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Modeling Promoters with facilities Operations

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Miriam

I am currently working on modeling output for a promoter with a new facility and I have estimated their revenues including revenue from ticket sales, food, beverage, and merchandise sales. I was wondering if modeling this as output in Implan Industry 482 is the correct approach. Does the output in that industry capture the fact that some of these firms have their own facilities and therefore generate revenues from selling food, beverages, and merchandise?

Or should these revenues be modeled separately in another industry? Any insight you can provide would be greatly appreciated.

 

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    Michael Nealy

    Hello!

     

    Ideally you would be able to break out the separate revenue streams that come from operating the new facilities as separate Industry Events. This is because the input structure of Industry 482 may not accurately reflect the costs of supporting food/beverage or merchandise sales. Particularly for the merchandise sales; unless the facility is producing the goods they are selling, you would only want to capture the gross margin the facility actually gets to keep from selling merchandise (i.e., purchaser price less what the facility paid for it). This could be modeled in a retail Industry with the total merchandise sales as Output, and the margins set = Purchase Price (meaning IMPLAN will only capture the retail Margin).

     

    Hope this helps! Please let me know if you have any additional questions.

     

    Best,

    Michael Nealy 

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