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Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 09:43:00 -
[1]
How many of you would say that owning a Tech2 module BPO is far more profitable than inventing the BPC's to produce from? Most likely, the majority of you. However there is only a handful of Tech2 module BPO's that are worth having, and even still some owners of these BPO's would struggle to compete with a T2 BPC Inventor/producer in a price war.
Case Example (Co-Processor II) BPO vs BPC Module sale Price : 650,000 ISK
Unresearched T2 BPO 1 hour, 16 mins to produce 1 unit Production Cost per unit : 37,522 ISK Maximum Volume : 18 units per day Profit Per Unit : 612,448 ISK Profit Per Day : 11,024,064 ISK
10 run T2 BPC 2 hour, 33 mins to produce 1 unit Production Cost per unit : 52,442 ISK Maximum Volume : 9 units per day Invention Cost : 2,437,612 ISK Profit Per Unit : 326,712 ISK Profit Per Day : 2,940,410 ISK
As you can see, the Tech2 BPO appears to be more profitable than using an invented Tech2 BPC. However, the BPO owner is limited to using the 1 print and therefore 1 slot at a time. He can manufacture at most 18 units per day. The Tech2 BPC Inventor/Producer isn't restricted in this way, and can have upto 11 slots running 10run Tech2 BPC's in each production slot. His volume can be upto 99 units per day.
Why is this significant? It will take the BPO owner over 5 days to produce the volume that the BPC user can come up with in 1 day. Over the course of a 28 day period : T2 BPO Owner/Producer will have been able to produce 504 units T2 BPC Inventor/Producer will have been able to produce 2,772 units
If Both the BPC Inventor/Producer and the BPO Owner/Producer made these modules none stop for a year, the Inventor would net approx 11,805,738,120 ISK in profits. The BPO Owner nets almost 66% less at 4,023,783,360 ISK profits (providing the all sold of course...)
Price War? As you can see from the above statistics, the profit per unit using the BPO to manufacture from is almost double that if using BPC's. That said, the BPO Owner/Producer could just as easily half the price he sells the modules at in an attempt to 'push out' the BPC Inventor/Producer who's profit margin has suddenly disapeared...
This would be a foolish mistake.
The BPC Inventor/Producer simply buys up the BPO Owner/Producers stock at the reduced sell price (which incidently works out at what it would have cost the Inventor/Producer to manufacture) and simply relists it at it's normal price. All the BPO Owner did here was supply his competition with 20% more volume at cost.
Volume is King and Inventors/Producers are the ones who can exploit this with ease.
This example was shown using an unresearched Tech2 BPO, so this would obviously alter the overall results/volumes depending on the research levels. It's however not enough to change the facts I have presented. Use of certain Decryptors balance this out. You can easily Investigate this yourself with any Tech 2 BPO doing an item type search, and comparing it against an invented print. Once you have the information and done your research, it's easy to spot where the Tech 2 BPO owners seed the market, which you can then go and muscle them out...
Final Thoughts. There is only a handful of Tech2 BPO's that it's impossible to compete with as an Inventor/Producer. Certain Tech2 drone BPO's and some mining crystal BPO's are a waste of time inventing.
Invention/Production requires alot more attention to detail and specifics compared to Tech 2 BPO's. It's more time consuming and has far greater risks associated (i.e random invention success chance, fluxuating datacore prices), but if researched and carried out correctly you will be very sucessful..
Tech 2 BPO owners are no longer in control of the tech2 market - Inventor/Producers are the new masters, just very very few of those doing it, realise it.
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LaVista Vista
Conservative Shenanigans Party
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Posted - 2008.10.02 09:55:00 -
[2]
I'm LaVista Vista, and I support this message.
I will from now on be posting the URL in ever T2 BPO whine thread I see.
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Astorothe
Aperture Science Industries
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Posted - 2008.10.02 09:57:00 -
[3]
Nice & Clear.
RPGN Gaming Network - Eve News, Gaming News, Forums & Community - Home of Aperture Science Corp [ApSci] |
c4 t
Directive Enterprises
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Posted - 2008.10.02 09:57:00 -
[4]
i read about this concept about a month ago. would have been easier just to have stumbled upon this post though.
mostly harmless |
Treelox
Amarr Market Jihadist Revolutionary Party
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Posted - 2008.10.02 11:45:00 -
[5]
been trying to point this out to whiners for last year. You definetely presented it better than I ever did, I too will link this for the cry babys. --
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Myrdin Potter
Gallente
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Posted - 2008.10.02 12:23:00 -
[6]
Your analysis breaks down when you add in the fact that there is nothing stopping the BPO owner from inventing as well and running just as many slots. The difference being that the BPO owner gets at least 1 automatic BPC (the original BPO) that has a much lower build time and lower build cost.
