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Tuesday, 16 July 2019

Wealth of 34.8bn

The second week in July was ok.  Wealth rose by 1.3bn to 34.8bn isk. However, that came after paying 1.9bn to Plex the account for another 30 days.  Hence, isk made in the week was really 3.2bn less the 1.9bn for the Plex.

So, halfway through the month i have made 9.5bn isk before Plex costs.  i.e. wealth has risen by 7.6bn isk in the last two weeks.  July is going better than expected.

The Amarr trader is really coming to life now.  I am finding more items that appeals to the Amarr market.  Lots of cross over with the Dodixie market though it is more competitive.  That said, i find that as long as my item is first to third on the sell order then it generally gets sold at some point given the volume activity in the market.

The Dodixie trader plods on.  Still making good isk.  I am slowly adding new items to sell as i find the,.

I now have 400 surplus Plex.  I aim to always have 500 surplus Plex to cover the account costs with out a last minute panic to buy the plex.

The 1.9bn isk in my wallet was fully invested in the market before i went to bed.

Yet again, i report that Manufacturing plans has got nowhere fast.


Outlook

I am hoping i can do better in July compared to June.  The aim was to be for 10bn isk increase in wealth (after paying for Plex) - currently i stand at 7.6bn isk therefore it feels fair to say that the 10bn target will be reached with a week to spare.

Other aims for July - all appear to be on track:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 34.8bn ISK made up from:
  • items for sale 39.1bn ISK
  • less a 20% provision 7.8bn ISK*
  • Plex held (400 Plex) 1.6bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 1.9bn 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.  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.

Tuesday, 9 July 2019

Wealth of 33.5bn

The first week in July was perhaps my best.  Wealth rose by 6.3bn to 33.5bn isk.

Finally, my trader in Amarr has come to life and started pulling his weight.

Good week during the weekdays and weekend - that's what did it also.

I now have 600 Plex of which 500 will buy 30 days play time - that is the aim.

The 3.3bn isk in my wallet was fully invested in the market before i went to bed.

Yet again, i report that Manufacturing plans has got nowhere fast.

No change to anything else really.


Outlook

I am hoping i can do better in July compared to June.  The aim was to be for 10bn isk increase in wealth (after paying for Plex) - so far, so good.  From the 6.3bn isk increase i will need to pay out about 2bn isk for Plex for my account but i am 40% of the way there in the first week.

Other aims for July:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 33.5bn ISK made up from:
  • items for sale 36.5bn ISK
  • less a 20% provision 7.3bn ISK*
  • Plex held (600 Plex) 2.3bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 2.3bn 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.  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.

Tuesday, 2 July 2019

Month End Update June 2019

At the end of my third month my wealth is 27.2bn isk.  An increase of 11.0bn isk over the month.

I also had to fund a 2.2bn Plex payment, so compared to the prior month's increase of 8.0bn this month my wealth rose 13.2bn before Plex costs.


I had a great final weak to June where my wealth rose by 4.7bn - has to be my best week ever - and all of that was done at the weekend.  During the week i made some sales but i also had to reduce some items by a lot (making a small loss on some sales) given competition coming into these markets.

In my first month my wealth rose 7.3bn (no plex though), last month my wealth rose 5.8bn (which i was disappointed with).  Hence, this month's increase of 11.0bn after plex costs was very satisfying.


The two lessons from May still hold true:

1) I need to visit the game once a day to stay competitive - even if only for 10 minutes

2) I need to keep selling items that sell for 70m isk as well as items that sell for 700m isk.  I cant just rely on the 700m isk items alone.

The good news remains that i am comfortably playing one account for free and could happily play 2 accounts easily for free.  That remains the aim.



Plex

I don't have any Plex sitting in my hanger right now - i had hoped to have bought at least 500 Plex by the month end.

My aim is to build a store of Plex such that i don't need that last minute rush to get some Plex together to finance my main account.

Hence, from tomorrow onwards i will buy Plex each day to get to the 500 Plex + the additional 500 Plex i will need to finance the account in mid July.



Strategy

No change here - i stick to 45 minutes a day, perhaps a bit more at the weekends to generate the wealth.

I currently operate my business with three characters who don't undock.

All items are bought from Sell Orders in Jita and then Couriered to the Sellers sitting in Dodixie and Amarr.

The Buyer in Jita will, one day, be my manufacturer . . . . . . i just have not got around to looking into Manufacturing hard enough . . . . . so lets not hope to see a post on this any time soon . . . . . 


