I am a relatively novice user of Implan and so far have been able to do some relatively basic analysis. I am now working on a more complex project and wanted to reach out to the community to get some clarification on LPP, Retail Margins, and how the two interact. For this project I have Activities Set up as Industry Change. I have utilized Bureau of Labor Statistics data on renter and owner spending and have transferred their definitions to Implan Index Codes. As it stands I have roughly 40 events for what a group of newly added renters to the economy would spend for each one combined. I have read multiple articles and utilized the Implan glossary to try to rectify my process in my head but I wanted to reach out to the Implan board for some clarification. LPP If the spending in this example is consumer spending in the different activity categories does the SAM LPP refer to the percentage of consumer spending in the study area or to the multiplier on what the industry spends in the study area to make the product? Take the following example: Sector = 110 Distilleries SAM LPP = 2.69% Industry Sales = $100,000 Study Area = Statewide Is this SAM LPP saying that only 2.69% of consumer purchases of liquor made by consumers are occurring within the state or that the only 2.69% of the sector activity takes place within the Study Area? Retail Similarly, using the same example of 110 Distilleries, applying the margin provides a value of 41.60%, however, it wouldn’t make sense to apply this margin to the SAM LPP as we can assume more liquor is purchased retail within the state. Would it be more accurate to calculate the impact of 100% LPP of retail liquor purchase at a retail margin of 41.60%? “Retail” Sectors (396-407) seem to have the highest SAM LPP for all of my events (>85%), which makes sense, people purchase retail goods relatively close to their home. For this I understand that the money being spent impacts within my study area as they source goods from all over the globe and retail applies here. What I am struggling with is how the SAM LPP for some sectors could be so low and when to use 100% (or something close) LPP and Retail Margins vs. SAM LPP with or without margins. Any input, clarification, or guiding questions the community could provide would be greatly appreciated. Thanks in Advance, -J.
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