Update and looking ahead

It will be a slow weekend for me making ISK given i will be away.  Indeed, next week will be slow given i am away on business for much of it.  It will be interesting to see what sells during the period that i do not update my sell orders.

I am keeping my minimum item gross margin requirement to 20%.  i.e.  if i sell an item for 90m having purchased it for 72m then i make a gross profit of 18m and a gross operating margin of 20% (=18/90).  In other words, a 25% mark-up.

And then of course come the other costs of doing business: a broker fee for posting the sell order = 0.80% of the sell order; a sales tax on sale = 1.05%; and the hauling fee to PushX Industries which is so far 5.8m a contract.

I am now starting to contract to PushX Industries haul over 300m ISK of cargo value at a time.  If i achieve the 20% gross profit margin then i should sell 300m ISK of cargo for 375m and make 75m profits.  Therefore the hauling fee of 5.8m ISK represents 1.55% on the sale.

Hence, in all my cost of doing business is 3.4% of the sales value which therefore leaves me making a minimum profit margin of 16.6%.

As my wealth rises and the amount if ISK i wake up to increases the pressure remains on how to reinvest that ISK to earn a suitable return.

To that end i am now buying items for up to 150m ISK.  At this level i am finding that i am mainly buying Implants.  Blueprints at this price tend to sell once every few days instead of at least once a day which is what i am looking for.

Indeed, whilst i am learning Retail 5 i am restricted to posting only 53 active sell orders and therefore i am actively having to make a decision not to sell some Blueprint items in favour of selling some higher profit Implants.

The month of June is going to see me doing a lot of travelling and therefore my time on Eve will be less leading to a lower profit progression.  I suspect i will continue to move up the price of items to reinvest my ISK in until i find myself with a Plex worth of ISK + a little bit more to allow me to start a new account in another Trade Hub.  So, say about 570m ISK that i find i can not readily reinvest with my current Main character.


Current wealth is  1,285,359,793 ISK made up from:

• Items for sale 1,367,397,412 ISK
• less a 20% provision 273,479,482 ISK*
• items in storage for sale 63,600,000 ISK
• items in transit 0 ISK
• ISK in wallet 127,841,863 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.