Confuzzled - Bad Math or Strategy for SIM auctions

so i was right!

Yeah, you were. The new Soylent Green Lite really is made from C.H.U.D. We're all sorry we doubted you.

Ultimately, our goal is to be able to step back with a correct formula to calculate the minimum cost per square meter that can be charged and still break even:

{[(US$AuctionPrice + US$195 + US$1) * L$ExchangeRate] * 1.035} / 65,536 = CostPerSquareMeter

im not sure that is actually your goal...
but isnt the $195 actually a variable dependant upon the amount of land bought/sold through the month?

As Elanthius pointed out we have to include the tier for the sim when calculating the costs. Starting with the initial assumption we're dealing with one sim and the tier on one sim would be US$195.

then you are assuming the people selling 'at a loss' limit themselves to one sim a month. so in the end the question posed in the op cannot be solved using this formula as they may be turning over 4 a month and actually incurring only $50 in tier.

the 195 must be a variable

The OP used 0 for the tier cost so if we calculate a loss was made based on that then we know the loss is even higher once you calculate the non-zero tier cost.

We actually don't know if the person is buying and selling multiple sims. Based on the initial question we know that it's one sim purchased at auction for US$. However, it's no problem to tweak our formula:

{[(US$AuctionPrice + TierCost + US$1) * L$ExchangeRate] * 1.035} / 65,536 = CostPerSquareMeter

buy a sim for 2400USD and cut it up and sell it for 9.0 per sq meter for the 'hill top land' and the 'ocean front land' goes for 18 per sq meter.

thats where you are all missing in the formulas

some land goes for far above the price of the lowest priced land.


and your not gonna get 266:1, at best after fee's and such its 291:1

I don't think it is safe to assume that a sim will be fully sold in less than a month, depending on the pricing. Looking at the prices that some of these sims are going for, there is likely no way they will sell completely in a week or two without losing money. Billing comes on the 27th of each month, and if you claim a sim shortly before then, you'd better have a fire sale to get rid of it by the time billing day comes around!

Billing days vary from resident to resident. We all don't pay tier on the same day. We can only base our formula(s) on what was initially posted.

If we start off with an Apples versus Oranges argument we can't suddenly decide to make the argument Apples versus Bunnies or Apples versus Oranges versus Bunnies. Sure, all three of them have all the yummy yummy vitamins in their skins, but we have to go with the initial assumption: A sim purchased at auction for US$ plus all costs associated with that as we freefall towards pricing it, selling it, and cashing out.

The basic formula generally works, but life doesn't always follow basic formulas. By the way, how's the crow you had to eat over the 3.5%?

The sim in question is one purchased at auction and we have no idea how much "hill land" and how much "ocean front land" is involved as that information was never introduced in the initial assumption: only that it's a sim purchased at auction for US$.

The crow is el fantastico as I'm still the only person who actually had the cojones to toss up what appears to be the correct formula:

{[(US$AuctionPrice + TierCost + US$1) * L$ExchangeRate] * 1.035} / 65,536 = CostPerSquareMeter

Actually that formula is still incorrect. You assume it's a full 65536, but that needs to be a variable. Sims with protected Linden land, such as Linden Road, are not a full 65536.

Aside from the US$1 you are adding to the auction and tier, isn't that the same thing I spelled out verbally in my earlier post?

What's the US$1 for anyhow, I missed that step?

-Atashi

back to first question by skye. Estimations are correct.
I think it's not bad math neither bad strategy at most of the cases.In the cases that land traders trade many many auctioned sims per month using a standard 4-8 sims tier , having the problem to unload quick land in order to claim the next sims in the window of 7 days, they just choose to loose on some sims on purpose. To get rid of the land and trying to catch up with all the won sims. That's the only reason.

They just don't look the loss on a sim level but they look the overall picture with all sims they trade in a month let's say. Sometimes it happens you win more sims than you can move, especially lately with all this land oversupply.

Wow... again... I have to go with the initial assumptions presented by the original poster: a full sim (65536) sold at auction for US$. The original post does not include any mention of Linden land, bunnies, the magic elf, conversion rates to rubles, etc. etc. I'm not the one who created the thought problem I'm simply one person taking part as we attempt to derive a correct formula based on the initial assumptions. If you can tweak the formula so that it's more correct great and you'll get a gold star on the refrigerator.

So... are there any sims at auction that are a full 65,536-square meters? You bet:
Rivuline
I'd sure hate to be accused of attempting to provide the exception that proves or disproves the rule so here's another one:
Quillback
Yeah, that's only two so far and one thing I've learned from the forums is that everyone else's hands are broken which can get in the way of manipulating the mouse so here's another:
Chub

It's math. As it's math we want to show a formula which allows a person to plug in the numbers and derive a "correct" answer.



It's the US$1 charge for withdrawing the proceeds at the end of the entire transaction

I'm assuming that this is an ideal world where we don't have to advertise... and factor in the advertising fees.... even if we only list the parcels in Search/Places, for each parcel that's L$30/parcel. So will we list EACH parcel, or just the sim? Then do we run a classified? Let's pretend not; we're just going to list each parcel.

At 20 parcels, e.g. that'd be L$600 for just a one time listing. If that carries on over a week, tack on another cost for each parcel not sold.



Oh, and are we buying or selling Lindens? Buy rate = roughly L$266, sell = roughly $L277. or did someone factor that in already?

Where can I find the L$ExchangeRate.

Do you take the rate for 1l$, 1000 US$ or what.

Is it the BUY or the SELL rate ?

Gosh darn it Elex, you're SUCH a clever monkey!! No duh there are plenty of 65536s on the block.

And no, we are not limited to the initial assumptions - everyone has been refining the assumptions here to produce the correct answer, like the 3.5% piece you initially missed. If you wanted to correctly articulate Skye's formula, you would have used size of land as the variable, as Skye had articulated this verbally but then substituted 65536 into the formula.

Once the parcel is priced and the Sell checkbox checked the parcel is automatically listed, at no charge, in Search > Land Sales.

If you decide to list a parcel in Seach > Places you'll be assessed a L$30 fee weekly on Tuesdays.

Then the formula becomes:

{[(US$AuctionPrice + TierCost + US$1) * L$ExchangeRate] * 1.035} / SquareMetersPurchased = CostPerSquareMeter

Note: You don't get a gold star as you failed to POST the corrected formula.

Tee hee, I remember taking math in school when the problems were written out as "Bob gets on a train traveling east at thirteen miles per hour, Fred's train is going west at 67 miles per hour..."




Ah-hah, I've never done that so I wasn't familiar with that aspect of the process.

-Atashi

*slaps forehead* I knew that. Hehe. Sorry for being a tard... I'm wading through a database at work... not thinking SL stuff clearly.