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Aurel Svenson
Cyclone Solutions
8
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Posted - 2012.03.29 16:37:00 -
[1] - Quote
WhiteWhiskey wrote:I understand this...I was just hoping for a little advice. I don't expect for someone to handout there business model on the forums. I was saying like....oh tools offers some good gains vs. ship component building. But I will take your advice and check out the page. Thanx.
Use BPCs. BPOs are too expensive and inflexible to start.
Check the profitability of everything that moves in a reasonable volume. The more you check, the more you earn.
Make sure that you pay yourself for your efforts. A 10 slot manufacturing account requires 67k/hour to buy a PLEX, make sure to always earn more than that. Also, two Production Efficiency V, Mass Production IV, Industry IV alts decrease the requirement to 33k/hour. |
Aurel Svenson
Cyclone Solutions
8
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Posted - 2012.03.29 17:39:00 -
[2] - Quote
Oh, another thing is that it's reasonably cheap to buy a corp with high enough standing for a highsec POS (about 135M) and a small tower costs 5M/day in fuel and can support some research and production - at 0.75 time multiplier, helping your ISK/hour greatly.
It might be a while until you're ready for that, though. |
Aurel Svenson
Cyclone Solutions
8
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Posted - 2012.03.29 18:07:00 -
[3] - Quote
Krixtal Icefluxor wrote:Aurel Svenson wrote: Use BPCs you purchase from others, in most cases. BPOs are too expensive and inflexible to start.
This is the part that registered on the Nonsense Meter.
I hope for your sake that you're not a manufacturer. :) |
Aurel Svenson
Cyclone Solutions
8
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Posted - 2012.03.29 18:34:00 -
[4] - Quote
The problem is that it's still a heavy investment. He loses those research slots for weeks, in which time he might want to work on something that's actually profitable (which he doesn't know precisely at the moment). I'd say use BPCs until you know the market; if you're at the "ask the forums" stage it's too early to start long term investments (POS is probably unwise too, but it pays off much quicker than BPOs... and allows you to make BPOs much easier). |
Aurel Svenson
Cyclone Solutions
8
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Posted - 2012.03.29 22:18:00 -
[5] - Quote
Nah, there's a time and a place for BPOs. I'm around the 3B ISK mark and I've just started making them, but only for small items with prints <30M to make (150k/hour research fee assumed). I'm still getting enough turnover on my assets that even a cruiser BPO would require millions in profit per cruiser to offer an economic profit. Later, when I'm getting less turnover, that value will decrease by quite a lot.
It's too bad you can't rent BPOs without collateral...
My point is that if you have a lot of capital invested in making a particular item you're stuck making that particular item and you lose flexibility and you also lose working capital. It's true that BPOs do not depreciate, but neither do they appreciate so they have an opportunity cost associated with them equal to your daily turnover% multiplied by the value of the blueprint, per day. At the beginning you'll have a high daily turnover% so BPOs don't make much sense, and researching ME in public slots is suboptimal, to say the least. Increase your assets enough that a small POS is worthwhile due to the enhanced production speed and then you also have access to fast ME, PE and copy slots with no wait (and you'll probably grow fast enough that this happens before you get ME time in a public slot). |
Aurel Svenson
Cyclone Solutions
10
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Posted - 2012.03.30 10:19:00 -
[6] - Quote
Director Producer wrote:These are tons of cheap BPO's (<15M isk), quite fast to research, allowing you to make large profits. However you will have to go looking for them by yourselft, that is the fun part I don't think he's in a position to do ME research on a timeline shorter than 3 weeks, and 15M is not that cheap since most of those you refer to can probably (I'm assuming you're referring to modules) be had in 1500 run copies for 500k that'll last weeks - and working capital is critical in a small venture. If he's producing mods 15M might be quite a few production slot-hours of capital. |
Aurel Svenson
Cyclone Solutions
10
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Posted - 2012.03.31 12:57:00 -
[7] - Quote
Ah, okay, you're at much higher capital than I was expecting.
What I'm trying to say about BPOs is that there's an associated trap: when you look for profit, instead of looking at the market you'll look at your BPOs.
If you find something that's stably profitable historical, go ahead and buy a BPO from someone; My Hybris does reasonable custom orders
Setting up a POS might be wise for you because of the relatively small cost associated and the huge increase in production. |
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