Edwin Rothbard
Interstellar Arbitrage
15
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Posted - 2015.12.15 01:08:24 -
[1] - Quote
When did "I make my own PI" and "I manufacture my components" join "I mine the minerals so they are free" to become the prevailing economic wisdom in EVE?
Admittedly I've never been much of a manufacturer, but I recently stumbled on an item in jita that doesn't make any sense. Using perfect T1 and T2 prints the inputs total 360m in jita for production. This excludes build fees, system cost index fees, pos fuel, brokers fees, taxes, and time to build the items. Plus the upfront cost of the T1 and T2 bpos.
Producing from invented prints can add another 20m to the price tag + the cost of the bpc.
Yet when I look at the units for sale in the forge (nearly all in jita 4-4) virtually every single one of them is listed at a loss. There are multiple sell orders at 314m and the buy orders are at 300m even. How is this even possible?
If you have a pile of components sitting in your hangar that you can sell for 360m in jita they are worth 360m. It doesn't matter if you mined the trit, produced the PI, or built the components yourself. The mats are still worth 360m. Putting those mats in a cooker with a print to produce something that is selling for 314m in jita means you lose 46m+ per unit produced. This makes absolutely no sense.
Since they were selling these at a loss I decided to buy all of them that were below build cost. I bought everything <360m. I paid about 320m average price for the lot. I also placed buy orders at 300m since that was the highest buy order price. I then relisted all of the units at 360m so they would at least be selling at build cost instead of a loss.
I sold a number of them at 358m. Surprisingly people actually sold them to me at 300m buy order price during this same time. I noticed that at least 1 person who had an earlier sell order also later filled my buy order price which means he is likely a producer.
I thought about messaging him and suggesting he send me 60m isk once per day (about the production time) and not produce the items. this way he loses the same amount of money, but doesn't have to do all the clicking.
So now I'm 10b deep into this venture, and they keep selling them to me at 300m/unit.
On the sellers side after a couple days of having the only units for sale on the market more units showed up. they quickly 0.01 isked themselves almost back to where it was before. I considered lowering my prices, but if I do that then i'm doing the same thing of selling them under build cost. Thus I repriced all my units higher to about build cost +7% or 385m a unit. I suspect they won't sell fast with this strategy. :)
I feel like i'm catching falling daggers here. I'm not sure how many of things I really want to own. :) I would think even if they aren't smart enough to realize they are losing money that eventually they will feel it in their wallets and change their behaviour. Or am I too optimistic?
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