Friday, November 2, 2012

A market finding process

Someone I know (not me) sent me an in game mail, railing against excessive market prices.  I have suppressed who, what and where, but the sentiment applies regardless of those things.



So, we had a decent hisec connection through our not busy c2a, so I was thinking of bringing in a bunch of ...stuff

As I was browsing the necessary pieces, I became angry at the massive margins in ... both trade hubs on all the pieces I was about to buy, both over production cost and between buy/sell orders ( basically, buy orders at production cost, sell orders 40-50% above that).

My response was to start plotting how to free up enough capital to buy the necessary BPO's to produce all those pieces myself, and then to produce the same pieces to sell at those margins.

Then I realised that's my market-finding process, and had to laugh.

3 comments:

  1. That's kind of why trading always beats making. If you start producing, say, T2 launchers then of course the margin will come down from 40-50% over cost to something much thinner. If you're entering a market supplied by producers you'll trigger a price war that may even see margins go all the way down to negative. If you're competing with traders however, the traders will stop trading in launchers and find something else that has a 50% margin instead.

    ReplyDelete
  2. Stabs; not entirely.

    While I agree that trading has advantages over making; in this instance; according to eve central, there were no better of prices my associate's items; yet large markups.

    Trading is a good way to move local surplus to remote shortages; providing (and charging) value in doing so.

    "Making"/crafting/manufacturing is a good thing to add value where total demand exceeds total supply.

    ReplyDelete
  3. I do the same sometimes... Limited Adaptive Invulnerability Fields for example, I sell those just to keep the douchebags from buying them all up under 50k and reselling for 500k+.

    Shameless plug for my new Eve Blog Merchant Monarchy

    ReplyDelete

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