a broken mechanic that also acts as a discouragement to newer players (e.g., why join a game where veteran players have a protected advantage?)

I'm probably opening a can of worms (MmMmmM...worms!!) but is one peculiarity that just plain doesn't make sense at all to me to maintain.
Baneken
Arctic Light Inc.
Arctic Light
#22 - 2014-08-20 13:07:32 UTC
Thaye remained because each new t2 item that has come after those initial T2 BPO's in the lottery have to be invented and also because CCP hasn't found a fair way of reimbursing for those prints.
Jori McKie
Hedion University
Amarr Empire
#23 - 2014-08-20 13:12:46 UTC
Charax Bouclier wrote:
Quote:
On some items such as T2 ships you have null sec cartels and t2 BPO owners undercutting you as I unfortunately found out back in the day when I did some T2 inventing and building for my alliance.


Speaking of T2 BPO, I was reading about these things and understand that early in the game, there was some sort of lottery and these were distributed out to players. Since that time, they implemented invention where the rest of us can make limited run versions (though, this costs time and money).

As a new player, I just don't get WHY T2 BPOs are even in the game years later. It seems like a broken mechanic that also acts as a discouragement to newer players (e.g., why join a game where veteran players have a protected advantage?)

I'm probably opening a can of worms (MmMmmM...worms!!) but is one peculiarity that just plain doesn't make sense at all to me to maintain.


Nope, not really after the last expansion, or was it the one before. Anyway right now T2 BPOs aren't "worth" what they were before, some ship T2 BPOs are still good but most are "nerfed".
You have to read the Industrie devblog for more details, i'm not sure but T2 BPOs have a way longer TE than before and you can't pump out stuff like crazy anymore.

The good thing about you Instrudy guys are, traders like me do not care :), it is all about the margin.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." - Abrazzar

Areen Sassel
Dirac Angestun Gesept
#24 - 2014-08-20 13:29:22 UTC
Charax Bouclier wrote:
As a new player, I just don't get WHY T2 BPOs are even in the game years later. It seems like a broken mechanic that also acts as a discouragement to newer players (e.g., why join a game where veteran players have a protected advantage?)


The most recent release significantly decreased the relative advantage of T2 BPOs, so it's much less of a problem than it used to be.
Marc Durant
#25 - 2014-08-20 13:49:50 UTC
Areen Sassel wrote:
Charax Bouclier wrote:
As a new player, I just don't get WHY T2 BPOs are even in the game years later. It seems like a broken mechanic that also acts as a discouragement to newer players (e.g., why join a game where veteran players have a protected advantage?)


The most recent release significantly decreased the relative advantage of T2 BPOs, so it's much less of a problem than it used to be.


There is no advantage, not really, because compared to BPC invention it's terribly slow. On a per job basis it's better but on the whole it it's not even worth noticing and given the hilarious investment (I doubt many/any of the T2 BPO are still owned by the original owner) they're now more a collector's item than anything else.


This whole debate is nothing other than "they have something I can't have, this is not fair because every other MMO I played so far has taught me that I'm special and the saviour or worlds, so I should have it as well or no one should have it". Not unlike the whole high sec carrier or ancient tournament prizes whines.

Yes, yes I am. Thanks for noticing.

Mr Epeen
It's All About Me
#26 - 2014-08-20 15:24:15 UTC  |  Edited by: Mr Epeen
I'll take the contrary view as it needs to be said.

Most of the people posting in here seem to be of the opinion that EVE is a game who's sole purpose is to maximize wealth. All this talk of opportunity costs and maximizing returns is fine but doesn't reflect the majority of below market selling.

Most of it is people find a lot of crap in their travels and occasionally they dump it on the market because that's less of a hassle than moving it all to a new system. (Another foreign concept to many. Actually moving out of the system they are in) There are so many reasons to dump stuff under priced on to the market that don't include being stupid.

After a while people have so much ISK that they simply can't be arsed to niggle over nothing. It's more of an opportunity cost to play a market game with a hanger full of low quality crap than it would be to to just dump it and not have to think about it again. They just want to wash their hands of it and get back to doing things that make substantial ISKies.

It's a sandbox in which you can do what you want. Yet all I see is people judging others for doing exactly that.

