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Monday, 20 May 2013

Progress after 7 days

I am maintaining my strategy of regional hauling.  I spend 45 minutes each day on Eve (= time taken for 15 jumps to Jita, purchase items, 15 jumps back, post items to sell, update remaining orders).  It is important i don’t let the ISK in my wallet rise, i need to reinvest it on a daily basis at this stage to maximise my growth in wealth.

The growth in my wealth has allowed me to expand my search criteria to looking for items priced below 1.5m ISK and then 2.5m ISK and now below 3.5m ISK.

I have expanded the number of items i sell to 33 – mostly blueprints – through an ongoing process described in my prior post of searching for items selling for a consistently higher price in Dodixie than in Jita.

They are low volume sales, one to two a day market size, and therefore have very few competitors.  My strategy is to enter the market but not disrupt it – so i am posting at 1 ISK below the lowest price.  Given i am just starting i have no need to adopt strategies to shake up any market, i just want to catch some of the sales.

I succeed here because these items are of no interest to other traders who make over 100m ISK per day in one trade hub.  In effect, i am operating under their radar.

My main constraint is my wealth, not the number of slots i have (now 53).

My relevant skills for trading are:

 
Hence, in Dodixie i pay 0.79% broker fee and 1.50% sales tax.

Using the formula BrokerFee % = (1% – 0.05% × BrokerRelationsSkillLevel) / e ^ (0.1 × FactionStanding + 0.04 × CorporationStanding)

My faction standing is 1.86 and my Broker Relations is level 3 which takes my Broker Fee from 1.00% to 0.79%.  Right now that is a small saving but in time will represent 2.1m ISK on every 1bn ISK of sales posted and be part of what allows me to be competitive in high volume station trading.

I am currently skilling up Broker Relations 4.

Further skills Trading skills will be needed in the future but their cost is high hence i will hold off until my ISK is higher.  Currently, the lack of skills is not holding me back, it is the lack of ISK to invest.


Current wealth is 144,130,551 ISK made up from:
  • items for sale 178,739,236 ISK
  • less a 20% provision 35,747,847 ISK*
  • ISK in wallet 1,139,162 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.

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