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Wednesday, 2 September 2020

Seven days in

After 7 days of Omega (+2 days training missions +2 days as an Alpha), my current wealth is 366m isk.



The initial aims unchanged

My initial aim is not much different from before - i want to use my tried and tested trading strategy to get to a steady state of income with minimal effort.

At that point, instead of pushing on i want to move into other parts of Eve industry to see what it is all about and if i can make it generate good isk.



Trading strategy unchanged

I buy directly from Sell Orders in Jita, haul them to Dodixie and put them up as Sell Orders to generate a profit margin of over 20%.

when i talk about profit margin i refer to margin = profit/sales = (sales - costs)/sales

One small change in the last seven days - instead of flying to Jita and hauling the items back to Dodixie myself i now have an Alt in Jita that buys the items and through my new Corporation sets up a contract to have a third party haul them to Jita for me.

I am sticking to focusing on the slow moving items which typically sell 1 or 2 items a day but therefore the competition is sleepy and the margins are very high.  The big traders don't bother here because though the margins are very high the actual amount of profits to be made is too small for them.

i.e. buying for 700k in Jita and selling for 2.5m in Dodixie is great for me not won't even be noticed by a trader with billions to invest in the market.

Blueprints, skills and some ship equipment / modules are the current places where i am focusing.  Buying items from Jita ranging from 700k to 10m isk.



Dodixie Seller

For now, this is the only seller i have and it is my Main character.

Currently, i have x items for sale in Dodixie worth y isk.


The skills relevant to Trading that i have are:

Accounting: Level 3; means i am charged 3.35% of the sales price on completed sale vs the normal 5%

Broker Relations: Level 4; means i am charged 3.78% to list an item for sale; and for every price change, whether up or down, i am charged 1.89% of the new  sales price

Trade: Level 4; increases the number of items i can list for sale by 4 per level

Retail: Level 4; increases the number of items i can list for sale by 8 per level

Marketing: Level 2; this allows me to set up Sell Orders in stations other than the one i am in; i don't use this really

I am currently training Accounting level 4 which will then allow me to train Advanced Broker Relations so that i can reduce the cost of changing the price of items i already have for sale

Given the level 4 Trade and Retail, i am able to post 53 items for sale (5 + (4x4) + (4x8)).  With no Trading skills you can post up to 5 sell orders

I can see myself being busy learning the Trade Skills for at least 2 more months.

I can see myself taking 4 to 6 months in total getting the Dodixie seller up to a steady state before i start to move into other forms of Eve Online business.



The new Broker Fee system (new to me at least)

I will put a post up in the near future discussing my current thinking on how i am dealing with this additional cost of being taxed every time i change a Sales price on the market.

However, what it does mean is that i have to hold some isk back to finance the Broker Fees to change prices and therefore i have to invest less into the market than i would have hoped.



Outlook

September will be my first full month, so lets see how it goes.

Aims for September:

1) Continue to expand the Dodixie trader sell orders and reduce trading costs
2) Plex the account


Current wealth is 366m ISK made up from:
  • items for sale 409m ISK
  • less a 20% provision 82m ISK*
  • ISK in wallet 39m ISK

When i add up my 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.  Any ships or skills or fittings etc i buy are counted as expenses in that month.

* 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.  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.  In an ideal world I would value my sell orders at the value which I bought the items for.


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