Myrdin
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Ray McCormack
hirr
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Posted - 2008.10.02 12:35:00 -
[7]
Originally by: Myrdin Potter Your analysis breaks...
But then the argument has changed and you're comparing inventors with inventors as opposed to owners with inventors.
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Midas Man
Caldari Dzark Asylum
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Posted - 2008.10.02 12:49:00 -
[8]
So lets evaluate:-
BPO owner producing from 1 line makes: 11,024,064 ISK per day
Inventer using 1 line makes: 2,940,410 ISK per day
Now like you did lets equate this to annual profits but using full Production lines.
Inventer producing on 11 Lines = 11,805,738,120 ISK in profits for the year BPO Owner producing on 11 Lines = 44,261,616,960 ISK in profits for the year
This is hypertheoretical as it would be quite difficult to get 11 of the same BPO's but its not unreasonable to have 11 different BPO's.
Closing thoughts BPO owner have a massive advantage in fact the BPO owner could sell at Inventer cost and still make more profit across his 11 line than the inventer ever would. And this is one of the reasons they demand such a huge price tag.
Infact as mentioned above you can produce from BPO and use 10 line to invent and will make more than the guy who only invents.
I agree with volume being the only way an inventer can make reasonable profits comment but thats only a by product of increased/extra demand on certain items. Any Item where demand is lower than the BPO supply and inventers are mute.
There is also a flaw in the buy the BPO stock and relist. If you did this to a product where I was producing from BPO, I would set one of my alts to only build that product and see how long you stay in a market at 0% profit while i still make a profit on the small supply coming from the BPO.
Trying to beat a BPO owner is Market PvP is flawed for 1 reason. They have every tool available to them as you do except they have one massive advantage you don't a BPO.
just my 2isk
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Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 13:01:00 -
[9]
Originally by: Myrdin Potter Your analysis breaks down when you add in the fact that there is nothing stopping the BPO owner from inventing as well and running just as many slots. The difference being that the BPO owner gets at least 1 automatic BPC (the original BPO) that has a much lower build time and lower build cost.
Myrdin
That is quite true, but in my experience the T2 BPO holders tend to be reluctant to use 'Invented' prints because of the increased material costs (due to the negative ME level). It's seen as a loss in 'potential' profit. Besides, most T2 BPO holders are multiple T2 BPO holders and I can't see them cancelling runs on a different profitable T2 BPO to attempt to compete with an Inventor for lesser gains and faster depleation of their material reserves while doing so.
It's a lose-lose situation, however they look at it.
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Amy Wang
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Posted - 2008.10.02 13:02:00 -
[10]
Originally by: Midas Man So lets evaluate:-
Inventer producing on 11 Lines = 11,805,738,120 ISK in profits for the year BPO Owner producing on 11 Lines = 44,261,616,960 ISK in profits for the year
initial capital needed to fill 11 lines with invented BPCs: couple 100m
initial capital needed to fill 11 lines with t2 BPOs: several 100 bil
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Kazzac Elentria
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Posted - 2008.10.02 13:09:00 -
[11]
And people wonder why we laugh at them when they pay these absurd prices for BPOs |
Ricdics
Tleilex Developments
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Posted - 2008.10.02 13:36:00 -
[12]
Originally by: Amy Wang
Originally by: Midas Man So lets evaluate:-
Inventer producing on 11 Lines = 11,805,738,120 ISK in profits for the year BPO Owner producing on 11 Lines = 44,261,616,960 ISK in profits for the year
initial capital needed to fill 11 lines with invented BPCs: couple 100m
initial capital needed to fill 11 lines with t2 BPOs: several 100 bil
I think this is spot on when considering invention vs t2 bpo's. Imagine the amount of GTC's you could afford for more characters (for more invention lines) when not having to factor in huge costs of T2 bpo's.
Having said that, I would say T2 bpo's are a lot easier to deal with than invention but thats probably the biggest benefit a T2 bpo owner would have. |
cosmoray
Cosmoray Construction
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Posted - 2008.10.02 13:43:00 -
[13]
One advantage a T2 BPO holder has, is that it tends to be passive income. Sit back with minimal effort and watch the ISK flow in. T2 invention is more of a business, which has to be managed.
