Showing posts with label ISK. Show all posts
Showing posts with label ISK. Show all posts

Friday, August 23, 2013

Profit and Loss- Quest For 11 Figures Update- 2 Months In

When I first started this venture I was planning on pumping out a Naglfar every two weeks or so (it takes 11 days to build the thing, and some extra time to buy/build the capital components as well as sell the darn thing).  I had 2.9B liquid, a fair amount of BPOs for capital components (about half) and a Nag BPO.  Naglfars had BUY orders for around 2.9-3.0B with a build cost of around 2.3-2.4B (and that is using jita sell order prices).  That means that a conservative estimate was 500M per Nag, or about a bill a month assuming a Nag built every 2 weeks.

Two months in, I have just recently sold my first Naglfar.  How did I do?  Not well.
I sold my first nag at a price of 2.32 Billion (net of order and sales tax fees).  So what went wrong?
1: In the two months, prices have fallen for minerals, rather heavily.  Build Cost is now about 2.0B, roughly a 15-20% decline.
2: The war in fountain is now over, lowering that temporary demand for Naglfars, pushing prices down.
3: Two weeks in, I decided to research ME to 1 on my BPO.  This did indeed lower the BPO inefficiency from 10% to 5%, however, it took a month (33 days), during which period prices for minerals fell further than the 5% savings I was gaining by doing the research.  The smart thing would have been to sell all minerals I had attained at that time, and buy them up again once the BPO was close to done researching.

Where do things stand now?  The buy orders for Naglfars are very close to the build cost of roughly 2B.  However, there is a rather large spread between buy and sell orders.  The lowest sell order in The forge is currently 2.74B (some other regions are less, but all are 2.4B or higher)

So although I did lose ISK on building my first Nag, I will continue to build, as long as I believe I can sell them using sell orders for somewhat over build cost.

Where do I stand now?

2.54B ISK liquid

170M in inventory (Liquid Ozone cynos)
300M minerals toward next Naglfar.

Total worth: 3.01B ISK

Despite the fact that I took a (small) loss on my first Nag, and that I've run at least one POS continuously (Poses eat fuel, nom nom nom), I've managed to make 110M ISK in 2 months.


For those of you following along at home, that's a horrible return for two months, even considering that I don't play much.  Some people make that in one weekend ratting or LV 4 missioning.  Let's see if things change going forward, hmmm?


Oh, on a side note Parasoja recently noticed he hit Twelve figures liquid.  Congrats Parasoja!  How did he manage it?  Well, capital ship construction.  Lets hope, I can join that club some day.

Thursday, August 23, 2012

Goldilocks and the Three Carebears

In my last blog, I spoke about FW plexing, and how profitable it is, and how I believed that this is all intentional, yet will be "fixed" in the future.  For starters, you have to keep in mind that CCP is a business, and they need to keep players interested in the game.  The game is quite intricate, and has many "moving parts", yet just about everything that keeps players playing falls into at least one of three categories: making isk, pvp, and social player interaction (ie: RP, forum warfare, blogging, etc.).  The social interaction is mostly done outside the game (oh sure, there are chat channels in the game, and the forums are moderated by CCP employees, but for the most part, these are aspects that are outside the scope of the game), so CCP can't do much more than set the initial conditions for interaction, and hope they happen.  PvP while important, isn't the main driver of this article, and I will discuss the brilliance that CCP has set up in the skill and pvp system at a later date.  What we are left with, and what FW plexing is all about, is making ISK, after all, ISK makes the universe go around (I'm pretty sure I read that in a physics book somewhere).

When CCP adds a new way for players to make ISK, they have many options:
How well will it pay?
How difficult should it be to complete once started?
How much ISK risk is involved?
How long should it take?  (How much of a time investment is it?)
Is there an initial investment necessary?
Is it be noob friendly, or skill intensive?
Do you need to hold sov to have access?

Let's answer these questions, and give a bit of a potential 'why' in regards to FW plexing.

How well will it pay: A theoretical maximum of roughly 630M ISK per hour*.  A rather conservative number, however, is 126M ISK per hour**.

How difficult should it be to complete once started: From an NPC standpoint, should be fairly easy (after all, a 2 day old alt can run majors).  Since it is in Low sec, however, and since you are at war (faction war), you may have to not complete your plex due to these other factors (albeit driven out, and kept out, is not all that common, but it does happen), so overall I would give it a "moderately easy".

How much ISK risk is involved: At any one time, perhaps 5M if you farm with an alt.  (Albeit there is a fair amount of risk that you wont reach a high tier, and therefore, cash out in a major way).

How much of a time investment is it: From as little as 10, to as much as 20 minutes (assuming you are not forced to leave the plex).

Is there an initial investment necessary: Minimal ISK and Skillpoint Investment.  No prior grinding needed.

