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Thursday, 6 June 2013

Back from a business trip

I came back from a business trip and had sold 530m ISK of items out of the 1367m ISK of sell orders posted.

So a 39% asset turnover (=530/1367) over 5 days.  Not bad though it does tell me that i need to update my sell orders at least every 2 days.  It is not the lower priced Blueprints that are being undercut, it is the higher priced implants.  Hence i am clearly starting to compete in areas where the more established market participants operate.  I would expect to see my gross profit margin come down towards the 20% limit i set myself as a result.

My skill queue had ended though i had 50k skill points to invest – Eve Online was down as i was preparing to leave so i was unable to update my skill queue.  Having competed Retail 5 I bought the Wholesale skill for 35.5m ISK and applied the full 50k skill points to it.  I now have a maximum active order limit of 109 orders.

Using my Jita alt i purchased 680m of new items and couriered them to Dodixie using PushX Industries.  My largest item shipment value yet.

I posted these items for sale for 940m ISK which, if i sell them at this price, would give a gross profit margin of 28% before selling taxes and courier costs and so a profit of 260m ISK.

From this i need to take of the broker fees of 0.80% (=7.5m ISK), sales tax of 1.05% (=9.9m ISK) and the courier fee of 5.8m ISK.  The good news is that the courier fee is now only 0.6% of the sales value (=5.8/940) – so i am starting to benefit from economies of scale.  In all, selling and distribution costs are 2.5% of the sales value.  Hence, with a fair wind i may make a 26.5% profit margin on these items (=28-2.5) and so a profit of 249m ISK.

Of course, i am more than likely to have to reduce the price of my sell orders before they are sold anyway . . . . . . .

In the next few days i plan to update the list of items that i choose to sell now that i have a greater number of active order slots to fill.

Current wealth is  1,400,073,158 ISK made up from:

  • Items for sale 1,506,108,158 ISK
  • less a 20% provision 301,221,632 ISK
  • items in storage for sale 55,400,000 ISK
  • items in transit 0 ISK
  • ISK in wallet 139,786,632 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.

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