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Snow Banshee
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Posted - 2008.08.17 09:11:00 -
[1]
Hello all. I recently introduced myself in rigs production, and im quite happy with the % of profit. Since i starded not much time ago i saw checking salvage prices in several regions,and of course i want to also to jita.Whit great surprise prices of forge ( and more specifically the jita hub) was awfull.
In jita all salvage items are far too expensive, and built rigs ( but also other modules) are generally quite cheaper than in other region. Doing some maths i noticed that if i buy at jita prices i could stop my rig production career because its not worth at all.
So my questions are: Why people insist selling there? you can sell anywhere else with better profit.
Why producers go to buy build requirements in jita? as far i saw jita prices eath almost all profit you could gain.
I can understand that jita offer you bulk amount, but if you production cost is below the market sell orders, you will loose money. no matter if you build 1 item or 10000.
In conclusion, i understand why people go to buy there finished items, but i dont understand why people still sell there or still buy materials for production.
What im missing?
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Kazuo Ishiguro
House of Marbles Zzz
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Posted - 2008.08.17 09:45:00 -
[2]
People who are buying components there are probably making rigs for their own use. People who are selling rigs there in bulk have probably bought components elsewhere, at mission hubs. Zzz research towers Direrie NEW: Liekuri
20:1 low-end compression |
Mia Morningstar
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Posted - 2008.08.17 09:48:00 -
[3]
Edited by: Mia Morningstar on 17/08/2008 09:48:40 I've never lived in Caldari space nor do I know what prices are for rigs and salvage in Jita.
But let me ask you first a few questions:
1) Do you have Production Efficiency V? 2) Are you using BPOs with perfect ME? 3) Do you purchase your salvage with buy orders?
If you responded to all those questions positively then buy all those rigs, reprocess them and sell the salvage (assuming you have 100% refining yield in 50% station and standings 6.7 with the corp owning that station).
If you responded negatively to any of those questions. Most likely there is your problem.
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Snow Banshee
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Posted - 2008.08.17 10:01:00 -
[4]
Originally by: Mia Morningstar
1) Do you have Production Efficiency V? 2) Are you using BPOs with perfect ME? 3) Do you purchase your salvage with buy orders?
yes yes yes
Originally by: Mia Morningstar
If you responded to all those questions positively then buy all those rigs, reprocess them and sell the salvage (assuming you have 100% refining yield in 50% station and standings 6.7 with the corp owning that station).
THATS AN IDEA !!! i have to work on my refining skills before to do that, but its a good idea
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foobarx
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Posted - 2008.08.17 11:43:00 -
[5]
Quote: What im missing?
You're missing the concept of liquidity. The nice thing about Jita from the seller's point of view is there's always someone there looking to buy whatever you're selling. You can't get a great price, but you can get an okay price immediately instead of waiting around in the boonies trying to get a really good price on an item that only sells once a week.
So you can afford to make a much smaller profit, since you get your money immediately and can use it for the next venture.
Also, remember not everyone selling in Jita manufactured the item they're selling. Pirate alts bring gatecamp booty to sell, and since they didn't pay anything it always sells at a nice profit.
Margins on all T1 manufactured items are razor thin, and in many cases actually negative because mission runners tend to just dump mission loot without trying to get the best price. You haven't been making money because you're making rigs cheaply, you've been making money because you found a good market in which to sell them.
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CogInTheWheel
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Posted - 2008.08.17 16:15:00 -
[6]
Edited by: CogInTheWheel on 17/08/2008 16:18:24 Jita, being the de facto trade hub is the best place to find rare items for one.
The problem is when too many people get on the popularity bandwagon when buying/selling everyday crap.
Better profits can be had on those things than Jita because Jita has too much competition, but too many brainless idiots persevere anyway.
Jita is also the center of the scammers universe and so it is overcrowded with those types too.
Throw in the missioners (why exactly does Jita need agents?)
And lets not forget the legions of .01isk buy low sell high types who try to squeeze another 3-5% out of every transaction imaginable..
There you have Jita - overcrowded cesspool of Eve.
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Commander Koen
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Posted - 2008.08.17 18:07:00 -
[7]
Faster return.
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Lucy Lucy
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Posted - 2008.08.17 18:22:00 -
[8]
Your time is also a consideration. If you want to, you can run around the various systems and look for a better price. You will most likely find one, as Jita does tend to be a little higher cost for many items.
But your time has to be worth something. Sometimes people are willing to make a 10-jump trip to some far-off system to save 10 mil on something, and sometimes they are not. It's all variable.
With Jita (and the other trade hubs) you can get just about anything you want and you can have it now. Sometimes that's worth paying a little extra for.
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Akita T
Caldari Navy Volunteer Task Force
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Posted - 2008.08.17 20:11:00 -
[9]
Thin margins means people that want to unload stuff fast go there to sell for best price, people that want to buy a full fit (or a larger shopping list) go there because everything is so cheap, which means there's a lot of volume being traded, which means you can actually make a pretty damn good profit per time spent even if the margins are much smaller... ...and it's a vicious circle of "everybody's happy except manufacturers".
In much less words : network effect.
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THE APPRENTICE || mineral balance || nanofix
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Harvash
Lonewolf Logistics
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Posted - 2008.08.17 22:01:00 -
[10]
Originally by: CogInTheWheel (why exactly does Jita need agents?)
As I sit here waiting to log into my station (going on 3hrs now). I believe you just hit the nail on the head.
Remove ALL agents from Jita - Traffic would probably be reduced significantly while leaving a long running trade hub in place.
(And no, I don't usually goto Jita on a sunday, but I was in ****** mode when i jumped in earlier today - and just for good measure, I made sure to log out there too.)
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Lord Fitz
Project Amargosa
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Posted - 2008.08.18 13:57:00 -
[11]
Originally by: Harvash
Originally by: CogInTheWheel (why exactly does Jita need agents?)
As I sit here waiting to log into my station (going on 3hrs now). I believe you just hit the nail on the head.
Remove ALL agents from Jita - Traffic would probably be reduced significantly while leaving a long running trade hub in place.
(And no, I don't usually goto Jita on a sunday, but I was in ****** mode when i jumped in earlier today - and just for good measure, I made sure to log out there too.)
It's a fair enough cop, but from what the devs have said, what actually causes the most lag in Jita is actually the huge amount of trade that goes on (not combat, not ships in space, not 'chat') but every time you buy an item or move an item from hangar to ship etc, apparently it is fairly intensive (obviously lots of checks and balances to ensure that items aren't duplicated due to bugs lag etc).
But yeah, no agents or belts would make alot of sense.
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