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Lots of products cost more to produce than to buy..

Author
Lizzetta Maken
Science and Trade Institute
Caldari State
#1 - 2015-07-13 07:20:22 UTC
Has this always been so? How does this really work?

Let`s take Mantis as an example. Sold in jita for about 27 000 000 and costs about 45 000 000 to build.

I am sure this has a perfectly good explanation, I just need to understand how this happens and why to better understand the market.

Help me? Smile
pushdogg
relocation LLC.
#2 - 2015-07-13 07:28:43 UTC
The ones making that stuff don't purchase the materials, that doesn't make them free....but it makes their bottom line a little different.

Researched bpo`s help, as well as a knowledge of the market and it's inner workings.

Manufacture is a bad way of making isk in my experience , the ones doing it have a firm foothold and have for a while.

I would pick another way to make isk.
McBorsk
Multispace Technologies Inc
#3 - 2015-07-13 07:35:18 UTC
About 5-10 mantis sold per day in jita. Some very old sell orders. I think the price is low because there is little demand.
Lizzetta Maken
Science and Trade Institute
Caldari State
#4 - 2015-07-13 07:36:44 UTC
Thnx..

It is a complex game. This helped a lot.

Tiddle Jr
Brutor Tribe
Minmatar Republic
#5 - 2015-07-13 07:55:48 UTC
As soon as you find fhe way of cheap source of materials required to produce goodies you are on the right path.

If you buying ore/minerals from market, then you should find the right goodies to produes in the first line which grant you a small but constant income and then you could spread it out. Don't forget about skills/implants.

"The message is that there are known knowns. There are things we know that we know. There are known unknowns. That is to say there are things that we now know we don't know. But there are also unknown unknowns. There are things we don't know" - CCP

Ima Wreckyou
The Conference Elite
The Conference
#6 - 2015-07-13 08:20:33 UTC
I hear a lot of good things about ore buyback programs.
Nevyn Auscent
Broke Sauce
#7 - 2015-07-13 10:10:07 UTC
Tiddle Jr wrote:
As soon as you find fhe way of cheap source of materials required to produce goodies you are on the right path.

If you buying ore/minerals from market, then you should find the right goodies to produes in the first line which grant you a small but constant income and then you could spread it out. Don't forget about skills/implants.

Except even if you get the materials cheaper than market, you still have to calculate using market value to decide if you should just sell the materials instead.

But basically A: some people can't do the right maths.
And B: Some items are old stockpiles which had reduced minerals or something to build.

Just build something else.
Teckos Pech
Hogyoku
Goonswarm Federation
#8 - 2015-07-13 10:19:47 UTC
Nevyn Auscent wrote:
Tiddle Jr wrote:
As soon as you find fhe way of cheap source of materials required to produce goodies you are on the right path.

If you buying ore/minerals from market, then you should find the right goodies to produes in the first line which grant you a small but constant income and then you could spread it out. Don't forget about skills/implants.

Except even if you get the materials cheaper than market, you still have to calculate using market value to decide if you should just sell the materials instead.

But basically A: some people can't do the right maths.
And B: Some items are old stockpiles which had reduced minerals or something to build.

Just build something else.


Or more simply, opportunity cost.

Some people just don't get opportunity cost. You should buy their stuff at the reduced price, hold and resell at the higher price.

"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."--Friedrich August von Hayek

8 Golden Rules for EVE Online

Angelica Dreamstar
Aliastra
Gallente Federation
#9 - 2015-07-13 10:25:56 UTC
Lower your production costs by stealing ore from MTUs and jetcans. If you get a sudden boost of 50k ore you know you are doing it right. Though I admit that I don't mine for isk (silly idea anyway) and don't care about productiom costs at all. Undercutting everything is a nice way to mess with people. Lol

bingo, his pig not being a goat doesn't make the pig wrong, just him an idiot for shouting at his pig "WHY ARENT YOU A GOAT!" (Source)

-- Ralph King-Griffin, about deranged people playing EVE ONLINE

Chribba
Otherworld Enterprises
Otherworld Empire
#10 - 2015-07-13 11:28:08 UTC
I mine my ore hence it's free Lol

Or maybe I'm just dumping the market on purpose... Twisted

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Visit my in-game channel 'Holy Veldspar'

Twitter @ChribbaVeldspar

Nortion Adoulin
Not Listed
#11 - 2015-07-13 11:45:41 UTC
Chribba wrote:
I mine my ore hence it's free Lol

Or maybe I'm just dumping the market on purpose... Twisted


No its not FREE!

