Potential Profit VS real profit

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Sky_Armada
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Potential Profit VS real profit

Post by Sky_Armada » Fri Jul 01, 2011 3:34 am

This is a copy paste of a guide my friend wrote at: http://the--orange.tumblr.com/post/6980 ... eal-profit

It's explaining why training magic via High aclhing is a waste of time.
Now that I know how long it'll take me to get to 99 Magic,

what should I alch, that'll get me some decent cash?

I already have the nature runes.

There's a prize in it for someone who can tell me:

What to alch, for 99 mage (from 79) that will get me near enough for a mask / santa / phat? :o
What's your favourite colour
:)
Didn't we already go over this? Alching is a waste of your time. Nothing, except fire capes (which would take a rediculous amount of time to get), would get you anywhere close to a mask/santa/phat. The highest profit I've ever heard of something you can buy off the GE then alch is about 100 gp. Almost nothing buys below alch price on the GE, usually lowest price is just over the high alch price.

You would be much better off stringing jewellery, plank making, or surging dragons, and saving the time to do much more fun things. I mean, from 1.8m XP until 99 is 172,838 high alchs. At 1.1k an hour perfect clicking 99% of the time that's just over 157 hours. 157 hours of *click* *click* *click* *click* etc.

For fire wave on Metal Dragons (eventually upgrading to surge spells) it would probably take about 40 - 50k casts, probably less. This being about 45 - 55 hours (takes slightly longer to cast a surge spell then an alch) which is still over 100 hours shorter then alching. I couldn't tell you an exact cost on this method, because of the variable xp/cast (mage damage), however doing clues, getting dragon drops, and IF you have 96 Summoning, you can bank the Dragon Bones for a huge profit. Even if you don't you can bury them or use a bonecrusher to automatically bury them for bonus Prayer xp, which in itself is expensive.

**I personally used the Metal dragon method and profited over 11m from 96 - 99**

Stringing Jewellery is 132,945 Casts from 80 (need 80 to cast it) and casts about twice as fast as alching (1.8 seconds to cast vs 3 seconds). That's about 3k casts an hour. This method would take 44 Hours to get 99, Saving you over 110 hours then alching. Stringing Gold Amulet's is 3 gp/xp selling to the Rogue in Varrock. The total cost of this method would be 33.5m.

Plank Making from 86 (need 86 to cast it) to 99 would take 104,828 casts, at the same rate as stringing jewellery. This would be about 35 hours. Currently (with the cost of runes built in) using oak logs would get you 91gp profit/cast, and Teak logs are about a 112gp profit. Total profit (just from the training) would be 9,539,348gp on Oaks, and 11,407,736gp on Teaks.

Now, you may realize that "“Hey, these are way more expensive then alching!” as in the case of killing metal dragons and stringing jewellery, however, what you need to look at is the POTENTIAL profit.

Potential profit is money you COULD make during the time you saved. It is NOT guaranteed profit, however it is still something to take into consideration. If you could make 100 gp/alch, you would be making 110k an hour for 157 hours, which would be a total profit of 17,270,000gp. Yes, this is higher then the profit from Plank Making, and especially more then metal's or stringing jewellery. What's missing? The potential profit.

Say you can make 500k gp/hr doing something else, I don't know what else, you would have to figure that out (you can use this money making guide). At 500k/hr for 100 hours you would make 50,000,000 gp. This is much more then the 17,270,000gp from alching.

Some people can even make as much as 1.5m - 2m/hour doing things such as boss fighting or frost dragons, and can even have fun doing them.

As well as Potential Profit, there is also Potential XP gain. You could use that saved time to train other skills, and get your overall xp/total level up much quicker.

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Re: Potential Profit VS real profit

Post by Dave » Fri Jul 01, 2011 5:09 am

It really comes down to what a person values his or her time at, and if you always take into account your personal gp/h value when choosing a training method you're always training efficiently.

