Invention 05

I’ve had 5 successes from 6 attempts so far.  A good start.

The ingredients required for the T2 Small Tractor Beam are relatively straight forward:

. 1 T2 BPC
. 8 types of minerals
. 2 T1 Goods
. 1 PI Product
. 1 Product built from 3 Moon Materials

The BPC costs I have already discussed, and on average over the long run they should be around 90K for each module.

The Minerals I have in stock, but I’ve put up 250M worth of buy orders to keep in front of that demand. My alt is also contributing a little from her 10 minute mining sessions here and there.

I have kicked off the manufacturing jobs for the T1 goods (R.A.M – Energy Tech and the T1 Small Tractor Beams). I had some R.A. M already in stock, and picked up 10 tractor beams off the market from Amarr to do my first run with. (The cost was within 5% of what I was making them for anyway.)

I am not currently making the PI product (Transmitters), although might consider doing so. It accounts for only 2.4% of the build price, so no need to go overboard on that. I picked up a supply to cover over 100 modules in Amarr at sell prices.

The Moon Material based product (Laser Focusing Crystals) I have less options with. On current prices I can save around 10% by buying the raw materials, and building the ingredient myself. Given this makes up 9.5% of the build price, it might be worth looking at. I grabbed the BPO in case I went down that path.

So the first batch of 10 is now in the oven. A very conservative build price of this batch (ignoring the cost in the skills I purchased) is 1.55M each. Current sale prices in Amarr are around 2.19M. Assuming I can sell for that price, I would be looking at a profit of around 640,000 ISK per Module.

I am surprised at the margins to be honest. My actual profits will be higher than this, as I am sourcing many of the items with buy orders, saving 10% or so.

Why are my costs inflated? Because I make an allowance for Opportunity costs when I calculate the price of manufacture. If I mine the minerals, it doesn’t mean I have got them for free. By using them as an ingredient, I have forgone the ISK I could have made selling them on the market. There isn’t much use crowing about how much profit you make on an item, when it works out you would have made much more by selling the ingredients separately. In this case, there is quite a good margin in the end good.

So is this the ISK nirvana I noticed someone remark on my Corp’s forum the other day? (Who seemed to be a relatively new character, and assuming they would be rolling in ISK once they got into T2 manufacturing.) Yes and no.

I will have to make and sell around 350 T2 Small Tractor Beams before I cover my startup costs, and actually make a profit. (Although those costs will be apportioned over more items as I continue my training.) I’m already in a position to make 50 of them, so it probably won’t take all that long.

But that profit isn’t quick and easy to come by. I have to keep creating BPC’s, sourcing the invention ingredients, and turning those jobs over. I will have a lot of buy orders up for the manufacturing ingredients – which will require monitoring and tweaking, plus of course hauling to collect them all. Three of the ingredients are built off BPO – so I have to either build or source them off the market. While moving everything I am at risk of being suicide ganked. Finally I have to combine them all into the final module, and play the 0.01 ISK war to sell them while hoping the prices don’t collapse.

Given the relaxed way I approach the game, I expect I will make a profit in T2 manufacturing, but it won’t leave me rolling in ISK. It should however keep me amused, and adds another dynamic / element to my EVE experience.

2 thoughts on “Invention 05

  1. Not sure how to really respond or answer on this one, but glad you’ve gone thru the process initially for a start. Best I can say in retrospect is experience will teach you allot doing Invention/Production and thats best as i can say.

    Invention is profitable or can be if done the math right. Its also not as easy as you think to sell stuff either you will find out, some things can be. But Invention though profitable is ultra competitive business if not at times ruthlessly competitive if not at time cut throat while still making a profit. I wouldn’t want Invention to be like T1. I remember the first T2 I ever made Mining Drones II. Made a profit in the end but thats after watching the market high one day and few on the market and the next day the same region flooded with the same drones and the high market that was the day before was in the dumps the next day and was like dumfounded watching it happen. I learned a lesson watching it all happen as the prices drop to the dumpster. In the end i delisted all my drones and moved them to another region in my Trade network. But i learned much from my first T2. Not always typical of Invention production but it can be cut throat at times.

    On another note reason why Invention is profitable in my opinion is because you have to go thru allot of hurdles to even be able to do invention/production and its not easy to get there and its neither cheap either a business to get into as well learning all the various skills and expensive skill books. Again this aren’t T1. Invention is one the most expensive sector of business to get into and do well in the time and skills invested. If you have to go thru all these hurdles it better be profitable in the end.

    As well Invention is allot of work, may not seem as obvious to you starting out with first couple of inventions, but after a while you realize how much work you have to go thru to do Inventions, Copying, Datacore production and purchasing, BPC production, planning production and cost sourcing materials to make components, tying up production lines from 3 days to over 14 days. Allot of work you have to do and at times can become tedious. After going thru all that it better be damn profitable, but its not easy either having to do it all.

    Then on top of that you have to enter the competitive world of now selling your produced T2 and that as well become competitive. And you want all the work you had to go thru to pay off in some decent profits for the time invested. Imagine if you had to go thru all that and make T1 profits, you probably would’t be doing invention for any length of time if it was like that. Profitable yes, can sound easy yes, but not easy either. However experience will teach you allot.

    • I hope I did not give the impression that I thought profiting from this was going to be easy!

      I am well aware of how fickle the markets are with my T1 trading, and it is painfully obvious that there is a lot of work for no guarantee of success with T2 stuff.

      I have no plans to do this in high volume. I will run a block of invention jobs and stockpile a moderate number of successes, and basically just manufacture 10 to 20 units for sale, building only to meet demand.

      I’m not going to make (or risk) a fortune. It is just meant to add to all the other bits and pieces I am doing to slowly increase my income.

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