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Making stuff

Author
Artostes
Maggot Mayhem Mulisha
#1 - 2014-09-26 05:30:44 UTC
I have trained my manufacturing skills and production to almost max. What i don't get is why would I want to make for example a Rifter when the price of the ore I've mined is worth more on the market than the produced tech I ship? I have a fully researched blueprint to manufacture from.The only ships that have any profit in them are tech II ships but after spending 6 million on a plus 4 max run and 80% probability optional material are there any real profits to manufacturing?
SJ Astralana
Syncore
#2 - 2014-09-26 06:41:46 UTC
As a T1 producer I make 10bil a month with 11 slots at a time cost of 10 minutes per day, so the answer is yes. Eve IPH is imo the best tool for identifying profitable items, but it's still out of action. I've heard others say Fuzzwork is useful, but I've found it severely lacking in realistically calculating costs.

You might find Science and Industry a more helpful place for this type of discussion.

Hyperdrive your production business: Eve Production Manager

Rumbaldi
Tannhauser C-Beam
Lux Collective
#3 - 2014-09-30 15:19:18 UTC
SJ Astralana wrote:
As a T1 producer I make 10bil a month with 11 slots at a time cost of 10 minutes per day, so the answer is yes. Eve IPH is imo the best tool for identifying profitable items, but it's still out of action. I've heard others say Fuzzwork is useful, but I've found it severely lacking in realistically calculating costs.

You might find Science and Industry a more helpful place for this type of discussion.


wow, 10b a month from 11 slots, care to share :P
Tinu Moorhsum
Random Events
#4 - 2014-09-30 17:23:13 UTC  |  Edited by: Tinu Moorhsum
Rumbaldi wrote:
SJ Astralana wrote:
As a T1 producer I make 10bil a month with 11 slots at a time cost of 10 minutes per day, so the answer is yes. Eve IPH is imo the best tool for identifying profitable items, but it's still out of action. I've heard others say Fuzzwork is useful, but I've found it severely lacking in realistically calculating costs.

You might find Science and Industry a more helpful place for this type of discussion.


wow, 10b a month from 11 slots, care to share :P


I'm just going to make a wild guess here but I think there might be something wrong with his accounting ;)

Artostes, it's quite possible to make a good living from manufacturing. Obviously you have discovered that you can't do that by making rifters but there are many other items on the market that sell for double or even tripple what it costs to make them. If you take a look at some of my other posts it might give you some ideas.

Main principles I use are this:
1) make stuff in large volume so you keep down the amount of RL work. Every time you have to go to a hub to buy stuff is wasted time that lowers your isk/hr.

2) Trust the market. Don't go for the short sell. The end game in manufacturing is to view the market in the big picture.. You are no longer a trader, you a producer and that means that no trader can buy in the volumes it would take play your end game. For example, don't be afraid to make 5,000 of something that only sells 100 per week if you can sell them for 10 times what it cost to build them. You'll be playing a different game than all of the short sell station traders and you'll make better profits. Implication of this is (a) you *will* build up inventory but don't fear it and (b) you *will* need to diversify... Ultimately to play this end game you will need a metric butt-ton of isk to churn because you'll end up with a truly vast amount of money locked up in assets. If you don't have that now, start small and keep this as your guiding light on the horizon and build up to it.

I'm not kidding. When I started playing this game I borrowed 100mil isk from a RL friend and thought it was a lot of money. I tried everything, running missions, plexing, mining, salvaging.... but none of that pays anywhere near as well as manufacturing. Today (skipping several years) I play casually but make about 400mil isk per real-life hour that I put into it. And that's playing casually. If I played intensively every day (which I don't) I would have a yearly income well in excess of the total amount of isk I've ever lost from PVP.

So the answer to your question is, yes. You can make an awful lot of money from being a producer. But if you don't have a lot of isk to put into it then you'[ll need to throttle your efforts and build up. My message to you is that it can be done and it gets easier as you go. Have confidence.

3) Don't sell everything in Jita. In fact... don't sell *anything* in Jita if you can avoid it. I focus on nullsec for my sales because my big love in EVE is the nullsec game and I have access to markets. If you don't... then at least think out of the box.

