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Deletable
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Posted - 2011.06.08 15:46:00 -
[1]
So I thought about going into capital construction. Been crunching the numbers, and with perfect PE skills (since they're required for capital construction) and a ME of 50, most components seem to be made at a loss, and almost all fighters.
When I do my calculations, should I not use sell orders of minerals? Should I not be using Jita prices and instead try to use lower prices in fringe systems?
I had always assumed that capital production was the big bucks of manufacturing o_o now I'm not so sure.
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Drone Bei
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Posted - 2011.06.08 16:34:00 -
[2]
You will want to use the prices that you will buy your minerals at. If you want to buy from Jita, manufacture nearby and sell in Jita, then use those prices. If you want to buy minerals from fringe areas or can establish a mineral supplier (mining corp or individual) then use those prices. If your proposed method does not seem to work (ie buying from Jita) then consider other options to make it more viable. Also, don't forget to factor in the cost of the BPO/BPC. There are plenty of corporations that will sell you bulk orders of 5 run copies for a good price.
One thing to consider is that many of the people who would have a use for the capital parts are likely going to be producing them from minerals and then using them for their capital ships. They will do the whole process themselves so they cut out the difference between buying capital parts and manufacturing them on their own.
As with any manufacturing product, you'll have to keep doing research until you find something viable and expect that most things will have a very small margin.
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Deletable
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Posted - 2011.06.08 16:48:00 -
[3]
Hmmm very informative :) thank you.
So are you saying that there is never really significant isk to be made in manufacturing until you get to making capital hulls? o.o
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Breaker77
Gallente Reclamation Industries
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Posted - 2011.06.08 17:04:00 -
[4]
Edited by: Breaker77 on 08/06/2011 17:05:13 edit: disregard. Was thinking you meant PE waste not production efficiency skill
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Lady Ayeipsia
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Posted - 2011.06.08 17:40:00 -
[5]
Originally by: Deletable Hmmm very informative :) thank you.
So are you saying that there is never really significant isk to be made in manufacturing until you get to making capital hulls? o.o
For caps, yes. You must make them from the minerals to the final ship for profit.
Also, I can't say for certain if titans and moms are even made for profit given the nature of construction.
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Jasdemi
Deep Core Mining Inc.
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Posted - 2011.06.08 17:59:00 -
[6]
Originally by: Lady Ayeipsia
Originally by: Deletable Hmmm very informative :) thank you.
So are you saying that there is never really significant isk to be made in manufacturing until you get to making capital hulls? o.o
For caps, yes. You must make them from the minerals to the final ship for profit.
Also, I can't say for certain if titans and moms are even made for profit given the nature of construction.
Profit, no. People make moms and titans just to work with Chribba together for a little bit.
-------- Red Frog Freight - moving phat lewt since '08 -------- |
Missm Uppet
Caldari
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Posted - 2011.06.08 21:03:00 -
[7]
Originally by: Drone Bei You will want to use the prices that you will buy your minerals at. If you want to buy from Jita, manufacture nearby and sell in Jita, then use those prices. If you want to buy minerals from fringe areas or can establish a mineral supplier (mining corp or individual) then use those prices. If your proposed method does not seem to work (ie buying from Jita) then consider other options to make it more viable.
Actually the OP was pretty much correct in the assumption that you would want to calculate profitability based on Jita prices to determine if production is profitable or not.
A more formal and rigorous answer to this question is that you want to set your component costs equal to what you could easily sell that component for on the market. Whether this price is derived from you selling the components (t1 mins in this case) to someone else's buy order, or from setting up your own sell order is going to depend on the item and market you're selling it in most likely.
The reason why I use Jita prices is that if you're in this business, you'll most likely be able to consider transportation costs slim to none as you'll probably own a freighter and auto-pilot it around like the rest of us.
The reason you do not use "abnormally low" costs in your production-profit calculation, such as minerals purchased from fringe areas or a special agreement with a mining corp, is that you could more easily, and too often, more profitably sell those low-cost minerals without ever having to go through the production process. This is especially true considering the build-time and the BP expense of capital components and ships.
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LHA Tarawa
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Posted - 2011.06.09 17:54:00 -
[8]
What are you looking at for sale price? Most capitals are sold on contract, but you can't just look at the lowest contract and assume that is the sell price.
Frequently, a lot of the lowest price capitals are ones that are stuck in 0.0 where the pilot can no longer dock at. You lost a system, you probably lose the ability to dock there.
Look for the capitals that are for sale in farily quite low sec systems, in a non-kickout station with a big docking ring, where the buyer can be fairly sure he can get out wihout losing his new ship within minutes of having bought it.
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Loney
CyberDyne R-D
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Posted - 2011.06.12 00:35:00 -
[9]
Answer. Don't bother with Capital Constructions, Sub-Caps to Supercaps, I will undercut your prices everytime! .
Sales - CDRD |
Deletable
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Posted - 2011.06.12 18:30:00 -
[10]
Originally by: Loney Answer. Don't bother with Capital Constructions, Sub-Caps to Supercaps, I will undercut your prices everytime!
:( sad
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Tau Cabalander
Retirement Retreat
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Posted - 2011.06.12 18:48:00 -
[11]
Originally by: Deletable
Originally by: Loney Answer. Don't bother with Capital Constructions, Sub-Caps to Supercaps, I will undercut your prices everytime!
:( sad
And yet people still make ISK doing it.
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