Mr Epeen Cool
Areen Sassel
Dirac Angestun Gesept
#27 - 2014-08-20 16:11:03 UTC
Mr Epeen wrote:
After a while people have so much ISK that they simply can't be arsed to niggle over nothing. It's more of an opportunity cost to play a market game with a hanger full of low quality crap than it would be to to just dump it and not have to think about it again. They just want to wash their hands of it and get back to doing things that make substantial ISKies.


That's very true, and it's true even if I'm trying to maximise ISK - I reprocess junk because it's not worth the time it would take to sell it, let alone the order slots (and additional think time) I'd need to sell it at anything other than the highest buy offer. Turning it into a few stacks of minerals makes the quantity manageable.
Charax Bouclier
Silvershield Universal
#28 - 2014-08-20 16:52:11 UTC
Quote:
This whole debate is nothing other than "they have something I can't have, this is not fair because every other MMO I played so far has taught me that I'm special and the saviour or worlds, so I should have it as well or no one should have it". Not unlike the whole high sec carrier or ancient tournament prizes whines.


Grandfathered advantages simply is not a good concept if you're trying to perpetually attract new players.

I'm 2-3 weeks in and non-eve people ask me if they will always be disadvantaged against vets. I explain how the skill system works and that you will eventually catch up to an old vet for your chosen interest/specialty. I just found it odd to see a grandfathered advantage, thus the question.

Though from what everyone is saying, it's not a big deal anymore.
Velicitia
XS Tech
#29 - 2014-08-20 16:52:34 UTC
Mr Epeen wrote:
I'll take the contrary view as it needs to be said.

Most of the people posting in here seem to be of the opinion that EVE is a game who's sole purpose is to maximize wealth. All this talk of opportunity costs and maximizing returns is fine but doesn't reflect the majority of below market selling.

Most of it is people find a lot of crap in their travels and occasionally they dump it on the market because that's less of a hassle than moving it all to a new system. (Another foreign concept to many. Actually moving out of the system they are in) There are so many reasons to dump stuff under priced on to the market that don't include being stupid.

After a while people have so much ISK that they simply can't be arsed to niggle over nothing. It's more of an opportunity cost to play a market game with a hanger full of low quality crap than it would be to to just dump it and not have to think about it again. They just want to wash their hands of it and get back to doing things that make substantial ISKies.

It's a sandbox in which you can do what you want. Yet all I see is people judging others for doing exactly that.

Mr Epeen Cool



Well, there's a balance somewhere in the middle between the two camps ... I think the biggest problem that the "minerals I mine are free" crowd causes "the rest of us" is that they perceive themselves to be industry / market barons and when you point out they could've done better for their wallets by selling something outright, they just end up with "lalalalala I'm not listening!!!"


case in point, flew with some guy doing the "free minerals" thing, and selling shuttles (or equally low-end item that needed few if any minerals off the market). We got into the discussion about it (he was selling at ~85% mineral value, not counting mfg costs or taxes, IIRC), wherein I'd buy the mins at 90% local hub rate via contract/trade and eat the 10k contract cost (he said no -- if he wanted to sell mins, he'd just do that, or some other silly argument).

So, I find out when he's taking the item(s) to market, watch it for his order to go up, buy it out. Reprocessed the stuff, and inject the mins into my piles.

Few weeks go by, and he's gloating to some newbie in the corp about how awesome his isk-making skills are (and why that newbie should consider mined minerals to be free). I simply thank him for the 15% discount on minerals, and after a few minutes of disbelief on his part, I rattle off about 3 weeks of market transactions, times, amounts, and the buyer name...

Guy raged a bit at that ... Cool

One of the bitter points of a good bittervet is the realisation that all those SP don't really do much, and that the newbie is having much more fun with what little he has. - Tippia

Charax Bouclier
Silvershield Universal
#30 - 2014-08-20 17:00:02 UTC
Mr Epeen wrote:
I'll take the contrary view as it needs to be said.

Most of the people posting in here seem to be of the opinion that EVE is a game who's sole purpose is to maximize wealth. All this talk of opportunity costs and maximizing returns is fine but doesn't reflect the majority of below market selling.

Most of it is people find a lot of crap in their travels and occasionally they dump it on the market because that's less of a hassle than moving it all to a new system. (Another foreign concept to many. Actually moving out of the system they are in) There are so many reasons to dump stuff under priced on to the market that don't include being stupid.

