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Manufacturing: Zero to Battleships

Author
Kire Suah
The Scope
Gallente Federation
#1 - 2012-01-10 21:24:37 UTC
Hey all. Basically, I know nothing about manufacturing. I have some questions.

1) Is buying raw materials on the open market and manufacturing them into ships (hopefully battleships) generally profitable if I sell in Jita?
2) If not, would they be profitable shipping to null-sec deployment areas and selling there? (I know this is relative, just give me an average, in your own experience answer).
3) What skills, time, and monetary investment do I need from having zero manufacturing skills to being able to make battleships? Say, maelstroms and abaddons?
Velicitia
XS Tech
#2 - 2012-01-10 21:38:21 UTC  |  Edited by: Velicitia
1. yes, but you need to do some homework first.
2. You won't make it Blink ... but you can try. edit -- I'm not saying to avoid null at all costs, but there are caveats there that you'd rather not deal with until later on.
3. well that depends

Skills (these won't change)
Industry 5
Production Efficiency 5
Mass Production 5
Adv. Mass Prod 4
Trade Skills (to get lower taxes, more trade slots, etc)
high standings with someone (e.g. Caldari Navy, since you're talking about Jita) for lower taxes at stations

BPO Way -- 8+ bn ISK
3 billion ISK for the BPOs (mael and abaddon are each about 1.5b, maybe a little less)
140m ISK (give or take) worth of minerals PER SHIP, so we'll say another 1.5-2b or so if you're making 5 of each per week
a freighter (about a bil for the hull, cba to look up skillbook prices, IIRC 500m or so)
about 6 months of research time to get the BPOs to a usable ME (that's 6 months IN RESEARCH -- not 6 months in general, because finding research slots is a ***** ... unless you're running a pos) so, whatever that ends up costing


BPC Way -- 3-4b
~10m ISK for 10-run copies
140m ISK (or so) of minerals per ship, assuming you're doing 5 of each, 1.5-2b
a freighter (about a bil for the hull, plus skillbooks)


Start small, with ammo/frigs/cruisers ... get your feet wet with how things work, THEN go for the bigger ships.

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

Kire Suah
The Scope
Gallente Federation
#3 - 2012-01-10 21:51:54 UTC
Velicitia wrote:
1. yes, but you need to do some homework first.
2. You won't make it Blink ... but you can try. edit -- I'm not saying to avoid null at all costs, but there are caveats there that you'd rather not deal with until later on.
3. well that depends

Skills (these won't change)
Industry 5
Production Efficiency 5
Mass Production 5
Adv. Mass Prod 4
Trade Skills (to get lower taxes, more trade slots, etc)
high standings with someone (e.g. Caldari Navy, since you're talking about Jita) for lower taxes at stations

BPO Way -- 8+ bn ISK
3 billion ISK for the BPOs (mael and abaddon are each about 1.5b, maybe a little less)
140m ISK (give or take) worth of minerals PER SHIP, so we'll say another 1.5-2b or so if you're making 5 of each per week
a freighter (about a bil for the hull, cba to look up skillbook prices, IIRC 500m or so)
about 6 months of research time to get the BPOs to a usable ME (that's 6 months IN RESEARCH -- not 6 months in general, because finding research slots is a ***** ... unless you're running a pos) so, whatever that ends up costing


BPC Way -- 3-4b
~10m ISK for 10-run copies
140m ISK (or so) of minerals per ship, assuming you're doing 5 of each, 1.5-2b
a freighter (about a bil for the hull, plus skillbooks)


Start small, with ammo/frigs/cruisers ... get your feet wet with how things work, THEN go for the bigger ships.


Thanks for the info! About null-sec, I currently live there and my alliance has many shipping services to and from trade hubs, I'm not worried about that. Also, where do you get BPCs? Do people make copies of their BPOs and then sell them on the open market?

I would also be doing researching in my alliance's space, so again, not too much worry about that (besides the large time involved).

But I think the gist of it is, I should use BPCs first, then buy BPOs when I get some more income and start researching?
Zifrian
The Frog Pond
Ribbit.
#4 - 2012-01-10 22:35:12 UTC
You get bpcs on contracts. I would start with Vel's post above with skills and get some bpcs to start. PE 5 is a must before starting. To find out if it's profitable, you should get a spreadsheet or industry program (mine is in sig, there are others in the sticky).

Sales volumes and supply will dictate a lot of your profit in high sec. Null sec will vary.

Hope that helps.

Maximze your Industry Potential! - Download EVE Isk per Hour!

Import CCP's SDE - EVE SDE Database Builder

Tau Cabalander
Retirement Retreat
Working Stiffs
#5 - 2012-01-10 22:40:00 UTC  |  Edited by: Tau Cabalander
Kire Suah wrote:
But I think the gist of it is, I should use BPCs first, then buy BPOs when I get some more income and start researching?

Only if the cost of buying BPC doesn't wreck your profit margin. There isn't much profit in battleships, and buying BPC will cut into that, as will transaction taxes and broker fees on the materials and final product which most people overlook.

