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Dear 'Industrialists'

Author
Aaron Knossos
Doomheim
#1 - 2011-12-31 02:45:53 UTC
Just because you mined those minerals yourself, doesn't mean they are free. They have a value, as determined by the buy orders in your region.

While I'm very impressed with that Caracal that you built all by yourself, you're selling it for 3.5 million ISK. If you had sold the minerals instead, you'd have 4 million.

Please l2math.
Brock Nelson
#2 - 2011-12-31 03:15:35 UTC
Somebody butt hurt by the "free mineralist"

Signature removed, CCP Phantom

Derath Ellecon
University of Caille
Gallente Federation
#3 - 2011-12-31 03:32:11 UTC
The main problem with the "minerals I mine are free" argument is that this is a GAME.

If this were a real business in the real world it would be one thing. But for some it is a valid point that if they enjoy mining, and then making stuff with it and then selling it for whatever, its all good.

Heck by the same argument nobody should ever PVP. I cannot ever thing of a time where I made isk from PVP. So everyone should stop killing and ganking each other cause you know you are losing money by doing so...
Dersk
Perkone
Caldari State
#4 - 2011-12-31 03:44:32 UTC
Move to blueprints that have a prerequisite higher than "industry 1" and this problem goes away.
Mu-Shi Ai
Hosono House
#5 - 2011-12-31 03:51:35 UTC  |  Edited by: Mu-Shi Ai
OP, and those who make the same argument, are only partly right. If the value of the effort required of you to mine those minerals was worth less than buy orders for those minerals in your region, that argument doesn't really apply. Mining is something that a lot of people can do semi-AFK, channelling their effort in multiple directions at once. For example, one might say "If I weren't mining while watching a movie, I'd simply just be watching a movie anyway." In that case, the value of that particular round of effort may come in well below the value of regional buy orders for mineral X.

One of the constants of EVE is that there's no one-size-fits-all way to assess the value of an individual player's efforts. This is why the "minerals are not free" argument, while it holds water in the real world, doesn't cross over quite as nicely to the game world of EVE. This goes, as well, for any argument which states "You could be doing X to make more money, therefore you fail." Well yes, of course. We could all be playing the game the way you play it. But we aren't. And most players aren't. So ... uh ... yeah.
Jorn Isu
Caldari Provisions
Caldari State
#6 - 2011-12-31 03:55:34 UTC  |  Edited by: Jorn Isu
Mu-Shi Ai wrote:
OP, and those who make the same argument, are only partly right. If the value of the effort required of you to mine those minerals was worth less than buy orders for those minerals in your region, that argument doesn't really apply. Mining is something that a lot of people can do semi-AFK, channelling their effort in multiple directions at once. For example, one might say "If I weren't mining while watching a movie, I'd simply just be watching a movie anyway." In that case, the value of that particular round of effort may come in well below the value of regional buy orders for mineral X.

One of the constants of EVE is that there's no one-size-fits-all way to assess the value of an individual player's efforts. This is why the "minerals are not free" argument, while it holds water in the real world, doesn't cross over quite as nicely to the game world of EVE.

But, from a business perspective, it's correct to seperate the actions out.

So, here's what our industrialist did:

1) He went and mined 100k Trit, and make 365k ISK worth of value
2) He built a bunch of ****, which he then sold on the market for 250k. He quite literally destroyed 115k ISK of value in this step.

Net profit? 250k. But building his **** for 250k was a stupid decision. Not saying he's not allowed to make said decision, but it is a bad one.
Mu-Shi Ai
Hosono House
#7 - 2011-12-31 04:37:18 UTC  |  Edited by: Mu-Shi Ai
Jorn Isu wrote:
But, from a business perspective, it's correct to seperate the actions out.

So, here's what our industrialist did:

1) He went and mined 100k Trit, and make 365k ISK worth of value
2) He built a bunch of ****, which he then sold on the market for 250k. He quite literally destroyed 115k ISK of value in this step.

Net profit? 250k. But building his **** for 250k was a stupid decision. Not saying he's not allowed to make said decision, but it is a bad one.


I'm sure there are any number of other more profitable things you could be doing in the game. Why aren't you doing them? How is deciding to mine minerals and build stuff with them instead of just selling the minerals different than any of the other countless decisions one could make about how to play the game, and which ultimately affect the amount of ISK they make?

Just because mining/manufacturing looks more like a "business" than pirating in lowsec doesn't mean that decisions about roleplaying, or simply doing what you find desirable, don't or shouldn't come into play. Seriously, if everybody were forced to play the game as dispassionately as you seem to think they should, there probably wouldn't be much of anybody playing it at all.
Zifrian
The Frog Pond
Ribbit.
#8 - 2011-12-31 04:39:45 UTC
Hey look! A dead horse! Everyone go!

