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Is Jita the cheapest source for materials?
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Tarok Nextrid
Doomheim
#1 - 2012-01-29 19:09:39 UTC
I'm building up a manufacturing empire and trying to source materials effectively.

Right now I'm buying about 100M of materials 2-3 times per week from another trade hub which is closer to my base of operations, but I'm wondering if Jita is usually the cheapest source for raw materials/minerals. Would it be a better idea to buy from Jita and haul it to where I'm doing the manufacturing (about 20 jumps from Jita).
Ave Volta
Perkone
Caldari State
#2 - 2012-01-29 19:49:53 UTC
If you are only buying 200 - 300m worth of mins a week, you can probably buy and move the mins to your production station from the local markets for cheaper than doing so from Jita.

Currently Jita mineral prices are a bit higher then other trade hubs. This mostly has to do with the fact that buyers of large volumes have fewer options to consistently fill their orders.

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Frost Mistress
Angel Heart Ammo Co.
#3 - 2012-01-30 05:02:05 UTC
Here is the thing. If Jita meant you could always buy at the cheapest price anywhere, than sellers would be able to sell for a higher price everywhere. This of course would mean that no one would want to sell in Jita. What you do get is competitive prices and high volume. You won’t get the cheapest price per say but you will get a good price and be able to fill all your needs from one station in most cases limiting the need to jump many systems. At the same time you can normally sell at much HIGHER prices to buy orders as an influx of customers are attempting to quickly fill their orders.

What I suggest is you find a nearby mining system. Look for one with 10+ belts. Once found place BUY orders for your minerals. You can often times buy for much cheaper than dealing with bots playing the .01 isk game. The downside is you will fill your orders slower but if you are buying once a week you know you will need the mates in advanced and just need to wait for the order to be filled.

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Cyniac
Federal Navy Academy
Gallente Federation
#4 - 2012-01-30 13:10:14 UTC
In other words - Jita is neither the cheapest nor the most expensive.

It is however the most reliable market with the biggest volumes around. And when turnover is the basis of profit, that's something quite valuable.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#5 - 2012-01-30 14:20:13 UTC
Remember, just because you got the materials cheaper, that doesn't mean you need to price everything cheaper.

Or you could just take those materials, ship them to Jita, and sell them, making a profit without the time to manufacture things.

This is a corollary to the statement 'Minerals you mine are not free'. It's not to say you won't make a profit. It's just a trade profit, rather than a manufacturing profit. (i.e. buy minerals that you could sell in Jita for 400 million, for 350 million. Make a ship with them and sell it for 375. yes you make a 25 million profit. but you're giving up on a 50 million profit by doing so)

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Tarok Nextrid
Doomheim
#6 - 2012-01-30 16:21:10 UTC
Steve Ronuken wrote:
Remember, just because you got the materials cheaper, that doesn't mean you need to price everything cheaper.


Oh yeah, I'm not looking for cheaper materials to sell for cheaper, I'm trying to increase my profit margins :) Right now I'm making various ship modules that cost me usually about 12,000 per unit to make, but I'm selling them for about 19,000 per unit (on average, I'm experimenting with about a dozen different modules right now). There's a good profit margin and I'm consistently selling out my inventory, but I'm trying to figure out how to increase the profit margin on what I'm selling without having to spend a ton more time working at it (right now I play for maybe 30 mins/day maintaining this).
Liberty Eternal
The Scope
Gallente Federation
#7 - 2012-02-01 12:12:40 UTC
Tarok Nextrid wrote:
I'm building up a manufacturing empire and trying to source materials effectively.

Right now I'm buying about 100M of materials 2-3 times per week from another trade hub which is closer to my base of operations, but I'm wondering if Jita is usually the cheapest source for raw materials/minerals. Would it be a better idea to buy from Jita and haul it to where I'm doing the manufacturing (about 20 jumps from Jita).



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Srioghal moDhream
Perkone
Caldari State
#8 - 2012-02-01 13:38:53 UTC
Good trade skills (accounting & broker relationship) and good standings with the corp and faction of the station you are trading in can make a decent difference in your GM, if you don't already have those.
Nuela
WoT Misfits
#9 - 2012-02-07 15:23:55 UTC
Cyniac wrote:
In other words - Jita is neither the cheapest nor the most expensive.

It is however the most reliable market with the biggest volumes around. And when turnover is the basis of profit, that's something quite valuable.



In Wall Street parlance...

Jita provides liquidity. Liquidity is extremely important...however most people in real life don't think it is as valuable as it is until they are stuck in an illiquid situation.
Buruk Utama
Science and Trade Institute
Caldari State
#10 - 2012-02-07 15:32:01 UTC
Nuela wrote:
Jita provides liquidity. Liquidity is extremely important...however most people in real life don't think it is as valuable as it is until they are stuck in an illiquid situation.


Jita is one of the best places to get high quantity of goods, except PI. At 500-800k unit/week needs I find even there can be lacking supply wise.
Nuela
WoT Misfits
#11 - 2012-02-07 16:23:17 UTC
Buruk Utama wrote:
Nuela wrote:
Jita provides liquidity. Liquidity is extremely important...however most people in real life don't think it is as valuable as it is until they are stuck in an illiquid situation.


Jita is one of the best places to get high quantity of goods, except PI. At 500-800k unit/week needs I find even there can be lacking supply wise.




Sounds like PI prices need to rise to increase supply...