It's been a week since I started this challenge.
First impression: it makes fun, but I'll certainly need a long breath to reach my goals.
I ran the numbers I've got so far, and as expected, the taxes and fees an alpha character has to pay are having a big negative impact on the overall performance.
During my first 7 days I made sales of 556 million ISK.
After taxes and fees 20.5 million ISK remained as net profit, resulting in a net profit margin of around 3.7 %.
My pre-tax margin was 19.8 %.
This is way lower than expected given that I trade in items that are required to have at least a 50 % margin on the initial sell price in my target market compared to the price I pay in Jita.
This means I've had to adjust my initial sell price - on average - by 17 % before the item got sold.
On top came sales tax of 7.14* %, contract rewards and broker fees.
My base broker fee is 2.38 %. As my total broker fees were 6.91 % the fees I had to pay for updating orders were 4.53 %.
My contract rewards have been 2.06 % of sales value. As I pay 1 % reward on the collateral this could mean I charge a too high collateral. I'll have to check and examine that in more detail.
As write-offs due to price updates and high broker fees having such a big negative impact I need to increase the initial margin between the purchase price in Jita and the expected sell price from 50% up to 75% or even more.
In total though, my wealth rose from 67.5 million ISK to 88 million ISK within the first week, which is a plus of 30 %. It could be worse. :)
My current wealth is 423.5 million ISK which is made up from:
- Items for sale 562.2 million ISK
- less a 25% provision of 140.6 million ISK
- Inventory 1.6 million ISK
- ISK in wallet 0.3 million ISK
*Standard sales tax for alpha characters is 7.50 %. But for some transactions I did pay less taxes, all the way down to 5 %. Haven't figured out the reason yet.
(As I don't have a lot of (real-life) accounting skills, I do welcome any tips and suggestions where and how to improve the way I present my numbers here.)
An important lesson I 're-'learned today is to always leave enough spare ISK in the wallet to be able to post broker fees for necessary order updates.
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