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Bruce W4yne
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Posted - 2007.11.06 21:57:00 -
[1]
Edited by: Bruce W4yne on 06/11/2007 21:58:26
Edited by: Bruce W4yne on 06/11/2007 21:57:42
Recently I was toying with the idea of investing, what is for me, a considerable amount of isk (1 billion) in a T2 Missile BPO. After doing some math it turns out in order to turn a profit on the BPO it would take about two years. Either my math is very far off or is this close to the norm?
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Vril Ya
Rave Technologies Inc.
C0VEN
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Posted - 2007.11.06 22:40:00 -
[2]
You can always sell that bpo without loosing any money anytime and It is sometimes handy to be have bpo deep in 0.0 than to transport stuff.
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Samuel Freedom
Minmatar
Ramdon Industries corporation
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Posted - 2007.11.06 22:55:00 -
[3]
Edited by: Samuel Freedom on 06/11/2007 22:55:41
You would probably get a more informed response if you posted your question on the Market Forum. I will give you my opinion though. Personally I would not invest a great deal of ISK into T2 BPO's the reason being any buff to invention is going to effect the T2 BPO's adversley(i.e not be as profitable) and there is a train of thought that they may even be nerfed, something similar happened in the past apprently but i'm not an old fogey so I don't know all the details.
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Ione Hunt
0utbreak
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Posted - 2007.11.06 22:55:00 -
[4]
Most T2 BPOs aren't worth it.
Check the market for whatever T2 BPO you're interested in. What's the profit margin...and more importantly, are you sure you can sell everything when you run at full production? Producing is one thing, but actually getting rid of the stuff is an entirely different ballpark. 
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Akita T
Caldari Navy Volunteer Task Force
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Posted - 2007.11.07 10:53:00 -
[5]
Unless we're talking Javelin HAM or even Javelin torp, I doubt you will be making any profits at all.
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1|2|3 |
maarud
Knight of Anubis
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Posted - 2007.11.07 13:31:00 -
[6]
T2 BPO's are assets, they don't lose their value too much, yes invention dented it, but not that much.
Anyway, it should retain some, if not all of it's value and you can make some ISK off it and resell it again at a later stage if you wish.
Maarud.
Proudly a Ex-BYDI member
<t20> i'd rather have a python in my pants than a sleipnir |
Missy Saints
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Posted - 2007.11.07 14:07:00 -
[7]
IMO I would invest the bill in invention will make you more diverse and less NERFABLE. Also all other techs will mostlikely follow that path.
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Daerkannon Shimmerscale
Gallente
Paxton Industries
Paxton Federation
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Posted - 2007.11.07 19:49:00 -
[8]
Most T2 BPOs are overvalued based on the owners trying to hold onto the old value of them from pre-invention days.
The rule I follow is to analyze the market to make sure that it can support full production. I then calculate my worst case costs based on sell orders for the materials and worst case sell price based on the lowest Jita sell order. From that I calculate the profit per year and if it takes more than a year to recoup the investment then I consider it over priced.
Of course this is just my way of determining value. An ROI of a year is nothing spectacular when I have other investment opportunities open to me with ROIs in the weeks or months range.
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Honest officer, the dwarf was on fire when I got here!
Can't find a mechanical engineering agent? Need a non-Caldari Navy agent? http://www.eve-agents.com/ for all your agent needs! |
Jurgen Cartis
Caldari
Interstellar Corporation of Exploration
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Posted - 2007.11.07 19:53:00 -
[9]
Calculate the profit you could make at current prices in 6-12 months. Remember to take the difficulty in selling it into account. That was the rule of thumb last time I ventured into the sell orders forum (several months ago). However, 6 month payoff time seems to be the general rule for long-term investments in Eve.
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ICE Blueprint Sales
FIRST!! -Yipsilanti
Pfft. Never such a thing as a "last chance". ;) -Rauth |
Leora Nomen
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Posted - 2007.11.09 07:23:00 -
[10]
You invest the money, it makes you money during some time, then you hope to sell it for same amount that you bought it for. Overall you make profit, but it is a long term investment thing.
Since invention I would not pay 2 years profit for a BPO, more like 0.5-1.0 year. Before invention they were a very prized commodity to have, but right now anyone can make tech II stuff, and there is a lot of competition for materials as well as for sale of the final product.
guide to game time codes |
Mabari
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Posted - 2007.11.09 08:24:00 -
[11]
one thing to keep in mind though, especialy with ammo you are producing a lot cheaper with the researched bpo then you ever could with invented bpc's. ad ergo you can undercut any inventor in the market. Your profit margin will be lower but your sales will go up.
Greets Mabari
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Darth Felin
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Posted - 2007.11.09 11:19:00 -
[12]
 Originally by: Mabari
one thing to keep in mind though, especialy with ammo you are producing a lot cheaper with the researched bpo then you ever could with invented bpc's. ad ergo you can undercut any inventor in the market. Your profit margin will be lower but your sales will go up.
Greets Mabari
Well i am sure that noone invent t2 missiles so there won't be any competition with invention. But T2 missiles are not very popular so you can check sales values before making a deal.
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Daerkannon Shimmerscale
Gallente
Paxton Industries
Paxton Federation
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Posted - 2007.11.09 15:53:00 -
[13]
Originally by: Mabari
one thing to keep in mind though, especialy with ammo you are producing a lot cheaper with the researched bpo then you ever could with invented bpc's. ad ergo you can undercut any inventor in the market. Your profit margin will be lower but your sales will go up.