The advantage of owning a BPO is that you can always sell it and recoup all / most of the cost. The disadvantage is the opportunity cost from having all that ISK tied-up in BPO, especially when it is in research and not earning anything.

Manufacturing is all about making sure you did the math right before you started.
Shoogie
Serious Pixels
#6 - 2012-01-10 23:47:20 UTC
Read this thread:

Plese explane Ravens to me

Understand that T1 manufacturing, including battleships, has a very low barrier to entry. Also, battleships are the sexy things that everyone wants to manufacture. Therefore, you will have a lot of competition from other manufacturers in high sec. If you are in null sec, you will have a large advantage because you will not be in competition with every other person who feels like dabbling in industry.

Still, I highly recommend starting with building ammunition and modules before jumping into ships.

Note, you can buy pre-researched BPOs in contracts. They will cost you more than the unresearched ones from NPCs, but you will be able to build from them immediately. As Tau said, BPCs are consumables which eat into the profit margins. BPOs are assets which can be sold later and even appreciate if they get researched.


At one time, I was the manufacturer for my alliance's ship replacement program in null sec. You are going to find hauling to be the first decision you will need to make. There are two options:

1) Build the ships in high sec. Use a freighter or manually fly them to low sec. Use a carrier to jump them to the station where you sell them.

2) Use a jump freighter to haul compressed minerals to null sec. Reprocess. Build the ships there, either in the station or at a POS in the same system. This requires a lot more isk to be tied up in raw materials, but you don't need to haul as often because you can fit many ships worth of minerals in each load.

From my experience, I found battlecruisers/battleships to be the cutoff. For frigates and cruisers it was more economical to build them in high sec and carrier them in. For battleships, build them in null sec. Battlecruisers could go either way depending on what else I had going on at the time.

Your milage may vary.
Jas Dor
Republic University
Minmatar Republic
#7 - 2012-01-10 23:54:57 UTC
Kire Suah wrote:
Hey all. Basically, I know nothing about manufacturing. I have some questions.

1) Is buying raw materials on the open market and manufacturing them into ships (hopefully battleships) generally profitable if I sell in Jita?
2) If not, would they be profitable shipping to null-sec deployment areas and selling there? (I know this is relative, just give me an average, in your own experience answer).
3) What skills, time, and monetary investment do I need from having zero manufacturing skills to being able to make battleships? Say, maelstroms and abaddons?


1. I think you'd be better off selling in one of the trade hubs other than Jita. Look for a hub that has a movement of at least 24 of that type of battleship a day.

2. It might be profitable to sell in the high sec hub near a low sec deployment area (including lesser regional hubs). Most Null sec alliances have zero industry and dead markets. The only possible exception I can think is maybe the goons.

3. Industry V, Production Efficiency V (Mandatory), and a BPC for the battleship in question.
RubyPorto
RubysRhymes
#8 - 2012-01-11 01:18:30 UTC
Kire Suah wrote:
Hey all. Basically, I know nothing about manufacturing. I have some questions.

1) Is buying raw materials on the open market and manufacturing them into ships (hopefully battleships) generally profitable if I sell in Jita?
2) If not, would they be profitable shipping to null-sec deployment areas and selling there? (I know this is relative, just give me an average, in your own experience answer).
3) What skills, time, and monetary investment do I need from having zero manufacturing skills to being able to make battleships? Say, maelstroms and abaddons?


Maybe

Maybe

Indy 5 + PE5, Buncha Isk

"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

Xearal
Dead's Prostitutes
The Initiative.
#9 - 2012-01-11 01:38:09 UTC
As mentioned before, if you're going to step into industry, start with smaller stuff than battleships.

Sure, they are big and 'sexy', but a lot of people already do that. Ammo is really a much better place to start, as the investment costs are much lower, and there's always a large demand for Ammo, whereas things like battleshis can fall into a slump.

Production Efficiency 5 is a total must skillwise if you intend to do 'serious' industry, especially capital intensive industry like battleships.

if you really want to make ships, maybe you should start out with frigates, cruisers and/or battlecruisers, the investment into these is also much lower, and BCs get blown up a lot more than battleships in general.

Does railgun ammunition come in Hollow Point?

Kale Eledar
Venerated Industries
#10 - 2012-01-11 06:32:07 UTC
Apologies if this has been mentioned already, but I advise you to keep your goods out of Jita until your skills are much better. The market players here are cunning, and will undercut, buy out, and generally have greater control over the market. Wet your feet in mission hubs, and try your hand at modules and ammo, where the profit margins aren't quite as cutthroat.
Blink

First come smiles, then lies. Last is gunfire.

Gumby Ambraelle
The Scope
Gallente Federation
#11 - 2012-01-11 14:57:43 UTC
Having just started out in the indy world I can recommend that you start small

I am up to destroyers but I still make almost as much on the ammo/frigs and they have a slightly better margin, just a longer turn around time on selling all of it if you are trying for max profit.

Try some of the other hubs before Jita...it is cutthroat there.

Spread sheets are you friend and remember calculate twice and buy once.... Big smile
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#12 - 2012-01-11 15:18:35 UTC
Bigger things can make you more profit. Not as a percentage of isk invested, but in absolute terms.

