Manufacturing business - May update

May was the first month of my latest venture into manufacturing.

I made sales of 26.2 billion isk, generating item profits of 7.6 billion isk (item profit = sales price less material costs of manufacture) and 2.7 billion isk of operating profits.

My accounts were not in Omega status and therefore Transaction Taxes were 2.0 billion isk, Broker Fees 0.4 billion isk and Manufacturing Fees 2.4 billion is.

The interesting point about the first month is that i made 26bn of sales.  I had expected to make very few sales and end up with a lot of items being put up as Sell Orders and waiting 40-50 days to see the sales start coming in.

Strategy

Already changing but the aim is to stick to high value, low competition, slow moving items.  So very similar to my Trading strategy.

So that's some T2 items and also higher value items that sell slowly.

How will this be additive to my wealth?

There is a good chance that i would be trying to sell the items i manufacture by buying from Sell Orders in Jita anyway.

Hence, there is a good chance that my wealth is merely rising by the difference between the manufacture price and the Jita Sell Order.

In other words, i am capturing more of the margin.

The Numbers for the Accountants

The very simple Balance Sheet and Profit & Loss Account is below.

So i started with 20 billion in cash and just short of 1 billion in spare raw materials.  I ended May with 17.9 billion in cash, about 400 million in raw materials and was couriering 5.3bn of raw materials to a manufacturing site.

The Profit & Loss account is as i discussed at the top of the post.