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Admiral Grevious
Posted - 2008.03.25 20:21:00 - [31]
 

I'm very interested, but not sure I could devote the time needed at this point.

Rhiannedd
De Profundis Research and Development
New Eden Research.
Posted - 2008.03.25 21:53:00 - [32]
 

I am interested in taking part in this venture and will mail you my proposal / application.

I wish you every success with this.

Leowen
Industrial Giants
Posted - 2008.03.26 10:20:00 - [33]
 

Originally by: Chandra Rose
Reposted from and EVEmail discussion, as requested by Leowen.

Would you be interested in joint Marketing.

To make the regional hubs work we will need to make sure that people know the other hubs are supplied, some of this can be via forums posts, but would you be open to the idea of jointly funding other types of advertising such as an Eon Advert or even advertising via IskSense (EVE Based ad serving service)?



I'll look at it, sure, but it will of course be a question of whether the ROI makes it viable. Any 'franchise license' that I grant will be in the hope for a long-lasting and mutually beneficial partnership, during which time we work together to get maximum profitability out of your territory. If that includes marketing, so be it I'm in.

Industrial Giants began life in 2004 as a minor commercial outfit, and has grown to become a financial powerhouse with several hundred billion in assets. We don't intend to stop here...

Leowen
Industrial Giants
Posted - 2008.03.26 14:07:00 - [34]
 

Status Update:

There have been six applications so far for a franchise, some for one specific location, some for more than one. Franchisee 'interviews' will take place this weekend with all applicants - an informal chat to develop a better mutual understanding. From there decisions and agreements will be made, with operations to hopefully start at some point next week.

Initially we will only allow three territories, these will be:

- Oursulaert. I don't think there is much argument that this system is the commercial focal point of Gallente space
- Hek? Minmatar space, final decision on which system will be this weekend after discussion with some Mini locals
- Amarr? Amarr space, as above

We have no immediate plans to expand beyond these three territories; this will be the case for at least three months. We reserve the right to expand this number at some future point, but will only do so if we believe any consequent territory overlap will be significantly outweighed by increased business. At this stage I suspect it will remain at three indefinitely, I am much more interested in strong partnerships than increasing the workload for a few more ISK.

The interest received so far has been stronger than I anticipated - thanks to all. Questions, concerns and constructive comments are still welcome on this thread, as are applications. We will not necessarily fill all three territories out of the applications received thus far, and territories may indeed remain available into the future. We will only grant franchises to those that we are confident we can work with long into the future.


Leo


Cergorach
Amarr
The Helix Foundation
Posted - 2008.03.26 14:48:00 - [35]
 

Originally by: Leowen

- Hek? Minmatar space, final decision on which system will be this weekend after discussion with some Mini locals
- Amarr? Amarr space, as above


Hek and Amarr are the hubs for their respective territories. Please make these systems your franchise locations. I've spent a long time around Amarr, if you want to buy or sell anything, this is the place to be (for Domain, Kor-Azor, etc.). The same goes pretty much for Hek. I'm currently operating within a few jumps of Hek, mostly trading in Mechanical Engineering Datacores (Hek is pretty much the center of a small network of ME R&D agents), most buys and sales of ME Datacores are done at Hek. If folks want to sell items at a decent turn around, they'll sell at these locations. That means they'll have to move their wares from the production location to the sale location, they can take their T2 components with them on the way back to the production location.

I think that it might be profitable for a lot of folk that more business is moved from Jita to the regional hubs, while it might lower prices, it will probably increase sales.