Invention should be the whole model for Eve, not sit back and hit the 'I win button'.
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Mr Horizontal
Gallente KIA Corp KIA Alliance
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Posted - 2008.10.02 13:44:00 -
[14]
Nice discussion
Firstly any sane BPO owner will do at least some invention on the same item to figure out what the invention cost of the item, so they know what the minimum cost basis of an inventor is.
Secondly, not all T2 items are actually inventable. You can get some truly shit BPOs that don't sell their entire production allocation (in which case the biggest rationale for invention: high volume goes out the window) or that are simply not cost effective to invent as there's a basic capital requirement of at least 2 datacores needed to invent something, which can be more than the price you get from the entire run of items (in which case it's simply unviable to invent).
Thirdly, if you *really* want to corner a market, why stop at one BPO? A lot of the owners I know of have a collection of the same prints, and they produce them at max capacity, and therefore your argument of using 11 BPCs kind of flies out the window, because the BPO producer can do the same thing (but with a considerably higher capital investment of course!)
Nevertheless, I don't want to put down the argument, which is a good one, but the basic fact is the BPO owner is the one who ensures there's always T2 items stocked whatever it is, while the inventor adds the volume. It's a symbiotic relationship.
Director | www.eve-bank.net |
Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 13:47:00 -
[15]
Originally by: Kazzac Elentria And people wonder why we laugh at them when they pay these absurd prices for BPOs
Exactly :)
The price they paid for the T2 BPO is based on it's yearly rate of return IIRC, and most if not all producers set aside or atleast plan a budget for the duration of this time scale..
Competing with an Inventor/Producer by also engaging in invention is going to depleate that materials stockpile alot sooner than expected (due to the negative ME levels of invented prints), likely this will have a knock on effect with planned finances and screw up other budgets, while at the same time pushing forward the expected maturity date of their investment...
Any T2 BPO's owners who one day notice I've appeared in their neighbourhood, please feel free to compete with me. Just be aware, I'm not there by chance and have specifically targetted your area.
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Lutien
Caldari z-inc.
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Posted - 2008.10.02 13:54:00 -
[16]
I would like to react as a t2 bpo owner that did a little invetion herself.
work: it take's quite a bit work to make a lot of t1 bpc's, do the invetion jobs and make the short building jobs evry day.
So yes you can make more profit with ivention but i rather inject my bpo for 30 day's at redcued cost. my 20 sec vs your....... i don't want to know. Than i still have 9 build slots left to use some other t2 bpo i own.
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Kazzac Elentria
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Posted - 2008.10.02 13:57:00 -
[17]
Originally by: Mr Horizontal Nice discussion Nevertheless, I don't want to put down the argument, which is a good one, but the basic fact is the BPO owner is the one who ensures there's always T2 items stocked whatever it is, while the inventor adds the volume. It's a symbiotic relationship.
I tend to disagree, there are plenty of items in EVE where I would wager isk that the only people supplying them into that region are inventors or traders moving existing stock, which likely came from inventors.
And vice versa though, I am sure there are plenty of items where the only supply is coming from BPO holders. |
Juyfne
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Posted - 2008.10.02 14:00:00 -
[18]
I didn't see this is anyone's post, so apologies if it's there..but you are neglecting a major item. Sure the inventor can invent 11 BPC to fill up assembly lines, but what's to stop the BPO owner from simply making 11 copies of his/her lower ME original? Make 11 copies and while those are being made, research the original, make more copies, rinse repeat. The BPO owner's profit margin will keep expanding as time goes by due to more time to research it further...
0.02 from a noob
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Kazzac Elentria
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Posted - 2008.10.02 14:07:00 -
[19]
Originally by: Lutien I would like to react as a t2 bpo owner that did a little invetion herself.
work: it take's quite a bit work to make a lot of t1 bpc's, do the invetion jobs and make the short building jobs evry day.
So yes you can make more profit with ivention but i rather inject my bpo for 30 day's at redcued cost. my 20 sec vs your....... i don't want to know. Than i still have 9 build slots left to use some other t2 bpo i own.
As a big inventor (I sold most of my BPO stock long ago) I farm all my copying out to others.
So right now my workload consists of.
Log into game Accept contract for BPCs Queue up invention jobs (buy cores if needed) Look at BPC stock (buy T2 mats if needed) Queue up manufacturing slots
I might take a few minutes more than you do.