Profit margin structure

I focus on small cargo items (blueprints, implants and boosters) that sell once every 2 or 3 days and profit margins of over 20%.

Profit margin.  If something costs 80 and i sell it for 100 then the profit margin is (100-80)/100 = 20%.  I.e. it is the profit divided by the sales price.

I find the competition in Dodixie and Amarr in these items is low, slow and rational.

Big picture - i am playing on the fact that people at Dodixie or Amarr do not want to travel 15 or 9 umps to Jita to buy an item for a lower price.  They are willing to pay up to save time (and perhaps the risk).

My Dodixie character is Level 5 in Accounting and Broker Relations to get the costs down

Cost structure:
I have 3 costs to cover:
1) Courier fees = 1.0% of the expected sales price (see below)
2) Broker fees = 2.48% of the expected sales price
3) Sales tax = 1.0% of the expected sales price

Hence, my costs are 4.48%.

So, if my target margin is 20.0% less the costs of 4.48% then my overall profit margin comes out at just over 15%.


Courier Contracts

All items i buy in Jita are couriered by third parties to Dodixie and Amarr.

I have settled on paying a fee equal to 1% of the Collateral.  In almost all cases i get the items delivered within an hour.

It might help that my cargo size rarely goes over 1000m3 and is mostly in the low hundreds m3.

Easy money for some but a great time saving for me.



Identifying items to sell

I used to look up items on Evemarketer to find items to sell.  Today, i have a spreadsheet that pulls the Sales value of items from Jita, Amarr and Dodixie so that i can readily see which items have the margins of over 20%.

Makes life easier though i still lack a daily sales volume measure which would complete the job for me.


Dodixie Seller

The main constraint to wealth generation is the amount of ISK i have to deploy.  I am now regularly making over 2.0bn ISK sales per day.

Working backwards, if my wealth has increased by 13.2bn then that indicates daily profits of 440m isk.

Using my cost structure above then that would suggest i made sales of just over 85bn isk in June.

I have only trained up wholesale and so no change in the maximum orders i can post of 129.  These days i have around 100 sell orders posted.  Currently valued at 25.3bn isk (vs last month at 16.4bn isk).  If required, i can still skill up Tycoon to give an additional 32 order slots per level.


Amarr Seller


This is newer and currently this character has 24 items up for Sale for a total of 8.3bn isk (compares to 9 items valued at 3.2bn last month)

He can post up to 65 items right now - that did not change though i suspect i may need to train up some related skills in July.

The original plan was to manufacture items near Jita and courier those items to be sold in Amarr.  However, it is taking me longer than expected to get a grip of manufacturing so instead i am buying from Sell orders in Jita and couriering to Amarr to sell.

The Amarr seller started off slowly but is now doing well.  I don't yet have a feel as to the daily sales and profits so that is something to work out perhaps over July.

Costs are a worse better than the Dodixie seller given this one has Accountancy at level 4 and Broker Relations at level 4.

The other part of this character is that he is training space flight to fly a covert interceptor into null sec to pick up cheaper blueprints to sell in Amarr and Dodixie.


Thank you to those who suggested fit outs for flying covert in low-sec to buy blueprints and other very small cargo space items.


Checklist of the aim for June:

Aims for June were:
1) Continue to expand the Dodixie trader sell orders - done
2) Plex the account and build up some surplus Plex - not built up surplus plex

3) Build up the Amarr trading business - done



Outlook

It may be hard to do better in July.  But lets aim for 10bn increase in wealth at least, after Plex costs to finance the account.

Aims for July (same as June really):
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 27.2bn ISK made up from:
  • items for sale 33.6bn ISK
  • less a 20% provision 6.7bn ISK*
  • Plex held (0 Plex) 0.0bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 0.3bn 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.  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.

Tuesday, 25 June 2019

Wealth of 22.5bn

Last week was good, i would say my best week ever but it dawned on me that as my wealth rises any good week will be my best week ever for a while to come.

My wealth rose to 22.5bn isk vs the May month end of 16.1bn isk and that includes buying and using a Plex for the account.

Vs the prior week my wealth rose 2.9bn isk.

About a third of this increase occurred during the weekdays and two-thirds over the weekend.

That all said, yet again, my Amarr seller is not even coasting - he is doing poorly.  This is going to warrant some investigation.  I was hoping to be making good isk from Amarr by now.  Right now i have about 5bn of items for sale in Amarr.

The main driver of isk gathering is the Dodixie seller where i have 23bn of items for sale.  Nothing new to report in terms of items to sell other than my spreadsheet which pulls live pries from the game is allowing me to find items to sell quicker than the old look-up method.