Shadarle
Posted - 2008.03.26 16:52:00 - [36]
 

Originally by: Leowen
Initially we will only allow three territories, these will be:

- Oursulaert. I don't think there is much argument that this system is the commercial focal point of Gallente space
- Hek? Minmatar space, final decision on which system will be this weekend after discussion with some Mini locals
- Amarr? Amarr space, as above



Well, that settles that, guess I can stop looking into it. I wouldn't be caught dead in any of those three places. Not quite sure why you want to limit it to three, but if that's your choice then that's fine. I was still debating if I wanted to devote the time to this or not, you just made my decision easier Razz

Leowen
Industrial Giants
Posted - 2008.03.26 17:14:00 - [37]
 

Originally by: Shadarle
Originally by: Leowen
Initially we will only allow three territories, these will be:

- Oursulaert. I don't think there is much argument that this system is the commercial focal point of Gallente space
- Hek? Minmatar space, final decision on which system will be this weekend after discussion with some Mini locals
- Amarr? Amarr space, as above



Well, that settles that, guess I can stop looking into it. I wouldn't be caught dead in any of those three places. Not quite sure why you want to limit it to three, but if that's your choice then that's fine. I was still debating if I wanted to devote the time to this or not, you just made my decision easier Razz


That's your choice of course. Please note though that I admitted that my knowledge of the commercial centres outside of Caldari space is poor at best, so I am open to discussion about which system is best served in any faction space. Whatever the three systems are to be the goals are same -

A) Allow only one operation per faction space initially to give franchisees maximum opportunity to own their region
B) Be as successful as can be in making our chosen systems a stronger commercial centre
C) Make -IG- and our franchisees as much money as we can by being in the right place!!!

Where that place is to be honest I don't really care.

As Richard Branson once said, half the job of selling is being there.



MentaFox
Warped Mining
Strip Mining Club
Posted - 2008.03.26 18:07:00 - [38]
 

Edited by: MentaFox on 27/03/2008 09:51:04
This definately sounds very interesting indeed.
Sent you a mail ingame :)

EDIT: Typo

Capital Kill
Native Freshfood
Posted - 2008.03.27 04:17:00 - [39]
 

Edited by: Capital Kill on 27/03/2008 04:23:29
In the Minmatar area Rens is the largest trading hub (Far larger than Hek from my experience, and only about 7 jumps from there), and it borders on nearly 3x as many people in the system at any time. Also I would be very interested in doing something with you, but I am pretty sure we don't have the capacity or isk to do so yet Sad

Edit: 300 people in Rens at the moment compared to 100 in Hek.

Trotski II
Rasta Tropical Club
Posted - 2008.03.27 11:49:00 - [40]
 

I am very interested on this venture.

I will evemail you when server is up.

Block Ukx
Forge Laboratories
Posted - 2008.03.27 12:59:00 - [41]
 

Rens is definitely a bigger hub than Hek. However, people will avoid Rens if they can find it in Hek for reasonable prices. What makes you believe the franchisee will be able to compete in Rens when for certain items Rens prices are more competitive than Jita?


Leowen
Industrial Giants
Posted - 2008.03.27 13:14:00 - [42]
 

Edited by: Leowen on 27/03/2008 13:15:07
Originally by: Block Ukx
Rens is definitely a bigger hub than Hek. However, people will avoid Rens if they can find it in Hek for reasonable prices. What makes you believe the franchisee will be able to compete in Rens when for certain items Rens prices are more competitive than Jita?




Thanks for your interest, but I'm not here to discuss mid to long-term competitive strategies. Those discussions will take place with the regional operators as situations dictate.

On a broad note though, if you look at an index average of all 36 components Jita is normally considerably cheaper than the rest of the universe. Leaving aside the over-riding reason for weakness in those other hubs - they are not reliably supplied with a full range of reasonably priced product.

Once these franchise operations are in situ, Industrial Giants' component operation can only grow, and we have the logistics and capital in place already to support that growth. With scale comes power. 'Nuff said.


Leo

Block Ukx
Forge Laboratories
Posted - 2008.03.27 14:22:00 - [43]
 

Originally by: Leowen
..., but I'm not here to discuss mid to long-term competitive strategies.


I think you should discuss this a bit more. For instance, certain items are selling for less than 95% best Jita sell order. Obviously, if I purchase from you I won’t make any money. Will you allow franchise owners to purchase the items from the market, instead of you, and re-price it at cartel price?


