Greedy Goblin

Wednesday, October 31, 2012

October business report

Another month, another report without much to report. I got lazy and did not even update my item list from last month besides the coolant side business.

The income graph (as usually, omitting nullsec spendings, showing how much I had if I would only trade and pay for my main) is a bit better than last month, 39.3B/month instead of 36.7 but still nothing to brag about.

What rather worth mentioning is the fact that my competition decreased instead of increased. My problems came from the FW cashouts which will now end as CCP fixed FW. It will take a month or so to stabilize as many FW orbiters still have billions worth of items in their hangar. So here is this boring, grind-like business providing about 1.5 Nyxes every month. Still I have little competition. OK, I'm probably not the kind of competition most traders want as I don't 0.01 but drive the margin down to 2-3%. I also understand that there are many who don't care about ISK and just blow things up in cheap crap. But there are people out there ratting and mining for ISK getting very low income compared to trading and they keep ratting and mining instead of changing.

I don't really understand the reason why one would choose a greatly inferior and boring grind instead of a better one? Can it be lack of starting capital? Aversion of risk (the ratting bounty is safe in your wallet, the purchased goods can lose value or can be lost during transport)? Maybe the lack of planning, I mean when you need money you can start ratting and get 100M in 2 hours but can't start trading with 10M capital and expect 100M profit on that day.

Anyway, you can clearly make profit by trading in EVE, if you want money, don't even think of shooting red crosses. (soon circles)

Wednesday morning report: 180.2B (6.6 spent on main accounts, 7.1 spent on Logi/Carrier, 3.8 on Ragnarok, 3.3 on Rorqual, 3.4 on Nyx, 3.4 on Dread, 37.4 sent as gift)


Alkarasu said...

"I don't really understand the reason why one would choose a greatly inferior and boring grind instead of a better one?"

Simple. The better one needs not only the capacity to do some brain work, but the will to do it regulary, while mining can be done AFK and ratting almost the same. You can't AFK-trade. You can't trade without thinking about what and why you do. So, anyone, who wants to "play" without any mind effort, will naturally pick an activity, that don't need any.

Anonymous said...

It's likely the same reason some people mine on a single account, rather than set up their own fleet. It requires very little thought, planning or logistics and it's a steady risk free income. By the same token people obviously like different playstyles and there are some things they simply don't want to spend their free time doing. For example you could go live in a WH and make 500m/hr multiboxing, this might be more than you're making now it might be less, I don't know how many hour you played this month. Even if it was more however would you do it? Assuming that's a no why not? It's not really any worse than what you're currently doing logistically, the risk honestly isn't there if you're careful and you have the capital to buy the dread/carrier/subcap pilots as needed.

Anonymous said...

If everyone would only trade, you would run out of things to trade very very soon.
You trade the stuff miners built, mission runners bought for LP or wormhole guys looted from sleepers.
And a lot of the money, which is used to buy from you, comes from bounties.
So talking down to people who make their money NOT by trading, makes you look like a Romney.

Anonymous said...

"t will take a month or so to stabilize as many FW orbiters still have billions worth of items in their hangar. "

it's not just the "FW orbiters" but also the other speculators that will want to unload their stocks in a timely manner.

that picture was taken 2 days ago by corestwo (if you doubt its authenticity you can see the context it was provided in at, scroll up to 2012.10.29 20:06:30).

Anonymous said...

I was just talking to my father ( a highsec missioner ) about this.

He told me that he only heard that the FW exploits bring so much money a week before the last patch.

And then he said that he wouldn't even know where to start looking up what kind of fits and procedures to use to grind FW.

Exploiting things like this needs an initial effort of out of game research.

Sugar Kyle said...

People find trade as boring as you find mining and ratting. I can't stand it.kyself and prefer to spend my time doing things I enjoy. Some people are not business minded.

nightgerbil said...

Theres also the risk element involved. Meet a better goblin in your chosen market and you lose your capital. Competition wipes out small traders the same way botters wipe out small time farmers. I can give examples of these in wow, where every gem I posted on one server was imediately undercut. I never sold anything and lost gold on all my deposits. I ended up having to vender the gems.

farming gives me +gold(isk)/hr as opposed to trading where I can lose money trying it.

Johnicholas Hines said...

The margin of 2-3%, at some inventory turnover rate, corresponds to some income rate (the slope of your linear fit).

In the real world, investments are often evaluated by return on investment - which presumes that investing twice as much would yield twice as much profit. But in EVE, it seems like the correct way to evaluate different opportunities is simply income rate.

So if you are considering going into some other field with a different turnover duration (coolant presumably goes fast, bigger things presumably go slower), rather than driving the margin down to 2-3%, you might pick a margin based on the turnover duration, so that it comes out to be the same income rate.

Anonymous said...

Btw, you partially make wrong assumptions about other methods to earn money.

E.g. for ice mining it's not interesting how much money you make per hour (it's horrid), but how much money you make per time invested (that can be up to several hundred million per hour, depending on how you do it). The bigger part of the time, it doesn't prevent me from doing something else.

So why should I trade when I can currently earn more ISK per play time than with trading (reaching your ISK/hour requires quite some capital).

Just because trading suites your playstyle doesn't mean it's best for all.