There is another ship balancing developer post by CCP Fozzie. It tries to clearly establish what will come with Retribution 1.1 and what will come with the summer expansion (as yet unnamed.) It certainly does that. It talks all about what is happening to battle cruisers, etc., etc. It’s all good stuff. You should go read it – later.

For now I want to tip you off about the large bonanza announced in the post. At least, it has the potential for being a bonanza. If I were a manufacturer (hmmmm, could be you know) I’d be staking my claim right now. What’s this you ask? This here!

Ancillary Armor Repairers 

(Someinterestingstuffbutnotworthmentioning)

  • AARs can optionally be loaded with Nanite Repair Paste to increase repair amount, using a similar system to the way cap boosters can be loaded into ASBs, including the same 60 second reload time.

(Someinterestingstuffbutnotworthmentioning)

I’ve highlighted the part that got my attention. The new AAR is charged with Nanite Repair Paste, NRP for short. Hot damn! That’s some of the best news I’ve seen in quite some time.

For those who are not industrialists, NRP is made from planet goo. However, it isn’t like a Wetware Mainframe or Robotics. It isn’t actually made using a Command Center and an Advanced Facility. It is made using a BPO like any other ammo type.

What’s more, it’s a high volume, high profit product. No matter how much is on the market, I’ve never failed to sell my stock and typically within 24 hours. And that’s with sell orders, not the quick sell. Since the only cost to making NRP is time, the 50 mISK price of the BPO and the manufacturing taxes if you do it in high-sec, it also has a very fast return on investment.

With one paragraph CCP Fozzie has increased demand at least three fold to my way of thinking.

How’s that? Let me give you a little economics ala Mabrick. It isn’t enough to manufacture something that has a high profit margin. There also has to be demand. If you manufacture things with high margin and no demand, you end up with a lot of dead stock hanging around in unfulfilled sell orders. That’s all liability and no asset. When your velocity of ISK goes to zero, your in a world of suck.

There is a HUGE difference between potential margin and real margin. Real margin is what you get when you actually sell something. Potential margin is the same as a boot up your ass. Okay, it’s not as painful as that… until you get stuck with dead stock.

The trick is to manufacture something with good REAL margin. This means demand. Remember all that supply and demand stuff in the economics class you slept through? Anyway, ammo has always been one of these items. The gross margin is actually quite small but volume makes the real margin huge. Everyone always needs ammo. Just like pirates need NRP. It’s the only way to repair modules when you can’t dock up because CONCORD won’t let you.

So how does this announcement triple the real margin? Well, actually that’s a bit miss leading. Keep in mind, it’s not necessarily triple the profit. That remains to be seen.What it does is triple the potential customers for NRP – the demand side of the equation. NRP as it stands now is a PvP play-style item. Those who over heat as a matter of policy need lots of it. But those capsuleers are not the majority of players. PvE players don’t overheat. Carebears don’t overheat. Blobs rely on numbers not over heating to accomplish the FC’s goals. None of them need NRP.

Now they will. I know for a fact  the CFC is going to an armor doctrine. Most alliances in the “know” are. CCP Fozzie has just sounded the call for all those non-NRP play-styles to jump into my real margin calculations. Now, this is not written history. I could be wrong. Everyone might hate the AAR and this attempted reboot of active armor tanking may fail. But for now, I’m a very, very happy industrialist.

Fly Careful

- Mabrick

He’s been around the block a time or five. With over 15 years of MMO playing under his belt and a memory that reaches back to pencils and dice, he offers his insights into the not so virtual reality we call Eve Online.

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18 Comments

  1. bystander

    *Starts making Nanite Paste*

    February 15, 2013 at 5:45 pm Reply
    1. arrrrmoar haaacs

      *starts demanding it*

      February 15, 2013 at 6:41 pm Reply
      1. Gunny

        Buys it up & creates artifical shortage lol

        February 15, 2013 at 9:52 pm Reply
  2. Ynglaur

    Looked at this immediately after the post by Fozzie. The price spike seems mostly speculative. If you look at the actual *use* of NPR in these new modules, it's a trivially small amount compared, say, to repairing an overheated rack of high-slot weapons. Overall use in New Eden will increase slightly, but only in fairly narrow PVP scenarios. Compare this to overheating, which is used in *most* PVP scenarios (or ought to be, at least).

