Science & Industry

Because materials from your own planets are not free simply because you mined/PI'd them. They have a value associated with them which the OP correctly understands and incorporated into his profit margin determination.

Well, first run the numbers and see if the increased profit on the fuel blocks is worth having a POS at all. All it gains you is faster manufacturing.

good advise, thanks

When using your own materials (regardless of what materials they are) you need to subtract the price you could have sold those materials for. For example if you manufacture an item that sells for 500k isk but it uses 600k in PI materials you have made a net profit of -100K isk. If you can manufacture an item that sells for 700k isk but it uses 400k in PI you have profited 300k isk over the costs of manufacturing with your own materials.


Also for the OP

1) It could be that you are inefficiently running your PI production for mats used in the fuel blocks. If you're doing something silly like exporting P1's then importing to make P2's and doing another export and import to make P3's for example then you are wasting about 15% of your profit from your PI materials if not more. If you're buying your PI mats you need 1 import/export (import P1 export P3) if you're making your own PI you need 1 export of P1, 1 import of P1 and 1 export of P3. Any more then this and you're wasting isk on taxes.

2) Ice prices are going crazy right now because of goons little ice events so the price of ice has increased considerably (for caldari ice at least) and the price of fuel blocks may not have increased at the same speed as the ice prices have. If you're making caldari ice for example you are better off waiting for fuel block prices to increase to match the material costs which will happen once back stock of fuel blocks decrease.

Small POS

Buying fuel
7200 fuel blocks * price of fuel block (15,038 Isk) = 108,273,600

Mining it all
1080 blocks of ICE * Price of ICE Block selling (179,000 ISK) = 193,320,000

So conclusion, DO NOT MAKE YOUR FUEL BLOCKS, sell the ice and buy your fuel and have
85,046,400 in your pocket profit. not to mention freeing up your PI to manufacture profitable items.

OR you can mine less per month to fuel your POS...!!!

That would be 605 pieces of ICE (605 * 179,000 = 108,295,000)

Simple math shows the ICE product nerf needs to be looked at again.

Poasting in a NecroThread.

2 months have gone by, so I must edit my previous post of 4 Bill ISK/month Fuel Block sales to the more accurate 5 Bill a month.

I buy off the market.

Ony an idiot doesn't charge himself market rates for things.

Very true, But what "price" is he using. If he values his raw materials at Jita sell prices then his profits will be minimal. Especially if he uses Jita buy prices for the end value of the fuel blocks. realistically yes, if you were buying the materials you would likely buy from Jita sells, and then sell the blocks to jita buys, but then would you not also sell your mats to Jita buys if you when that route and did not even build the blocks? Even so, 1,000 isk per block is a decent profit.

I agree 100% that you need to count the value of your mats, even if you produce them yourself at near zero cost, they still have a raw value you can sell them at. However you need to use a value that you could reasonably sell them at, not the absolute max you could possibly get for them. If you are using Jits buy prices for your final sale, then you should also use Jita buy prices for the value of the mats you made.

What i find is really funny about fuel blocks, even with all the ICE and PI products bouncing around in price, a caldari fuel block right now is selling for just over 15,000 isk, the same price I was selling them for over a year ago when the PI and ICE product mats were way way cheaper. You know back when you could get raw ICE for 120,000 per block, and tax on PI was almost nothing.