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Joras Fett
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Posted - 2011.04.20 17:58:00 -
[1]
I'd love to get at least a semi detailed answer back on this. I've been trying my hand at manufacturing/PI/mining/etc. Take a break from PvP and Mission running/ratting. I need some source of income that will replace my ships for me. :)
I have been doing calculations and trying to find out what the Opportunity Cost of products are. I've been finding that my calculations are far lower than people are saying. I may be lost in conversions (PI: isk/m3 vs isk/unit). I don't know.
If you're trying to manufacture a Small Ancillary Current Router I (assuming Industry 1 and a 0/0 basic BPO), you need: 2 Tangled Power Conduit 9 Tripped Power Circuit 9 Burned Logic Circuit
You'd 1) calculate out the cost of the mats on the market. 2) calculate sales tax for said bought products 3) Add in Manufacturing expenses (slot + time rental) Then my math breaks down. I'm missing something huge... My math denotes that product X costs 1/100th of what it's selling for. 99% profit? That's manageable. But that can't be right. Some of my numbers look too good.
Same goes for PI stuff. I can't seem to see why people say there's no money in PI. Even Imp/Exp P3's for P4 stuff.
The question is, what am I missing? Does anyone have a cost "checklist" that they go through?
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Maia Demoncast
Northstar Cabal R.A.G.E
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Posted - 2011.04.20 19:03:00 -
[2]
Shouldn't be too hard to calculate. Your revenue is the sell price*number of units you sold. Your expenses are meterial costs, fees and taxes. So a profit is revenue-expenses. For best results make or download a spreadsheet that calculates all this for you.
You should find that some items sell below the material costs, other items sell barely above material cost (few percent of profit), and some items sell for double or triple cost of the materials. You'll make the items in the latter category and find out that it's a niche item that few people use and buy one unit once a month from you, and you have 10000 of them in stock.
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Joras Fett
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Posted - 2011.04.20 19:17:00 -
[3]
Links for spreadsheets?
I have one going, but it keeps putting out numbers that, like I said, are well below market prices... Prices are competitive, but I don't think margins are that big.
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Vierego
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Posted - 2011.04.20 19:27:00 -
[4]
Your numbers sound off. Last I looked the cost to make that would be around 900kish, sell is like 1m.
Would be of more help but typing from a phone I buy mission loot in bulk at above buy order prices! (sinq laison) |
Lauren Hellfury
Full Pocket Aggro
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Posted - 2011.04.20 19:35:00 -
[5]
Your figures are indeed off. A fresh BPO for a small ACR lists the requirements at 2/10/10 (production efficiency 5 - skill). Currently in Domain Tripped Power Circuits are around 77k per unit, Burned Logic Circuits are around 22k per unit and Tangled Power Conduits are 120 per unit. That will give you a build cost (excluding slot fees) of around 990k. You can produce 72 of those a day (assuming you have industry 5 trained) and a typical cost for one full day of production is around 8.5k (installation cost + 24*hourly fee). This will work out to around another 120isk per unit so doesn't really matter since I'm doing generalities.
The small ACR itself is currently on offer of sale in Domain at a smidge under 1M per unit. Assuming broker fees and sales tax amounts to 3% of the item sale price then you are paying 30k in fees so you would be down by around 20k Isk per item sold.
This is based on the sell order price of all involved items. You can get the materials cheaper through buy orders but you'd make more if you just flipped them to a sell order. The small ACR is one of the few small rig BPOs that actually benefits from ME research. Check your spreadsheet against the numbers listed above to see where it's going wrong.
Other regions may vary, but not by much.
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