Quote:
Originally Posted by jhadorn
I realize that movie theaters must make a profit in order to stay in business, but with ticket prices rising rapidly, about $10 per person now, and a coke and popcorn costing about $8, where it would cost about $3 or $4 anywhere else, some people would rather wait a few months until it comes to dvd and let the whole family watch it for a rental fee of $3.
At what point do movie theaters price themselves out of business?
Almost forgot, to answer the question, I never sneak candy in and rarely buy candy at the theater.
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I just wanted to add in case it wasn't already posted. I worked with management with movie theatre company, one of the largest in the nation. I also have worked at several locations.
1st thing.
Movie tickets. That is hollywood, not the movie theatre. You remember when Halle Barry got paid an extra Million to show her boobs? Remember hearing $20 million per movie per some of the big main stars? you hear of all the money and extravagent houses in LA and around the world from Movie starts?
That is where movie ticket money goes. Nearly 90-95% of ticket sales go to hollywood, they don't even pay for the cashier that sold you the ticket. Hence the big jump on automated and online ticket purchases to cut costs.
2nd thing
Popcorn/concessions is marked up, but it paid for the building, the staff, the licenses/etc... the sound equipment, the screen, the projector, etc... Also the new recent addition and revamp for digital projectors demanded by the public.
I worked at one of the more profitable locations in the entire company. I will throw out some numbers.
-$145k month lease
-$20k powerbill(after dumping thousands in to powersavings techniques, including adjusting the AC controls to the movie schedule every week, talking saving "30 min" of AC)
-$5k a month water
-$1k in neon repair
-$25k for a popcorn popper.
-$10k a month in building maint, sometimes more.
-Punk kid throws something at the screen and puts a hole in it? about $15k
-new silver screens for 3d and IMAX projectors, have a special coating that usually cannot be cleaned like older screens could.
-$20k just to wax the floors every 6 months.
-We had 120 employees, 18 managers/projectionists.
-Hell had to hire 3 cops on the weekends for 8-9 hour shifts at $35 an hour, for them to just stand around in case something happened(which often did)
Now throw in the lawsuits of people walking in dimly lit rooms with stairs and ice/soda/butter on the floor.
Much more beyond all that, fire and alarm security, armoured car pickup.
Doesn't even get into maintaining projectors/sound systems, Hell a projector bulb can cost $1200.
All paid for by concessions. Popcorn is obviously the money maker, all the things like candy/prepped food, etc... have a lower profit margin. You will never attend a movie theatre that doesn't pop popcorn. If it doesn't, then its going out of business. Also want to state, look around, you will see only about half, maybe less of all patrons actually pay for anything.
Don't get me wrong Theatres usually do make money, you have seen the ones that don't and their ultimate end.
As for lower priced theatres, I worked at a $3 theatre for a bit while I was between jobs. Literally did as little as 50 people a day, and guess how much stuff cheap people bought? We had $1 wed and sundays, we would do as many as 750-1,000 people. Sell alot, but that also required more staff, working on a shoe string budget on a building that was falling apart, and projectors in desperate need of work to keep them running. I ran the place into the black 1 month, with a $1,000 surplus after a year of running in the red. The place got shut down eventually. I am 29 and the lamphouses/power supplies are older then me. We pulled out some of the first dolby theatre sound systems out. I helped install new projector heads from 1985. LOL that was an upgrade for the place.
LOL here are rubberbands used to keep a projector running right for a week
https://fbcdn-sphotos-a.akamaihd.net/hphotos-ak-ash2/59599_440994083801_533343801_5273609_3679270_n.jpg (broken link)
Rubber bands bypassing a failsafe (you can see where previous ones snapped)
https://fbcdn-sphotos-a.akamaihd.net/hphotos-ak-snc7/39151_418195488801_533343801_4768428_2287232_n.jpg (broken link)
Paperclip, I rigged into a spring to hold compression on the film on a projector to keep it from "jumping"
https://fbcdn-sphotos-a.akamaihd.net/hphotos-ak-snc7/61010_431213043801_533343801_5075356_7862269_n.jpg (broken link)