I am thinking of setting up a "craft based" character is Skyrim - with the challenge to use Smithing/ Enchanting/ Alchemy and Speech to build up wealth while avoiding the normal kill, loot and sell approach.
From experience it's hard to make/ sell things without losing a lot of money in the process. For example a leather strip (3 gold) and an iron ingot (7 gold) can be smithed into an iron dagger (10 gold) - which is a grand profit of no gold.
Even using enchanting/ soul gems and "high value" enchantments like "Fortify Sneak" don't deliver a good return. Although because previous characters have been combat/ magic/ sneak focussed I haven't put a lot into "Speech" perks.
Is there an effective/ profitable approach to a "crafting" style of gameplay or do the in-game economics make it pretty much impossible?