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Industry, some questions
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Jazirah
Deep Core Mining Inc.
Caldari State
#1 - 2016-05-25 10:09:38 UTC
Hi guys,

a few weeks ago I started my industry career in EVE and did good so far, all the citadel stuff brought me a good amount of ISK.
But now, since prices are hitting rock bottom, I have to rearrange myself, looking for new stuff to produce.

For real good margins you have to produce T2 modules as I've figured. But really, how to do that? Since you have to invent your T2 BPCs..
Let's take DC II for instance. There is a rough profit of 130k per item if I buy the materials needed. If I use, let's say an Optimized Attainment Decryptor, I land at a raw cost of 4,3m only for the invention. Since I get a BPC with 12 runs from that, I'm loosing 2,7m just for that.

What did I miss? I heard that there are no T2 BPOs anymore, because the ones that were lucky enough to get some, will hoard it like there is no tomorrow. But how will you be effective at that? Or effective in general, because T1 stuff sucks all across the board. Makes no sense to produce ammo for, let's say, 15m turnover(!) a day.

I hope someone can bring some light on that.

Thanks
Tipa Riot
Federal Navy Academy
Gallente Federation
#2 - 2016-05-25 10:48:42 UTC  |  Edited by: Tipa Riot
For some established items there exist T2 BPOs influencing the market price, for others you just compete with fully integrated industrialists, who produce every component on their own or have access to a corp/alliance supply including PI and reactions. Also for mass products you certainly can use a much cheaper invention setup. The Optimized Attainment decryptor is only useful if time is more important than costs and for high value products with long invention cycles.

After Citadel there was/is a unique situation, with lots of new (T2) stuff newly introduced with all producers starting from zero, with some nice profit opportunities. The key (of course) is to find stuff to produce which sells above your production costs for a longer period of time. Vertical integration helps here a lot, producing intermediate products, doing PI. If you dont have the skills for the T2 capital stuff, you can also just produce and sell the intermediate products and T1 versions others need for their T2 production and still make a decent profit.

Useful links:
http://eve-industry.org/calc/
http://eve-productions.org/
https://www.fuzzwork.co.uk/pi/

I'm my own NPC alt.
Do Little
Bluenose Trading
#3 - 2016-05-25 16:36:07 UTC
Decryptor cost needs to be justified against the cost of datacores - you're getting more blueprints, not more products. Consider them for high value, low run inventions like ships and rigs, I don't think they can be justified for modules - cheaper to buy the datacores for another invention run.

I use parity decryptor for T2 ships and rigs. Optimized attainment for T3 destroyer hull sections.

There will always be products you can make and sell profitably but it won't always be the same products. The market is cyclical. Use the price history tab in the market app to study the cycle for anything you are thinking of building.

Also, vertical integration does help. If you can harvest your own PI or mine your own minerals, you won't need to buy them.
Scarlett LaBlanc
University of Caille
Gallente Federation
#4 - 2016-05-26 11:20:40 UTC
Jazirah wrote:

because T1 stuff sucks all across the board.


Thanks


No, that's not true. You really have to look for the items with good volume and acceptable margins.

I average 20% profit on the T1 items I manufacture, you just have to do the research.
Sara Starbuck
Adamantine Creations
#5 - 2016-05-26 16:26:12 UTC
Do Little wrote:

Also, vertical integration does help. If you can harvest your own PI or mine your own minerals, you won't need to buy them.


REALLY, this idea still comes up? Ugh

Other points were right though, save the expensive decryptors on more expensive items.
The decryptor you want to use on particular item depends on the price of materials greatly for example. Sometimes you might value faster production also. I was using EVEIPH a lot when i used to make T2 stuff with them.
Scarlett LaBlanc
University of Caille
Gallente Federation
#6 - 2016-05-27 16:06:04 UTC
Sara Starbuck wrote:
Do Little wrote:

Also, vertical integration does help. If you can harvest your own PI or mine your own minerals, you won't need to buy them.


REALLY, this idea still comes up? Ugh

.


Sarah is right, and I'm not trying to step on her post but want to explain it. If you don't know why the comment was "bad" you wont know why it is "wrong"....

Saying that "If you mine your own materials you wont have to buy them" is a fallacy. You DID BUY them, just not with ISK. You bought them with TIME. That was time you could have used to do something else to make ISK.

If you spent an hour mining 20 Million ISK in minerals but could have spent that hour doing activity X and made 35 Million ISK, you could have then bought your minerals and still had 15 Million MORE ISK in your pocket.

If your going to mine any way peachy, if you enjoy PI thats fine also. Just remember that because you gathered it, it does not make it "free".