Is it be noob friendly, or skill intensive: Noob Friendly

Do you need to hold sov to have access: No

All of these factors point to a low barrier to entry, good pay, easy to do, low time investment, etc.  So why is this?  Well, essentially, it's because CCP has created a new way for players to make money, and what better way to get players to do it, than by making it easy to join, easy to do, pay well, and not take much time.  Having a fair number of these qualities, incentivizes players to try it. (Look at the prior two new ways to make isk: incursions and wormhole space, they have many of these qualities as well).  After all, the worst thing that can happen is that CCP will invent a new way to make ISK, and nobody will do it, because either it's too hard, takes too long, is too risky, pays too poorly, etc., as compared to what players were already doing before.  In much the same way, that a new shop, might have a grand opening sale and sell items at a loss, or give away free items to get customers interested and knowledgeable about their store, CCP is incentivizing players to try new FW plexing, even if the reward to risk ratio is (favorably) out of whack temporarily.

Over time, however, if a way of making isk (in this case FW plexing, previously Incursions) has a risk-reward ration that is too out of whack, it will need to be dealt with, lest it marginalizes and cripples other ways of making ISK (See drone region nerf and mining).  This is why incursions were nerfed, and this is why FW plexing WILL be nerfed.  We may not know the means, as of yet.  CCP may make the plexes harder to complete, take longer, change the LP store prices, require more skills, make it harder to afk, or a dozen of other changes, but FW plexing WILL be nerfed at some point (My assumption, sooner rather than later)

In much the same way that Goldilocks found some porridge that was too hot, and some porridge that was too cold, before finding some porridge that was just right, CCP has FW currently as "too far" on the happy end of the reward to risk ratio scale.  They will therefore eventually nerf it lest everyone else gives up their other ways of making ISK for plexing.  When they nerf it, they might make it "too hard" (or in other ways reduce the reward to risk ratio too far the other way) or they might find the perfect, "just right" level.  Their eventual goal (after the "grand opening sale") with FW plexing, much like with incursions, or any other form of making ISK, is to eventually find that "just right" level of reward to risk ratio.

That being said, make your ISK now, before the CCP Nerf bat of doom, turns FW plexing into a bloody mess.

*Ok, this may not be the highest theoretical maximum, as prices do change, but the numbers I used were 3 major plexes an hour (I've found 3 in a system before, although it is rare), disregarding warp time between them, and time to reach the button is disregarded as well.  Obviously a tier 5 cashout is assumed, and I used 7,000 ISK per LP as my maximum ratio (It is the best I've found thus far, not necessarily the theoretical best).

**I used one minor, one medium, and one major plex completed per hour, with the LP exchanged for SFI BPCs, using the conservative value of 27M ISK per SFI BPC from my last post.

Wednesday, August 22, 2012

Those Three Little Letters- I S K


I've made more isk in the past 3 months in FW (97% of the LP came from fw plexing rather than fw missions, although as I am starting to find out, those might be as rewarding if not more rewarding) than I have in any prior YEAR of my eve career.  Heck, if I keep this up, I might make more ISK this year, than I have up until now in my 6+ year eve career.  With the current payout system, if your faction can attain tier 4 or 5 (Matari had reached tier 5, and look likely to do it again soon, and the Amarr had pushed to tier 4 for a cashout) you are set to cash out a fair amount of easily earned LP for some major prizes.

As an example, at tier 5, you can cashout 11,250 LP + a tag worth roughly 1M isk for an SFI (Stabber Fleet Issue) 1 run blueprint copy.  Taking into account the cost to build it (I am estimating here, I have not run the exact numbers) of say roughly 10-12 million, that still leaves you with an SFI, at a cost of lets say 13M ISK + 11.25K LP.  You can earn 25K LP doing one major plex (20 minutes) in a 2 day old alt, in a ship worth practically nothing (in case it gets popped).  The barrier to entry is low, and the benefit is high.  So in our example above, that major plex, which took me 20 minutes to run, has given me 2 SFI's worth of LP + a little extra.  Assuming SFI's fall in price a bit from where they are now, to say, 40M (a conservative estimate), I have still earned 54M ISK in 20 minutes.  Assuming I do nothing else except for one major plex every day, I come out to 19.7B ISK profit at the end of one year.  Yeah, the isk is that good from ONE major plex a day...

Yes, there are a lot of variables (for example, this assumes you cash out ALL your LP at tier 5), but I believe I have selected an item that is popular, but not necessarily the highest ISK/LP (in this case an SFI bpc).

I am sure this (the system) will be changed (patched) at some point in the future.  The risk-reward ratio is way off, and I can't think of many better ways to make isk in the game at the moment (c6 wormholes perhaps, playing the market, owning a tech moon, anything else?)  (Note the first and 2nd can be quite risky and require either large startup capital, skills, time, or some combination thereof.  Owning tech moons simply requires you to be a large nullsec alliance, no biggee there...)

Curious Note: ISK in eve stands for Inter-Stellar Kredits, but in the real world, is also the 3 digit code for Icelandic Krona (where CCP is based) for FOREX exchange.

There is a reason, however, for the system being how it currently is (ie: way too easy and too profitable) which I will explain in my next blog.  Stay tuned for that.  Until then, go plex, and make that wallet fatter!