    Such a small increase in demand should not result in an almost-100% increase in price, so if you bought high, I'd cut losses and dump stock at these artificially-inflated prices.

    Just my 0.02 ISK, of course.

    February 15, 2013 at 6:09 pm Reply
  3. I just bought the BPO.

    February 15, 2013 at 6:15 pm Reply
  4. o.O

    What's interesting is that once Dust Merc's have the ability to start taking, owning and improving planets, this has the potential of being one of the first items sold by Dust corps to Eve corps. Or at least the components used to produce NPR.

    Should be interesting to see how this plays out.

    February 15, 2013 at 6:42 pm Reply
  5. I just do not know

    Also please note a stealth nerf to active shield modules, their passive bonus is being removed, therefore neuting is going to become so over powered on shield ships!

    February 15, 2013 at 7:09 pm Reply
  6. Selina

    Good job! Lets make a post on a heavily read Eve news site so that everyone and their mom is now making this NRP and thus flooding the markets and then there goes your lovely profits. Because as Ynglaur said, I don't see it being a huge enough increase in its use to over run the supply.

    February 15, 2013 at 7:15 pm Reply
    1. DubbaYooArr

      or people read the post and are non producers who now want in so buy up all the NRP in speculation thus driving prices higher and helping Mabrick make money. Im sure he thought it through.

      February 15, 2013 at 8:15 pm Reply
  7. War observer

    This analysis is quite wrong due 2 facts:

    1- local active armour tanking PvP is excursively solo or small gang PvP. Medium gangs and all the way up to big blobs have little or no use for local active tanking.

    2- NRP is commodity with highly elastic supply, so any upwards shifts in demand will be easily covered by increased supply.

    So I would predict any NRP price increase will be purely speculative in nature and short lived.

    February 15, 2013 at 7:16 pm Reply
  8. .01 so it begins

    I just made a small killing the last few days buying it low and re-selling high after I bought all of the lower sell orders up in the surround market regions. I didn't even need to make the product to make my ISK.

    February 15, 2013 at 7:29 pm Reply
  9. DarthNefarius

    "PvE players don’t overheat"

    Incursioners overheat when competeing for sites.

    February 15, 2013 at 8:56 pm Reply
  10. Velvet

    I have been making bundles of this for two years..you're telling me I'll be rich! Hot diggity dog that feels goooooood…

    February 15, 2013 at 10:44 pm Reply
  11. Corebloodbrothers

    So it is a bullshitt filled story in which eve 24 is a tool for market manipulation, tsk tsk tsk
    Buffer is big 0.0, not active….. Retards

    February 15, 2013 at 11:11 pm Reply
    1. idiotpolice

      I would have though this change would suit proviblock down to the ground. You can rat with nanite preloaded then warp straight to titan for zero risk hot drop. It was called death from above but the only thing I know that falls from the sky is bird shit……new doctrine name……sorry you'd need a doctrine first…goooo snowflake fleet!

      February 16, 2013 at 10:03 am Reply
  12. Cornholio

    The supply for nanite paste is already huge, and it's widespread use across null-sec leads to it being available in many regions.

    Pretty sure AAR's won't affect the price by anything more than 5%

    February 16, 2013 at 10:40 am Reply
  13. perhaps

    It *may* be in small part speculative, due to yes – AAR using a trite amount of NRP, but I would say that due to the changes in armor tanking overall, those AARps will see more use as opposed to AARps would without the additional armor changes. Time will tell.

    February 16, 2013 at 2:03 pm Reply
  14. LOL.

    the amount that AAR will be using is so small, it won’t make that much of a difference,
    and why do you think that would have an impact due to armor doctrines? the armor doctrines are build based on remote repairs, not on local repairs.

    and uhm.. sorry to bring it to you, i’m a pirate, and i can dock wherever i want to..

    the only reason to use NRP is when i’m roaming down 0.0 with no friendly station around.

    February 17, 2013 at 6:34 pm Reply

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