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Q: Production vs Minerals

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ArQuetect
Doomheim
#1 - 2016-09-02 19:53:58 UTC
o7 Good evening Ladies & Gentelmen.

I'm fairly new to the production line and blueprint endevour but is something I'm really keen to get into. The problem I'm having is understanding why mineral costs are more expensive than the actual time it takes to produce the item.

Example:

Warrior 1 bluprint with 10ME / 20 TE production will cost 7,189.45 Isk. in minerals.

Sale price (the higher ISK return) at Jita for a Warrior 1 is 5,399.92 Isk.

Could someone with experience in this field kindly explain why the time spent researching BP's then using the required minerals to achieve the output is worse off than just mining and selling the ore?What?Question

Thank you in advance,
Kind regards.
Do Little
Bluenose Trading
#2 - 2016-09-02 20:32:35 UTC
Everything in Eve tends to be overproduced so you need to be very careful when choosing what to build - especially stuff where the barrier to entry is low like T1 products.

For T1 scout drones, you are competing with loot drops, which really limits the profit potential. T2 drones are profitable but there is a significant skill investment needed to invent and build them.

There are lots of profitable T1 products but you'll need to invest some effort to find them. I'll offer an example that always seems to be profitable - the Small Anti-EM Screen Reinforcer I which costs ~12,000 ISK to make and sells for ~23,000 ISK with a market volume around 86,000 units/day. Use a tool like https://www.fuzzwork.co.uk/blueprint/ to calculate profitability of stuff you're considering.
ArQuetect
Doomheim
#3 - 2016-09-02 20:37:18 UTC
Do Little wrote:
Everything in Eve tends to be overproduced so you need to be very careful when choosing what to build - especially stuff where the barrier to entry is low like T1 products.

For T1 scout drones, you are competing with loot drops, which really limits the profit potential. T2 drones are profitable but there is a significant skill investment needed to invent and build them.

There are lots of profitable T1 products but you'll need to invest some effort to find them. I'll offer an example that always seems to be profitable - the Small Anti-EM Screen Reinforcer I which costs ~12,000 ISK to make and sells for ~23,000 ISK with a market volume around 86,000 units/day. Use a tool like https://www.fuzzwork.co.uk/blueprint/ to calculate profitability of stuff you're considering.


Many thanks, I've just purchased a ton of BPO's and the using that tool I can now see where i will profit. Thank you!

I'll be building in low sec so that should boost profits slightly, I hope to make friends with the locals and see if i can get into some kind of business with them by producing locally for them.
Knitram Relik
State War Academy
Caldari State
#4 - 2016-09-03 09:19:35 UTC
The more steps you do yourself, the lower your costs can be. For example when I make a T1 item, I buy raw, uncompressed ore, refine it myself at a 54% citadel and build it at a POS. Every little margin makes a difference.

"The problem with quotes on the internet is that it's really hard to verify their authenticity." - Abraham Lincoln
SurrenderMonkey
State Protectorate
Caldari State
#5 - 2016-09-06 14:40:52 UTC
Knitram Relik wrote:
The more steps you do yourself, the lower your costs can be. For example when I make a T1 item, I buy raw, uncompressed ore, refine it myself at a 54% citadel and build it at a POS. Every little margin makes a difference.



This type of thinking is a not-insignificant contributor to this particular issue.

While all of those steps can certainly generate their own margin, none of them actually add value to the manufacturing step.

The resulting minerals are still worth their market price - NOT whatever you paid for the ore.

"Help, I'm bored with missions!"

http://swiftandbitter.com/eve/wtd/
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#6 - 2016-09-06 16:35:52 UTC
ArQuetect wrote:
Do Little wrote:
Everything in Eve tends to be overproduced so you need to be very careful when choosing what to build - especially stuff where the barrier to entry is low like T1 products.

For T1 scout drones, you are competing with loot drops, which really limits the profit potential. T2 drones are profitable but there is a significant skill investment needed to invent and build them.

There are lots of profitable T1 products but you'll need to invest some effort to find them. I'll offer an example that always seems to be profitable - the Small Anti-EM Screen Reinforcer I which costs ~12,000 ISK to make and sells for ~23,000 ISK with a market volume around 86,000 units/day. Use a tool like https://www.fuzzwork.co.uk/blueprint/ to calculate profitability of stuff you're considering.


Many thanks, I've just purchased a ton of BPO's and the using that tool I can now see where i will profit. Thank you!

I'll be building in low sec so that should boost profits slightly, I hope to make friends with the locals and see if i can get into some kind of business with them by producing locally for them.



Remember, Jita's an expensive place to make things. so make sure you change the location you're building in. (it affects the build costs.)

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter
Mijel Riak
Extensive Enterprises Space
#7 - 2016-09-07 01:06:52 UTC  |  Edited by: Mijel Riak
ArQuetect wrote:
o7 Good evening Ladies & Gentelmen.

Example:

Warrior 1 bluprint with 10ME / 20 TE production will cost 7,189.45 Isk. in minerals.

Sale price (the higher ISK return) at Jita for a Warrior 1 is 5,399.92 Isk.

Thank you in advance,
Kind regards.


Warrior 1's are also mission runner, NPC loot drops, so they are also being sold by people who did not have to manufacture them with any input minerals..

edit: ...never mind... someone already said that above....
anyways... I have some Warrior 1 BPC's if you want to buy them from me Blink