Tuesday, 5 August 2014

Overstocking

I am a manufacturer, a producer of goods, goods that people need in order to do whatever it is they do.
Not just any kind of goods either, I manufacture T2 items. A special branch of items that you in order to create them you need to spend time inventing them first.

But what happens when you produce so many of them, that you have a stock so large that it is almost impossible to get rid of them quickly? What if you try and do this anyhow, knowing that it will flood the market.

That’s right, you crash it, and your sale price will go down quite a bit. I currently have too large a stock of the items I produce to put them for sale. This is bad, seeing as right now all of those items are currently sitting in a hangar, being trickled onto the market bit by bit.

And when things are just sitting there, they’re not making ISK, and when you’re not making ISK, you can’t put it back into your production cycle. Which means that right now, I’m producing nothing, other than a whole bunch of T2 BPC’s of the items I currently have an overstock of.

As you probably figured out, that’s not the way it should be going.

I have been creating these T2 items ever since I first started manufacturing, because I started doing this together with a friend who told me what to do when he still played. He has long since stopped playing EvE while I continued his little business.

The production of these things has made me a bit of ISK, enough to have a pile lying around, just looking at me, and screaming ‘Use me! You need to!’ but I don’t really like seeing that number go down, which, as a manufacturer is a stupid thing. Spend money to make money and all of that.

Maybe I should try something new, something that would need me to invest more ISK but get a bigger margin of it.
Right now I invest 500k-1m to get a profit of 1m-3m.. That’s nice, especially seeing I make a few hundred of those items per day. 

But maybe I should start seeing things a bit… Bigger?


But I might not be able to do that on my own..

6 comments:

  1. My operation was a little smaller than yours but from the sounds of it you should produce a larger range of items - enough to fit out whatever the local meta is. Get your own market hub going. Other alternatives are to build anyway and sit on the items - it's better than doing nothing, to sell the excess BPCs on contract, sell the items into a different marketplace, or to ship to a market hub and sell there for a fraction of the profit but profit nontheless. If you've done all of the above try using the modules to pre-fit ships and sell those.

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  2. Hey, you need a trader no? I am a noob trader in Hek and I would loooove to have someone build T2 items based on the needs of the market as seen from my seller point of view. We would need to agree on reasonable profits for both of us - the idea is to accelerate and fluidify the process from the raw materials utile the consumer ship, not argue with each other.
    We seem to have similar volume ISK-wise for the moment. Just need to see if it works. But it should: I need things to sell, you need to sell things.

    pm in game if interested: Alicia Amatin

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    1. That is a kind offer but I do my own trading mostly ;) I have a trader in every hub and actually use them from time to time to send that which I have too much of to. Unfortunately right now all of them have too much stocked up. Which is the whole point of this blog, needing to broaden my horizons, just figuring out which one.

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    2. Hmmm. Traders really? Or sellers (of your own production)? In the first case, well, you shouldn't have fallen in the over-production problem in the first place you know... In the second case, diversification is your only option (and look at volume before selecting something); with patience (or fanatic 0.01-isking) for the current stock.

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    3. Little bit of A, little bit of B... I have multiple buy orders/sell orders up at all times, selling in the major hubs, trafficing to and from them,... And then there's what I produce... Which is just basically all the T2 BPC's I've been creating since I started with it.. And that in general is little under 30 different T2 items that I have a slight rotation in depending on how much I looked ahead

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  3. We should look into more detail at these T2 items. 30 is already a nice catalogue. However, as I do not build but import from other hubs, the trader can choose freely among all available (and avoid those with low volume or low margins) while you probably have other constraints. But maybe patience is the key also; and refrain from price disruption...
    (I have done it deliberately a few times as a vengeance and I suppose a few industrialists have hated me on the affair - while they should simply have waited me out... ;-)

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