Take ammo, for example.

Each of the sizes takes the same time to produce, S to L. You can get a 100% return on your investment with S. But that works out at around 10 isk a unit. with L, you can get maybe a 30% return. But that's 30isk.

Pretty much the same applies to everything. Absolute return is more important than raw percentages. Just something to remember.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Aldous Borrn
League of Gentleman Cartographers
#13 - 2012-01-12 08:19:36 UTC
Steve Ronuken wrote:
Bigger things can make you more profit. Not as a percentage of isk invested, but in absolute terms.

Take ammo, for example.

Each of the sizes takes the same time to produce, S to L. You can get a 100% return on your investment with S. But that works out at around 10 isk a unit. with L, you can get maybe a 30% return. But that's 30isk.

Pretty much the same applies to everything. Absolute return is more important than raw percentages. Just something to remember.


If you're only moving 30% of your product, you're doing it wrong.

Percentage is what truly matters. If you're getting a 1% return on 30mil isk investment and 15% return on 50k isk investment, i'd rather invest my 30mil and make back 3.5mil instead of 300k.
RubyPorto
RubysRhymes
#14 - 2012-01-12 08:25:44 UTC
Aldous Borrn wrote:
Steve Ronuken wrote:
Bigger things can make you more profit. Not as a percentage of isk invested, but in absolute terms.

Take ammo, for example.

Each of the sizes takes the same time to produce, S to L. You can get a 100% return on your investment with S. But that works out at around 10 isk a unit. with L, you can get maybe a 30% return. But that's 30isk.

Pretty much the same applies to everything. Absolute return is more important than raw percentages. Just something to remember.


If you're only moving 30% of your product, you're doing it wrong.

Percentage is what truly matters. If you're getting a 1% return on 30mil isk investment and 15% return on 50k isk investment, i'd rather invest my 30mil and make back 3.5mil instead of 300k.


ROI is generally understood to mean % of initial capital outlay returned on top of the initial capital.

Not all investments are infinitely scale-able. Ammo is highly profitable (in %) because it's not very profitable in absolute terms, and you're limited in the number of manufacturing lines you run. In other words, if you have 30m, would you invest it at 1% and make 300k or invest 50k of it at 15% and the rest at nothing, and make 7500 isk?

"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

Cindy Marco
Sebiestor Tribe
Minmatar Republic
#15 - 2012-01-12 12:47:23 UTC
Battleships usually suck to make. They take about a freighter/day of minerals to keep in production, for paper thin margins.
Nevryn Takis
University of Caille
Gallente Federation
#16 - 2012-01-12 14:12:50 UTC
I'll echo advice already given start with ammo and work your way up.

Even then you're going to need to own your own researched BPO, and generally it need to be at least ME50 to start making a reasonable return.
For ammo you're probably also going to need to copy the BPO so that you can run multiple production jobs simultaneously to keep up with demand ( but that depends on how you set your price points).
I've found that there's very little margin on either frigates or destroyers ( it's pretty difficult to make more than 150K on a destroyer)
and some cruisers are even worse - basically you need to research your markets, even if its a tame one.
You need to calculate your own costs based upon the BPO/C you're using and the costs of your minerals.
If the manufacturing cost is greater than sell price of the minerals then sell the minerals instead..
Zimmy Zeta
Perkone
Caldari State
#17 - 2012-01-12 15:05:22 UTC
Margin is the most important factor for you. You must have a personal pain-treshold that defines how low you will go with your margin.
I might be an arrogant prick, but for me it is 25%- maybe because I focus on t2 modules and ammo and not on ships. The margin for all ships is usually lower, ship builders are often happy when they can get about 10% profit. I pity the fools and have to giggle when I think about how much I would have made with the same amount of minerals.....
So you should ask yourself: "Why do I want to build stuff?"
I have found out that there is a rather large amount of players building things (especially ships), who do this for fun and a feeling of accomplishment, seeing their own ships fly through space. So if this is your kind of thing, by all means do it.
There are other people who build stuff because their corp needs it- if your 0.0 corp has tasked you with building battleships because they are needed, money and profit are not a factor, you should just go for it and do the best you can to satisfy their demand.
But if your sole purpose for manufacturing is that you want to get lots of iskies, you should stay away from ship production.
Just my 2 cents.

I'd like to apologize for the poor quality of the post above and sincerely hope you didn't waste your time reading it. Yes, I do feel bad about it.

Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#18 - 2012-01-12 15:11:37 UTC  |  Edited by: Steve Ronuken
For appropriate BP ME levels, look at an ME calculator (< shamelessplug>like the one on my site< /shamelessplug>)

Pretty much, every time you double the ME level, you halve the waste. It's a little bumpier than this, due to waste below half a unit being eliminated. The bigger the initial volume, the more useful the reduction is.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Skorpynekomimi
#19 - 2012-01-12 16:40:24 UTC
Diversify. If the BPO's less than a million, it's worth picking up and running a few runs off to test the waters.

Otherwise, learn markets in different areas around you. For example, know where PoS fuels sell, where pvp happens so you can sell shuttles to people at a 400% margin, etc.

Economic PVP