My tactic of finding markets in Dodixie that used to have low volume items for sale but have now been abandoned is making some ground.  For all these items, i remain the only seller and the sales tick over nicely.  I don't gouge, i sell at a 25% profit margin to Jita sell price.  I don't want to encourage competition to return and i want to encourage demand in Dodixie.  25% seems to be the good compromise here.

In other areas where i see there are 1 or 2 sellers of an item at double the Jita sell price then i also enter those markets with my usual 25% profit margin.  It always amazes me that the competition does not react as i sell item after item at that level.  I don't know if they are not checking their prices or believe i will go away.

Yet again, i report that Manufacturing plans has got nowhere fast.

I have settled down to paying 1% of the collateral on courier contracts as the fee - that almost always gets it done in a couple of hours.  So no change there.


Outlook

I am hoping i can do better in June compared to May.  The aim was to be for 7bn isk increase in wealth (after paying for Plex) - that is on track to be met given i am already up 6.4bn with one week to go.

Other aims for June:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 22.5bn ISK made up from:
  • items for sale 28.0bn ISK
  • less a 20% provision 5.6bn ISK*
  • Plex held (0 Plex) 0.0bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 0.1bn 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.  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.

Monday, 17 June 2019

Wealth of 19.6bn

Well, the second week in June started off very slow but had a cracking weekend.

My wealth rose to 19.6bn isk vs the May month end of 16.1bn isk and that includes buying and using a Plex for the account.  In all, a rise of 2.3bn isk in the week.  Right up there with some of the best weeks so far.

I cant really explain the slow weekdays - even Thursday night was slow.  Of the 2.3bn profit made this week, perhaps only 0.3bn was made on the weekdays.

I was out of the country for most of the week, so nothing new to report.

Main item of note is that the Amarr seller is not really pulling his weight and i will need to investigate why.

On the list of things to do this week is to expand the items i can sell into Dodixie.  Right now, 76 items up for sale and am fast running out of the big items (i.e value over 200m) to sell.  My total Dodixie sales value is currently 20bn.

I am venturing back into skill books following the patch - so far so good, they have not been wiped out as a trade item to the degree that i thought they might.

I am also seeing if i can corner a few markets - some items have no sellers but clearly there is a small demand.  So i am trying to see if putting up a stack of volume will allow me to gain some low effort income.

Needless to say, the Manufacturing plans have got nowhere fast.

i have settled down to paying 1% of the collateral on courier contracts as the fee - that almost always gets it done in a couple of hours.


Outlook

I am hoping i can do better in June.  The aim has to be for 7bn isk increase in wealth (after paying for Plex) - on track so far.

Aims for June:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 19.6bn ISK made up from:
  • items for sale 24.4bn ISK
  • less a 20% provision 4.9bn ISK*
  • Plex held (0 Plex) 0.0bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 0.1bn 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.  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.

Sunday, 9 June 2019

Wealth of 17.3bn ISK

The first week in June was a good week.  My wealth rose to 17.3bn isk vs the May month end of 16.1bn isk and that includes buy and using a Plex for the account.

So, trading generating enough isk to buy the 500 Plex to use and still had 1.2bn isk left over.  That is perhaps my best week so far.

Three features making this the case:

1) Expanding the items i am selling to go back and include items selling for 35 m or 70m that still make 20% profit as well as those items selling for 700m or 1.5bn keeps the isk rolling in nicely.

2) For the first time in a long time the weekend actually made decent sales.  For some reason, in the last few weeks most of my sales come on the week days, notably thursday

3) I have expanded in Rigs to sell.  That is in the prelude to manufacturing them (if i ever get round to that!).

The target this month is to increase wealth by more than the prior months 5.8bn isk (hoping for 7bn) and to start building a surplus amount of Plex.


so, whats new this week:

1) i am moving faster to develop a spreadsheet that identifies items to sell

2) i have found a way to quickly build a manufacturing spreadsheet

3) i have expanded the Amarr seller.


1) Identifying items to sell

I still use Evemarketer to find items to sell but my spreadsheet that pulls current selling prices from Jita, Amarr and Dodixie has been re-ordered, expanded and made more efficient.

I still lack daily volume numbers but right now it is doing the job of identifying items that will sell at a 20% minimum profit margin.

With the addition of the Rigs into the spreadsheet i have more items to choose as my wealth expands.

One of the key bottlenecks to preventing wealth growth is to run out of ideas of things to sell.


