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Wednesday, 16 September 2020

21 days in

 After 21 days of Omega (+2 days training missions +2 days as an Alpha), my current wealth is 2.6bn isk.

My wealth consists of 1.8bn isk of Sell Orders in Dodixie less the 20% provision (=400m) and adding cash ready to reinvest into the market of 100m isk.  I also have 400 plex worth 1.1bn.  I spend 100m isk at a time buying about 40 Plex.  

Simple exercise, but if i assume each 100m i invested in Plex i instead invested in the market and each day it generates 10% growth (i.e 100m becomes 110m) then  the 1.1bn in Plex would be worth 2.0bn today.  In other words, my wealth would be 3.5bn isk.



Can i Plex the account in the first 30 days?

Almost certainly yes.  I should have it done by Friday which will be 5 days ahead of the deadline.

The key aim is to play the game for free by using Plex to finance the account.  So far, so good it seems.



The initial aims unchanged

Other than the Plex aim, my current aims with this third foray into Eve Online is to get to a steady state of income from Trading (buying from Sell Orders in Jita and putting these items up for Sale in Dodixie).  
I am hoping this can generate 10bn isk per month before Plex costs with minimal effort.

At that point, instead of pushing on i want to move into other parts of Eve industry to see what it is all about and if i can make it generate good isk.



The Business is taking shape

Jita will be the hub of my operations.  Items for sale in Dodixie or for use in the manufacturing process will be bought in Jita and then distributed to their end target.

Dodixie will be the trade hub where i make my sales.

So, in effect, isk will be made in Dodixie and spent in Jita.

When the time comes, i will work out where i want to undertake the manufacturing.



Trading in Dodixie is going well

I stick to high margin products that sell slowly.  Items that sell 1 or 2 per day dont attract the big traders.  They cant benefit from scaling this up.

When i talk about profit margin i refer to margin = profit/sales = (sales - costs)/sales.  i.e. if i buy an item from Jita for 40m and sell it in Dodixie for 50m then my margin is 20% = (50-40)/50

Currently, i have 28 items for sale in Dodixie worth 1.8bn isk.



Dodixie Seller character

For now, this is the only seller i have and it is my Main character.

The skills relevant to Trading that i have are:

Accounting: Level 4; means i am charged 2.80% of the sales price on completed sale vs the normal 5%

Broker Relations: Level 4; means i am charged 3.78% to list an item for sale; and for every price change, whether up or down, i am charged 1.14% of the new sales price

Advanced Broker Relations: Level 4; means i can reduce the cost of changing the price of items i already have for sale. I decided by train this rather than go all for Plex.  With no skill i would be charged 1.89% to change every price.  Level 4 has brought this down to 1.14%.

Trade: Level 5; increases the number of items i can list for sale by 4 per level.

Retail: Level 5; increases the number of items i can list for sale by 8 per level

Marketing: Level 2; this allows me to set up Sell Orders in stations other than the one i am in; i don't use this really

Given the level 5 Trade and Retail, i am able to post 65 items for sale (5 + (5x4) + (5x8)).  With no Trading skills you can post up to 5 sell orders

On one hand, it would take me 38 days to train Accounting, Broker Relations and Advanced Broker Relations to Level 5.  And i still have to train Wholesale and Tycoon to increase the number of Sales Orders i can have up

I will continue down this road for now but at the same time i am going to start getting my manufacturing spread sheets ready.  I may start training my alt in Jita in the manufacturing skills if it makes sense.

I can see myself taking 4 to 6 months in total getting the Dodixie seller up to a steady state before i start to move into other forms of Eve Online business.



Items i am selling

The days of buying blueprints in Jita for 600k and selling them in Dodixie for 2.5m were good at the start but now dont make a difference.

So, at present, i buy items in Jita for 30m to 110m and sell them in Dodixie for margins of over 25%.

I have moved off Blueprints for now and sell a few Skillbooks and mostly for now tier 2 ship equipment.

Some skill books but also tier 2 rigs and tier 2 ship equipment.  Not really selling implants yet.  One or two bluieprints.

i find evemarketer very useful to find new ideas.  Also, i am using Eve Tycoon which seems to have more of the latest items in ots market browser.



Outlook

September will be my first full month, so lets see how it goes.

Aims for September:

1) Continue to expand the Dodixie trader sell orders and reduce trading costs
2) Plex the account


Current wealth is 2.6bn ISK made up from:
  • items for sale 1.8 ISK
  • less a 20% provision 0.4bn ISK*
  • ISK in wallet 0.1bn ISK
  • Plex in the wallet of 400 worth 1.1bn ISK

When i add up my wealth, 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.  Any ships or skills or fittings etc i buy are counted as expenses in that month.

* 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.  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.  In an ideal world I would value my sell orders at the value which I bought the items for.

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