Greedy Goblin

Thursday, April 11, 2013

Business Thursday: for science!

Let me show some contract sales:
What was I selling? Researched Catalyst and Antimatter charge XL blueprints. Both had one month of PE and one month of ME research. I sold 20 Catalyst BPOs already, which cost me 10M to buy from NPCs and 50M to sell each.

At first let's think about Catalysts: a hull costs around 1.2M, so having a perfectly researched BPO saves 0.12M. To make buying my blueprints profitable, you have to produce 333 hulls from each. I think most people will not produce so many and those who mass-produce probably had their own BPOs researched. But buyers are usually bad at math and having a "good BPO" feels good.

So - despite common belief - researching BPOs is a pretty profitable activity. Not only it had 400% return on capital, but I doubt if I bothered more than half an hour with one batch of BPOs (10 pieces, due to Advanced Laboratory Operation 4), so the active profit is 800M/hour.

The nasty part is that it's a passive income. Creating the blueprints takes about 2 months, and one character can handle 10, so that stellar 800M/workhour income translates to 400M/month passive income. This isn't the thing that will get you a titan by May. But it is the thing that creates you a nice "free" money pouring in.

What can you research? Open the contract interface and look for various blueprints to guess their price. Popular T1 hulls and mineral compressing modules are all good, lot of people want to "save money" by making their own ships.

Who should get involved: people with empty slots in their accounts. There is little reason to not spend 1 month to teach a dedicated alt research skills and covops frig. Cyno alts are also great researchers, as they are already in lowsec. The cynoed in ship can move the cargo. Permanent lowsec residents can also supplement their income. Character trainers can also research both on the learning capital pilot and the empty slots.

Who shouldn't do it? Permanent null and WH pilots as moving to the research station would take too much time. Permanent high mains with expensive pod are also not advised to walk around in low, though they can suck up the long highsec research queue times and research the same BPOs in 3 months.

8 comments:

Anonymous said...

Maybe I'm blind but I can't find the cost you pout into research or are they implemented into the Buy price?

I guess a good station is about 5k install and 1k per hour, but that can vary from station to station and I'm not sure about the figures right now.
But taken those figures you are at roughly 2170k isk for researching 2 month.

Nice to share your business plan but don't hide the costs. At least mention them as "there are some but not much".

Gevlon said...

It's rather a few hundred ISK /hour so I simply ignored it as irrelevant.

Anonymous said...

"a hull costs around 1.2M, so having a perfectly researched BPO saves 0.12M. To make buying my blueprints profitable, you have to produce 333 hulls from each"

That's the wrong way to look at it. You make profit from the first Catalyst that you produce. The BPO doesn't get used up contrary to a BPC. It's not destroyed isk but binded isk. You can resell it, maybe even with a little extra profit after you have produced a batch of Catalysts.

I often see this misconception, people don't get it why someone pays billions for a t2 bpo that would take years of production to break even. The bpo remains a valueable item and is part of your net worth that can be sold should the player need liquidity.

Gevlon said...

Decide what's your business? Dealing with BPOs or making hulls. Having some costs recuperated on the side is always good but you have to have a business model.

"I make hulls and then sell the BPOs for even more" is a stupid strategy, as you can't be sure that their price won't collapse (SC BPOs sell below unresearched NPC).

Of course you can speculate on BPOs but that's it, speculation.

Anonymous said...

The majority of lowsec slots are plugged too, albeit to a slightly shorter (7 days or so lower than highsec) queue, and few lowsec stay empty for long. There are more empty in NPC null of course :)

so you have to factor that into the price, unless time is not money..and a "few hundred isk per hour" is looking at 60k for 1 day research on the station I am sitting in


On another note, 1 month ME research on Antimatter XL gets you to ME400, PE400....Researching 1w4d gets you to ME160...the difference between those two, apart from two weeks, is 6 tritanium and 1 pyerite. Researching PE past 60 (4 days, with 1s build time waste) is a waste...unless you are making such a markup between Perfect ME/PE and Over-researched perfect ME, you could be outputting twice as many per month ME wise, or 4x as many over your two month period.

Finally, ME10 Catalyst BPOs (Research time 2w) go for the same price as your 2month research...so, as an isk/hour, you are losing quite a bit.

Anonymous said...

"Decide what's your business? Dealing with BPOs or making hulls. Having some costs recuperated on the side is always good but you have to have a business model."

It's completely normal for an industrialist in Eve to deal in blueprints. There is no contradiction.

The point was you can turn a profit before producing 333 hulls by reselling the bpo halfway through. That's a fact. Wether that's a better deal then just producing from some bpc's or researching your own bpo is a different story. Depends on many factors and differs from item to item.

In case of your Catalyst the cheapest bpc that i see right now costs 800k isk with 1 run. Not to mention there are only a handful on offer at all. So it would cost roughly 1.8m isk to produce. That's a loss of around 600k isk. You need a researched bpo for that item to make any profit from producing it.

Tego said...

I think some are missing the point, Its not that buying BPC's is better, dont go after the BPO, its that the highly researched BPO's don't pay off profit wise compared to the NPC sold unresearched ones. specialize either in the business of making hulls from market purchased BPO's or making and selling BPO's as it streamlines production, and yield by letting you more easily specialize and gain the advantage of that specialization (in game play, cost, and skill areas)

... Or i am wrong and gelvon is actually spouting some interesting nonsense.

Bayonnefrog said...

Would be willing to revisit this topic with the Crius industry changes? Slots are removed so no wait time and the costs are low even in high sec. I am doing the whole 'research t1 destroyer BPOs for a month and contract it to an industry player for 50m+ ISK' so basically an ISK print machine for your high-sec traders. If you do 15 days of ME and 15 of TE people will buy them up. It's been great.