December 3, 2006 in Tips, Skilltrading
As for any activity which is aimed at getting regularily some profit, one of the key aspects for consistency and reliability of the said profit is to closely monitor your performance. Your performance should also be measured in a way that you can breakdown the constitutive elements. It will help you understand where are your best opportunities and know what types of trading you should avoid.
This of course applies as well to skilltrading in hattrick as there are many different ways to skill trade, which, depending on factors like the buying price, efficiency of the prediction, wages will have important impact on your profits. Lets have a look at one profit measurement method:
When skilltrading, you buy a player at the best possible price that you hope will change skill quickly and sell him right after that.
In a spreadsheet, prepare a table containing:
- one line for each player
- two sections with the same columns
1) Sold players (Realized)
2) On going training (Unrealized): of course for those you will miss the final selling prices
This table should contain the following columns of information:
- Player Name and eventually ID
- Purchase price
- Purchase date
- Salary per week
- Number of weeks the player has been in the team
- Salary paid for this player
- Number of training spots used for this player since he is at the club
- Cost of training (number of training spots used * number of trainers/number of spots)
- Cost of listing the player
- Selling price
- Selling price excluding fees
With those information in a spreadsheet, you can compute some interesting figures in additional columns:
- Net profit on the player = Selling price excluding fees - Cost of listing the player - Cost of training - Salary paid for this player - Purchase price
- Net profit per training spot = Net profit on the player / Number of training spots used
- Net profit per week = Net profit on the player / Number of weeks the player has been in the team
- % Return = Net Profit / Purchase Price
- Weekly % Return = Net Profit / Purchase Price / Number of weeks the player has been in the team
Those indicators will allow you to understand:
1) Where does your profit come from and which types of players bring you the most, is it the expensive 17yo, the mid-range 19yo or some higher level 21yo for example
2) How is your current team in terms of previsional rentability
3) And for comparison purpose you should compare the profits on players you skilltrade with profit you do on your longer term training. If you are not making more profit with skill trading, you should stop!
Good luck monitoring your trading profits!
Hi,
Thanks for the very interesting post.
I have just buit a excel with your recommendations.
I have one question, how do you calculate the cost of training, in order to get the Net profit on the player?
I am also planning to build a similar excel but taking in consideration all the economy of my team.
I should consider all the revenues and expenses sources, take in consideration capex and opex values, in order to make the right investiments.
Can you give me some clues for this? or maybe gimme some urls?
Thanks!
Comment by Tatankov — April 28, 2007 @ 5:09 pm
This is my way of computing training costs:
cost of assistant coaches / avg number of trained players = training cost per week.
example: training 6 scorers with 9 assistant coaches (in EUR)
9 * 1500 / 6 = 2250 EUR per week.
For each week a player uses a scoring spot the profit on him is reduced by 2250 EUR. It does not seem that much but it really matters is case of heavy skilltrading
Comment by bobymoore — April 30, 2007 @ 5:58 am
Thanks.
If you want, you can take a look on the excel i have made based on your inputs.
I ignored trading costs on a financial point of view, i am just consider it as a important indicator.
On other hand, i considered wages increase from season to season, because it can have a big impact on profit calculation.
Maybe you was just thinking in short term investiments….
If you have spare time, take a look: http://clientes.netvisao.pt/vistamar/SkillTrading.xls
From this excel, i can for example, calculate what return can i expect, if i have change my coach from passable to solid. I suppose i can train a player 2 weeks faster increasing from passable-> solid
Best Regards and good luck for weekend match.
Comment by Tatankov — May 3, 2007 @ 11:13 pm