Gekkoh
Caldari Rule of Five The Junta
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Posted - 2009.04.25 05:53:00 -
[1]
Originally by: Elite Qin
Your example is a bit silly.
You: mine 10 million in minerals, and sell for 10 million, making 10 million profit Non-miner: buy 10 million in minerals, make something, sell for 15 million, making 5 million profit Me: mine 10 million in minerals, make something, sell it for 15 million, making 15 million in profit
You guys really need to stop equating value with cost; they're not the same thing. I would love for someone to explain how something that cost me zero isk suddenly cost me 10 million isk ifI use it to build something. Just because I CAN sell it for 10 million does NOT mean it has a 10 million isk cost on it suddenly.
Edit: and in answer to the original poster, I value the minerals much as others have: essentially an average between buy and sell wherever the manufactured/mined item will be sold.
pfft, you obviously don't get it. The point is that you're mining 10 mil worth of minerals, then you're turning it into something worth 5 mil. You don't keep those mins, btw, they turn into that thing worth 5 mil. You're basically cutting yourself 5 mil short of what you SHOULD be getting. The value of your minerals sometimes is more than the value of whatever you're producing.
That's not the example he used. He sold the finished product for 15M, not 5M. So he's making a 5M profit.
However, this isn't rocket science. Whether or not someone wants to put a value on the minerals, they have a value. If you choose to value them at less than you can sell them for, then you are throwing out that potential profit.
In this specific example, the profit breaks down as follows:
10M - From mining 5M - From producing -- 15M Total Profit
If you bought the minerals, you'd have:
0M - From mining 5M - From producing -- 5M total profit
However, you also didn't spent the time it took to mine the 10M in minerals. In either case, the actual profit from production was 5M. The source of the minerals has no bearing on the production profit. <-- That's the key to all of this.
The real problem with this point of view is the following situation:
"Mined minerals are free": 0M - Value of minerals (what you can sell them for) 9M - Sale price of finished good -- 9M Total Profit
-vs-
Mined minerals can be sold: 10M - Value of minerals (what you can sell them for) 9M - Sale price of finished good -- -1M LOSS!!!
In that light, why on earth wouldn't you value your minerals at the current market price? If you're not doing that, then you're potentially throwing away ISK by producing things and selling them for less than you could have made just by selling the minerals!
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