Leowen
Industrial Giants
Posted - 2008.03.27 14:59:00 - [44]
 

Edited by: Leowen on 27/03/2008 15:09:25
Originally by: Block Ukx
Originally by: Leowen
..., but I'm not here to discuss mid to long-term competitive strategies.


I think you should discuss this a bit more. For instance, certain items are selling for less than 95% best Jita sell order. Obviously, if I purchase from you I won’t make any money. Will you allow franchise owners to purchase the items from the market, instead of you, and re-price it at cartel price?




Exactly. Certain items. I draw you back to my index average comment - T2 ship builders have to buy all 7 components tp build their ships - per race type.

I sell 750k components a week in Nonni and Jita, with Jita being, again against that index average, the cheapest and most competitive market in EVE. Am I always cheapest on every component? Of course not, sometimes an idiot can come along and completely scr3w the market on a given comp for a while. So I just don't compete on that one component until the price is reasonable again, I concentrate on the other 35.

Can they purchase local bargains and re-price? Well it's against franchise terms, but I wouldn't have an issue with it on exception as it is occasionally an integral part of trying to own a market. I do it in Jita. I doubt it will happen that often though.

The core fact remains - other markets lack a reliable and reasonably priced supply of the full range of comps. That gap needs to be addressed and we intend to do it.

EDIT:

It's worth noting at this stage that this is much more than a financial exercise for me - I find myself more and more interested in the experiment itself. How much can this operation influence the distribution of industrial and commercial activity in EVE?

We have the financial muscle to push this through. I'm not going to discuss in public forums how and to what extent we intend to do that, nor will I make open commitments to our territory operators.

Our asset strength tells enough of our understanding of markets, and our commercial ability. By our, read my. This is my corp, no shareholders, no other directors, no debts. Prospective franchisees will judge for themselves whether my stated intent justifies them joining me in this endeavour. That's probably all I'll say on this.



Trotski II
Rasta Tropical Club
Posted - 2008.03.27 16:40:00 - [45]
 

Originally by: Block Ukx
Rens is definitely a bigger hub than Hek. However, people will avoid Rens if they can find it in Hek for reasonable prices. What makes you believe the franchisee will be able to compete in Rens when for certain items Rens prices are more competitive than Jita?




Rens is exactly the location where i am interested in selling components if i am accepted as a partner.

If in some components the price is lower then Jita and stay there consistently meaning the initial purchase on that item don´t sell then i would just keep that order on market and keep resupling the ones that are needed localy.

In the case that in some components the price gap is lower then 10% (which i doubt happens often apart from price spikes in Jita) probably i would buy them all and ship it to Jita when i take a trip to go pick more components since the production is near Jita.

Capital Kill
Native Freshfood
Posted - 2008.03.27 16:51:00 - [46]
 

Originally by: Trotski II
Originally by: Block Ukx
Rens is definitely a bigger hub than Hek. However, people will avoid Rens if they can find it in Hek for reasonable prices. What makes you believe the franchisee will be able to compete in Rens when for certain items Rens prices are more competitive than Jita?




Rens is exactly the location where i am interested in selling components if i am accepted as a partner.

If in some components the price is lower then Jita and stay there consistently meaning the initial purchase on that item don´t sell then i would just keep that order on market and keep resupling the ones that are needed localy.

In the case that in some components the price gap is lower then 10% (which i doubt happens often apart from price spikes in Jita) probably i would buy them all and ship it to Jita when i take a trip to go pick more components since the production is near Jita.


Hmm, looks like I got some competition now Smile

Block Ukx
Forge Laboratories
Posted - 2008.03.28 18:47:00 - [47]
 

I checked Rens market last night and all components are available and in enough quantities to fulfill a months demand. Increasing the components supply will likely result in a drop in Rens component’s prices.


Leowen
Industrial Giants
Posted - 2008.03.28 23:33:00 - [48]
 

That may or may not be the case, I don't know I haven't been there recently to look.

It would be prudent for anyone proposing to take up this proposition to take a good look at their chosen system before agreeing to a franchise. If that is your point I agree of course.

Thanks for your input.





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