Thursday, December 13, 2012

Getting started - Day One.

Wulf Brother Industries opened its doors on December 12, 2012. Since then, we've been working to get our industrial queues set up for manufacturing.

Since I've spent most of my New Eden life as a miner, I have a lot of minerals in reserve. My refining skills are super, and therefore I can mine a lot of my own materials. However, after perusing other Indy blogs, I've decided that I don't want to spend a lot of time mining. But, while I'm getting started in the Industrial world, it makes sense to continue mining.

I donated 100,000,000 ISK to the corporation as seed money. I expect that I'll be paid back at some point.

I also split the wallet into two divisions, the Master Wallet (taxes, rentals, etc) and the Industry Wallet. I split the money in half, 50,000,000 in each.

This morning, December 13, I made the first corporate purchase, 4 BPO's.

I purchased a BPO (50ME/30PE) for the following Drones:

Acolyte I
Hobgoblin I
Hornet I
Warrior I

The cost for the 4 blueprints was 10,000,000. This represented a major investment for WBI, 10% of our starting cash-on-hand was now wrapped up in blueprints. (There was also a broker fee of 28,201.98 for accepting the contract)

I checked the market for profitability and movability of these drones. Which ones was I relatively sure I could move fastest? I decided to make a batch of Hobgoblins. I used my personal minerals, which I have on hand, and set up a build for 1,000 Hobgoblins. They will be finished on December 17, 2012 06:42 NET

I then set about figuring out my costs.

Material Cost: 0
Manufacturing Cost: 26,395
Total Cost: 26,395
Cost per unit: 26.4

The sell price for each will be 6,000. I'd like to see if they move at this price. If they don't, I'll rethink my price point, possibly even move the drones a few jumps to Amarr. I'll set them up for a week and see what happens.

To set up the order it will cost:

Broker Fee: 30,572.31
Sales Tax: 90,000
Total Market Cost: 120,572.31

If I add my 2 cost totals together, I have a total cost of:

146,967.31 or 146.97 per unit

This means we should make a total of 5,853.03 per unit, for a total profit of:


This would be more than half the initial investment returned to the corporation with the first batch.

I'm excited and apprehensive.

In order to not make the day a total waste, I also mined my Mackinaw full of Kernite, refined it and sold it for the corporation through buy orders. The net profit of this venture was: 7,342,891.31.

This leaves the Industry Wallet at 47,314,689.33 after day 1.

I've had a cup of coffee and my PI is about to finish it's day-long cycle. I'll be selling what I got from there, and then reestablishing all of my PI in an attempt to make higher level products. Hope to see some solid results from that venture, too.


  1. You should factor the mineral price into the cost per unit. Even if you mine yourself the minerals you shouldn't consider it free unless you consider your time is worth nothing.

    1. Debra - If I were mining the mats currently, I'd count it. But these were all from previous mining adventures. If I mine specifically for a project, then I'll count the minerals in my cost analysis.

      Thanks for reading!

    2. I’m enjoying what you written so far.

      Keep it coming!

      I would like to just add to what Debra has said. Even if you mined your minerals yourself and they are stock piled from a while ago, they can still be sold on the market at current rates. Even though you didn’t spend ISK to acquire them, they could make you ISK if they were not otherwise being used. This something you should really watch as sometimes, certain T1 items aren’t worth making when you consider all the costs.

    3. "they can still be sold on the market at current rates"

      You nailed it. Great point. I have a pretty substantial stock of mats that I could probably throw sell orders on and see how they do.

      I'm attempting to make a distinction between my personal supply and the corporate supply. It's a silly distinction, I'm sure, as I'm the only one in the corp. But, in my head, it makes sense to keep that distinction and run the corp like an actual business.

      I'm a RPer to the core.

    4. yeah good start for your blog :)

      I have tried to make a distinction between my corporation and my alts but eventually i surrendered. If you don't plan on expanding your corp and recruiting people i don't think you should worry to much about it or you risk to find yourself constantly giving money to the corporation for the bills (fuel, rent...). But eh i am sure you can do it, not worth it if it's you and your alts imo.

  2. I have just started myself, as an industrialist, so I feel following you in your steps is a good move. I hope you continue this for yourself and others!

    1. Thanks for reading! I'm not sure I'm the best person to follow! I feel like I'm just stabbing around in the dark =)

      Keep following, and we'll take this journey together!

      Fly Safe