"I farmed it for free" is a common statement among dumb people who are unable to understand opportunity cost. They assume that every action that earns them money is profitable, just because they got money. They ignore that they could get much more money with the same resources if they did a different action. They are practically considering the resource they had "free", hence the epic slogan.
The simple form is only common among idiots: he farms a whole evening and considers the income pure profit. However people who are not idiots, simply not careful enough can make similar mistakes. And they often do, as we will see today, with the Planetary Interaction of EVE. Imagine that you have a charming barren planet (as far as barren planets go). On this planet you have an extractor for aqueous liquids and another for base metals. Both extract enough to support 4-4 basic factories that turn these raw materials into water and reactive metals. Next to them there are 4 advanced factories eating up the water and the reactive metals, producing water-cooled CPUs. Each create 5 pieces an hour and they sell for 2300 ISK, so you generate 2300*5*4*24*30 = 33M/month with a colony. Congratulations, you made profit.
Actually not. If you'd destroy the advanced factories and just sell the water and the reactive metals for 340 and 320 ISK each, you'd earn (340+320)*40*4*24*30 = 76M/month. The profit of the advanced factories is -43M. Unless water-cooled CPU can be looted somewhere, it is created by dumb people who assume that their water and reactive metals are for free. I know, I know, they aren't dumb, just play for fun and making water cooled CPU is so much more fun than making coolants (which is actually profitable).
Making livestock and selling it for 6000*5*4*24*30 = 86M/month isn't much different from selling its P1 materials, biofuels and proteins for (110+550)*40*4*24*30 = 76M/month, so it's more or less indifferent, right? No, because simple is always better. For the first colony you have to find a planet that can support both extractors in proper amounts and not far enough from each other so you can link them. If just one material runs dry, you have to pack and go. Not to mention that the 4 advanced factories could be replaced by extractor heads and basic factories. Finally you probably noticed that 550 >> 110, so it's guaranteed that if you'd just run a single protein extractor planet with a 10 head extractor feeding 8 basic factories, you'd make much more money (550*40*8*24*30 = 127M/month). Complicated always needs to be justified with extra profit.
The above is true for higher level PI. If you are making Camera drones, Condensates, Guidance Systems, Hermetic Membranes, Industrial Explosives, Planetary vehicles, Supercomputers, Synthetic Synapses, Transcranial Microcontrollers, or Ukomi Superconductors with the current prices, you are doing it wrong. Even better: if you make any kind of P4, you are doing it wrong, each and every one of them creates less profit than a P3 factory. It doesn't mean you can't make money with them, you just could make more with a selected P3. I guess people are so obsessed with producing top tier stuff that they forgot counting. Alternatively they need the compression that P4 gives (typically in WHs)
If you make something profitable like Neocoms, it's no excuse to have an unprofitable step in it, like making Silicate Glass. Import Biofuels and Precious metals, combine them to Biocells and combine those with imported Silicate glass!
If you keep these in mind, you can get 150-200M/month per colony. People get less because they don't have an up to date spreadsheat or they use someone elses and just check the end result, not optimizing the internal chain: Neocoms are profitable even if you make them with self-made Silicate glass. It doesn't make it right though to litter your planets with silicate factories instead of more biocells and Neocom factories. Have something like this instead:
If you don't want to mess with spreadsheets, it's fine. But then stick to something simple like extraction + refining to P1 and selling it. A well-ran P1 planet is more profitable than a badly ran P3. Please note that prices can change daily, what was profitable yesterday is not surely profitable today. Again, if you don't want to bother, run P1, they are always profitable, price changes can only affect the amount of profit.
The simple form is only common among idiots: he farms a whole evening and considers the income pure profit. However people who are not idiots, simply not careful enough can make similar mistakes. And they often do, as we will see today, with the Planetary Interaction of EVE. Imagine that you have a charming barren planet (as far as barren planets go). On this planet you have an extractor for aqueous liquids and another for base metals. Both extract enough to support 4-4 basic factories that turn these raw materials into water and reactive metals. Next to them there are 4 advanced factories eating up the water and the reactive metals, producing water-cooled CPUs. Each create 5 pieces an hour and they sell for 2300 ISK, so you generate 2300*5*4*24*30 = 33M/month with a colony. Congratulations, you made profit.
Actually not. If you'd destroy the advanced factories and just sell the water and the reactive metals for 340 and 320 ISK each, you'd earn (340+320)*40*4*24*30 = 76M/month. The profit of the advanced factories is -43M. Unless water-cooled CPU can be looted somewhere, it is created by dumb people who assume that their water and reactive metals are for free. I know, I know, they aren't dumb, just play for fun and making water cooled CPU is so much more fun than making coolants (which is actually profitable).
Making livestock and selling it for 6000*5*4*24*30 = 86M/month isn't much different from selling its P1 materials, biofuels and proteins for (110+550)*40*4*24*30 = 76M/month, so it's more or less indifferent, right? No, because simple is always better. For the first colony you have to find a planet that can support both extractors in proper amounts and not far enough from each other so you can link them. If just one material runs dry, you have to pack and go. Not to mention that the 4 advanced factories could be replaced by extractor heads and basic factories. Finally you probably noticed that 550 >> 110, so it's guaranteed that if you'd just run a single protein extractor planet with a 10 head extractor feeding 8 basic factories, you'd make much more money (550*40*8*24*30 = 127M/month). Complicated always needs to be justified with extra profit.
The above is true for higher level PI. If you are making Camera drones, Condensates, Guidance Systems, Hermetic Membranes, Industrial Explosives, Planetary vehicles, Supercomputers, Synthetic Synapses, Transcranial Microcontrollers, or Ukomi Superconductors with the current prices, you are doing it wrong. Even better: if you make any kind of P4, you are doing it wrong, each and every one of them creates less profit than a P3 factory. It doesn't mean you can't make money with them, you just could make more with a selected P3. I guess people are so obsessed with producing top tier stuff that they forgot counting. Alternatively they need the compression that P4 gives (typically in WHs)
If you make something profitable like Neocoms, it's no excuse to have an unprofitable step in it, like making Silicate Glass. Import Biofuels and Precious metals, combine them to Biocells and combine those with imported Silicate glass!
If you keep these in mind, you can get 150-200M/month per colony. People get less because they don't have an up to date spreadsheat or they use someone elses and just check the end result, not optimizing the internal chain: Neocoms are profitable even if you make them with self-made Silicate glass. It doesn't make it right though to litter your planets with silicate factories instead of more biocells and Neocom factories. Have something like this instead:
If you don't want to mess with spreadsheets, it's fine. But then stick to something simple like extraction + refining to P1 and selling it. A well-ran P1 planet is more profitable than a badly ran P3. Please note that prices can change daily, what was profitable yesterday is not surely profitable today. Again, if you don't want to bother, run P1, they are always profitable, price changes can only affect the amount of profit.
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