Why is the direct impact in the results different than what I input in Activities?

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    Brian Barlow

    Hello,

    This is most commonly caused by one of two things: either you are using a sector with margins (usually denoted as "retail" in the sector name) or the dollar year in the event is not the same as the dollar year in the results. Meaning, you could possibly have an event saying your $6m is in 2018 dollars and the results are inflating it to 2020 dollars. 

    Can you confirm if either of these could be causing your difference?

    Thank you,

    - Brian

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    JLK5505

    Hi Brian,

    Thanks for the quick reply. I have few events that fall under Retail- Food and Beverage Store, Retail-Clothing and Clothing accessories store and Retail-Miscellaneous Store. The dollar year for my data is 2019 and I am using 2019 as my dollar year. How can I make the direct impact issue correct in case where I am using the retail sectors. Can you please guide me in this case.

    Thanks

     

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    Meg Philipp

    Hello,

    There is a way to change this to a 1:1 ratio, however I don't know that this is the best option in your case. It's dependent on the data that you have.

    IMPLAN applies Margins as the default "Total Revenue" for retail industries, however you can change this via our Advanced Menu Margins Options. You would change this to Marginal Revenue, which tells IMPLAN that you already have the margins applied. 

    As illustrated above, if your value is the receipt price you are working with the Total Revenue and you should let IMPLAN apply the margins. If the value you have has already applied the margins, i.e. the Producer Price, then you would choose Marginal Revenue and it would be a 1:1 Direct impact.

    Please keep in mind for Retail and Wholesale trade, Output = gross margin (or Marginal Revenue) and not gross sales (Total Revenue), which includes the value of the goods sold.Please refer to this article, https://implanhelp.zendesk.com/hc/en-us/articles/360038683073-Total-Revenue-versus-Marginal-Revenue- for further clarity on margins.

    As a side note, if you're using 2019 as your dollar year and trying to obtain the 1:1 ratio on direct impacts you will need to filter your results to 2019 dollar year as IMPLAN displays your results in our current years (2020) dollars. Be sure to state that this is reported in 2019 dollars within your report.

    Thank you,

    ~ Meg 

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