If your making products and selling them for little more than the cost of the materials used to make them then you may as well just sell the ore and stop wasting your time and isk building things for next to no profit. You could be doing other more profitable things insetad.
Lulu Lunette
Savage Moon Society
#12 - 2015-07-13 11:46:31 UTC
I've recently also figured out that people must mine or gather the materials 'for free'

@lunettelulu7

Neuntausend
Republic Military School
Minmatar Republic
#13 - 2015-07-13 12:02:37 UTC  |  Edited by: Neuntausend
Nortion Adoulin wrote:
No its not FREE!


Congrats on falling for a Chribba troll. I think it's a safe bet to say that Chribba knows what the **** when it comes to minerals.

I think, the main problem here is, that the market for Mantis Fighter Bombers isn't all that big. Only Super-Pilots will ever need them, and they will probably get their Fighter Bombers from the same person they get their Super from. And once they have them, they don't lose them all that often. And there are 3 (4) more Fighter Bombers, and I suppose Mantisises aren't used all that often, all I ever seem to see are Tyrfing.
Jack Morrison
Team Liquid crp.
#14 - 2015-07-13 12:13:09 UTC
Another example - liquid ozone. Guess it's not worth that much in a trade hub.
You go to a lowsec system with a hisec connection near Jita - oh and suddenly people might wanna buy your stuff for a markup of 200-300%.

Ammo - same here, might be more worth more selling it in a mission running hub.

Looking for a group to pew with ? Have a chat with me.

Jenshae Chiroptera
#15 - 2015-07-13 12:15:10 UTC
There are a heap of ways to cut costs, one is to have an alt with max skills, max implant and a POS to refine ores.

CCP - Building ant hills and magnifying glasses for fat kids

Not even once

EVE is becoming shallow and puerile; it will satisfy neither the veteran nor the "WoW" type crowd in the transition.

Carrie-Anne Moss
The Scope
Gallente Federation
#16 - 2015-07-13 12:19:30 UTC
Ima Wreckyou wrote:
I hear a lot of good things about ore buyback programs.

Yeah a lot of hisec bear indy corps basically enlsave newbros and have them sell their ore to corp buyback programs where the ceo buys the ore for less than jita value then just haul it to jita themselves and sell for real jita value
Chribba
Otherworld Enterprises
Otherworld Empire
#17 - 2015-07-13 12:46:41 UTC
Nortion Adoulin wrote:
Chribba wrote:
I mine my ore hence it's free Lol

Or maybe I'm just dumping the market on purpose... Twisted


No its not FREE!

If your making products and selling them for little more than the cost of the materials used to make them then you may as well just sell the ore and stop wasting your time and isk building things for next to no profit. You could be doing other more profitable things insetad.

I can assure you, that the ore I mine is free regardless of me selling the end item for 5 million or 25 million, and regardless of its "actual" market value. You're just suggesting I could do other things that are more profitable, that still doesn't change the fact that the ore is free to me (as time is not a cost for me).

So whilst I mine things and sell them for less the value of the unrefined ore, then content of what I sold is just as free as if I would make profit from it - it might be silly and stupid way to do things, and maybe a waste of time - but it's still free so...

And while a waste of time and perhaps inefficient it's a nice way to dump markets for whatever the reasons may be Pirate

/c

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Visit my in-game channel 'Holy Veldspar'

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Divine Entervention
Doomheim
#18 - 2015-07-13 13:03:16 UTC
Ore isn't free.

Time = money. If you spend any time mining ore, then that ore has a time cost.
Conar
My Wormhole Hurts
#19 - 2015-07-13 13:22:24 UTC

".....Or more simply, opportunity cost."

I too have been the piano player banging his head trying to figure this out. I have decided to take a different approach to explain this behavior.

Perhaps the loss of isk is balanced with the enjoyment of production/sale of the item. Clicking the "Deliver" button on a production and/or waking up in the morning to see all of the items put on the market have been sold.

After all, that is why we are all here in the first place. The enjoyment of production/sale is greater then the isk lost.

My 1.5 cents

Conar 07

Frostys Virpio
State War Academy
Caldari State
#20 - 2015-07-13 13:27:04 UTC
Divine Entervention wrote:
Ore isn't free.

Time = money. If you spend any time mining ore, then that ore has a time cost.


The guy mines with dreads and titans. Do you really think he gives a damn about the time cost of his mining antics?
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