PureMurder
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Posted - 2011.05.18 02:31:00 -
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Edited by: PureMurder on 18/05/2011 02:35:51
I'm going to preface this by saying that I've never done any mfg except for one run of ammo once, but I'm still interested in this side of Eve. Also as a player and a helpful person on the forums you have my deepest respect.
Please address the following questions about your argument:
 Originally by: Akita T
* a T2 item obtained from a BPO or invented or bought from the market, it still has the exact same VALUE ...
* a T2 BPO... the playing field is leveled by the market pricing of T2 BPOs
...the advantage (percentually speaking) lies with the player with LESS ISK
So in reality, material cost savings are more along the lines of between negligible and around 50% tops, usually noticeably under 40%.
Yes, a BPO holder _CAN_ cut an inventor's "bottom line" indeed. But he would be mad to ACTUALLY DO IT since he has a heavy-duty initial investment (or the equivalent opportunity cost) to "recover" - the main interest should be selling as high as possible.
Re: level playing field, time is a factor. So if it take someone more time to get a mod (or a BPO) than another, they're risking more labour for the same monetary value, and that inequality of risk makes the playing field uneven. :)
I'm curious how the market pricing of T2 BPOs levels the playing field (both theoretically and in practice). I don't have much economics background so if you want to explain, that would be awesome.
I don't think that your argument about ROI on invention is valid; what matters more is wealth and income. The highest ROI might come from station trading ammo with your first 5k ISK, but people don't do it because of its low income. Further, a T2 BPO has the added utility of giving you access to loans that you couldn't have otherwise received, and therefore the actual ROI on the T2 BPO is higher than is readily apparent (and they're likely a great hedge against inflation).
(This is a weaker question here so please be patient:) What is the total savings % between invention and T2 BPO? How much actual daily cash does that turn into if they're selling below invention costs? How much is the difference in terms of isk/hr? I think that when people reach the point of having more isk than they can/want to spend, then these BPOs can create a lasting advantage in favour of people that have achieved that level of wealth. At a certain point ROI means nothing and wealth means control of an increasing amount of resources.
I think the reason you use quotes around "recovering" the investment in a T2 BPO is that it's not a very strong argument: You can recover the investment by selling it at face value (though they're somewhat illiquid). The opportunity cost is actually the time involved: you can make a certain amount of hourly income by doing activities in eve and you don't have enough time to do everything. I think that people perceive that T2 BPOs gives automatic hourly income that's greater than invention and that lowers the hourly income of invention, and this is why they're resentful of it. Can you address that?
Just out of curiousity, what drives the manic pace of inventors? Is it just that they lack capital or do they have to be more clicky/active in order to do what they do?
I guess another question is: what would happen to T2 BPO holders if they were given market value isk for their BPOs and then those BPOs were removed from the game, in terms of wealth, income, and ROI?
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