Can anyone explain me why do people sell such ships like cerberus or others for so low price?
Cost of materials is 250kk + cost of production X. Sell orders are at 195kk and 55kk of losses per one ship.
What is the reason of such actions?
Can anyone explain me why do people sell such ships like cerberus or others for so low price?
Cost of materials is 250kk + cost of production X. Sell orders are at 195kk and 55kk of losses per one ship.
What is the reason of such actions?
Iām no industrialist, but could it be that the seller has produced at a lower cost?
They may have built it in the past when it was cheaper, have access to cheaper ores by cutting out the middle man, or have access to more efficient facilities.
Itās also possible they just wish to liquidate stock at lower than production cost to free up ISK for something else.
Or some non-industrialist like myself who doesnāt care about build cost may just be selling ships they no longer use and undercut other sell orders at a price thatās unprofitable to build at.
Itās also possible the industrialist seller made the mistake to think that āores I mine myself are freeā and forgot to take the opportunity cost of the ore into account. Not every industrialist is smart or profit-driven. Some build for fun.
I donāt think that all of them are liquidating stockpiles:
If you have ore that you can sell for 100kk, why the hell are you going to assemble a ship out of it and sell it for 70kk?
My question is not about manufacturing costs. This cost is about 50kk with all taxes for me, for others it can be much lower. But mats?! 250kk is for mats only! Come to Jita - and youāll sell all of this stuff in minutes or at least hours max for the price of 250kk instead of 195kk for the manufactures ship.
These losses are unconditional. And that is how T1/T2 ships market works for years. Why are people still producing ships with these losses?
Because theyāre not selling at a loss.
Theyāre getting their materials in bulk from alliance ore or ratting loot buyback schemes at under Jita buy. Or theyāre buying through contracts and bypassing the market altogether.
Theyāre producing in rigged Sotiyos in sov null with max industry ADMs.
Iāve known large scale industrialists to be buying materials in ISK50b or more bulk lots. You tend to get a decent discount on orders that large.
The only way to avoid selling at a loss is to reduce the amount of production mats (because I didnāt include fees and taxes in calculation to get 55kk loss for the ship above. With all fees, loss for my indy is more than 40% of ship cost). The maximum reduction in the amount of mats on Sotiyos can be several percent, while the loss relative to the cost of mats is more than 20% without commission of the sell order.
In any other way you can earn 20% (decrease it by Sotiyo rigs bonuses) more if you just sell mats to buy orders in Jita.
Well if you get free mats, say by mining and farming yourself, then you can sell for profit at any price, right?
No, youāll get the opportunity cost in that case.
FTFY.
Again, plenty of stuff changes hands in this game without going through the in-game markets.
Selling below production price because āthe ores you mine yourself are freeā is a mistake.
Always value the ores you use, even if you mined it yourself.
An example:
80 million worth of ores you mined can be turned for a cost of 20 million into a ship worth 110 million ISK.
Do you profit?
Yes, you earn 10 million ISK for industry and another 80 for mining.
Say you can turn 50 million worth of ores for 15 million ISK into a ship worth 40 million ISK .
Do you profit?
No, youāre doing industry at a 25 million ISK loss.
You did mine for 50 million ISK, but combining a 50 million mining profit with a 25 million industry loss results in only 25 million ISK total profit.
Thatās much less than if you had simply sold your ores. By assuming your own ore is free you may be burning half your ISK by turning ores into ships!
You donāt need to sell the ore you mine, but do keep in mind those ores have a real market value before you accidentally turn it into something with lesser value.
Maybe the seller is a philanthropist who only cares about the well-being of other capsuleers thus sells these ships at a discount and eats up the losses for the greater good.
generally i just make my own stuff now, if i cant make it i dont fly it.
Iād be stuck flying shuttles.
ā¦and corvettes, they are free after all.
I cannot make those though! Or does āboard my corvetteā count as crafting?
Well they are provided on demand so it depends on your definition of making. In a sense you can make one by clicking a button.
Edit: Also there is no way to make them in a conventional manner as if I recall correctly no blueprints are available for corvettes.
someone may also make all the reaction materials themselves which would further reduce the cost.
Also you can slowly buy up materials in null with low ball buy orders that, over time, lazy people will fill.
I have a reasonable cache of such materials in Syndicate for this reason.
If you produce in bulk, then you will see profits. What you arenāt seeing is the price of the stockpile of left over stuff that carries over to your next build.
T2 production is very competitive and nullsec holds the corner market there. They also have access to T2 BPOs which are at 10/20 and you canāt get that ME through invention. They canāt really flood the market with T2 manufacturing components without bringing down the prices so that wouldnāt work. Thereās a balance point somewhere.
You can compete with that and be profitable even if youāre not in nullsec, but Iām not gonna give away my trade secrets. There are ways, but itās definitely not the most profitable thing to get into in industry and it involves a lot of hassle. The margins are quite small too.
As a side note, invention needs an overhaul in my opinion. In a game where T2 BPOs are unavailable to the overwhelming majority of players, there should be some balancing mechanic to that. Invention is okay, but the fact that you can only get max ME5 through it is dumb. There should be a way to invent ME10 and TE20 copies with some new decryptors or skills, or something. I donāt think you should be getting 10/20 copies through invention. But for example 10/0 or 0/20 should be options.
Agree, if you make all the components including the Reaction materials from Moon materials the input cost for T2 is about 50% lower, there is always a markup in every step of the supply chain⦠check make vs buy for every component and its components