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What's a good profit?

Author
Eddi Arthie
Doomheim
#1 - 2013-06-10 08:36:17 UTC
Hi, I just sold my first selfmade Cruiser with a net profit of 11. something%.

I am wondering, is this a reasonable value? Or can this be improofed as it took some hours of work (buying, shipping, building...) to get there.

Just now I am working on my Production Efficiency (now at 3), maybe this will help.
Mari Hata
Main Street Crafts and Goods
#2 - 2013-06-10 09:32:07 UTC  |  Edited by: Mari Hata
Reasonable, sure. Profitable... that is the question.

I wouldn't waste my time with a single product. Research a bit (the markets, I mean), diversify, manufacture a lot, sell, profit.

Keep your production lines busy and put your sell orders at work. 5% inspiration, 95% transpiration. Smile

♫ ♪ ♪

Termy Rockling
Sebiestor Tribe
Minmatar Republic
#3 - 2013-06-10 10:19:43 UTC
Us industrials are less concerned about the profit % but instead isk / hour. More expensive stuff might have less profit% but much higher isk/hour, and thats almost all that matters.
Mari Hata
Main Street Crafts and Goods
#4 - 2013-06-10 11:01:58 UTC
If you write the "selling" part in the "isk / hour" equation, you win.

If you write the "I foresee minerals & wares trends ahead, so that I can refine even more my isk/hour", then you're quite the moolah factory. Roll

♫ ♪ ♪

Eddi Arthie
Doomheim
#5 - 2013-06-10 12:06:00 UTC
Hm, that makes roughly 250k/hour then. Its needs some improvement, I grind Lv1 Agents for more Ugh
Elena Thiesant
The Scope
Gallente Federation
#6 - 2013-06-10 12:57:16 UTC  |  Edited by: Elena Thiesant
Ships aren't usually a good place to start with manufacturing. Low margins, low demand (relative to other stuff), high costs, high competition.
Scarlett LaBlanc
University of Caille
Gallente Federation
#7 - 2013-06-10 13:28:20 UTC
^^^ this

Ship generally have the slimmest margins do to heavy competition. Every one seems to want to make ships. Until you get production efficiency to V I would (and did) stick with modules and such.

I had great success moving my wears in mission and mining systems for greater margins and avoiding the trade hubs.
Remy Duchateau
Milligan Interstellar Industry and Trade Co.
#8 - 2013-06-10 15:29:03 UTC
Eddi Arthie wrote:
Hm, that makes roughly 250k/hour then. Its needs some improvement, I grind Lv1 Agents for more Ugh


Difference is that you'll get it passively or are you watching the seconds tick away from your job?
When I'm manufacturing (which is mostly t1 stuff) I usually sit around 200-1000k ISK an hour. It's very decent if you ask me.
Eddi Arthie
Doomheim
#9 - 2013-06-10 15:45:19 UTC
Remy Duchateau wrote:

Difference is that you'll get it passively or are you watching the seconds tick away from your job?
When I'm manufacturing (which is mostly t1 stuff) I usually sit around 200-1000k ISK an hour. It's very decent if you ask me.


Just a lazy afternoon. It started with refining my whole cheap stuff, setting up the buy orders (+1 jump around the factory), adjusting them over and over, collecting the stuff, wait for deliveries, having dinner, watching Simpsons...

I could go and mine something myself but... nah

It feels good to get money doing nearly nothing.

Haulie Berry
#10 - 2013-06-10 16:15:31 UTC  |  Edited by: Haulie Berry
You should probably check your math. An 11% manu-profit on a cruiser with PE 2 seems... unlikely.
Max Wager
Native Freshfood
Minmatar Republic
#11 - 2013-06-10 16:38:51 UTC
Haulie Berry wrote:
You should probably check your math. An 11% manu-profit on a cruiser with PE 2 seems... unlikely.


You're not looking very hard at cruisers then. There is currently a very popular cruiser selling at 24% profit with PE 0.
Eddi Arthie
Doomheim
#12 - 2013-06-10 16:41:56 UTC
The 11% were more an estimate. Right now I have added up all my expenses, added another 2% for Broker/ taxes (Accounting/Broker Lv3/2 1,1/0,85%), another 10% profit expectation. And I got back even more from the sale.
I refined (lv 4) everything I had on stock worth less then 50k.
Finally I got my hands on a very cheap pile of megacyte, selling the rest gave me the needed nearly for free.