2) Building up the manufacturing part of the spreadsheet

I found a spreadsheet everef.net that is a fantastic mine of information but also shows nicely the required raw materials for items.  I have accessed the data and pulled it into my spreadsheet.

I wont be building the manufacturing spreadsheet quickly but i now have a way of almost instantly getting the required raw materials rather than slowly checking the info for each item.


3) Expanded the Amarr seller

The Amarr seller now has 4.7bn of items for sale.  As Dodixie fills up with current ideas i add to Amarr.

To be honest, Amarr is not going great guns so far.  The competition is higher and the Rig items i am selling can be slow at times.

Side note - Dodixie seller still has just over 16bn isk of items for sale.

The other part of this character is that he is training space flight to fly a covert interceptor into null sec to pick up cheaper blueprints to sell in Amarr and Dodixie.

Right now, i plan to fly a Victorieux Luxury Yacht unless anyone can think of a better cover ops ship to fly around null sec carrying expensive blueprints?  I am not skilled in flight - so anything that can stay cloaked in warp and is not affected by bubbles will do the trick.


Outlook

I am hoping i can do better in June.  The aim has to be for 7bn isk increase in wealth (after paying for Plex).

Aims for June:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 17.3bn ISK made up from:
  • items for sale 21.3bn ISK
  • less a 20% provision 4.3bn ISK*
  • Plex held (0 Plex) 0.0bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 0.3bn 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.  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.

Sunday, 2 June 2019

Month End Update May 2019

At the end of my second month my wealth is 16.1bn isk.  An increase of 5.8bn isk over the month.

I also had to fund a 2.2bn Plex payment, so compared to the prior month's increase of 7.3bn this month my wealth rose 8.0bn before Plex costs.

Not ideal i feel, i had a poor week mid month.

Two things i have learned.

1) I need to visit the game once a day to stay competitive - even if only for 10 minutes

2) I need to keep selling items that sell for 70m isk as well as items that sell for 700m isk.  I cant just rely on the 700m isk items alone.

Also, that is the last time i will talk about wealth before Plex costs.  The monthly Plex bill is a reality and i just need to cover it.  So next month i am looking to beat the 5.8bn increase.

The good news here is that i am comfortably playing one account for free and could happly play 2 accounts easily for free.  That is the aim.



Plex

I don't have any Plex sitting in my hanger right now.  I will start buying a bit of Plex each day until i need to cash it in for extended game play.  That is always the plan - rather than wait until the last day.

Over time, i will build up some surplus Plex to give me some flexibility.


Strategy

Has remained the same.  45 minutes play time each day and a bit more at the weekends . . . . . though i do have a habit of sitting there logged on whilst i do work at my desk.

I currently operate my business with three characters who don't undock.

There is a buyer in Jita who buys from Sell orders and then contracts couriers to transport these items to a seller in Dodixie or a seller in Amarr who put the items up for sale.  This buyer in Jita is also doubling up as a manufacturer - more on that later (though don't hold your breath).

I focus on small cargo items (blueprints, implants and boosters) that sell once every 2 or 3 days and profit margins of over 20%.

Profit margin.  If something costs 80 and i sell it for 100 then the profit margin is (100-80)/100 = 20%.  I.e. it is the profit divided by the sales price.

I find the competition in Dodixie and Amarr in these items is low, slow and rational.

Big picture - i am playing on the fact that people at Dodixie or Amarr do not want to travel 15 or 9 umps to Jita to buy an item for a lower price.  They are willing to pay up to save time (and perhaps the risk).


Identifying items to sell

I use Evemarketer to find items to sell.  More specifically i have built a spreadsheet that pulls down the current selling prices for items in Jita, Amarr and Dodixie so that i can at least have a starting point to investigate further.

I will build this spreadsheet further when i have time to add daily volume into the equation also.  This will complete it and make it much easier for me to identify items to sell.


Dodixie Seller

The main constraint to wealth generation is the amount of ISK i have to deploy.  I am now regularly making over 1.5bn ISK sales per day.

Working backwards, if my wealth has increased by 8.0bn then that indicates daily profits of 270m isk.

My costs are:
1) Courier Fees - i limit those to 1%
2) Broker Fees - 2.68% (i have Broker Level 3, working on that now)
3) Sales Tax - 1.4% (i have Account level 3, working on that now)

Make a few assumptions on cost of items vs sales of items and i basically come to the conclusion i am paying 5% of the sales price as fees.

So my 20% margin target turns to a 15% cash profit in my pocket.

