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Vargur market officially saturated.

Author
THE 3V3Merchant
Treasure Hunter Enterprises
#1 - 2013-12-23 20:54:58 UTC
Sigh, I can only laugh as people continue to undercut each other to the point where they are *technically* losing money given the cost value of the BPC and the cost of materials.

I've only got one left to sell but I think that just became a mission running ship lol.

It was a nice ride while it lasted. Made plenty of isk.

BPC = 80 mil value
Cost of materials = 870 mil

cost to build 950 mil.

Current sell prices 962 mil

Taxes = 14 mil

Net profit - 2,000,000 isk

LOL.....

You can build almost ANY other T2 cruiser and make 5 times the profit per build time. Gotta love EVE economics.

Now all of you stay out of my golem market!
Garnoo
Eternity INC.
Goonswarm Federation
#2 - 2013-12-24 00:18:04 UTC
toure missing one line:
Cost of materials using bpc's before patch...

bpc mineral quotes after rebalancing ships usually changes...

People are going to try to ruin your day. Get together with others, ruin their day back -  EvE

Xurr
Wasted Potential.
#3 - 2013-12-24 01:38:47 UTC
What?

Vargurs are highly profitable right now.

I could make up some numbers too, but i won't.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#4 - 2013-12-24 08:15:42 UTC
https://www.fuzzwork.co.uk/blueprints/0/28665/-1/5/-1/5

Try a process decryptor. cost per successful invention, around 36 million.

sells for around 64 million more than the material cost, so that's around a 28 million profit., with all components bought from the market.

Around 383k isk per hour (adjusted to a 24 hour production cycle. So 2 days per ship)

More profit could be squeezed out of some of the components, though some are selling below cost right now.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Sabriz Adoudel
Move along there is nothing here
#5 - 2013-12-24 08:59:35 UTC
People use decryptors other than Process on inventing Maruaders? Now that Process costs only 2-3m per unit?

Mind blown. Not in a good way.

I would use Process on anything with a build cost in the low to middle nine figures or higher, unless there are extreme circumstances, such as a very brief window where you can sell huge numbers at huge margins, in which case I'd use the optimized attainment decryptor and/or symmetry.

I support the New Order and CODE. alliance. www.minerbumping.com

THE 3V3Merchant
Treasure Hunter Enterprises
#6 - 2013-12-24 16:42:13 UTC
Steve Ronuken wrote:
https://www.fuzzwork.co.uk/blueprints/0/28665/-1/5/-1/5

Try a process decryptor. cost per successful invention, around 36 million.

sells for around 64 million more than the material cost, so that's around a 28 million profit., with all components bought from the market.

Around 383k isk per hour (adjusted to a 24 hour production cycle. So 2 days per ship)

More profit could be squeezed out of some of the components, though some are selling below cost right now.



this is where people are losing money. you have to take into account the market value of the BPC not the cost of making it.
Xurr
Wasted Potential.
#7 - 2013-12-24 19:31:13 UTC
THE 3V3Merchant wrote:
Steve Ronuken wrote:
https://www.fuzzwork.co.uk/blueprints/0/28665/-1/5/-1/5

Try a process decryptor. cost per successful invention, around 36 million.

sells for around 64 million more than the material cost, so that's around a 28 million profit., with all components bought from the market.

Around 383k isk per hour (adjusted to a 24 hour production cycle. So 2 days per ship)

More profit could be squeezed out of some of the components, though some are selling below cost right now.



this is where people are losing money. you have to take into account the market value of the BPC not the cost of making it.


No. Just no.

For your absurd cost of 80 million that would mean valuing a 1 run bpc at 12 million isk. Absolutely asinine.

A 1 run bpc takes around 10 hours. By your valuation 1.2 million/hour. Or put differently you apparently value a copy slot at 864mil/mo.

Vargurs are profitable. Your valuation of 1 run bpcs is way out of line.
THE 3V3Merchant
Treasure Hunter Enterprises
#8 - 2013-12-24 23:14:45 UTC
Xurr wrote:
THE 3V3Merchant wrote:
Steve Ronuken wrote:
https://www.fuzzwork.co.uk/blueprints/0/28665/-1/5/-1/5

Try a process decryptor. cost per successful invention, around 36 million.

sells for around 64 million more than the material cost, so that's around a 28 million profit., with all components bought from the market.

Around 383k isk per hour (adjusted to a 24 hour production cycle. So 2 days per ship)

More profit could be squeezed out of some of the components, though some are selling below cost right now.



this is where people are losing money. you have to take into account the market value of the BPC not the cost of making it.


No. Just no.

For your absurd cost of 80 million that would mean valuing a 1 run bpc at 12 million isk. Absolutely asinine.

A 1 run bpc takes around 10 hours. By your valuation 1.2 million/hour. Or put differently you apparently value a copy slot at 864mil/mo.

Vargurs are profitable. Your valuation of 1 run bpcs is way out of line.



Perhaps you need an education in supply and demand, value is dictated by what a another player is willing to pay for it. Not what you think it should be worth.

Thus if people are willing to spend 80 mil on a Vargur BPC, then it's worth 80 mil and that value should be considered in the manufacturing cost. Otherwise you're throwing isk out the window because your ignorant of the actual value and are following your small minded perception of value.

If you want to continue basing your sell price on the cost of invention rather than the value of the BPC, then fine it's your loss. You're letting emotion dictate what you should do instead of making a logical intelligent business minded decision. Invention is chance based, so you make sure that's taken into consideration as well if you're calculating it on a 100% success rate then again, you're only costing yourself money.

but do what you want the cheaper the ships are the happier the players who buy them are. I'm out of that market and making much higher profit margins in other T2 ships now. I don't mind players saturating markets by the time that happens I've long made my money.
Xurr
Wasted Potential.
#9 - 2013-12-24 23:38:14 UTC  |  Edited by: Xurr
People arn't willing to pay 80 million for a vargur bpc so your whole premise is bunk.

And no, 1 sale a week doesn't cut it.

You've changed this thread from OMG I'm losing money selling vargurs into a thread about theoretical bpc prices on very low volume items.

By the way you were selling vargurs according to your OP. "I've only got one left to sell but..." so any future claim about how you are making trillions selling bpcs has already been undone.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#10 - 2013-12-25 21:29:58 UTC
There are three values you can assign to a T2 BPC.

What it costs you to make it. (I'll admit, the numbers I provided didn't include the a value for the T1 BPC required.)
What you can sell it for.
A fraction of the manufacturing profit.

I tend to go for the first one, as it's pretty much the only value you can easily pin a number to. The T2 BPC market is reasonably minimal, and tends to follow the first one in price. And going by the manufacturing profit introduces a whole bunch of arguments about what fraction is reasonable.

As an aside, the numbers I gave were based off a low skill inventor, and they did take into account failure, on the material costs. not for slot costs, or pos costs, but those are highly subjective numbers.


If you can sell your BPCs at 80 million a pop, go for it. Make your profit. If you can't, then they no longer have that value. You can't say: Things have the value that people are willing to buy them at. Then say: Things have the value people used to buy them at. Values change.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Egravant Alduin
Ascendance Rising
Ascendance..
#11 - 2013-12-28 14:14:29 UTC
I think generally manufacturing leaves you with very low profit now days since many many characters do it.I got production efficiency 5 and still haven t used it a lot and I regret spending the days needed.I think CCp needs new manufacturing stuff to be added like a very low chance based unique item created from another item

Feel the wrath of the GECKO!