4) Don't do everything yourself. I make so much stuff that I would be certifiably insane to try moving it around EVE all alone. I do make runs to Jita but I also use public courier contracts. When you're making 5 or 6 bil isk worth of finished product a week, you either get other people to move it for you or you spend valuable time moving it in multiple trips yourself. Moving it all at once (even if it fit) would be very risky. Couriers are the unsung heros of EVE. Use them. It's a win/win.

and finally

5) Read, re-read, re-re-read and understand the implications of patches. You're in a sand box and CCP takes great pleasure in ploughing the ground. It's part of what makes this game great but as a producer it forms both a risk and an opportunity. When the changes to the geddon happened I made a killing.... On the other hand, right now I'm holding a great many enyo hulls that I may have to wait months to sell. The new patch is coming out this week. Do you know what module tericide means for RCU's? As a producer you will need to develop a keen awareness of this.

Adapt, speculate, and adapt some more. Will all of your "guesses" be right? No. But 80% will. You'll make bad decisions and have to cut your losses sometimes but on the whole it's a numbers game and once you understand how the market is developing you'll be able to win the toss 8 times out of 10.

But ok.... Short term. I'm assuming you need to start making profits on the short term to get the train in motion. I'll give you a hint (since I'm not making them right now). Take a look at small and medium size rigs. Don't forget to account for demand. Run the numbers on T2 modules (check out the modules scheduled for tiericide) and start making certain T2 ammo that you can flip by direct selling to buy orders. That's not efficient but it will inject some isk into your wallet and give you more options after that.

T-
Banko Mato
Republic University
Minmatar Republic
#5 - 2014-10-01 14:43:08 UTC
Tinu Moorhsum wrote:

4) Don't do everything yourself. I make so much stuff that I would be certifiably insane to try moving it around EVE all alone. I do make runs to Jita but I also use public courier contracts. When you're making 5 or 6 bil isk worth of finished product a week, you either get other people to move it for you or you spend valuable time moving it in multiple trips yourself. Moving it all at once (even if it fit) would be very risky. Couriers are the unsung heros of EVE. Use them. It's a win/win.


Or have a couple of industry toons (optimally 1 per account) train into freighters and have a whole fleet available to move your stuff, which is the way I went, since it is way faster and more reliable than public couriers as long as the distances to travel are reasonably small, like half a dozen jumps give or take. Depending on what on produces, outsourcing the hauling part is not always a win/win ;)
Ria Nieyli
Nieyli Enterprises
When Fleets Collide
#6 - 2014-10-01 17:00:52 UTC
Banko Mato wrote:
Tinu Moorhsum wrote:

4) Don't do everything yourself. I make so much stuff that I would be certifiably insane to try moving it around EVE all alone. I do make runs to Jita but I also use public courier contracts. When you're making 5 or 6 bil isk worth of finished product a week, you either get other people to move it for you or you spend valuable time moving it in multiple trips yourself. Moving it all at once (even if it fit) would be very risky. Couriers are the unsung heros of EVE. Use them. It's a win/win.


Or have a couple of industry toons (optimally 1 per account) train into freighters and have a whole fleet available to move your stuff, which is the way I went, since it is way faster and more reliable than public couriers as long as the distances to travel are reasonably small, like half a dozen jumps give or take. Depending on what on produces, outsourcing the hauling part is not always a win/win ;)


So you're building freighters, huh?
Maxpie
MUSE LLP
#7 - 2014-10-01 18:52:28 UTC
Tinu Moorhsum wrote:

3) Don't sell everything in Jita. In fact... don't sell *anything* in Jita if you can avoid it. I focus on nullsec for my sales because my big love in EVE is the nullsec game and I have access to markets. If you don't... then at least think out of the box.


I could not agree more with this. If there's one thing I tell new manufacturers more than anything else, it is to buy in Jita, but not to sell in Jita.

No good deed goes unpunished

Banko Mato
Republic University
Minmatar Republic
#8 - 2014-10-01 19:49:21 UTC  |  Edited by: Banko Mato
Ria Nieyli wrote:

So you're building freighters, huh?


Nope, only smaller ships... lots of them

Maxpie wrote:
Tinu Moorhsum wrote:

3) Don't sell everything in Jita. In fact... don't sell *anything* in Jita if you can avoid it. I focus on nullsec for my sales because my big love in EVE is the nullsec game and I have access to markets. If you don't... then at least think out of the box.


