|
This topic comprises 3 pages: 1 2 3
|
Author
|
Topic: Price change due to min. wage increase
|
|
|
|
|
|
|
|
Monte L Fullmer
Film God
![](http://www.film-tech.com/ubbmembers/2797c.jpg)
Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004
|
posted 11-23-2007 01:59 PM
I've heard that large circuits with megascreen complexes don't really worry on what the min wage wars since as Bruce mentions the cost per person coming in the door is just pennies compared to the mega dollars made in Conc since the higher percentage is taken at the gate.
Plus, having megascreen complexes with small capacity houses, those movies that are so-so, or even tank horribly, it's really no be loss since the better movies makes up the slack. But still, the mgr really has to watch his budgets to keep the complex earning a profit.
..but, it's unfortunate in a way for the single screen owners who really need to have the blockbusters on his screen to make that same profit after the "house nut" has to be paid.. But, if that owner really knows how to market his theatre, still it's still gold in his pocket for sure.
| IP: Logged
|
|
|
|
|
Martin Brooks
Jedi Master Film Handler
![](http://www.film-tech.com/ubbmembers/1269b.jpg)
Posts: 900
From: Forest Hills, NY, USA
Registered: May 2002
|
posted 12-02-2007 11:09 AM
If you have 10 minimum wage employees who are there 12 hours a day, 7 days a week, that's 840 hours. If the minimum wage is causing you to raise salaries by a dollar an hour (which isn't true in most cases), you've got to bring in another $840 a week.
If you have five theaters playing four shows a day, you need another $6 per show to break even. If you average 60 people per show, that's a 10 cent increase in ticket prices that you need and that's probably an extreme case. If you can get just two more people to visit your theaters for each show, you've more than paid for the wage increase.
In New York City, the minimum wage was $1.25 in 1966 and that wasn't so great even then. That's $8.06 today. If you're paying less, you haven't even kept up with inflation. Let's stop all the tears. Unless you think it's okay for the U.S. to become the equivalent of a third-world country, which, considering how little the dollar is now worth, we're quickly becoming.
| IP: Logged
|
|
Jack Ondracek
Film God
![](http://www.film-tech.com/ubbmembers/1466.jpg)
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
|
posted 12-02-2007 11:25 AM
quote: Martin Brooks If the minimum wage is causing you to raise salaries by a dollar an hour (which isn't true in most cases), you've got to bring in another $840 a week.
Well... not exactly. You have to add in the extra social security, unemployment and insurance taxes, as may apply in your state. The effect of a wage increase is commonly viewed at face value, but is always more expensive than it looks.
That extra $850 per week probably works out to around $5,000 per month, or $60,000 per year in its net effect... maybe more. For a lot of theatres, that's a big deal.
(edit) BTW... That $60k is after percentages to the film companies or concession product costs, so figure you have to bring in another $120,000+/yr to pay for that $1 wage increase. [ 12-02-2007, 03:00 PM: Message edited by: Jack Ondracek ]
| IP: Logged
|
|
|
|
|
All times are Central (GMT -6:00)
|
This topic comprises 3 pages: 1 2 3
|
Powered by Infopop Corporation
UBB.classicTM
6.3.1.2
The Film-Tech Forums are designed for various members related to the cinema industry to express their opinions, viewpoints and testimonials on various products, services and events based upon speculation, personal knowledge and factual information through use, therefore all views represented here allow no liability upon the publishers of this web site and the owners of said views assume no liability for any ill will resulting from these postings. The posts made here are for educational as well as entertainment purposes and as such anyone viewing this portion of the website must accept these views as statements of the author of that opinion
and agrees to release the authors from any and all liability.
|