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Saturday, 3 May 2014

Am i worth over 100b ISK?

A fair question.  But also a question of accounting.

If i add up all my Sell orders + the items sitting in hangers waiting to be put onto sale + ISK in my walletts + the value of all the Plex i hold then i am worth 107.9bn ISK (as at 31 March 2014).

Sounds fair, these are all items that are in ISK form or about to be sold for ISK.  I am not adding up ships or implants or even Blueprints that i use in my business.

However, the one thing i know about these sell orders is that they will not all be sold at the prices they are on at right now.  Competitors will come in and undercut me and therefore doubtless i will reduce my prices also.

Therefore, when i look at my wealth i take 20% off the value of my sell orders as a rough estimate as to what i will reduce my prices by in order to complete all the sales.

Given that, i am therefore worth 95.4bn ISK (as at 31 March 2014).

If i really could do it, i would value all my sell orders at the value of which i bought the items for in Jita or the cost of manufacture in Lonetrek.  Unfortunately, i don't have the ability to do that efficiently.

This is more an issue for someone like me who can have sell orders sitting there for a month at a time before they are completed.  Those traders that follow a strategy of selling fast moving (but low profit margin) items will see their sell orders quickly converted to ISK and so would perhaps not need to take a % provision against their sell orders to determine their wealth.

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