SencneS
Amarr
Rebellion Against big Irreversible Dinks
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Posted - 2009.03.02 16:35:00 -
[1]
It's a combination of volume over time.
100 units at 10K each or 10 units at 100K each. If they both sell out in the same time frame, your sales are the same. However it then becomes based of profit.
Let assume you work with a 50% on the 10K unit and 25% margin on the 100K unit, and both take one day to sell out.
5K * 100 = 500,000 ISK
25K * 10 = 250,000 ISK
Clearly the more volume the better, however if the margins are the exactly the same say 25%, then both will give the same amount of over all profit.
You'll need to then consider the time frame in which it sells, as above if they take the same amount of time then nothing changes. So next it comes down to supply, how quickly can you supply both items? If the supply time is the same the last option is material cost, which one of subject to more radical changes in material cost. Chance are the low volume higher priced will be subject to higher peeks in changes as it's probably using more material. If you don't make the items you look at logistics. How easy is it to move the stuff around. If the market becomes horrible you'll want to move.
A good example of volume trade of something like Antimatter S and Antimatter L. Both take exactly the same amount of time to manufacture so supply is pretty much set in stone. However, Antimatter S sells for a huge margin compared to Antimatter L. Assuming the same volume is sold in the same time frame you'll make more ISK on Antimatter L, because it's so much more expensive. However Antimatter S you'll make a larger profit margin. If this is a side business Antimatter S is the way to go because it requires less ISK, but that ISK returns more margin. Even if it's value of less you're committing a lot less to the line.
From a "o-shiii" point of view a higher volume item is easier to "get rid of" then a low volume item. If you get peeved because of competition you can break even pretty quickly by crashing the item and selling for your cost. Someone will buy it up very quickly. Low volume items don't have that ability.
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