Making money: Think how you sell

Day 2,297, 11:46 Published in United Kingdom United Kingdom by Biomedic

For the last half a year, I have seen countless offers on the market which were terribly calculated. Making money is one of the key concepts to successful eLife as well as in Real Life. Therefore, I will try to explain the maths behind few basic ways of using the market to make a profit.



Selling Your Production

First thing you need to be aware of is if it is worth manufacturing the product.
The most common mistake that can be seen on the market daily is people selling weapons for a cheaper price than the price of the raw materials.
For example: the price of Q1 weapons have been down to 0.20-0.23 GBP for the last few months, however the price of weapons raw materials (WRM) have been increased to 0.06-0.09 GBP per unit.
1Q weapon requires 10 WRM, which is 10 x 0.06 GBP = 0.60 GBP to produce 1 Q1 weapon, which people sell for 0.20 GBP. 3 times cheaper
Even if You are producing the WRM's yourself, do not make weapons from it if You see that you could get more money by selling WRM needed to make those weapons.
As of today, you will suffer high losses if you make Q5 or lower Q weapons as you can make more money by selling the WRM.



Buy To Sell

Another way of earning quite a lot of money from nothing is to buy products to sell them for higher price. For this you do not need a lot of money to begin with, you can start by having 10 GBP. The more money you have as a reserve, the better chances that you will make a profit.

The key behind this is to know your taxes.
Currently there is 10% Value Added Tax (VAT) on Food and 1% VAT on weapons, and NO VAT on Raw Materials
What you have to do to make money:
Look for products in all quality ranges (especially Q1, Q2, Q3 and Q4, as these are the cheapest), there is always someone who will sell their stock for less than others. Buy that stock, or as much as you can buy, and sell it at increased price. This best works for Raw materials and Weapons.
For example: today i managed to buy ~36000 WRM's for 0.04 GBP per unit, while other offers cost 0.06 GBP per unit, thus it gives me great profit of 720 GBP.
For weapons: before you buy to sell, see if it is worth it.
Example: there are 100 Q1 weapons for 0.19 GBP per unit, while other offers are for 0.20 GBP per unit. You buy them for 19 GBP and sell them for 0.20 GBP per unit, earning 20 GBP, out of which you pay 1% tax, leaving you with a total of 19.8 GBP, making you a profit of 0.80 GBP. Now it may look a small amount, however, if you do this with higher quality weapons or you buy for 0.18 or 0.017 GBP per unit, the profit grows quite a lot.

With food you should be more careful as the VAT is higher, however, due to huge quantities of food, you can make quite a profit.
Example: due to bigger quantities, you may find offers like 10000 Q1 food sold for 0.06 GBP while other offers stands at 0.08 GBP, thus by buying the cheaper food and selling for 0.08 GBP you would pay 600 GBP for the food, earn 800 GBP for selling it and pay 80 GBP tax, leaving you with 720 GBP = 120 GBP profit.
If the same 10000 Q1 food costs 0.07 GBP per unit, you would pay 700 GBP, earn 800 GBP for selling it, you would still pay 80 GBP tax and that would leave you with only 20 GBP profit.

Every day there are many such great offers in the market during the day. Thus spotting one and making use of it can greatly benefit your pocket. Though sometimes the profit looks quite small, when you do 3-4 such deals through all the profitable markets (i mean food, weapons, WRM and Food Raw materials markets) once or few times a day, you will get richer.

Risks

There are number of risks that you can take, it is best to track the markets to see what the price usually is, at what times of day it spikes up or down so you would not buy "cheaper" offers when the whole market goes down. The example of this is if you buy Q1 food for 0.09 GBP per unit while the other offers are 0.10 GBP per unit, but in fact that is only cheaper for particular time, because many suppliers did not yet put their offers on the market, therefore, you will end up buying for 0.09 GBP hoping to sell for 0.10 GBP while new offers will all be 0.07-0.08 GBP and most of the time you will not have enough money to buy out all other offers to make the profit.
In such a case, if it is food, keep it and try to sell it for 0.10 GBP, however, with other products, sometimes the market does not go up that much for months and it is better to sell with losses (for 0.07-0.08 GBP) and get at least part of your investment back so you could continue your buy to sell, than keep your overpriced products to take up space in your inventory and do nothing, while you sit with no money at all.
Put Your Money Into Work