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How come moon mining products/by-products sells higher than what it cost to produce?

Asked by [ Editor ]

I'm thinking about Fernite Carbide Composite Armor Plate, Tungsten Carbide Armor Plate, Titanium Diborite Armor Plate, Crystalline Carbonide Armor Plate, Tesseract Capacitor Unit, and probably many others. Is there some dumb NPC selling them?

NN comments
ancalagon
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Have you got the question correct? Everything sells for more than it cost to produce due to a thing call profit.

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2 answers

9

alec grahm [ Editor ]

Quite simply - if someone sells for less than it costs to produce, that someone is losing money. Most people in eve find that losing money is not something that they particularly enjoy doing, and thus they sell at a higher value.

Furthermore, anyone who is selling at a loss is likely to be bought out quite quickly by someone else who knows what the actual value of the goods are and resells them at that new price.

NN comments
redmage
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To add… Market Makers will buy the cheep goods, and resell or a lot of the time in eve, move the products to other markets and sell for profit and/or cost of transport/time. Make that money baby!

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6

ecaf ersa [ Editor ]

As your question makes no real sense as worded I will take the plunge and assume that you actually meant that some sell orders are present for less than you can produce them for.

NPCs do not seed moon mining products. You can tell an NPC generated sell order as it will have a starting duration of 365 days which players are not able to select as an option when setting up an order.

There could be several reasons for this other than plain stupidity.

It is possible that the materials for sale were plundered from a wreck and the seller just wants them gone quick.

It is also possible that the seller is able to produce them for less than you. This could be for more than one reason, for example the seller may have a more efficient POS setup than you which reduces the fuel costs per item, but I expect it is more likely that the seller simply values their time less than you do.

He/she may be producing their own POS fuels with ice mining and planetary interaction, in which case they may not be spending any isk on fuel at all, just time. This basically makes the sell price pure profit (ignoring recovering of the initial outlay) for time spent collecting PI output and mining ice.

NN comments
matt_12
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I hate to disagree Ecaf, but the POS operation is not free what should be substituted in is the cost the PI and Ice would fetch on the open market and they missed oppertunity cost of the materials. Now admittedly, this is all economies of scale and what I think you mean is if the POS is being used for something else and that the production is just a side line income which you could indeed apportion those costs across them, however in general it is far from pure profit. This type of scenario is the reason a lot of people IRL & EVE lose money and don’t know it. :D apart from that +1 :)

ecaf ersa
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Absolutely Matt, I completely agree with you…your time has an isk value to it and indeed PI product could be sold on the market…but some people will not look at it that way and will see the products as a result of purely their time and whatever isk they get as purely their profit. I never attempted so say they were right to think that way!

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