Anyway, it was like work, but with fun and without pay.
Marsan
#13 - 2013-06-10 16:47:16 UTC
I suspect the OP hasn't run the numbers and realized that he could of make more isk selling the minerals than building something. As I understand it his tactic is buy cheap modules -> reprocess -> make something -> sell it -> profit. I suspect that buy cheap modules -> reprocess ->sell it -> profit would result in more isk in his pocket. However maybe he is enjoying building the ships, or maybe ship prices in the area he is in are high compared to mineral prices. I use to make a fair chunk of isk in mission hubs buying cheap modules, reprocessing them, and making ammo, but was mainly due to the insane markup on drones and ammo due to mission runners being willing to pay higher ammo as they would have lost isk travelling to purchase ammo. Of course my real motivation was to make cheap ammo for me, and to annoy the price gougers in the hub.

Former forum cheerleader CCP, now just a grumpy small portion of the community.

Huttan Funaila
Caldari Provisions
Caldari State
#14 - 2013-06-10 17:30:41 UTC
That popular cruiser is the Caracal. The war in Fountain is consuming lots of them.
Max Wager
Native Freshfood
Minmatar Republic
#15 - 2013-06-10 17:33:27 UTC
Huttan Funaila wrote:
That popular cruiser is the Caracal. The war in Fountain is consuming lots of them.


Yup; although, they're being over produced right now to compensate so expect the price to tank in the next few days. Worth keeping an eye on in the future.
Zifrian
University of Caille
Gallente Federation
#16 - 2013-06-10 19:14:24 UTC  |  Edited by: Zifrian
Haulie Berry wrote:
You should probably check your math. An 11% manu-profit on a cruiser with PE 2 seems... unlikely.

This was also my first thought. 200k iph is pretty good. But after you've updated you posts, it looks like you are counting your refined minerals as zero. That's pretty much 'minerals I mine are free' thinking. You need to count the value of those as well. Your profit is the total value of your items, not how much you spend. You might find out that in the end you probably lost isk by making the cruiser instead of selling the refined minerals.

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Haulie Berry
#17 - 2013-06-10 20:07:40 UTC
Zifrian wrote:
Haulie Berry wrote:
You should probably check your math. An 11% manu-profit on a cruiser with PE 2 seems... unlikely.

This was also my first thought. 200k iph is pretty good. But after you've updated you posts, it looks like you are counting your refined minerals as zero. That's pretty much 'minerals I mine are free' thinking. You need to count the value of those as well. Your profit is the total value of your items, not how much you spend. You might find out that in the end you probably lost isk by making the cruiser instead of selling the refined minerals.


Eh, there are some spiked cruisers now, apparently, probably being used as cannon fodder in TEST kitchen-sink fleets. Roll

So, it's technically possible right now, but naturally won't be a sustainable margin.
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#18 - 2013-06-10 20:47:22 UTC
Eddi Arthie wrote:
Hm, that makes roughly 250k/hour then. Its needs some improvement, I grind Lv1 Agents for more Ugh



250k isk/hr/line is the more accurate way of putting it.

and sure, you can beat one line. 10 lines, running 24 hours a day, 7 days a week, is a trifle more difficult to beat Blink

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Tau Cabalander
Retirement Retreat
Working Stiffs
#19 - 2013-06-10 23:58:21 UTC
Termy Rockling wrote:
Us industrials are less concerned about the profit % but instead isk / hour. More expensive stuff might have less profit% but much higher isk/hour, and thats almost all that matters.

I don't really care about a per slot per hour figure. I'm not that efficient.

I focus more on the time to sell and less on the time to manufacture. I value a lower effort more.

I prefer to load-up low skill alts, let them manufacture for a month stuff that everybody overlooks, while earning 30% or more on the material cost. Earning 30% or more per month ain't bad for a few minutes work.

If you do care about a per slot per hour, and work hard for that same month, you will no doubt earn far more.
Salpad
Carebears with Attitude
#20 - 2013-06-11 13:43:19 UTC
Eddi Arthie wrote:
Hi, I just sold my first selfmade Cruiser with a net profit of 11. something%.

I am wondering, is this a reasonable value? Or can this be improofed as it took some hours of work (buying, shipping, building...) to get there.

Just now I am working on my Production Efficiency (now at 3), maybe this will help.


Did you really get 11% profit, while your production Efficiency skill is as low as 3? Or are you doing some kind of MIMAF fallacy?
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