A venture too far
January 16, 2013 § 2 Comments
If you remember I purchased four Inner Zone Shipping Catalysts for 80M a little while ago. I have since sold two of them and put two away in my private Collection. I am two hulls and 70M ISK up on that transaction. It was speculative but profitable, and I was happy with the price I sold at.
The Venture BPO has come out of Material Research at level 25. I had pegged 15 as a suitable / balanced level, but researched it further to – I must admit, match all my other Frigate BPOs. (I like my spreadsheets to look orderly..)
I did some rough calculations yesterday on the profitability of this BPO. I used a snapshot of materials and hull prices in Amarr. (Note this summary will be out of date by the time you read it, it is just for curiosity.)
448,500 ISK – Sell price
392,000 ISK – ME 0 Build Price
356,500 ISK – ME 25 Build Price
The research saw the Profit per unit increase from 56,500 to 92,000 ISK
The percentage of the sale which is profit increased from 12.6% to 20.5%.
So it makes money in Amarr – but you would need to sell 11 ME25 Ventures for each 1M ISK in profit.
The buy orders were around 425,000 ISK – which is above build cost.
Just eyeballing the volume graphs, there looks to be a turnover of around 250 units each day, with 170 currently available at the lowest price. If you were to update your prices frequently I could imagine it would be possible to capture 25% of the turnover, so around 62 units. If you managed that, you would make around 5M ISK profit a day after expenses.
I certainly wouldn’t bother.
Truth be told my purchase and research of this BPO is more about adding to my collection than becoming the next mining Frigate mogul. I do however like the flexibility it provides in being able to build for myself, or fill a gap in the local market.
Speaking of the local market, turnover is around 10 units a day – but the sell price is 700,000K.
I put up a buy order at 200,000K, which has initially brought in some hulls. I’ll build 10 or 20 more for sale, price them at the lower end of the Regional average, and forget about them. Each sale will bring in 250,000 to 500,000 ISK, which over a long period will be worthwhile. Of course – those profits will drop if anyone prices their hulls more competitive, but I don’t envision losing money.
I have 20 odd different items like this up for sale which adds up to useful small change.