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Saturday, 12 October 2013

Looking at "Increase in Wealth per day"

At the moment, the main number I look at to determine the health and momentum of my business is the "increase in wealth per day", which is nothing more than the increase in wealth per month divided by the number of days in the month.

But, in many ways it gives me a good snap shot as to how I am doing and how I should be doing in the future.  At some stage my "increase in wealth per day" will flatten out and so my percentage increase in wealth each month will start to decline (i.e. my wealth will increase each month by the same amount but my total wealth will be rising, so a declining percentage increase each month . . . . . the curse of large businesses).

At present my "increase in wealth per day" is 245m ISK which therefore drives the 7.4bn increase in wealth per month.  The chart below shows how this has trended since I started back in May - the good news is that it is on a rising trend.  The bad news is that if work takes me away from the game for longer than 2 days at a time then it can suffer.

October will be a very slow month given I am away for most of it but I am hoping that my increase in wealth per day will continue to rise as I break into station trading and manufacturing.

My goal is to eventually get to 550m ISK per day which would mean I would be earning a Plex a day from my business.  (for non-Eve players, a Plex can be bought in game for ISK and used to extend your game time by 30 days).  I am a long way off that goal.

As ever, I restrict my time in Eve to 30 - 45 minutes per week day and so I am looking for low maintenance income generating strategies which generally pushes me into slow moving but high margin markets.  My fear is that one day I will discover the limit of how far this will take me and my increase in wealth will start to flatten out before I reach my goal of 550m ISK per day.

When I talk about wealth, 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.

Furthermore, 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.

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