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Saturday, 16 November 2013

Manufacturing - 2 months in

Its been a while since I have written exclusively on my manufacturing alt.

I have been very pleasantly surprised at how profitable manufacturing is compared to my initial expectations.  October was my first full month running at speed and I made profits of 2bn ISK whilst spending only 10 minutes per day at the most on it.

I am halfway through the current month and I have made 1.7bn ISK profits.

Of all my activities I believe manufacturing is the leasst time consuming time of financing the purchase of Plex.

My strategy is similar to that I adopt in trading: I focus on the low volume, high margin items.  The 0.01 players leave these alone given the low volume of sales per day.  I don't focus at all on the high volume items such as ammunition.

I have a spreadsheet set up on Excel 2007 which downloads the Jita prices (from Eve Central) of the items I am selling and all the raw materials to compare the profit margins and so indicate to me which I should be producing.  In all, this spreadsheet monitors 49 items so far, and the list is growing.

At present I regularly sell 26 items which at the present time is making me profits of 2bn ISK per month - hopefully 3bn this month but we will see, I am away for over half the month on business.  If I sell 3 items a day giving me 35m ISK profit each then I am a happy pilot.

I own over 1bn ISK of Blueprints (which I class as expenses and hence the 2bn Profits in October covered the costs of these Blueprints).

I sell in Jita and I manufacture in the Lonetrek region.  The Lonetrek region is right next door to Jita and there are always plenty of spare manufacturing slots.

I am expanding my operations into other regions to see if I can enhance my sales - so far it has started slowly but it is early days.

When I started manufacturing it was industrial ships - as of today, they would all be loss making.  Has been over a month since I sold my last manufactured ship.

The great part about manufacturing is that so far it is very low maintenance.  Even assuming I need to buy materials to manufacture 11 items + ship them to my manufacturing station + set up the manufacturing operations + get them to Jita to sell + update all sell orders then at the most it is 10 minutes.

I greatly suspect I could have financed the ongoing purchase of Plex if I had started in manufacturing - but that is not as certain as trading.  The time taken to learn the required skills is perhaps more of a hurdle earlier in the process.

Going forwards I am merely plan to expand the number items I manufacture for now.  I also am learning Spaceship Command skills given I suspect this alt will be the alt that hauls items around once my manufacturing operations expand into other regions.



My current relevant skills are:

  • Mass Production 5 and Advanced Mass Production 5 allows me to manufacture 11 product items at once.  Many blogs I read don't learn Advanced Mass Production 5 given the time it takes - but the one downside on being away on business a lot is that time is available to set an alt up to lean a skill that takes 30 days!

  • Production Efficiency 5 allows me to use less materials to manufacture items

  • Industry 5 allows me to manufacture items quicker and is required to progress in other skills

  • Supply Chain Management 5 allows me to start a manufacturing job from anywhere in the same region - I am not really using this at present but I expect to use to more when I move my manufacturing operations away from Jita.

  • I then have various skills that allow me to manufacture certain items such as Mechanics 5, Hull Upgrades 2, CPU Management 5, various Rigging skills, Science 5,

  • Contracting 2 - allows me to set up 11 contracts to haul my items around


and because this alt places its sell orders to sell its items I have also trained in:

  • Daytrading 3 - allows me to modify my sell orders up to 11 jumps away in the same Region

  • Marketing 3 - allows me to place sell orders up to 10 jumps away and is required to learn other skills

  • Retail 4 and Trade 4 - allows me to place a total of 53 Buy and Sell orders


  • Cybernetics 4 - allows me to get the Standard implants for faster learning

4 comments:

  1. You're making 2bn profit making T1 items? I must be missing something, I don't even make that much with invention/manufacturing..

    Then again, my way of research .. Is none existant

    ReplyDelete
    Replies
    1. yep - just sticking to the high value, slow moving items. The margins are high and the profits are steady. The volumes are too low for the 0.01 undercutters.

      Delete
  2. I'm jealous of your 10 minute cycle - I'm not sure how you do it. I'm trying to get to a 30 minute cycle, but I think the bottom line is that my capital level is still too low so I'm constantly fighting to get a working level of inputs back into stock using the proceeds from the last set of sales.

    ReplyDelete
    Replies
    1. I have about 20 to 26 sell orders up, only sell about 4 or 5 items a day. Hence, that leaves me with only c20 sell orders to update, raw materials for 5 items to buy + haul + put in to manufacturing, and then haul back the other 5 items that were manufactured during the day to put up to sell.

      I focus on the slow moving but high value items only.

      Delete

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