Remember.. work smarter. Not harder. Look at your operations and find the points where you can increase efficiency by offloading work to others for not that much increase in cost.
I'll gladly pay upwards of 20k a copy hour, if you can deliver prints to me reliably.
...which reminds me that I need to get a new order in for next month. |
Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 14:10:00 -
[20]
Originally by: Mr Horizontal Nice discussion
Firstly any sane BPO owner will do at least some invention on the same item to figure out what the invention cost of the item, so they know what the minimum cost basis of an inventor is.
Secondly, not all T2 items are actually inventable. You can get some truly shit BPOs that don't sell their entire production allocation (in which case the biggest rationale for invention: high volume goes out the window) or that are simply not cost effective to invent as there's a basic capital requirement of at least 2 datacores needed to invent something, which can be more than the price you get from the entire run of items (in which case it's simply unviable to invent).
Thirdly, if you *really* want to corner a market, why stop at one BPO? A lot of the owners I know of have a collection of the same prints, and they produce them at max capacity, and therefore your argument of using 11 BPCs kind of flies out the window, because the BPO producer can do the same thing (but with a considerably higher capital investment of course!)
Nevertheless, I don't want to put down the argument, which is a good one, but the basic fact is the BPO owner is the one who ensures there's always T2 items stocked whatever it is, while the inventor adds the volume. It's a symbiotic relationship.
Invention/Production is a very low risk, low cost operation - if managed correctly. As an Inventor/Producer I can afford to screw around with a BPO holders market because the cost is insignificant to me, and the possible benefits are very much worth it.
Reverse the situation and that disruption represents delays if not significant losses to the BPO owner - who has invested a serious amount of capital/risk and stands to lose far more than me by sticking around and competing, trying to next guess someone like me.
Im not saying a BPO holder should just leave at the first sign of trouble, i'm just saying circumstances an Inventor can impose on a BPO owners pricing structure or methods only really disrupt one person....
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Treelox
Amarr Market Jihadist Revolutionary Party
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Posted - 2008.10.02 14:12:00 -
[21]
Originally by: Juyfne I didn't see this is anyone's post, so apologies if it's there..but you are neglecting a major item. Sure the inventor can invent 11 BPC to fill up assembly lines, but what's to stop the BPO owner from simply making 11 copies of his/her lower ME original? Make 11 copies and while those are being made, research the original, make more copies, rinse repeat. The BPO owner's profit margin will keep expanding as time goes by due to more time to research it further...
0.02 from a noob
As you admit you obviously are a noob.
Look at the copy times on a T2 BPO sometime and you will understand why your idea is totally pointless. --
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Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 14:46:00 -
[22]
Originally by: Kazzac Elentria
Originally by: Lutien I would like to react as a t2 bpo owner that did a little invetion herself.
work: it take's quite a bit work to make a lot of t1 bpc's, do the invetion jobs and make the short building jobs evry day.
So yes you can make more profit with ivention but i rather inject my bpo for 30 day's at redcued cost. my 20 sec vs your....... i don't want to know. Than i still have 9 build slots left to use some other t2 bpo i own.
As a big inventor (I sold most of my BPO stock long ago) I farm all my copying out to others.
So right now my workload consists of.
Log into game Accept contract for BPCs Queue up invention jobs (buy cores if needed) Look at BPC stock (buy T2 mats if needed) Queue up manufacturing slots
I might take a few minutes more than you do.
Remember.. work smarter. Not harder. Look at your operations and find the points where you can increase efficiency by offloading work to others for not that much increase in cost.
I'll gladly pay upwards of 20k a copy hour, if you can deliver prints to me reliably.
...which reminds me that I need to get a new order in for next month.
I too run a very large Invention/T2 Production operation, and outsource nearly everything. We dont even deliver anything we produce. I happily sit in station 99% of my online time except for restocking labs and collecting prints.
At this moment we pump out almost 900 modules per day if we have uninterupted material supplies and cannot afford to direct manufacturing slots or research slots anywhere other than t2 production and Invention.
I set about 70 module invention jobs every hour for however long im online, and finish off the night with about 60 ship invention jobs that are usually ready the next day when i log in.
There is no way I could run at this productivity level by doing my own t1 bpc's.
I source t1 bpc's externally which we are going through approx 2b worth (about 10k max run bpcs) nearly every week. I use upto 3 different sources (one of which runs a successful IPO in this forum), so if you are looking for a reliable cost effective supplier contact me ingame and I'll pass you their details.