I trained up further in Wholesale and so i can now post a maximum of 129 items for Sale compared to the 72 i have currently up for sale valued at 16.4bn isk.


Amarr Seller

This is new and currently this character has 9 items up for Sale for a total of 3.2bn isk.

He can post up to 65 items right now.

The original plan was to manufacture items near Jita and courier those items to be sold in Amarr.

However, it is taking me longer than expected to get a grip of manufacturing so instead i am buying from Sell orders in Jita and couriering to Amarr to sell.

Early days, i tend to put more than 1 of a type of item up for sale at any one time.

Lets see how it goes.

Costs are a little better than the Dodixie seller given this one has Accountancy at level 4 and Broker Relations at level 4.

The other part of this character is that he is training space flight to fly a covert interceptor into null sec to pick up cheaper blueprints to sell in Amarr and Dodixie.


Right now, i plan to fly a Victorieux Luxury Yacht unless anyone can think of a better cover ops ship to fly around null sec carrying expensive blueprints?  I am not skilled in flight - so anything that can stay cloaked in warp and is not affected by bubbles will do the trick.


Outlook

I am hoping i can do better in June.  The aim has to be for 7bn isk increase in wealth (after paying for Plex).

Aims for June:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and build up some surplus Plex.
3) Build up the Amarr trading business



Current wealth is 16.1bn ISK made up from:
  • items for sale 19.8bn ISK
  • less a 20% provision 4.0bn ISK*
  • Plex held (0 Plex) 0.0bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 0.3bn 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.  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.

Wednesday, 22 May 2019

Wealth of 12.5bn

Wealth is now 12.5bn - see details below.

Recall that in the month of April my wealth increased by 7.3bn.  So far in May my wealth has risen by 2.2bn though that does include spending 2.2bn in Plex to extend the playtime by 30 days.

Either way, this is proving to be a slower month than hoped and that was because in one week i was not really around and so not many sales were made.  It does appear i have to be one once a day to update my orders to stand the best chance of making decent sales.

Two more weeks to go in May - lets see if it improves.

Real life is conspiring to keep me away so the ramping up of the manufacturing alt is much slower.  So slow in fact, that i have a mere two item for sale in Amarr . . . . . . lets see how that goes!  I have my fingers crossed that i can slowly build up my Jita - Amarr trading.

The Dodixie alt is still doing all the work.  One change i have made is to go back to items i was buying for say 20m and selling for 35m, or buying for 35m and selling for 54m.  I had moved on from those but i am finding the next step of buying items for 150m and selling for 199m is slow work.  Also, buying items for 600m and selling for 750m is slow work.  Competition is bit more fierce than i had expected, to be honest.

I have even gone back to buying items for 3m and selling for 6m - but buying 10 at a time.  So far, i am finding that all 10 sell at once making a nice 30m profit right there.

Still paying 1% of the collateral as fees for the courier contracts.  Works a charm.


Current wealth is 12.5bn ISK made up from:
  • Items for sale 15.4bn ISK
  • less a 20% provision 3.1bn ISK*
  • Plex held (0 Plex) 0bn ISK
  • Items in storage for sale 0.0 ISK
  • Items in storage for manufacture 0.0bn ISK
  • ISK in wallet 0.4bn 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.  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.

Monday, 6 May 2019

11.6bn weath

Wealth is now 11.6bn - see details below.  An increase of 1.7bn on last week.

Quick weekly update given i did a month end update on Friday

I am holding 500 Plex whcih i will need to use to pay for additional time in the next few days.  Therefore, i will have to buy another 500 Plex again during the coming few weeks.  Hence, that is an additional cost of 2.2bn isk per month to cover.

Manufacturing alt - still training for tier 2 rigs.  Also, i am not short of ideas to sell into Dodixie so i don't really have the isk available to plough into manufacturing yet.

Second account is training to trade in Amarr and fly into low sec to pick up cheap items for sale in highsec.

Courier Contracts - generally contracting about 1bn isk of goods a day to travel from Jita to Dodixie.  For one contract i pay 1% up to 1bn and then 0.5% for each 1bn up to 2bn and then 0% for the rest.  i.e. i pay 10m for a 1bn contact, 15m for a 2bn contact and 15m for a 3bn contract.  They generally get done immediately or within a few hours.

Dodixie alt - doing all the wealth making right now.  I will need to find time soon to put some additional items on the watch list to sell.


