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Heyte
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Posted - 2008.08.18 00:12:00 -
[1]
Wasn't there an equation for determining a percentage of yield according to investment costs in relation to corresponding profit, and from that you could effectively determine how long it'd take to begin making money off the bpo?
That's the only way I can word it, sorry.
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Akita T
Caldari Navy Volunteer Task Force
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Posted - 2008.08.18 02:05:00 -
[2]
Time to break even = profit per prefered time unit / cost of investment So, if you have a profit of 10 mil ISK per month and the BPO cost was 50 mil, you'll break even in 5 months.
Seems pretty damned obvious to me.
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THE APPRENTICE || mineral balance || nanofix
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Heyte
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Posted - 2008.08.18 04:31:00 -
[3]
Edited by: Heyte on 18/08/2008 04:33:14 There used to be some kind of efficiency equation that used to exist on this forum some time ago. I'm almost sure that wasn't it.
Also, if your into manufacturing, the cost of investment continuously piles up, so it's like you have to recalculate every time you manufacture once again, and the equation you gave me makes it impossible to see into the future in this regard.
The equation I'm thinking of seemed to consider this.
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Akita T
Caldari Navy Volunteer Task Force
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Posted - 2008.08.18 20:01:00 -
[4]
Originally by: Heyte Also, if your into manufacturing, the cost of investment continuously piles up, so it's like you have to recalculate every time you manufacture once again
Replace "profit" with "sales price - cost of materials" and you're doing just fine... I mean, thet's the DEFINITION of profit.
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Heyte
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Posted - 2008.08.22 19:36:00 -
[5]
Edited by: Heyte on 22/08/2008 19:36:21 No I'm sorry, I just think there's more to this.
There was one clean equation to determine how long it would take to break even in another thread that I can't find. That's what I'm looking for.
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Shar Tegral
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Posted - 2008.08.22 20:10:00 -
[6]
Originally by: Heyte There was one clean equation to determine how long it would take to break even in another thread that I can't find. That's what I'm looking for.
There has always been a few semi self righteous formulas bandied about. The simplest thing is Sales price - Material Costs - BPO Surcharge - Taxes (if applicable) - Broker Fee (If applicable). BPO Surcharge is the most arbitrary aspect of this. You decide how much you should get, per item, to help you recoup the cost of the bpo. This is, if you even care. I usually don't bother unless it is a serious investment (like a t2 bpo). All other bpo's are resellable with little variation. So, essentially you don't need someone else formula. You just need the philosophy and you can build the formula yourself with ease.
To Shar -verb: 1 - To say what you mean. 2 - To say what it means. 3 - To say something mean. |
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