I could not agree more with this. If there's one thing I tell new manufacturers more than anything else, it is to buy in Jita, but not to sell in Jita.


The problem with some other markets is that they don't support volumes on a large enough scale in a lot of cases to justify the additional effort of getting the stuff there. So if I can turn over ten times the amount of items in jita compared to some more remote location with a slightly smaller profit, I personally would stick to jita ;)

//edit to avoid double post
Tinu Moorhsum
Random Events
#9 - 2014-10-02 17:03:49 UTC
Banko Mato wrote:
Tinu Moorhsum wrote:

4) Don't do everything yourself. I make so much stuff that I would be certifiably insane to try moving it around EVE all alone. I do make runs to Jita but I also use public courier contracts. When you're making 5 or 6 bil isk worth of finished product a week, you either get other people to move it for you or you spend valuable time moving it in multiple trips yourself. Moving it all at once (even if it fit) would be very risky. Couriers are the unsung heros of EVE. Use them. It's a win/win.


Or have a couple of industry toons (optimally 1 per account) train into freighters and have a whole fleet available to move your stuff, which is the way I went, since it is way faster and more reliable than public couriers as long as the distances to travel are reasonably small, like half a dozen jumps give or take. Depending on what on produces, outsourcing the hauling part is not always a win/win ;)


Oh, I have freighter toons and freighters. That's not my problem.

Part of the reason I say this might not apply to everyone. Where I make stuff is in high-sec 1/2 way between two major hubs and about 15 jumps from where I can jump the jump frieghter into my nullsec area. If I had to run to a hub every other day to get materials and then spend time moving all of the stuff I make to hubs or to my staging system in small quantities (ie 1bil or less in value) then I would be spending a lot of time on it.

The practical solution is to use courier contracts. It may sound like a luxury and I guess it is, but I see it as part of the price of doing business (exchange money for speed, convenience and risk mitigation). I'm not really focused on optimizing the cost of doing business. I don't have to play the margin game in a hub and I can already make stuff a LOT cheaper than people who buy it and move it to nullsec to sell.... my focus is to optimize the isk per real-life hour so I'm not spending my time online doing stuff that doesn't result in explosions and joy.

My margins are slightly less but still very acceptable. In the big picture it's all about how to make enough isk to do my thing and put the least amount of RL time into that.

T-
voetius
Grundrisse
#10 - 2014-10-02 17:22:19 UTC
Artostes wrote:
I have trained my manufacturing skills and production to almost max. What i don't get is why would I want to make for example a Rifter when the price of the ore I've mined is worth more on the market than the produced tech I ship? I have a fully researched blueprint to manufacture from.The only ships that have any profit in them are tech II ships but after spending 6 million on a plus 4 max run and 80% probability optional material are there any real profits to manufacturing?


Some good advice from Tinu and the others above OP.

Some of the T1 frigates and a destroyer are given away in the New Player Tutorial missions so those specific ships are always going to be problematic for manufacturers as traders just buy loads in the rookie systems and move them to the nearest hub and undercut manufacturers.
Tinu Moorhsum
Random Events
#11 - 2014-10-02 17:37:59 UTC
Banko Mato wrote:


The problem with some other markets is that they don't support volumes on a large enough scale in a lot of cases to justify the additional effort of getting the stuff there. So if I can turn over ten times the amount of items in jita compared to some more remote location with a slightly smaller profit, I personally would stick to jita ;)

//edit to avoid double post


To me this is a matter of seeing the world in a different way.

There are a great many items that you can make. If you decide that you want to make one thing in large volumes and push that volume onto the market then you might need to do that in a major hub like Amarr or Jita.

The approach I was talking about is different. This is going to give you a big peek up my skirt but oh well. I sell in a nullsec hub in an alliance that has about a dozen "doctrine" fits.

People in nullsec who want to get in a fleet and do their thing don't want to fly to jita, set up a ship, fly it all the way back (if that's even possible ) and then get in the fleet. They want to log on. Join a fleet, get in a ship and undock. Doctrine fits facilitate this because people know what to buy and what to have ready.

