Month end update - July 2024

I made 10bn profits in July 2024, increasing my wealth to 1.614 trillion isk.

It was a very slow month, real life was busy and holiday for the last part.

Distributions

These days, the aim is to distribute my profits to the Oz Tank Show or other ventures.

Watching numbers go up once i got to a trillion wealth is somewhat boring.  Hence, my wealth will barely increase and any monthly surplus will all be given away at some point.

So far i have given 260bn isk to the Oz Tank Show.

The show started in July 2023 and i have generated profits of 749bn in the July - July period and distributed 260bn.

So that leaves 489bn isk to distribute to some venture(s).

Six Omega Accounts to pay for

In June i went for the MCT / Omega deal and have now pre-funded 6 accounts (so the 4 omega accounts and 2 alpha accounts) for 12 months.

The way i am going to account for this is to first account for the Omega i bought previously and then start to account for the MCT/Omega deal.

Hence, for July and August i will amortise the remaining Omega bought forward pre MCT/Omega deal.  So thats 8bn in July and around 2 billion in August.

Accounting for the MCT / Omega Deal

I spent 130bn on getting a 12 month Omega for 6 of my accounts and 12 months of MCT for 2 characters per Acocunt.

As i skill farm i will generate revenues.

So, how to account for all this?

I will hold the 130bn on by Balance Sheet and as i sell the Skill Points into the market will will reduce the 130bn by the same value.

I.e. if in one month i sell 10bn of skill points then i will reduce the 130bn by 10bn, so net effect on my wealth will be zero.  So, the effect of selling skill points will not generate me any profits until the 130bn is used up and then it will generate profits.  I expect to generate profits in 6 months time from selling skill points.

The basic numbers for July

In July i had sales of 206bn isk vs June of 392bn.  So a fall of 47%.

That's a big fall and is due to rea life getting busy are real work and a holiday at the end of the month.

It comes to 6.7bn sales per day.

Item profits were 35bn isk which is a margin of 17% (35/206).  That is the first time i have missed the 25% target and i have to say i don't really understand why.  May be a data glitch.  Not sure.  Lets see if it irons itself out in August.

Alternatively, could have been me writing down a number of items for sale to more reasonable levels to get them sold.

Taxes and Courier fees came to 17bn isk.  That takes the Trading Profits to 18bn isk and so a trading margin of 8.8% (18/206).  so way below the 15% target margin.  I really can't explain that, may be a data glitch.  Lets see if it is ironed out in the August update.

Then add in the 8bn plex cost to Omega 4 accounts takes me to 10bn profits made in July.

What is needed to get wealth to rise to 100bn in a month?

Lets assume i only get the 25% item profit margin that i target . . . . 

To get 100bn isk of an increase in wealth before distributions i would need to make daily sales of 18bn isk.

I am pretty sure i wont get there sustainably on the current strategy so i am putting my mind to how else to earning isk.

What i am selling

For me, the market was slow in July.

My strategy is to Buy from Sell Orders in Jita to sell in the trading hubs in other Regions.

I don't sell consumable items such as ammunition given they tend to be high volume and very competitive.  That includes ships.

I rarely sell items used as components in manufacturing because the end buyer tends to be cost conscious (and armed with spreadsheets) and able to manufacture the items themselves if market prices are too high.

I sell items that are in low supply and sell very slowly.  These items tend to have very low competition - sellers want to get cash quickly and so don't bother in these items.  If i put an item on the market and it sells in 15 days that is fine with me.

I sell items that are typically bought to kit a ship as a player progresses or has to replace a destroyed ship / pod.

Each month i sell 20-30% of what i had to sell at the start of the month.

I have a rule that the minimum profits have to be 100m isk.  It is no use me buying items for 5m to sell them for 15m.  The profitability may be great but that won't move the dials.  That said, it is surprising how many items i can buy for 120m from Jita Sell Orders and sell for 220m in the other trading hubs.  At that isk level, players re-equipping don't care about spending an additional 100m isk to save time.

And in the secondary trading hubs Amarr / Dodixie / Rens / Hek buyers will not travel even one jump to buy a cheaper item.

Therefore, i mostly sell Implants, Blueprints, ship equipment and some structure modules.

Manufacturing

I do this opportunistically and i don't keep track of it.  I don't (yet) do it systematically but i need to get a grip.  I am sure there are many items i sell in the Trade Hubs that i could manufacture in Jita and so get a better in price vs buying them from Jita Sell Orders.

But so far i manufacture items that sell for over 1bn isk.  My favourite items are where the Blueprint Original costs >10bn and there are no Copies in the Contract Market.  Sort of makes me feel i have the market to myself.

Planetary Interaction

For now, i have stopped trying to make this work.

Research

For now, i have stopped trying to make this work.

Station Trading

All in Jita.  Even this was slow.  Only made sales of 16bn isk.

My idea of station trading is not buying items when they look cheap.  For me, station trading is about sticking to the slow moving items and quite often i am the only person in Jita trying to sell an item.  Almost always Selling for over 1bn isk.

What i don't do is Investing.  I.e. i don't buy an item now i think is cheap and hold onto it to sell it a few months later when the price has risen.

Alpha Accounts

I upgraded 2 of these accounts to Omega as part of the MCT deal.  So training them all hard to get to the 5m skill points to start the skill farm.

That leaves 1 Alpha account with a character in Venal left.

Current Wealth

Current wealth is 1.614 trillion ISK made up from:

• Plex held as an investment 0bn ISK
• Items in hanger for sale 173bn ISK
• Items in hanger for use in business 11bn ISK
• Omega brought forward 132bn ISK
• Buy orders on the market 34bn ISK
• items for sale 1.49 trillion ISK

• less a 20% provision 298bn ISK*

• ISK in wallet 72bn 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 or are used to generate isk that can be readily resold back onto the market.  Any ships or skills or fittings etc i buy are counted as expenses in that month.  The only exception to this rule is Blueprint Originals i use for manufacturing.  They are held at cost.

* 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.