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Monday 29 August 2022

Plex now 4.7m isk - the effect on my business venture

I just checked the Plex price out of curiosity and it is now at 4.7m (sell orders on Jita).  It did reach a high today (Monday) of 4.8m.

Using the 4.7m, that means it now costs 2.4bn isk to Omega an account for a month.  And so for me, to Omega three accounts it now costs 7.1bn Plex.

When i started this venture back in August/September 2020 i was paying 2.8m for Plex.  So that is a rise of 68% over 2 years.

At the start of 2022 i was paying 2.9m per plex (=1.5bn per Omega account).

Others will give a more insightful view as to why Plex is where it is - my only addition is that CCP can control the price and therefore they will have a view as to what price is the optimal for attracting players to spend real money on Plex (the higher the Plex price the more isk they get for the real life money) vs maintaining player numbers (the lower the Plex price the more players can Omega their accounts and so maintain player numbers and therefore the all important gaming experience).


What this means for my business

I have three aims, all of which are adversely affected by a rising Plex price.

Firstly, i aim to Omega my three main accounts - that is not under threat but means i need to make 7.1bn isk profit per month vs 4.4bn at the start of 2022.

Secondly, aim to make 10bn isk per month after plex costs: that means making 17.1bn isk profits per month before Plex costs which therefore means i need to make 104bn isk sales to cover all the other costs and assume my 25% margins hold.  I.e i need to make 3.5bn isk sales per day.  That is so far readily achievable.

Thirdly, i like to target to make 1bn isk profit per day after plex: that means making 37.1bn isk profits per month which backs into 226bn isk sales per month to cover all costs and again assuming my 25% margins hold.  I.e. i need to make 7.5bn isk per day.  That is not always met.


4300 Plex in storage

I currently hold 4300 Plex for a rainy day - but this is for periods where i may stop playing rather than to cover a high cost.

I honestly don't know if 4.7m per Plex is expensive or not.  So, for now, i will buy what i need and gently add to storage if i get spare ISK.

I should really have 6 months of Plex in Store.  That means i need to hold 9000 Plex.

But today, my Plex in storage is worth 20bn isk.  It cost me 13bn Isk to build.

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