|
|
| Author |
Thread Statistics | Show CCP posts - 0 post(s) |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
   |
Posted - 2007.10.03 14:34:00 -
[1]
drama, drama, drama
Personally whilst I haven't had much interaction with Stins I reckon he is a good bloke and doubt he would do anything foolish like lie to his investors in such a way.
Need Empire Research Slots. Click here |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
|
Posted - 2007.10.03 15:03:00 -
[2]
 Originally by: Ezoran DuBlaidd
sorry if questions bother you.
I'm not bothered 
But innocent until proven guilty comes to mind 
Need Empire Research Slots. Click here |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
|
Posted - 2007.10.06 04:21:00 -
[3]
Originally by: Shadarle
Which is the same argument people make when they consider the minerals they mined are free.
His argument is due to him getting the product at a lower cost he is earning higher profit margins on his investment.
It's no difference to having mineral contracts allowing you to build a covetor at only 17m, whilst most producers build them for 18.5m. You sell your covetor for the same price as other producers but your profit margin will always be higher than that of those competitors with higher production costs.
The mining relationship is irrelevant. The reason that is used (minerals are free as I mined them) is that they are not valuing the time and effort it took to obtain said items. In the case of SencneS there was no extra process/s that need valuation.
Regarding the minerals are free comment, one needs to separate the processes involved before calculating them as one. They need to calculate raw material sourcing costs, production costs, and marketting costs as three separate entities. Most don't do this which results in a flooded market with a fairly limited profit margin in most cases. Plus things like mission loot will turn the tables even further as no self respecting mission runner will run an evaluation on each piece of loot he recieves. That's why I want to see all non-named/faction etc loot removed from the loot tables completely.
Let market pricing be calculated and determined by traders and production characters (on t1 and t2). Let mission runners handle the named, faction, officer portion of supply as obviously this isn't available to the regular producer.
Man I just sent that way off topic. My main point was that your comment regarding this being the same as the "mining free mins" is incorrect in my opinion
Need Empire Research Slots. Click here |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
|
Posted - 2007.10.06 06:47:00 -
[4]
I will agree to disagree, and leave you and Stins to your dispute
Need Empire Research Slots. Click here |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
|
Posted - 2007.10.06 13:32:00 -
[5]
Originally by: Fury Banker
Ricidc made a similar error. If the minerals to build a ship are worth 18.5 but you buy them on contract for 17 million then you DON'Y make 1.5 million more profit building that ship than someone who bought the minerals for 18.5 million (assuming you both sell it for the same price). You made exactly the same profit on the ship - but you also made 1.5 million profit on the minerals.
Kinda silly argument though. Either way you made a profit. If you want to attribute that profit to your secondary tier (manufacturing after purchasing) then it still relates to a higher profit margin regardless
I won't release business plans that say I made a 3% profit margin on minerals purchased along with a 2% profit margin on ships produced. Whilst one could argue that this was the case it really is irrelevant in the big picture as the profit margin stays the same in both instances.
Are we all really this bored arguing such trivial points?
Need Empire Research Slots. Click here |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
|
Posted - 2007.10.06 17:22:00 -
[6]
Originally by: Shadarle
Buying minerals cheaper does not mean you make a larger profit producing items, it means you make more profit overall. The difference is huge. You can't let yourself believe production is profitable just because you bought the components cheaply. You always have to remember the opportunity cost. You have to know that you could sell those minerals. You then must make more producing then you could selling the minerals. If you don't split out your profit centers then you won't know if you're maximizing your profits.
If I have a good mineral price on say a ballistic control unit, and I can produce it for 35k. Someone else without that good mineral price produces for 39k. Now, we are both selling the item for 50k per unit.
No matter what, it still boils down to me making 15k per unit whilst my competitor is making 11k per unit. I do understand what you are saying (in that you could just sell the minerals at regular price and then sell the module for the same price as my opponent, but the end result is exactly the same. I still make exactly the same amount of money in either case.
One could then confuse the situation even more by saying that having the extra market orders for selling the minerals separate incurs excess broker fee's thus actually meaning that my selling of those built items at 4k above my competitor makes me even more money than selling the minerals separately.
As long as you value your produced end unit at a price that follows regular mineral price guidelines + profit, there is no difference in the outcome.
Simple question. In my above example (paragraph 1) am I making more, less, or the same isk overall by selling the minerals separately? (not counting brokerage fee's in this instance)
Need Empire Research Slots. Click here |
Ricdic
Caldari
Corporate Research And Production Pty Ltd
Zzz
|
Posted - 2007.10.12 03:10:00 -
[7]
Well I know one thing is certain.
If Shadarle opens his own IPO any time soon I will be investing
I have tried to stay impartial to the whole ISSO thing and will remain that way, I have no ownership in it anyway.
Need Empire Research Slots. Click here |
|
|
| |
|