Eve Market – Update After 617 days

August 11th, 2016 | Posted in Eve Market | Comments Off on Eve Market – Update After 617 days

In my previous report I wrote the following:

For the items that I could not find any recent data on, I put up sell orders using the “estimated value” that Eve shows for the item in the hangar. It may not be the greatest price but it’s a starting point. I anticipate having to reduce most of those prices drastically just to rid myself of things that don’t sell enough anymore.

This was a mistake, one that I know better than to make. The only reason for it is that I was anxious to get things moving again and didn’t think about my basic rules.

If the market Price History data for an item shows zero sales over the previous several months then it’s not something I want to sell. This is one of the basic things I learned before I started this business. Market price history data *MUST* show that an item is actually selling and that it sells at the prices people are posting sell orders for.

My requirements are that any item must sell from 2 to 5 units in any given 7 day period. If, instead of just relisting these items, I had followed my own rule and acted according to what the price history data was showing me, I’d have either put those items into a station container or outright scrapped ’em.

Granted I could just put up a sell order and let it sit there until it sells but then the item becomes “dead isk”. It represents isk invested with a real (if infinitesimal) potential return but since market history shows that it will very likely never sell, it’s just like throwing that isk (and the broker fees paid to list it) out the window, therefore it’s “dead” because it has almost zero chance of being converted to profit.

Rather than pay the broker fees to list items like this I would have been far better off to just reprocess them and sell the minerals. At least then I wouldn’t be seeing those items not selling for what could be months. I’m seriously considering the idea of reprocessing these items that currently have zero sales data in any trade hub or on eve-central.

What’s worse is that way back when these things were selling well enough that I felt safe keeping a small stock of them on hand. So far I’ve cancelled the sell orders for all but one of these dead items. Currently the entire “Items in hangar waiting to be listed” is these dead items

In other news, I discovered that the broker fees paid to list a sell order have increased, as have the transaction tax paid by the seller when the item sells. My current rates are:

Base Broker Fee: 3.00% of order value

Transaction Tax: 1.00% of sales value

Bearing in mind that my seller has almost no standings worth noting, the only reduction I’m getting is due to skills. And while I could improve standings by grinding missions, I can not devote that much time to it and so the skills will have to do.

When I got things going again last week my skill queue had mass production 3 almost done, followed by tycoon 1, 2, and 3. This has increased my seller’s max sell orders to 241. Recently completed connections 4 and now working on connections 5.

I brought a 3rd alt into the corporation in preparation for either opening sales in a second system, starting manufacturing or possibly both. Currently he’s not doing anything until I get things sorted out.

I’ve got his wallet listed at zero because he’s got a fair amount of assets and I don’t want them just transferred to the corporation because this is supposed to be about what the corporation earns, not has handed to it on a platter.

Some of his assets may find there way into corp hangars but only after he’s paid the Jita price for them.

Business over the last week has been understandably slow given that I’m basically starting up fresh. The only real difference from my original start is the vastly greater amount of ISK the corp has to work with.

The master shopping list is back up to a dozen items so far. I still find it necessary to tread carefully and be painstaking in my market research which makes adding items to my master shopping list a very slow process.

Because I’m fairly busy with other things most of the time I am running this in a mostly “hands off” fashion. I don’t want to spend more than a total of an hour per day updating prices, ordering new stock and having it shipped to selling stations. IF I have time, I’m willing to spend another hour during the day searching for new items to sell.

Other than considering some manufacturing ideas, my only long term plan at the moment is to continue the business for as long as the corporation earns enough profit to buy a plex per month to keep the account active.

Original starting wallet: 4,816,362.72

Currently Using 12 of 307 total max orders**

wealth = 2,046,593,180.76

An increase of 313,642,520.11 over the last 7 days

Wallets:
Buyer: 10,057,186.65
Seller: 30,887,332.15
3rd alt: 0
Corp: 1,018,037,096.36

+ Value of Items in transit: 0
+ Value of Items in hangar waiting to be listed: 16,720,000
+ Current Sell orders value: 1,213,614,457
– buffer value*: 242,722,891.40

*I’m including a 20 percent “buffer value” (subtracted from the total sell orders value) as the amount by which I’m prepared to lower prices in order to stay on top of the list when sorted by lowest price first.

** “total max orders” is the combined maximum number of active orders of all participating alts, even if they are not actively selling at the time.

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