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Why the big difference in Corp office costs?

Author
Tatanka Startamer
Rio Nova
#1 - 2016-11-26 23:25:02 UTC
I'm looking to open a corp office in the station I've been based in, and it's ~9M ISK/month, with 9 office slots open. Another station in the same system, with the same services, and 8 open slots is ~800K ISK/month. Any idea why one is so much more than the other? Especially when it seems they ought to be pretty similar.

Tat
Shae Tadaruwa
Science and Trade Institute
Caldari State
#2 - 2016-11-26 23:28:43 UTC
Standings?

I don't really know, so don't take that as gospel.

Dracvlad - "...Your intel is free intel, all you do is pay for it..." && "...If you warp on the same path as a cloaked ship, you'll make a bookmark at exactly the same spot as the cloaky camper..."

Alphea Abbra
Project Promethion
#3 - 2016-11-26 23:32:15 UTC
http://wiki.eveuniversity.org/Corporation_(Corp_Mechanics)#Renting_offices
ShahFluffers
Ice Fire Warriors
Wild Geese.
#4 - 2016-11-26 23:41:06 UTC
Supply and doomand.

For whatever reason, people want corporate offices in one of the stations more than the other.


This could be for a number of reasons:

- the corporation members have better standings / mission agents with the NPC corp the "expensive station" belongs to

- the "expensive station" is more "defensible"
(note: some stations have MASSIVE docking radiuses... making them preferred staging grounds for groups that engage in combat or are in fear of it)

- the "expensive station" is in an ideal location in the star system, allowing for shorter and/or more direct warps.
Tatanka Startamer
Rio Nova
#5 - 2016-11-26 23:43:58 UTC
Wouldn't the # of free slots determine "demand"? Or is there some other way to determine it?

Also, I double checked, not identical services. Expensive one has industry, cheap on has clone bay. But still, similar # of free slots.

Anyway, thanks for the pointers :)

Tat
Orravan
Anomalie
#6 - 2016-11-26 23:56:16 UTC  |  Edited by: Orravan
Tatanka Startamer wrote:
Wouldn't the # of free slots determine "demand"? Or is there some other way to determine it?

Also, I double checked, not identical services. Expensive one has industry, cheap on has clone bay. But still, similar # of free slots.

Anyway, thanks for the pointers :)

Tat

The link provided by Alphea Abbra has all the answers to your questions.

Quote:
Dynamic rental fee

Note that office rental fees are dynamic; they vary per station and will go up or down depending on demand at the station. Office rental fees are calculated daily at downtime based on the number of free offices at downtime. Monthly fees rise by 5% when there are no available offices at the station; prices stay the same when there is 1 available office. When there are 2 or more available offices, prices drop - the size of the drop is based on the number of available offices [1]. Since you only get a bill every 30 days and prices can rise by 5% per day, there can be a large difference between one month's rent and the next month's rent (in the worst case, the rent can quadruple!).

The minimum rent is 10,000 isk, but in popular stations the rent can be several million isk per month. In the very popular stations, such as the main stations in trade hubs, rents can be in the hundreds of million isk per month! Most stations have more sensible rents though, from the minimum of 10,000 isk to a few hundred thousand isk. It is very much worth it to 'shop around' when looking for a good location for an office; even stations in the same system can have widely different rental fees. Unfortunately there is no way to remotely check the available of offices or the rental fee. When you are docked at a station, the number of free offices will be listed in the offices tab of the Station Information panel, but the only way to see what the rent is, is to click the 'rent office' button. (Note: even if the station has no free offices, it is possible to see what the rent would be by clicking the button.)

Finicky diplomat. Suicidal explorer. Faithful ally.

Bjorn Tyrson
Brutor Tribe
Minmatar Republic
#7 - 2016-11-26 23:59:15 UTC
Tatanka Startamer wrote:
Wouldn't the # of free slots determine "demand"? Or is there some other way to determine it?

Also, I double checked, not identical services. Expensive one has industry, cheap on has clone bay. But still, similar # of free slots.