Also a blanket "alching isn't as good as X method" is quite false. As I was finishing slayer I started getting into alching while slaying which makes alching worth infinite exp/h as its "additional" experience. This also occurs when mining/superheat smithing gold.
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GrandmasterH
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Re: Potential Profit VS real profit

Post by GrandmasterH » Fri Jul 01, 2011 4:09 pm

when you buy 64 ~ 80 battlestaves a day and make them into air battlestaves those are worth alching. (for the money) and mage xp is just a little bonus to it

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Tamal
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Re: Potential Profit VS real profit

Post by Tamal » Fri Jul 01, 2011 4:30 pm

Read the article folks. The author is not saying that all alching is bad. Rather, he is targeting those who look for items on the GE that are below their alch value and buy them solely to cast 100k+ times for magic XP, and hopefully not lose any money in the process.

Obviously if you alch a few drops on a slayer task it isn't "bad".

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Re: Potential Profit VS real profit

Post by DoctorDRAG0N » Fri Jul 01, 2011 4:41 pm

Battlestaffs alch for over 10k, nats are only 135. This works especially well while doing Firegiants with a bonecrusher, you get bonus pray xp & they drop fire battlestaffs & mithril square shields frequently. It's all bonus xp.

Even maple longs(u) alch for 192 and only sell on the ge for 95. I have over 20k maples sitting around from kingdom and they are all profit considering I made my initial investment on my kingdom back 2.5x . I invested 2m in kingdom, collected when coffers were down to 75k, sold the flax by itself and made over 5m (not counting bird nests & the 20k maples left over) So where is the loss at?
Sure you can argue that a nat is 135+95(ge value)=(230) vs the (192) u recieve from alching, but taking into consideration the fletch xp(58)/mage xp(65)=123xp you recieve never even spending 1 coin out of pocket....

Final result is 38 coin profit vs. 123xp potential
38coins x20,000=760,000(potential profit) vs. 2,460,000(potential xp)

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Tamal
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Re: Potential Profit VS real profit

Post by Tamal » Fri Jul 01, 2011 5:44 pm

Final result is 38 coin profit vs. 123xp potential
38coins x20,000=760,000(potential profit) vs. 2,460,000(potential xp)
You're removing time from the entire equation.

20k maple longbow (u) can be sold on the GE for 95ea = 1.9M gp
XP gained: 0
Time taken: 30 seconds

20k maple longbow (u) can be alched = -2.74M (nats) + 3.84M = 1.1M gp
XP gained: 1.3M
Time taken: 18 hours
XP/hr: 72k/hr

What you're losing by high alching is called opportunity cost. What could you have done with that 18 hours that you now can't, because you are high alching? Here are several activities that could be done over 18 hours and their results:

Maging ice strykewyrms: ~3.6M magic XP + ~18M in drops
Maging metal dragons: ~2.7M magic XP + ~5M in drops

If you're not the combat type there are many more skilling methods. While on the surface they may appear to cost more than high alching, when you factor in opportunity cost, then in fact they are faster and yield more profit.

Still don't believe the author or myself? Here are some more articles that can probably explain it better:

http://www.runevillage.com/rs2SpecialRe ... php#2part1
http://runescape.wikia.com/wiki/Efficiency

Dave
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Re: Potential Profit VS real profit

Post by Dave » Sat Jul 02, 2011 12:45 am

Tamal wrote:Read the article folks. The author is not saying that all alching is bad. Rather, he is targeting those who look for items on the GE that are below their alch value and buy them solely to cast 100k+ times for magic XP, and hopefully not lose any money in the process.

Obviously if you alch a few drops on a slayer task it isn't "bad".
Guess I didn't make myself clear. I would buy items on the GE that are below their alch value, have a nice big stack of them noted in the inventory when heading out on a task and alch between attacks.

Attack, alch, attack, alch, attack.

Its similar yet different when woodcutting at teaks (one of the fastest non-afk woodcutting methods), woodcut, alch the log (your woodcutting isn't interrupted), alch the next log that appears, alch the next log, switch trees when it dies, repeat.
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