Current wealth is 11.6bn ISK made up from:
  • Items for sale 10.6bn ISK
  • less a 20% provision 2.1bn ISK*
  • Plex held (500 Plex) 2.2bn ISK
  • Items in storage for sale 0.0 ISK
  • Items in storage for manufacture 0.2bn ISK
  • ISK in wallet 0.7bn 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.  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.

Friday, 3 May 2019

Month End Update April 2019

At the end of my first month my wealth is 10.3bn isk.  An increase of 7.3bn isk over the month.  Not bad i feel.



Plex

Lets get the Plex matter out of the way at the start - next month i will be using Plex to pay for this account and therefore that 7.3bn rise was without spending a casual 2.2bn isk to pay for the 500 Plex.

Right now, i have 500 Plex sitting in my hanger waiting to be used on the day.  My tactics will be to buy the next 500 Plex in the final two weeks of the period and then, over time, build up some surplus Plex to give me some flexibility.

But, the point here is that it took one full month for me to Plex my account and so play for free.


Strategy

Has remained the same.  45 minutes play time each day and a bit more at the weekends . . . . . though i do have a habit of sitting there logged on whilst i do work at my desk.

I currently operate my business with two characters who don't undock.

There is a buyer in Jita who buys from Sell orders and then contracts couriers to transport these items to a seller in Dodixie who puts the items up for sale.

I focus on small cargo items (blueprints, implants and boosters) that sell once every 2 or 3 days and profit margins of over 20%.

Profit margin.  If something costs 80 and i sell it for 100 then the profit margin is (100-80)/100 = 20%.  I.e. it is the profit divided by the sales price.

I find the competition in Dodixie in these items is low, slow and rational.

Big picture - i am playing on the fact that people at Dodixie do not want to travel 15 jumps to Jita to buy an item for a lower price.


Dodixie Seller

The main constraint to wealth generation is the amount of ISK i have to deploy.  I am now regularly making over 1bn ISK sales per day.

Working backwards, if my wealth has increased by 7.2bn then that indicates daily profits of 240m isk.  Now, here it gets tricky but that would indicate that i am making more than 20% margins.

Looking at my unit costs:

  • Broker Fees are 2.68% x sales value
  • Sales Tax is 1.40% x sales value
  • Courier Fees are 1.00% x cost value +10% (i generally pay 1% of the collateral = cost plus 10%)

If i initially assume my profit margins before costs are 20% then that would suggest that the Courier Fees are 0.88% of the sales value.

So, total costs are 4.96% per sold item.

Now, lets assume daily sales are 1bn isk then to generate daily profits of 240m isk the profit margin before costs would be 29%.  That feels high, so perhaps my daily sales are nearer 1.25bn which would mean my margin before costs would be 24%.

Anyway, looks like i don't have a problem making the 20% target profit margins.

(Obviously, i am aware i have not included the costs of items unsold which will carry the 2.68% broker fee.  So lots of assumptions going into all the above).

Right now, i have 32 items on the market to sell which indicates an average sales value of 313m isk.  The spread is from 3m (i still have items for sale back in the early days) to 1.8bn isk.  Today, i don't put anything up for sale for less than 150m isk.


Manufacturing

The Jita buyer is training manufacturing.  Once the Dodixie seller starts to slow down on isk demand then i can start up manufacturing.  Right now, he is skilling up on tier 2 rig manufacturing.

My strategy in manufacturing is essentially to reducer my cost base such that the equivalent is as if i am buying from Jita Buy orders instead of buying from Jita Sell orders.  In other words, i want to grab some more of that margin rather than give it away to the sellers in Jita.


Second Account

I am cheating a bit and operating a second account now that i can pay for the first.  This one is based in Amarr and will become the Amarr seller once the Dodixie seller is full up.  Right now, this character is training space flight.



Outlook

I am hoping i can do better in May.  I started April with wealth of 3bn (=3.6bn on the market less 20% provision) and the amount of capital i have to deploy into the market remains a constraint on my wealth growth.  This month, in May, i will start with 10bn invested in the market vs the 3.6bn at the start of April.

Aims for May:
1) Continue to expand the Dodixie trader sell orders
2) Plex the account and buy another Plex for June
3) Subject to the above two points, start manufacturing
4) Train the new account in trading skills for Amarr and Ship skills (more on that in another post)



Current wealth is 10.3bn ISK made up from:
  • items for sale 10.0bn ISK
  • less a 20% provision 2.0bn ISK*
  • Plex held (500 Plex) 2.2bn ISK
  • items in storage for sale 0.0 ISK
  • ISK in wallet 0.1bn 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.  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.