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Thursday, 30 May 2013

Summary of route to 1bn ISK Wealth

Today i achieved wealth of 1bn ISK – 16 days into playing this character.
 
The summary of my route to 1bn ISK was:
 
 
Regional Hauling
 
Right from the start i bought items in Jita and hauled them to another region to sell in Dodixie.  In Eve, unlike World of Warcraft, the item for sale can only be bought at the station where it has been put on for sale.  Furthermore, whilst you can see all prices of all items in all stations in the same region you can not see into other regions until you get there.  Hence, there is big money to be made hauling items from lower priced regions to higher priced regions.
 
 
Sold low volume but very high margin items.
 
I stuck almost entirely to blueprints and implants the whole way.  They have a number of great advantages.  Firstly they take up very little cargo space – so in the beginning i only needed a small fast ship.  Secondly they sell in low volumes and so do not attract the bigger competitors who would rather deploy their ISK into faster selling items.  And so thirdly their profits are very high.  I don’t need to make high volume sales at this stage.
 
 
I reinvested the ISK straight back into the market.
 
ISK sitting in my wallet is not trying to make me a profit, reinvesting ISK from sold items into new items from Jita to sell was done daily.
 
 
Skilled up Trading – especially active trade skills.
 
I started with the ability to sell 5 items at a time and paid a full 1.00% broker fee and 1.50% sales tax.  By the time i got to 1bn ISK i was able to place 53 sale orders, paying a broker fee of 0.80% and sales tax of 1.05%.
 
 
Once above 100m ISK cargo – I used couriers.
 
Ok, it slows down the reinvestment time by 2 – 24 hours but it greatly reduces the risk of me being ambushed whilst hauling increasingly valuable cargos from Jita to Dodixie.  It also takes away the sheer tedium of doing the hauling.
 
 
I Sent an alt to Jita.
 
This is needed to make the contract hauling truly an afk experience.
 
 
 
Current wealth is  1,059,847,335 ISK made up from:
 
  • Items for sale 992,314,815 ISK
  • less a 20% provision 198,462,963 ISK*
  • items in storage for sale 51,600,000 ISK
  • items in transit 190,000,000 ISK
  • ISK in wallet 24,395,483 ISK
 
 
I don't count assets I use in the course of my business such as ships, fittings etc nor do I add back any expenses such as skills purchased etc.  The wealth I disclose is made up of items that are ISK or are in the process of being converted to ISK.
 
* I take a 20% provision against the items I am selling.  Eve calculates wealth by adding up the value of the sell orders hence it is possible to increase your wealth by buying an item for 100m ISK and putting a sell order for 120m ISK (in this case your wealth would increase by 20m ISK).  For me, I want my wealth to be calculated at cost until i finally hold it as ISK.  I know that the value of my sell orders will likely fall over time as I update my orders downwards as competition reduces their prices before my items are sold.  Hence the 20% provision is my best guess as to what the maximum reduction I would need to make to my sell orders as a whole before they are sold.

4 comments:

  1. A plug for your new Eve blog here http://merchantmonarchy.blogspot.ca/2013/05/marketsforisk-lblog.html

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  2. "PI also looks fun but click intensive." You know where to find me :)

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  3. @MoxNix: thank you for that

    @Foo: yes, thank you also. I suspect I am 2 to 3 months away at least before I fully have my trading set up. And that's assuming I don't move into station trading! Ultimately I believe it will be how much I can fit into half an hour on week day evenings that will decide how far my trading can go before I look into other areas of the Eve economy. very excited by it all.

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  4. Just want to say thanks for the blog - I just hit 1bil myself after 20 days starting with 100mil seed :)

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