After a while people have so much ISK that they simply can't be arsed to niggle over nothing. It's more of an opportunity cost to play a market game with a hanger full of low quality crap than it would be to to just dump it and not have to think about it again. They just want to wash their hands of it and get back to doing things that make substantial ISKies.

It's a sandbox in which you can do what you want. Yet all I see is people judging others for doing exactly that.

Mr Epeen Cool


So, in my example, I was selling Hobgoblin I's for a premium of 5400 ISK. Then someone dumps 1000 units at 4100. Then it gets undercut, and undercut again with high volume (around 3800 ISK).

At any rate, it encouraged me to investigate how to cut my costs and expand my product offering, while stockpiling wares with deflated market prices for a better day.

I think I should talk to my local government official about imposing tarriffs against these foreign importers who no doubt produce these things with poor quality control and negligent environmental practices.
Mr Epeen
It's All About Me
#31 - 2014-08-20 17:40:08 UTC
An Example.

My builder has agreements with various mission runners to purchase all the crap they pick up at a substantial discount.

I get cheap mats for my JF building enterprise and they have a sure sale for their stuff without having to waste time and SP building up a trade character or training trade skills on their combat character.

Everybody's happy and no one is being stupid. As I said, there are plenty of reasons to sell cheap.

As I also said in my first post, the thing to do is to take advantage of it. No reason to conjecture as to why they're doing it, just be grateful that they are.

Mr Epeen Cool
Sabriz Adoudel
Move along there is nothing here
#32 - 2014-08-20 21:31:17 UTC
Areen Sassel wrote:
Charax Bouclier wrote:
As a new player, I just don't get WHY T2 BPOs are even in the game years later. It seems like a broken mechanic that also acts as a discouragement to newer players (e.g., why join a game where veteran players have a protected advantage?)


The most recent release significantly decreased the relative advantage of T2 BPOs, so it's much less of a problem than it used to be.


This is not true.

Look at the tech 2 ammunition market. Pre Crius it was invention dominated. Now it is BPO dominated.

It's ship BPOs that were nerfed. Some non-ship T2 BPOs were buffed a lot.

I support the New Order and CODE. alliance. www.minerbumping.com

Marc Durant
#33 - 2014-08-20 23:50:06 UTC  |  Edited by: Marc Durant
Charax Bouclier wrote:
Quote:
This whole debate is nothing other than "they have something I can't have, this is not fair because every other MMO I played so far has taught me that I'm special and the saviour or worlds, so I should have it as well or no one should have it". Not unlike the whole high sec carrier or ancient tournament prizes whines.


Grandfathered advantages simply is not a good concept if you're trying to perpetually attract new players.

I'm 2-3 weeks in and non-eve people ask me if they will always be disadvantaged against vets. I explain how the skill system works and that you will eventually catch up to an old vet for your chosen interest/specialty. I just found it odd to see a grandfathered advantage, thus the question.

Though from what everyone is saying, it's not a big deal anymore.


Well yes and no. EVE isn't about being equal and fair and while I'll fully agree to a "there shouldn't be a downside to starting late" there's also the "EVE is awesome because there's haves and have nots, and the struggle between them Is what drives EVE".

And it's not grandfathered in, you can buy those BPO if you fork up the isk. that's how 99% of the T2 BPO owners got theirs in the first place; they bought it from someone else at a going rate that would require years, literally, of production to break even based on scarcity prices which don't apply anymore.


And no I don't own, or ever have owned, a T2 BPO :)

Yes, yes I am. Thanks for noticing.

Tau Cabalander
Retirement Retreat
Working Stiffs
#34 - 2014-08-21 01:54:15 UTC
*sigh*

T2 BPO are irrelevant because you are limited in the amount that can be manufactured with one BPO.

Any item that the market is dominated by T2 BPO has such low demand that it is really stupid bothering to invent.

BPO owners don't have a choice what they manufacture. Inventors do.
Sabriz Adoudel
Move along there is nothing here
#35 - 2014-08-21 02:11:13 UTC
Tau Cabalander wrote:
*sigh*

T2 BPO are irrelevant because you are limited in the amount that can be manufactured with one BPO.

Any item that the market is dominated by T2 BPO has such low demand that it is really stupid bothering to invent.