Anyway, thanks for the pointers :)

Tat


That right there just answered your question. Having access to industry is WAY bigger than having access to medical. Especially if you have medical at another station in the system
Roenok Baalnorn
Baalnorn Heavy Industries
#8 - 2016-11-27 00:35:50 UTC
Tatanka Startamer wrote:
I'm looking to open a corp office in the station I've been based in, and it's ~9M ISK/month, with 9 office slots open. Another station in the same system, with the same services, and 8 open slots is ~800K ISK/month. Any idea why one is so much more than the other? Especially when it seems they ought to be pretty similar.

Tat



Dont take my word for it but i believe it has to do with station traffic. How many people are in and out of the station. Its a silly mechanic but the only one i can find to explain the differences in cost. For example if you were to rent an office in jita 4-4 it would cost you in the billions. Ive noticed over time that stations that are busier seem to have higher rental fees.
Tatanka Startamer
Rio Nova
#9 - 2016-11-27 00:47:05 UTC
OK, from reading the item linked, I think I understand.....

The fact that the current # of free slots is the same/similar means nothing. The only thing that EVER raises the price from the 10K/month base is being full up. When there are at least 2 open slots, the price can drop. So the Industry station was full, and stayed that way for a while, and now that there are many openings, the price is falling. In the last 6 days, I've seen it fall from 8.9M to ~8.4M. The neighboring station with clone bay is 10K/month (the minimum), with the same number of openings. That tells me that station has NEVER been full, since the price has never increased. Or, had been full, seen an increase, and then has had at least 2 openings for long enough to let the price drop all the way back down.

Thanks for helping me understand :)

Tat
Nakota Joe Nakota
Macabre Votum
Northern Coalition.
#10 - 2016-11-28 03:14:09 UTC
Tatanka Startamer wrote:
I'm looking to open a corp office in the station I've been based in, and it's ~9M ISK/month, with 9 office slots open. Another station in the same system, with the same services, and 8 open slots is ~800K ISK/month. Any idea why one is so much more than the other? Especially when it seems they ought to be pretty similar.

Tat

it may be that the owner of the station saw that they were down to 9 offices left and wanted to get a premium for them. dunno for sure if they can do that....but it is there.
Tatanka Startamer
Rio Nova
#11 - 2016-11-28 03:42:09 UTC
These are NPC corp stations, so I don't think that's possible. I think it's the algorithm linked above.
Alphea Abbra
Project Promethion
#12 - 2016-11-28 11:36:23 UTC
Tatanka Startamer wrote:
OK, from reading the item linked, I think I understand.....

The fact that the current # of free slots is the same/similar means nothing. The only thing that EVER raises the price from the 10K/month base is being full up. When there are at least 2 open slots, the price can drop. So the Industry station was full, and stayed that way for a while, and now that there are many openings, the price is falling. In the last 6 days, I've seen it fall from 8.9M to ~8.4M. The neighboring station with clone bay is 10K/month (the minimum), with the same number of openings. That tells me that station has NEVER been full, since the price has never increased. Or, had been full, seen an increase, and then has had at least 2 openings for long enough to let the price drop all the way back down.

Thanks for helping me understand :)

Tat
Yep, you're right on the nail. Next time, you can save yourself time (And possibly wrong, if well-intended, answers) by checking EVE University Wiki first. Smile
As for why the industry station is seen as more valuable than the clone bay one, Bjorn Tyrsons answer is probably the explanation in this case.

Roenok Baalnorn wrote:
Dont take my word for it but i believe it has to do with station traffic. How many people are in and out of the station. Its a silly mechanic but the only one i can find to explain the differences in cost. For example if you were to rent an office in jita 4-4 it would cost you in the billions. Ive noticed over time that stations that are busier seem to have higher rental fees.
You say this after a link to the correct answer has been posted, and it has been quoted, and explained. I like the preface of "don't take my word for it", though. It means very little, but at least you acknowledge that you didn't check or confirm it yourself.
Traffic and office cost may be correlated, but there's no causal relationship between the two. Check the correct answers, or Tatankas explanation of the specific situation, if you want to know more. Smile