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Midas Man
Caldari Dzark Asylum
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Posted - 2008.10.02 15:10:00 -
[23]
Originally by: Ulecese
Invention/Production is a very low risk, low cost operation - if managed correctly. As an Inventor/Producer I can afford to screw around with a BPO holders market because the cost is insignificant to me, and the possible benefits are very much worth it.
Reverse the situation and that disruption represents delays if not significant losses to the BPO owner - who has invested a serious amount of capital/risk and stands to lose far more than me by sticking around and competing, trying to next guess someone like me.
Im not saying a BPO holder should just leave at the first sign of trouble, i'm just saying circumstances an Inventor can impose on a BPO owners pricing structure or methods only really disrupt one person....
Unresearched T2 BPO 1 hour, 16 mins to produce 1 unit Production Cost per unit : 37,522 ISK Maximum Volume : 18 units per day Profit Per Unit : 612,448 ISK Profit Per Day : 11,024,064 ISK
10 run T2 BPC 2 hour, 33 mins to produce 1 unit Production Cost per unit : 52,442 ISK Maximum Volume : 9 units per day Invention Cost : 2,437,612 ISK Profit Per Unit : 326,712 ISK Profit Per Day : 2,940,410 ISK
From your own data on an unresearched BPO is ~40% per unit cheaper to make. This could be increased to ~50% with research and lets face it who has an unresearched BPO?
so how would you plan to screw with that market continually make them at 50% loss so the BPO holder makes 0%. Im sure anyone with the funds for a BPO would laugh profusly at that attempt, probably move their stock else where while continually checking you price and keeping a tally at how much money you have lost trying to "beat" them, and when all is said and done and you have run out of Isk they will take their maket back, with a smile, alternatively they could sell their BPO and buy another which you are not Jihading
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SiJira
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Posted - 2008.10.02 15:26:00 -
[24]
your theory works well when there are 11 t2 bpos Trashed sig, Shark was here |
Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 15:48:00 -
[25]
Midas Man, I continued my original post from where you obviously thought you had read enough to form a valid arguement on the matter.
Quote: As you can see, the Tech2 BPO appears to be more profitable than using an invented Tech2 BPC.
However, the BPO owner is limited to using the 1 print and therefore 1 slot at a time.
He can manufacture at most 18 units per day.
The Tech2 BPC Inventor/Producer isn't restricted in this way, and can have upto 11 slots running 10run Tech2 BPC's in each production slot.
His volume can be upto 99 units per day.
Suprisingly as it turns out, you hadn't read enough of the original post to form a valid arguement.
A T2 BPO holder attempting to 'compete' with the inventor/producer by himself running invention jobs will soon discover it's not in his best interests to do so.
A number of factors cause it to be a pain in the ass for the T2 BPO owner... but don't take my word for it, listen to what one such T2 BPO owner said about dabling in invention alongside BPO production...
Originally by: Lutien I would like to react as a t2 bpo owner that did a little invetion herself.
work: it take's quite a bit work to make a lot of t1 bpc's, do the invetion jobs and make the short building jobs evry day.
So yes you can make more profit with ivention but i rather inject my bpo for 30 day's at redcued cost. my 20 sec vs your....... i don't want to know. Than i still have 9 build slots left to use some other t2 bpo i own.
99% of T2 bpo owners will do exactly the same because they feel it is not worth the effort, the additional cost, the pain of organising bpc copies to invent, moving datacores, finding a lab..... THE LIST GOES ON....
They will try to play pricing games with me, which won't work as I will be in control of the majority volume of the module in question at the location. I can make any action of their insignificant in comparison to mine but If they do buy up all my stock for a price near enough to what I find acceptable, then great! Ill be back the very next day with an additional 3000 units for them.
An alternative is them slashing their prices to prevent me getting an acceptable price for my goods. Again, this is great news because their new price will be near my production costs so I'll just buy up their entire inventory and relist at my desired price.
Here is a Free Tip just for you Midas Man.
'Just because you don't understand something doesn't mean you should argue that it's wrong...'
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Midas Man
Caldari Dzark Asylum
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Posted - 2008.10.02 16:03:00 -
[26]
Originally by: Ulecese
Contradictions and general drival
1) Why is it a PITA for a BPO owner to Invent. And if it is then it is also a PITA for you and because the BPO owner has atleast (Read BPO owner ARE NOT limited to 1 print) 1 Slot running at a lower cost than you.
