Irrational, Unprofitable Prices and BP Changes

I was mocked a few weeks ago discussing the subject of cost by using generally accepted albeit generic business terminology. Perhaps I’m one of the few who have operated and owned actual businesses on Earth but for the sake of educating my Eve family, I’ll soldier on.

Cost and price are closely related but not the same. The price of materials at trade hubs might be your (OP) cost but they certainly are not mine but merely represent a referential basis. My cost of production is the amortized cost of the mining equipment and skills I purchased now used to mine ore. As such my cost structure is less than one tenth of yours and I can easily make profits far below the referential material prices (basis) posted at trading hubs.

Players that buy material at trading hubs, then construct products for sale at the same hub are merely engaging in arbitrage. In this case the relative cost of production is more a function of trading in the individual component bid/ask spreads than anything else. In actuality, since Eve is virtual, it’s all arbitrage except (virtual) mining is one (virtual) integration removed. With highly liquid and efficient markets, bid/ask spreads and arbitrage prospects are small.

So when you see finished products selling at prices below the aggregated imputed component cost on a trading hub basis, it’s not manipulation but merely a different cost structure and the minimization of arbitrage potentials.

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You’re trying too hard, friend.
This is just a video game and there are so many more factors that go towards why people may be selling stuff below build cost.

  • They have some junk and just want to sell it cheap.
  • They ganked someone who wasnn’t paying attention.
  • They looted some stuff during pvp and want to get rid of it.
  • They build out in low/nullsec and have excess, so they just ship it out.
  • They dabbled in some industry but found it unenjoyable so they’re just liquidating.
  • They focus on extremely efficient margins and produce enough to be profitable.
  • They have some junk and just want to sell it cheap.
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  • they bought much lower and are willing to sell at good price compared to their purchae.
  • they want to kill competitors.
  • they made a mistake and bought 2000 ships instead of 20. Now they need to sell the excess.
  • all the reasons we don’t know about. Just because it does not make sense to us, does not mean it does not make sense to someone else.
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You could have finished your post without that paragraph and it would get my heart.

But this, is pure speculation on your side. Scoots Choco already pointed out the factors why you should not have made such assumption.

The rest of your post is good, maybe next time less EGO more rational. There are a lot of trolls here, but also a lot of intelligent people, be humble.

Its not the boxers complaining. They already had means in place. The issue some have. This is really hooking up the haves over the have nots.

You see every smart 0.0 cap/super pilot has their oh crap low sec system to bug the cap(s) out to. They find a quiet system or 2…and have alts work it. Have for years. Crap low sec moon goo mining, pi when dropped. Reaction pos in the day of pos dominance.

This was never an issue with them. They already had/have low sec logistics in place. Many the JF alt with JF (and cyno alts, ofc). Why slow boat that crap lol.?

Side note being low sec is how many super owners I know…this was how they bought it. and the 2nd super. And paid for the mommy sitter alt back in the day these were needed. This change…aint making them poor lol.

Well, don’t know about you guys but I plan on sitting tight for six months, stockpiling ore, running L4 missions and then sticking my head up and seeing what all these changes have resulted in viz. building costs and availability. The markets should be somewhere near the new normal by then.

I used to build ships that sold for between 1 and 2.5B - that was my major income stream. I hope I can still do so profitably in six months time. If not I may give that up and do something else. (Not nullsec pewpew, though - I just don’t enjoy it or the way that people behave in corps that live down there.)

Give it time, people, let things shake down and see how it looks in six months!

There are ways to maximize profit and the need to find a way, if you like challenge then you got one, your right that people are selling at break even or less then, if you are stressing about profits I’d say that you are not enjoying the game style you’ve chosen, try something else such as exploring, if you get lucky it pays well.

If you were to remove EGO from this forum, the frequency of posts would drop to 5 or 6 a month. But yes, I had fun.

In my experience most people confuse humility with weakness. The many times moderators shut down threads here is not due to excessive humility. I appreciate your sentiment and in RL I’m a different person, but isn’t everyone else?

No, not everyone hides behind a facade and are true to their nature even in games like this. In the response you are currently responding to, he quoted something you said in regards to using a different cost structure and in a way you are right. The buyers and resellers use a different cost structure which has led to items being sold under build cost value providing there is a chance for them to make a profit and not take into account the actual build cost.