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Sunday, 13 May 2012

Miners, manufacturers, refine!

Posted on 22:00 by Unknown
Now that I have my Orca, I checked out the business that helped me get my starter funds. Considering that now I found it slow and low ISK/hour, the memories of doing the same with a Badger II lost a lot of their golden nostalgic status, despite I still consider my newbie steps enjoyable exploration. But I won't return to this business. Maybe with a Charon. But what is the business?

I typed the Jita mineral prices into an Excel table that calculated the breakeven ore prices. Then I opened the market window and checked for ores that are way below them. Flied out, bought them, refined to minerals to compress them with 96%-100% efficiency as I had all the refining skills and the "we take" part was 0-4% depending on my status (with Connection 3, 4% is the minimum). Then I flied the minerals to Jita and sold them. Now I repeated it. 8 jumps away from Jita I found some underpriced ore. Spent 129M buying them out before my ship filled and in Jita I gained 135M for them. I was unlucky as I had the minimum standing with the station, providing 96% yield. If I'd be lucky and get a 6.66+ standing station, the sell price would have been 140.5M. So in ideal case my profit rate was 8%, which isn't bad for no-risk flying of 2*8 jumps. Actually I could skip the flying as the ores would fit into a freighter, I could just buy them remotely, set them into a courier contract and Red Frog would have delivered it for 4M to Jita where I could have perfect refine. Oops, sorry, I have to go...

OK, I'm back from Sobaseki, checked the Lonetrek ore prices, found a moron who sold various ores 5-10% below Jita mineral price, bought them, they will be in Jita by tomorrow, thanks to the frogmen.

Anyway, that's not the point, besides the business idea of fishing for underpriced ore and freight them to Jita. The point is the stupidity of the miner for not doing it himself. He is always "lucky" with the stations as he can choose which system he mines, so he can always pick a place close to a station where he gets perfect refine. Please note that there is absolutely no reason to not refine it. The ores cannot be used for any other purpose than refining them. Every ore will be refined. By doing it himself, the miner cuts the middle man with a single click. Unlike a third party refiner, he doesn't have to fly to pick it up as he already has the ore in his hangar, nor he have to pay sales tax and broker fee for selling it to himself.

If you are a miner and you sell ore, you are doing it wrong. You shall sell refined minerals, even if you don't want to haul them yourself to a hub. Minerals are smaller and more advanced products so they can be picked up by generic haulers or even producer buyers, not just refiners.

If you are a producer who uses lot of minerals, you can exploit the stupidity of the miners who don't know the above: you learn refining skills and set up buy orders for ores on the station you manufacture. The dumb miners will be happy to fill your station with cheap ores that you can refine and use without moving them. If they don't send you enough, you can find them yourself and courier contract them to your base.

Finally if you are a hauler with a freighter looking for something to carry that surely won't be shot down, pick up ores and carry them to the station where you can refine it. Then carry the minerals to Jita and sell them!


The UI suggestions page has been turned into a permanent page, feel free to discuss and add.
EVE Business report: Saturday morning 21.0B. (2 PLEX behind for second account, 0.3B spent on Titan project)
Sunday morning 21.9B. (2 PLEX behind for second account, 0.3B spent on Titan project)
Monday morning 22.7B. (2 PLEX behind for second account, 0.3B spent on Titan project)
Remember that you can participate in our EVE conversations on the "goblinworks" channel (60-80 people on peak time)


PS: moron of the day is #1 in the comment section.
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