Wealth Update

Slower: It has been a slower time – at times i go two nights without updating my orders as real life takes priority.  Often when i go two nights without updating my orders i am taking big write-downs on the third night – in fact, i suspect i make over 200m ISK of write-downs.  Painful.  When i say “write-downs” what i mean  is that i am reducing my sell order prices to become the best price and so in effect “writing down” my price and hence my sell order value and hence my wealth.

At this rate I am heading for a 4.8bn ISK increase in wealth for August which is below the 6.0bn ISK increase for July but above the 4.2bn ISK increase in June.  But in all, not great given I now have 2 traders up and running.  Slow times indeed.

Exiting a market: I am finding capital systems are very competitive and if i could find other suitable items i would trade them instead.  In fact, since i started writing this entry i have decided to exit the sub-system market – it is very volatile and the constant updating of the sell orders as competitors undercut me makes this  a time consuming item class to trade in.

I am almost completely out of the sub-system market in Hek.  I tend to find these items sell in waves – a buyer will come along and buy one of each.  The trouble is that the competition is so quick in undercutting and adding new items to sell that it is hard to be the best sell order for long.

Need to find more items to sell: Therefore, top of the list is researching to find more items to sell in Dodixie and Hek instead of these capital subsystems.  As i go through  preferred list of items to buy from Jita to sell in Dodixie and Hek i am finding that many items no longer sell at a decent profit – another reason why i need to find new items to sell.

New markets: i am experimenting with a new market in Hek and Dodixie.  More to come later, but at the moment it is a slow but steady 10% profit market after all costs.

Surplus ISK: but i need a new market, i am routinely holding more than 3bn surplus ISK in my wallet which is not earning a return and hence just sitting there redundant.  Remember, increase in wealth in a month = Capital employed x number of times that capital is redeployed in that month x operating profit market.  ISK in my wallet is not being redeployed at all!

Dodixie Trader: business as normal really, using about 100 of its 141 active order slots, has about 6.5bn ISK of sell orders active which has been the case since June, is holding the 20% operating margin after all costs.  Will need to find new items to sell to replace the sub-system market it has largely exited from.  Pays 0.80% broker fees to post an order and a further 0.90% sales tax on a successful sale.  No longer training.

Hek Trader: now that it has almost completely exited the sub-system market its regional trading has slowed considerably and a key focus is to find new items to sell.  Has entered a new market (more on this in a later post) which is more stable but slower and lower margin.  Using about 75 of its 129 active order slots, has about 6.5bn ISK of sell orders active which i suspect could grow from here.  Margins are below 20% given the new market but above 10% after all costs.  Pays 0.80% broker fees to post an order and a further 0.90% sales tax on a successful sale.  No longer training.

Manufacturing alt: in Jita acting as the buyer for my sellers in Dodixie and Hek.  However, as it stands right now this alt is ready to go out and find a manufacturing base to operate from.  Hence, my next step is to seek such a base within the next week.

Skills trained:

• Advanced Mass Production 3 – allows one extra manufacturing slot per level
• Industry 5 – reduces manufacturing time by 4% per level though as importantly is a pre-requisite for learning further skills
• Mass Production 5 – allows one extra manufacturing slot per level
• Production Efficiency 5 – reduces the manufacturing materials required by 5% per level
• Supply Chain Management 3 – remote manufacturing control within 10 jumps in a region.  I will aim to get this to 5 for full region control
• Cybernetics 4 – allows me to plug in implants that speed up the time it takes to learn skills (given this alt will be learning for several months i should have done this right from the start)

Currently training Advanced Mass Production 4

New account: i plan to start my new account this weekend and move my industrial alt to a new location.  Therefore, as a matter of priority i need to work out how to copy my quickbars from one account to another.  The first character in my new account will be the new buyer in Jita whilst it learns up industrial skills.  In all, this will commit me to a Plex a month from here on forwards - I.e. 550m ISK per month.


Current wealth is 14,598,239,280 ISK made up from:

• Items for sale 13,300,928,040 ISK
• less a 20% provision (2,660,185,608) ISK*
• Buy orders 90,000,000 ISK
• Items in storage for sale 249,000,000 ISK
• Items in transit 0 ISK
• ISK in wallets 3,618,496,848 ISK

Expected business purchases in the next 30 days

• Plex 550,000,000 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 cost is or at least the maximum reduction I would need to make to my sell orders as a whole before they are sold.