Hey folks, I’ve REALLY been enjoying industry since getting back into Eve, like, more than any activity I’ve ever done in this game. So I want to make sure I’m understanding the costs of manufacture and selling stuff properly. So here’s a hypothetical situation with some made up numbers, but let me know if my understanding of how these numbers interact is correct.
So let’s say I have a blueprint to build the Orakkus Win Button I.
It’s clearly in demand so I can sell as many as I pump out, so for the purposes of this illustration, sales are guaranteed. I can sell them for 5 Million Isk each (I like easy math, an Orakkus Win Button would certainly sell for much MUCH more, in reality.)
So target sell price: $5M
Materials Cost: $3M
Job Cost: $50k
Broker’s Fees (Alpha account, no reductions): 5%
Sales Tax applied upon Listing: 5%
Sales Tax applied upon someone buying it: 5%
My understanding is that Broker’s fees and the two rounds of sales tax are based off the sale price, so in this case each one of those would be $250k.
So total manufacture and trade costs would be $3.8M.
So if I can sell it for $5M, then that’s a profit of $1.2M on each Win Button sold.
And so that would be making a 31.58% profit on my investment.
Am I correct on my calculations and my understanding of the costs involved? Also, please feel free to correct my terminology, especially the appropriate way to express the “% profit on investment” aspect.
A couple questions:
I can’t help but notice in some of my practical experiences that the job cost for manufacturing an item is generally far below what I would expect. For instance, I’ll certainly find a lower index cost home, but right now as I sit in Dodixie, the manufacturing index is 4.69%. But the actual job cost of the last manufacturing job was only around 1.5% of the actual material cost required. It does say the actual job cost is based on estimated value of materials which was far below the ACTUAL cost of the materials involved. I’m not going to complain about paying a much lower job cost, but is there a way to consistently know what that cost is going to be if I can’t just multiple the system index against actual material cost?
Also, as shown in my calculations above, it appears that when you list your items to sell, it immediately deducts the broker costs and a sales tax. For me they’re both 5% (can’t wait to get those down). But then when someone buys my item, I have to pay another “transaction” fee, which is also 5%? So it’s basically a sales tax both when you list and also when it gets bought?
I know there’s 3d party online tools available, but even though I’m not a genius with numbers or anything, I really enjoy setting up my own spreadsheets. It really helps me to get a deep understanding of what is happening. I just need to make sure I’m setting up my spreadsheets correctly.
And yes, I know there would be an initial cost for blueprints and later on there’s all the costs associated with blueprint copying and efficiency research and all, but right now I just want to nail down the manufacturing costs themselves.
So, am I understanding correctly? If not, can you show me where my understanding is off? Thanks!
BTW, being in the Eve client and all of a sudden seeing your market and wallet icons start flashing, notifying you that someone just bought one of your items is sweet every single time it happens!