BPO owners don't have a choice what they manufacture. Inventors do.



You are just wrong. Look at the prices of tech 2 ammunition.

Pre-Crius, one BPO was only a couple million rounds of, say, Void L per year. That was a blip on the radar.

Now, one BPO is 30-40 million rounds of Void L per year, more if the asset is put at risk in a POS. There's believed to have been 24 of that BPO seeded, so if 20 are still active that's 700 million rounds per year. Probably that is more than is consumed gamewide of a niche ammunition like Void L.

The *sole reason* that the prices for certain items have crashed post-Crius is that the corresponding tech 2 BPOs have been buffed from largely irrelevant to market dominance. These prices have fallen while build cost has increased, and while end user demand is roughly constant.

Most items were affected less than T2 ammo and many items had the reverse effect (e.g. the BPOs for tech 2 ships were nerfed hard). But all those modules that went from 2 hours per unit build time to 20 minutes per unit - their BPOs just started mattering again.

I support the New Order and CODE. alliance. www.minerbumping.com

Charax Bouclier
Silvershield Universal
#36 - 2014-08-22 15:35:07 UTC
Just a couple of quick industry/market questions - I'll just use this thread:

1. Since I am ramping up a bit on the variety of things that I sell, is there a way to display what I exactly sold? Using my wallet for market transactions, it will tell me the time and date of when I sold something, but it just says in the description: "Market: X bought stuff from Charax Bouclier". I would rather it replace "stuff" with 100 units of Item J. Can I get that information easily from somewhere?

2. If I find something that sells well for a decent margin, but I can't keep up production, is the best course of action to fully research the BPO, makes copies and then use these multiple copies to run several manufacturing runs at the same time?
Livonia Velorea
The Fiendish Pixies
#37 - 2014-08-22 15:39:32 UTC
Not into the whole market stuff myself so i've no insight into your second question but you might try looking at you "Transaction" tab in your wallet for more specific information on your sale ect.

I pew you too! <3

Charax Bouclier
Silvershield Universal
#38 - 2014-08-22 15:41:46 UTC
Livonia Velorea wrote:
Not into the whole market stuff myself so i've no insight into your second question but you might try looking at you "Transaction" tab in your wallet for more specific information on your sale ect.


Heh, there we go. Thanks kindly. :)
Mr Epeen
It's All About Me
#39 - 2014-08-22 18:44:34 UTC
Charax Bouclier wrote:


2. If I find something that sells well for a decent margin, but I can't keep up production, is the best course of action to fully research the BPO, makes copies and then use these multiple copies to run several manufacturing runs at the same time?


What I do is buy multiple BPOs. I have one in research and one in production. I rotate them until they are all at the research level needed.

Copies are for invention or sale and nothing else, in my opinion. They also are a waste of build slots. Take a capital cargo bay for example. The max runs you can have is 5 on a copy. But you might need 70 for a freighter. With a BPO you can do as many runs as you can fit into the 30 day limit. So one or two build slots with researched BPOs compared to 14 build slots with copies.

I haven't done much industry since the expansion so keep in mind that all I've said above could have changed completely. Someone will be quick to point it out if I have.

Mr Epeen Cool
Charax Bouclier
Silvershield Universal
#40 - 2014-08-22 20:39:02 UTC
Mr Epeen wrote:
Charax Bouclier wrote:


2. If I find something that sells well for a decent margin, but I can't keep up production, is the best course of action to fully research the BPO, makes copies and then use these multiple copies to run several manufacturing runs at the same time?


What I do is buy multiple BPOs. I have one in research and one in production. I rotate them until they are all at the research level needed.

Copies are for invention or sale and nothing else, in my opinion. They also are a waste of build slots. Take a capital cargo bay for example. The max runs you can have is 5 on a copy. But you might need 70 for a freighter. With a BPO you can do as many runs as you can fit into the 30 day limit. So one or two build slots with researched BPOs compared to 14 build slots with copies.

I haven't done much industry since the expansion so keep in mind that all I've said above could have changed completely. Someone will be quick to point it out if I have.

Mr Epeen Cool


Makes sense, thanks.

Next market anomaly that I need to figure is why I occasionally see some of my goods sell above my sell price. Happened about three times today - buying a single item (not the whole lot) at a premium of what I was charging. I wonder if this is just rookie mistakes.
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