But I would say about 90% of people who play eve are not long term thinkers. I never needed to buy doctrine fits because I had a hanger full of them. I knew what I needed to have and I got it done. I also had enough isk that I could buy 100 ships and ship them to null sec so that I didn't run out of ... say... dictors (the archetype of the one-op ship). A friend of mine who I know in RL and who used to be a colleague in my first job after university says that I am (to him) the most finatically organized person he has ever met. (he meant to say obsessive but he wanted to be diplomatic LOL)

But most people are not like that. So I had a hangar full of ships and alliance mates kept saying "does someone have a dictor I can buy" and so forth. So I started putting my ships on contracts to make them available to alliance mates and then buying back my own contracts when I needed one. This kept my hangar clean (maybe my friend was right) but it didn't take long before I started realizing that being organized is massively profitable.

So (skippig a few years) what I do now is make doctrine ships and put them on contracts. In the allliance I"m in right now has about a dozen fits, which means a dozen hulls and maybe 3 dozen modules that I can make and fit into things to sell. With the scale in which I'm able to make things I couldn't make a dozen ships, and all the modules and put it all on the market and then keep up with demand. So what I do is make a selection of hulls, a selection of modules (namely the modules that contribute the most the price of a ship) and then buy the rest in a hub, shift it, set up doctrine fits (thank GOD for CCP implementing the fit button) and putting them on contracts.

To be entirely honest, I'm currently making one hull and 2 modules with 5 characters (one copy, 2 making hulls and 2 making modules) and I suspect that I can grind those out for the next 6 months before I accumulate an inventory that makes me think about diversifying. I'll have a surplus of some modules, but I'll either sell them in 0.0 on the market for about what I could get in Jita or put them on the market in a hub and forget them until they sell.

So yeah..... If you're making 10,000 damage controls per week then you might need to use a hub to push all that volume, but if you look at the world from a slightly different paradigm then there are alternatives. You don't need a hub to find a market that will absorb everything you make.

T-
pankas
Sebiestor Tribe
Minmatar Republic
#12 - 2014-10-25 07:59:44 UTC
Thanx for making me look at things from slightly different angle.
Khun SP
Paramite Factories
#13 - 2014-10-27 09:57:18 UTC  |  Edited by: Khun SP
This topìc again lol.

Search for "minerals I mine are free" on google and you will read about this moronic syndrome which is present all over New Eden. You are obviously an intelligent human being and you know what opportunity cost means, so keep selling the minerals and win!
orionbeta
Aliastra
Gallente Federation
#14 - 2014-10-28 22:33:36 UTC  |  Edited by: orionbeta
Khun SP wrote:
This topìc again lol.

Search for "minerals I mine are free" on google and you will read about this moronic syndrome which is present all over New Eden. You are obviously an intelligent human being and you know what opportunity cost means, so keep selling the minerals and win!



True Story. This is why most T-1 ships are cheaper to buy then to build.
Daniel Plain
Doomheim
#15 - 2014-10-29 17:10:07 UTC
SJ Astralana wrote:
As a T1 producer I make 10bil a month with 11 slots at a time cost of 10 minutes per day, so the answer is yes. Eve IPH is imo the best tool for identifying profitable items, but it's still out of action. I've heard others say Fuzzwork is useful, but I've found it severely lacking in realistically calculating costs.

You might find Science and Industry a more helpful place for this type of discussion.

~1.2kk per hour per slot. pretty high but not impossible.

I should buy an Ishtar.

SJ Astralana
Syncore
#16 - 2014-11-02 13:41:11 UTC
Tinu Moorhsum wrote:

I'm just going to make a wild guess here but I think there might be something wrong with his accounting ;)


Shocked

I don't even know where to begin with the gall of this statement. First of all, my figures are calculated from API data direct from Eve. Every detail, from recording actual material costs, taxes and broker fees to applying per-day team auction costs are applied to all sales to provide a true profit picture. I've produced the most comprehensive production management application to date in all of Eve, complete with supply chain management, comprehensive team integration and comprehensive reporting, and I've documented its features in nearly exhaustive detail in my user guide. I don't go into details of my user demographics, but I am far from the most successful EPM user.

10 bil a month is only 1.25mil/hr assuming a 23-hour production cycle. I think it's at about 13:00 of my video which explains why high IPH is so trivial to achieve.


Hyperdrive your production business: Eve Production Manager