Ammo is a poor example and a poor investment. In all but a few cases T2 ammo isn't worth inventing because there isn't enough demand to outstrip the supply available from the T2 BPOs. Heck, some T2 ammo sells for near build cost.
Even if you have a good T2 ammo blueprint you're not going to make a lot of ISK off of it. Why? Because it takes so damn long to manufacture. Your profit per unit is high, but your profit over time is very low. You can run a level 4 mission and make more ISK than manufacturing a T2 ammo BPO for a full week.
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Honest officer, the dwarf was on fire when I got here!
Can't find a mechanical engineering agent? Need a non-Caldari Navy agent? http://www.eve-agents.com/ for all your agent needs! |
Lutien
Caldari
z-inc.
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Posted - 2007.11.12 11:36:00 -
[14]
Even if you have a good T2 ammo blueprint you're not going to make a lot of ISK off of it. Why? Because it takes so damn long to manufacture. Your profit per unit is high, but your profit over time is very low. You can run a level 4 mission and make more ISK than manufacturing a T2 ammo BPO for a full week.
True, your not going to make a lot of isk. however manufacturing a t2 bpo doesn't take a lot of real time, runing lvl 4 mission does.
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Natalia Trade
Amarr Trading Company Inc
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Posted - 2007.11.12 13:21:00 -
[15]
Originally by: Missy Saints
IMO I would invest the bill in invention will make you more diverse and less NERFABLE. Also all other techs will mostlikely follow that path.
I cannot agree more!
If you were to invest your 1 Billion in the skillbooks and datacores along with some t1 bpos without any research at all, copy them to max runs ans start inventing stuff left and right.
I am haveing about a 65% success rate with Amarr and Caldari T2 inventions, grant it my skills are only at level 3 and 3 at the moment, and I do NEVER use a best named T1 module to invent, I sinply stick the max run BPC in the oven witht he datacores and cook it for an hour and 15 minutes and voila.
I usualy run 5 tries at once and normally 3 or 4 out of the 5 make it. I have had some that only netted me 2 of 5 but on the most part it is a 3-4 success with 1-2 failing.
Your 1 Billion would be well better spent in invention as you can see a profit immediately without waiting 2 years. With my success in inventing I am able to buy more cores, and make a decent profit which is more than I thought when I started would happen.
I have invested about 1 billion give or take 100 Million, and I have already paid myself back and made about 380 Million to the good so far, and I just started about a month 1/2 ago.
I hope this helps you make your decision.
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Natalia Trade
Amarr Trading Company Inc
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Posted - 2007.11.12 13:37:00 -
[16]
Originally by: Bruce W4yne
Edited by: Bruce W4yne on 06/11/2007 21:58:26
Edited by: Bruce W4yne on 06/11/2007 21:57:42
Recently I was toying with the idea of investing, what is for me, a considerable amount of isk (1 billion) in a T2 Missile BPO. After doing some math it turns out in order to turn a profit on the BPO it would take about two years. Either my math is very far off or is this close to the norm?
In my opinion T2 Ammo is a dead stick, faction ammunition is the new fad, faction ammo does not gimp your speed or gimp cap recharge rate, and it packs a bigger punch, of course it costs you to buy this ammo, it is better ammo than T2 ammo.
I have slowly watched more and more stocks of T2 ammo stack up and prices lowered to compete with the faction ammo fad that is going on to make T2 ammo more attractive. Right now T2 ammo is just not worth it, faction is the only way to go.
Want to make some ISK in ammo, go to Jita in a freighter, with a fleet as escort, spend that Billion on faction ammo, then take it to Rens, Amarr, and Orsurlet(sp) and stick it up on the market for the 200% markup that everyone else does.
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Sire Magnus
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Posted - 2007.11.12 21:32:00 -
[17]
No! T2 BPOs are very overpriced, for some reason most T2 BPO sellers want to believe that a 1 year ROI (return on investment) is an appropriate price for their BPOs. But, who in their right mind would want to become a slave to the production of that BPO for a full year just to get their wallet back to where it was before they started? And there is every indication that prices will continue to decline which means it will take even longer to break even ... if ever. I saw a Curse BPO sell a month before CCP nerfed the NOS. That player will never be able to break even. I personally would not pay more than a 3 month ROI at full production and current prices .. and would hope to have it paid off in 6 months.
The bottom line is T2 BPOs no longer represent the monopoly pricing that they once did, and invention means there is no real *need* for them.
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Ralon Aster
Amarr
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Posted - 2007.11.13 11:02:00 -
[18]
It all depends.
If you not only sell the product, but also use it yourself, and/or supply your corp/alliance with it, then having a way to produce cheap, independent and in large amounts certainly is an advantage worth considering.
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Artmedis Valben
Gallente
Lobster of Babel
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Posted - 2007.11.13 22:22:00 -
[19]
Originally by: Ralon Aster
It all depends.
If you not only sell the product, but also use it yourself, and/or supply your corp/alliance with it, then having a way to produce cheap, independent and in large amounts certainly is an advantage worth considering.
Absolutely true.
Only by assuming that the value of your T2 BPO doesn't decline over time, and by assuming it is an asset that you can easily sell at the same price or even higher price than you bought it for, can you think of a T2 BPO as a profit maker.
___________________________________________
Selling PERFECT PRINTS of all seeded T1 BPOs.
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Brea Lafail
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Posted - 2007.11.14 01:21:00 -
[20]
I plan to buy a T2 BPO when I manage to get together the cash.
So... what can I get for 17.9 mil?
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