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Wild Rho
Amarr
Imperial Shipment
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Posted - 2007.03.31 19:04:00 -
[1]
 Originally by: Tunajuice
1) Maybe he get his minerals cheaper than you. You can get minerals cheaper than buy cost.
He's still a fool for missing out on profit because even with a cheaper mineral source he would have made more selling the mins at the standard price than using them to build a ship and sell it below cost.
For some strange reason alot of builders still believe that mined minerals are "free" when building somthing.
Originally by: Tunajuice
2) Maybe its not a builder, someone who bought it for missions, hated it, and is selling it back at a small loss to get rid of it as fast as possible.
OP already said it was much more than one on the market so it wouldn't be a mission runner reselling a ship they didn't like.
Some people just don't understand the basics of production, although the side benefit of them is that underpriced mods can make a nice cheap source of easy minerals.
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Wild Rho
Amarr
Imperial Shipment
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Posted - 2007.03.31 22:29:00 -
[2]
Edited by: Wild Rho on 31/03/2007 22:26:34
Originally by: Tom Shandy
Originally by: Wild Rho
For some strange reason alot of builders still believe that mined minerals are "free" when building somthing.
My time is worth nothing, therefor the minerals i mine are free. Time is only money, if you think that way.
They aren't actually. The minerals and therefore your time is worth their market value.
Let's put it another way. If you mine the minerals, build somthing and sell it below production cost becuase you see the minerals as "free" you are still losing isk (as in profit).
Why?
Becuase if you were to simply sell the minerals at the market prices you would make more isk from that than building the item and selling it for less than production cost. You are literally throwing away a portion of your profits for nothing regardless of how you value your time.
Like I said, it doesn't really bother me since people who insist on doing so give me a nice steady supply of cheap and easy to obtain minerals from underpriced modules. I still think it's daft though.
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Wild Rho
Amarr
Imperial Shipment
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Posted - 2007.04.01 12:12:00 -
[3]
Edited by: Wild Rho on 01/04/2007 12:09:48
Originally by: Tom Shandy
Originally by: Wild Rho
Edited by: Wild Rho on 31/03/2007 22:26:34
Originally by: Tom Shandy
Originally by: Wild Rho
For some strange reason alot of builders still believe that mined minerals are "free" when building somthing.
My time is worth nothing, therefor the minerals i mine are free. Time is only money, if you think that way.
They aren't actually. The minerals and therefore your time is worth their market value.
Let's put it another way. If you mine the minerals, build somthing and sell it below production cost becuase you see the minerals as "free" you are still losing isk (as in profit).
Why?
Becuase if you were to simply sell the minerals at the market prices you would make more isk from that than building the item and selling it for less than production cost. You are literally throwing away a portion of your profits for nothing regardless of how you value your time.
Like I said, it doesn't really bother me since people who insist on doing so give me a nice steady supply of cheap and easy to obtain minerals from underpriced modules. I still think it's daft though.
lol
The minerals i get are free, i pay nothing for them.
My time isnt worth squat, they may be worth market value but to me they came for nothing.
Its only daft if you are money motivated and actually care about making a profit on everything, Not everyone does.
each to is own
I'll take one last attempt at this.
I say the thing's daft not because you're being complacent about making profit (I'm actually the same usually in that regard). I say it's daft because you are actively expending effort to lose yourself profit.
Here's an attempt at a simple illustration.
You mine yourself 100 units of trit and it's worth about 2isk per unit on the market.
An item you want to produce needs that 100 trit so it's production cost is 200isk.
This means if you sell at production cost you would make just as much isk by selling the minerals but without the effort of having to buy a bpo, possibly research it and then wait for the item to build.
Now if you sell the item at say 190 isk (10 isk below production cost) you have spent time mining the minerals, spent isk buying the bpo, researching it and waiting on the build job all to lose 10 isk extra profit. You would have made more isk simply by selling the minerals on their own (making 200isk instead of 190isk).
Even if you don't value your time you are still actively making more effort and investing more isk all in the name of costing yourself profit with no actual purpose.
If you still haven't grasped the basic concept after this there isn't much more I can say so I'll just leave it at that.
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Wild Rho
Amarr
Imperial Shipment
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Posted - 2007.04.02 12:08:00 -
[4]
I was talking about the perception of free minerals in regard to accounting for building costs when producing rather than simply mining minerals to sell them directly, and I think that's what a few of the other posters were as well.
When mining minerals to sell directly on the market they are worth whatever you feel they're worth and so you're point is spot on, however it's a different situation to what the OP was talking about since he was referring to production.
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