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Sunday, 7 July 2013

a few steps forward and a mistake

New manufacturing Alt up and ready: My new manufacturing alt completed its training, again took 2 sessions, and is now back at Jita to be my buyer for my traders in Dodixie and Hek.  I seem to feel compelled to do the starter missions for all new alts.

I will be purchasing a Plex in the next day or two so that train both my trader at Hek and my Manufacturing alt at Jita.

I don’t expect to be doing any manufacturing any time soon but the training is in full swing.

Initially i will train up the skills in:
I suspect that this character will be transferred to a new account once it starts to do manufacturing for real.  But i don’t expect to do that within the next 2 months.  We will see - I may in fact leave it on this account and start a new account with a trader at Jita to train up.

I know that trading brings in the ISK, and indeed other ISK makers have said that they went down the route of trying other forms of ISK making but found trading the best ISK maker - but I am really excited about manufacturing.  I am hoping it will allow me to experience more of the game (though I appreciate without the PvP).
 
 
Traders doing their bit: My traders in Dodixie and and Hek have settled down to their usual routine of selling items hauled to them from Jita.  I am currently making between 100 – 150m per night though i am hoping this will increase as the trader in Hek comes on stream.
 
It is interesting to see items that once made me good profits but now have seen their profits shrink to zero.
 
 
Too much ISK: I have 1bn ISK sitting in my wallet.  c540m is reserved to by a Plex so that leaves c500m ISK spare.  The one thing i know about that 500m ISK is that at the moment it has no chance of increasing my Wealth.  It is dead money that should be earning a return.  Hence, i need to find more items to sell, most likely in Hek.
 
 
A question of accounting: I know that i will be purchasing a Plex again in 30 days or so and indeed i suspect i will be purchasing Plex every 30 days after that.  Hence, given i know i have a c540m ISK liability every month the question becomes how do i recognise this in my Wealth statement?
 
One method would be to deduct a months worth of Plex from my Wealth in recognition that i will need to purchase it.  But then where do i stop, do i also deduct the purchase after that?  And indeed, should i not just wait until i get to the point of purchase and then make the deduction from my Wealth as i pay?
 
This will also become a bigger issue when in the future i have other known purchases i must make at a given point in time.
 
I have decided that i will not deduct them from my Wealth but merely make a disclosure of known purchases that must be made.
 
 
And a mistake: I managed to update a sell order from 330m to 330k by mistake and of course it sold to a lucky buyer who of course now has me marked down as a plank.  Darn.  Was going to happen one day . . . . and doubtless will happen again . . . . a casual 330m ISK gone, equal to about 2 – 3 days work.
 
 
 
Current wealth is 6,220,112,358 ISK made up from:
  • Items for sale 6,487,818,288 ISK
  • less a 20% provision (1,297,563,658) ISK*
  • Items in storage for sale 19,500,000 ISK
  • Items in transit 0 ISK
  • ISK in wallets 1,010,357,728 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 cost is or at least the maximum reduction I would need to make to my sell orders as a whole before they are sold.

4 comments:

  1. Sorry about the mistake, but it happens. Good to see you are excited about manufacturing, you'll be surprised (or not) at the huge margin you can make (depending on how you account for manufacturing time $$$). For that 500m ISK that's not being used have you thought about trading from a trade hub into Jita? I know that many times when I'm doing research I find items that sell for more in Jita than in the other trade hubs, so you could try that reverse route. Of course in Jita you do deal with more .01 iskers and competition, but then again, there is a lot more volume. Just an idea.

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    1. yes - I am starting to look into selling items into Jita. I may try a few to see how it goes. Thanks for the idea.

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  2. I am fascinated by this blog, I found it the other day and have read every entry so far from the beginning to this post that I am commenting on.

    I have been in the game 4.5 years and have only managed 22.5b, I really must try to kick things up a gear.

    Well done, I look forward to reading your more recent posts.

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    1. I know just what you mean! I found this blog last week, Seeing what it was about I went back to the first post and read the entire thing. Then I recently started implementing this system. I started with a character just out of newbie school with 4.8 mil. currently I've a little over 10 mil in my wallet and 25 mil in sell orders after just a few days. Most of my free time right now is spent in researching new things to trade in.

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