Malachon Draco
eXceed Inc.
INVICTUS.
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Posted - 2007.03.29 07:27:00 -
[1]
 Originally by: c0rn1
- I can't copy when I am producing. If I copy, I lose production time.
Production time cap rech II bpo 0/0: 53min20s
Copy time cap rech II bpo 0/0 : 1h40min
I need to setup:
- A freighter to ship the stuff in and out as well as the skilled character for it
- Accounts who have to be at the local market to sell there and adjust prices
- I have to pay broker fees of 3%
- I have to carry the risk that I lose a full freighter with t2 items by pirated or being suicided even in high-sec (check the Outbreak video on the forums)
Please try to understand that I, as the owner of a BPO, have to compete against people who have to pay NOTHING of the above when they just produce the item for themselves. grab a couple eutetic capacitor recharger, a couple datacores and an interface and you and your corp which were all potential customers of me are set for the rest of your eve lifes with cap recharger II.
You don't have to fly to the market and buy it there, you have it dropping from the production line right into your hangar for a price I can't compete with on an at least half-profitable basis which returns the investments I did.
Our corp was real and we tried to invest the money we earned due to hardwork into the market as a long-term investment. The BPO we got were a nice income but didn't make us UBERRICH or anything. It was like you buy shares of ISS and you get a monthly income.
extra:
it's not only microsoft.
How much margin do you think the mouse has which you got in your hands right now?
or the graphic card or the CPU. 500-1000% in average to make it cost-effective.
Those companies have high profit margins for being in a cutting edge market, with high investment and unsure payoff, just like pharmaceutical companies for example.
You have no risk, you are not in a cutting edge market, you don't need to do investment to keep your edge. Only due to the oligopoly nature of the T2 BPO market were you able to get those profit margins. Now, with invention you changed from being Intel to being Walmart. Check what their profit margins are...
Bottomline is still, you produce T2 items at a lower price than your inventing competitors. Yes, invention will cut your profits by a huge margin, but you will be able to compete.
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In completely unrelated news, after careful research, the Guiding Hand Social Club concludes that no member of the Guiding Hand Social Club is guilty of corptheft. |