2) The BPO can go lower in price while remaining profitable, and if you buy him out (Here where you need to learn to read as i already covered this base) The BPO owner can always Invent at a loss just as you can and therefore if you buy him out he can use your poorly thought through tactic back on you except his stock will always be cheaper as he is offsetting it with a BPO.
3) If you think about how much a BPO costs to Buy (and if the owner got it in the lottery think how much they have already made from it) I would argue the BPO owner is in a much better position to PAWN you in a trade war.
4) they can sell that particular print and with the billions they make buy a new one that hasn't got some "I mine my minerals so there Free" fool trying to undercutt him constantly.
Maybe that is clearer for you to understand.
BPO owner always have the advantage however you try to compete.
Invention is only viable when BPO's cannot supply the demand.
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Ulecese
Ihatalo Research and Development
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Posted - 2008.10.02 17:42:00 -
[27]
- With a BPO, all they have to do is make sure the materials are available, right click on the BPO and set jobs running. This is easy.
- Setting up an Invention operation takes considerable patience, ISK, and LOTS OF TIME. Even after setting one up it is going to take atleast a week to come up with a decent t1 bpc's library to work from. Its then going to take atleast another week to build up a t2 bpc library and this is assuming you have alot of successes.
That is why its a pain in the Ass.
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cosmoray
Cosmoray Construction
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Posted - 2008.10.02 17:45:00 -
[28]
For most T2 BPO's it takes longer to make a copy than it does to produce 1 unit. Look at time to make max run bpx copy on a T2 BPO. Then when you have made it, you put that up for invention, whilst making another copy. Maybe invent, maybe not. If you invent successfully you put a run on. The T2 BPO will still only fill 3 or 4 slots and it is not efficient.
What is the point of all the work if you own a T2 BPO. Yes you could try and compete with an industrialist, but as Ulecese he is making 70 jobs an hour while online and also has other contracts that supply him with materials.
With a BPO just sit back, plug in max runs, leave, come back, put up for sale and collect the money.
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Kazzac Elentria
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Posted - 2008.10.02 18:09:00 -
[29]
Originally by: Midas Man
Originally by: Ulecese
Contradictions and general drival
1) Why is it a PITA for a BPO owner to Invent. And if it is then it is also a PITA for you and because the BPO owner has atleast (Read BPO owner ARE NOT limited to 1 print) 1 Slot running at a lower cost than you.
2) The BPO can go lower in price while remaining profitable, and if you buy him out (Here where you need to learn to read as i already covered this base) The BPO owner can always Invent at a loss just as you can and therefore if you buy him out he can use your poorly thought through tactic back on you except his stock will always be cheaper as he is offsetting it with a BPO.
3) If you think about how much a BPO costs to Buy (and if the owner got it in the lottery think how much they have already made from it) I would argue the BPO owner is in a much better position to PAWN you in a trade war.
4) they can sell that particular print and with the billions they make buy a new one that hasn't got some "I mine my minerals so there Free" fool trying to undercutt him constantly.
Maybe that is clearer for you to understand.
BPO owner always have the advantage however you try to compete.
Invention is only viable when BPO's cannot supply the demand.
2. Inventors are in a much better position trade wise. They have control a number of prices and if they play their trade cards correctly, often they can pull their costs right down to within a few percentage points of a print holder. They also have a much easier time exiting a market and investing into a new one.
Case in point. I invent anywhere from 20 to 30 modules in a given month. Often NONE of these are the same. So while the print holder is yes... running a constant revenue stream. I am able to liquidate and move onto other more profitable ventures much more quickly than the print holder could hope since they are stuck with a very large non liquid asset tying up valuable capital.
Which brings me to 3
3. Because the inventor has control over a myriad of ways to lower their costs, they are also in a much better position trade wise to control the market flow of a particular product.
In short.. being a print holder still has some perks. But in the long haul its nothing compared to what it used to be. |
Jaarlax
Ratty Corp PLC Confederation of Independent Corporations
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Posted - 2008.10.02 19:12:00 -
[30]
I have bpo's and invent, i like bpo's they are neat, you do make more profit on the items, and the bpo has value. invention takes a little more work, but not a lot, and the item costs a little more.
but.
if there is a price war on my bpo items, all i can do is try to sell elsewhere or take a profit cut, but on my invented stuff, i just move to another item instead.
invention gives you much more flexibility to react to market fluctuations, which will ultimately get you more isk. If i have a T2 coke machine bpo and i'm making some nice coin, but then everyone wants Dr Pepper and stops buying coke, i'm stuffed!
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