Maximze your Industry Potential! - Download EVE Isk per Hour!

Import CCP's SDE - EVE SDE Database Builder

Professor Alphane
Les Corsaires Diable
#9 - 2011-12-31 04:46:04 UTC
Aaron Knossos wrote:


Please l2math.



l2buycheapstuffandsellataprofit

[center]YOU MUST THINK FIRST....[/center] [center]"I sit with the broken angels clutching at straws and nursing our scars.." - Marillion [/center] [center]The wise man watches the rise and fall of fools from afar[/center]

Esunisen
Les Tueurs de Killer
#10 - 2011-12-31 09:37:01 UTC
Buy all Caracals, reprocess, sell minerals, collect profit, repeat. Lol
Etanna
Nexis.
#11 - 2011-12-31 11:43:26 UTC
Zifrian wrote:
Hey look! A dead horse! Everyone go!


Damn it! Missed the band wagon again!
Akita T
Caldari Navy Volunteer Task Force
#12 - 2011-12-31 16:00:56 UTC  |  Edited by: Akita T
You are confusing "free" (as in "at no monetary charge") with "worthless" (or "worth less than market price").

Ore you mined yourself (or received as a gift) is technically free. You don't (usually) pay ISK for it. You (or somebody else) pay cash for the privilege of you being able to play to get that ore, but that's a different story and it (normally) involves no in-game ISK. Ore in this case (self-mined or received as gift or even can-stolen) is, as I said, TECHNICALLY "free", since you PAID NO ISK (you still paid something else, but again, another story).
Then again, so is ISK. You (generally) don't pay ISK to get ISK (with a few exceptions, oops, another story), so technically, ISK is almost just as free too.

What ore IS NOT in either of those cases is worthless or worth less than market price (adjusting for regional prices, hauling costs, various fees or whatnot - but, again, yet another different story).

...

So, to recap : ore/minerals you get yourself ARE free, but they're NOT worthless nor worth less than market price.

HOWEVER, some people might value some other things you can not see even higher than that, and it's hard to put an ISK pricetag on "fun".
Who's to say those people don't find selling stuff below material worth to be "fun" ? I've seen stranger things happen. And afterall, most people make ISK to spend in order to have fun, so... see where this is going ?
If you want to profit from their "having fun", DO NOT rage about how they kill your market - instead, buy their cheap stuff and either refine it or relist it at whatever price you deem "appropriate".

In the end, we can probably all agree it's a bad BUSINESS decision, and if the person in question CLAIMS to make more profit that way, he's usually dead wrong. But it's not always about a business decision, and it's not always about maximum profits, as weird as that might look to you or me.
Zhu Khan
Khanid Arbitrage Incorporated
#13 - 2011-12-31 16:26:48 UTC
I honestly think "free" miner industrialists have generated more tears than the combined efforts of every suicide ganker in the game. I believe Esunisen summed up the appropriate actions to take.
Bugsy VanHalen
Society of lost Souls
#14 - 2012-01-02 00:29:30 UTC
Mu-Shi Ai wrote:
OP, and those who make the same argument, are only partly right. If the value of the effort required of you to mine those minerals was worth less than buy orders for those minerals in your region, that argument doesn't really apply. Mining is something that a lot of people can do semi-AFK, channelling their effort in multiple directions at once. For example, one might say "If I weren't mining while watching a movie, I'd simply just be watching a movie anyway." In that case, the value of that particular round of effort may come in well below the value of regional buy orders for mineral X.

One of the constants of EVE is that there's no one-size-fits-all way to assess the value of an individual player's efforts. This is why the "minerals are not free" argument, while it holds water in the real world, doesn't cross over quite as nicely to the game world of EVE. This goes, as well, for any argument which states "You could be doing X to make more money, therefore you fail." Well yes, of course. We could all be playing the game the way you play it. But we aren't. And most players aren't. So ... uh ... yeah.


Yes very true that what you value your time at can make the minerals you afk or semi afk mine basically free. the fact remains that if you sell stuff you build below your regions mineral value you would make more isk just selling the minerals. So your argument that minerals are free if you akf or semi afk mine them means nothing.

If you are mining minerals to manufacture stuff for your own use then fine. your time may be worth less than you would have needed to spend to buy the stuff.

But if you are doing it to sell i.e. to make isk than selling items below there regional mineral value you are losing money. you would have more isk at the end of the day if you just sold the minerals.

The fact that you afk mined the minerals and consider the minerals as free is irrelevant. regardless you would still be making more isk selling the raw materials than making them into modules and selling what you made for less than its raw mineral value.

If you are just doing it to try out the manufacturing part of the game than the more power to you. just remember that all that stuff you put your time into making is most likely getting bought just to reprocess it back into minerals as you sold it for less than its mineral value.

