As sure as night follows day after a real money sale comes the New Eden Store Sale.
And this one is a good sale. Not the best ever - we once had bigger discounts - but very good nonetheless.
(the definitions of each column are below but it is mostly intuitive.)
As the Chart above shows, if you buy the 12 month deal, and assuming Plex costs 5.1 million, then you would spend 13.8 billion vs 30.6 billion if you just bought the Omega one month at a time (or 18.4 billion in the every day "sale" that is in the store for 12 months).
Buying the 12 month deal means you effectively get over 6 months for free vs buying 1 month Omega at a time. (see the explanations below).
Buying the 12 month deal means you are paying 1.2 billion per month vs the normal 2.6 billion if you bought Omega 1 month at a time.
It is all a bit of a no-brainer.
Almost . . . . . The final column "Monthly Breakeven Return" is explained below but effectively these deals only make sense if your business is unable to generate these monthly returns. So, if your business generates a 15% return (on assets) each month then the 24 month Omega does not make sense, it would be better to buy 1 month Omega at a time and invest those billions into the business.
What am i going for?
I am going from 8 Omega Accounts to 5 as i have explained in this post.
And one of my Accounts is already Omega'd out to October 2027, something to do with being halfway through a cracking bottle of red wine when buying Omega last year.
So, that leaves 4 Accounts to deal with.
I don't really want to lock in for 24 months, there will always be a sale coming along. So 12 feels a better idea.
So i will spend the cool 55 billion (4 x 13.8) to buy those Omega's tonight.
For the accountants / nerds out there, lets be careful
But, the calculation is not quite as simple as that, we must consider that we always have a "sale" and also that we are laying down several billion for a longer time period of Omega instead of investing those billions into our businesses and merely buying Omega one month at a time. In other words, we are forgoing revenues to buy Omega.
the rest of this is for accountants and nerds only, you have been warned . . . .
The normal "sale"
There is always a sale going on for Omega. The normal cost for 1 month of Omega is 500 Plex, 3 months is offered at 1200 Plex (vs the expected 1500 Plex), 6 months if 2100 Plex (vs the expected 3000 Plex), etc.
The table below shows the savings that can be acquired by buying longer term Omega:
Months = this shows the row data for 1 month Omega, 3, 6, 12 and 24
Normal Cost = in this case assuming Plex is 5.1 million cost and 500 plex needed for each month, so the cost for each period is number of months x 500 x 5.1 million
discount = this is the simple discount that the Plex actually required for each period gives vs the normal cost. so for 3 months we need 1200 plex vs the 1500 that it would require of we bought 1 month 3 times, so a 20% discount. The discount rises the longer the time period of Plex bought.
Offer Plex = This is the number of Plex required in the "sale" we get all the time in the New Eden Store
Actual Cost = This is the billions required to buy the Omega using the Plex required under the Offer column x the price of the plex.
Total Savings = Actual Cost - Normal Cost. Simple savings calculation.
Monthly Saving = This takes the total savings and makes it on a per month basis which allows us to compare each time period. The monthly saving rises with as the time period gets longer.
Total Return = Total Savings / Actual Cost. A measure of the costs saved by buying that time period in the sale.
Months Saved = shows how many months therefore we have saved in the sale by taking part in the sale. For example, the 24 month period shows that we would buy 6600 Plex vs the normal 24 x 500 = 12000. That means we have saved 5400 Plex (12000-6600) which is the equivalent to 10.8 months (5400/500). So for a 12 month Omega we save more than 6 months. For a 24 month Omega we save 14 months. In other words, we are effectively playing the game for free in those months.
Months bought = this is the period less the months saved. In other words, looking at it from the point of view of how many additional months of Omega did we buy for free.
Simples.
Lets look at todays sale
Firstly, the discount has risen as we showed above. That feeds through to better savings. etc.
But what i wanted to bring up here is the "Monthly Breakeven Return". This measures how much my business would have to return each month to make it a better idea to stick with buying 1 month Omega rather than investing billions for a longer period Omega and forgoing the revenues / profits that those billions would have generated in my business.
For example, it would only make sense to buy a 12 month Omega if my business could not return 19.5% per month. For the 24 month deal, it only makes sense if my business can not generate a 10% return.
This is important. The 24 month Omega may look great but if your business generates more than 10% return per month then it is not such a good idea.
No comments:
Post a Comment