If you seriously want to get into manufacturing it takes a lot of isk to get set up properly. You would reach your goal much faster by just mining and selling minerals while you train the needed manufacturing skills than by selling stuff you made at less than mineral value.
Derath Ellecon
University of Caille
Gallente Federation
#15 - 2012-01-02 00:37:23 UTC
The main issue in all of these threads is in trying to apply real life ideas to a GAME.
Bugsy VanHalen
Society of lost Souls
#16 - 2012-01-02 00:47:49 UTC
Derath Ellecon wrote:
The main issue in all of these threads is in trying to apply real life ideas to a GAME.


A GAME with a player controlled economy.

It only make sense that it would stir up debate just as the real world economy does.

just nobody kills themselves when they lose billions in a game.

Many players do take it very seriously. And will defend there opinions.

That is what debate is all about. Many people enjoy debating just as many enjoy mining regardless of the return.

Gabba Cyno
#17 - 2012-01-02 00:53:38 UTC
Op. why do you care what someone else does? Enjoy the game for you and quit worrying about what some other guy is doing

.

Derath Ellecon
University of Caille
Gallente Federation
#18 - 2012-01-02 01:27:54 UTC
Bugsy VanHalen wrote:
Derath Ellecon wrote:
The main issue in all of these threads is in trying to apply real life ideas to a GAME.


A GAME with a player controlled economy.

It only make sense that it would stir up debate just as the real world economy does.

just nobody kills themselves when they lose billions in a game.

Many players do take it very seriously. And will defend there opinions.

That is what debate is all about. Many people enjoy debating just as many enjoy mining regardless of the return.




Yes a player driven economy. But still a game. The key factor there is that people will do things that don't make financial sense because they don't care. They don't care because what they are doing gives them enjoyment.

In general, from what I've seen, serious industrialists don't even bother to mine, as there is no way for them to mine enough minerals to feed their industrial machine. In that sense you could argue that people who mine their own minerals for building are wasting their time.

But some people like making things from start to finish. And maybe they just enjoy the thrill of seeing their item sold. But they don't enjoy playing the market game, and as such sell their items low to just get it sold. They don't care because it still gives them enjoyment.

I'm sure many traders laugh at me for selling billions of sleeper loot to buy orders in jita. But I don't have an interest in maintaing sell orders. I am sure I have thrown away billions in potential profits this way, but who cares? I have gotten enjoyment from the aspects of eve that I enjoy, and bypass the parts that feel too much like my real job.

Not trying to stop the debate by the way. Just offering a viewpoint other than "those people are dumb and don't understand math"

Henry Haphorn
Killer Yankee
#19 - 2012-01-02 02:34:21 UTC  |  Edited by: Henry Haphorn
Let's take a Catalyst as an example. At current prices in Jita, the total minerals that are required to make a Catalyst are worth between 790,000 and 830,000 ISK. The sell orders are placing these ships at around 890,000 and 1,000,000 ISK. Those who simply don't have the patience to make that kind of ISK by placing their finished products for at least 1 week are suffering a loss and that is their own fault for missing out on the profits.

Of course, no amount of debate will convince such players to wait a little to make a better profit because (as Derath pointed out) they don't care as long as they get enjoyment out of it. The same also applies to the sort of miners who don't have the patience to mark up their minerals in sell orders for a week or two. Of course, market traders will profit from the ignorance of fire sellers who don't care. So I guess the universe somehow balances out through that.

EDIT:

Quote:
While I'm very impressed with that Caracal that you built all by yourself, you're selling it for 3.5 million ISK. If you had sold the minerals instead, you'd have 4 million.


I did some math there.

Material / Mineral for Caracal (using current prices posted on ore.Celestes.de)
Tritanium
Units / Unit Price / Subtotal
338,237 3.30 1,116,182.10
Pyerite
84,924 5.28 448,398.72
Mexallon
27,840 48.74 1,356,921.60
Isogen
5,812 64.94 377,431.28
Nocxium
1,404 483.31 678,567.24
Zydrine
304 751.39 228,422.56

Total ISK in minerals: 4,205,923.50 ISK

According to Eve-Central, a Caracal is selling between 4.5mil and 5.5mil.

Of course, these are all based on the sell orders posted. If the producer is doing a fire sale with a Caracal, then the going worth is 3.5mil (which is less than the mineral worth). Just saying.

Adapt or Die

Hung TuLo
Running with Dogs
Out of the Blue.
#20 - 2012-01-03 18:41:59 UTC
The Minerals that I mine are Free to me. I say that because I did not buy them. They are in space and no one has ownership to them. Once they are in my cargo bay on my Orca no one can have them unless my Orca gets blown up or I use them or sell them.

take your "ores are not free" dogma to another part of the universe. I ain't buying it.

"In space all warriors are cold warriors" ---  General Chang  Star Trek VI

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