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Author Topic: Price change due to min. wage increase Ramin Hashemi Expert Film Handler Posts: 129 From: Houston TX Registered: Sep 2004 posted 11-19-2007 02:09 PM                     I know this topic has been discussed in detail. But mow that reality is here - As of Jan1 min. wage in Ca, will be $8.00. For us, in reality, that means that everyone will get a $0.50 raise (even though almost everyone is well above minimum wage). We are probably going to raise prices as of Christmas. Probably $0.25 on tickets, and some concession items. Are you all raising prises, and when/how much? thanks Ramin  |  IP: Logged Peter David Bruce Expert Film Handler Posts: 187 From: East Anglia -England Registered: Aug 2007 posted 11-19-2007 02:14 PM                    Ramin... didnt use to work for Cancom, per chance? anywho... over the pond here in the UK we are looking at pushing up prices a bit over the xmas period. i suppose the premise is that people are more willing to spend money at xmas... and they wont notice the price changes in amongst all the crowds and general buzz of the holiday season... or something like that.  |  IP: Logged Kamil Jackson-Chaka Film Handler Posts: 8 From: Gainesville, Fl, USA Registered: May 2007 posted 11-19-2007 02:47 PM                     all the prices at my theatre just went up 50 cents in preparation for Florida's minimum wage going up Jan 1st. Course there won't be any pay raises for those of us making more than minimum wage.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 11-19-2007 03:09 PM                        Montana is currently at $6.15 and will go to $6.25 as of Jan. 1. My policy is, all new hires stay at the minimum wage for a 90 day probationary period, after which they go up to $6.50 or $6.75 if they're doing really well. I haven't decided whether to bump everybody up a little, or just the new hires. Either way, I don't anticipate raising the prices.  |  IP: Logged Bruce Hansen Jedi Master Film Handler Posts: 847 From: Stone Mountain, GA, USA Registered: Dec 1999 posted 11-19-2007 05:45 PM                     You must have one employee per customer in order for your price increases to be due to wage increases. If you take the wage increases and divide them by the number of customers, the cost per customer will be less that a penny each. Sounds like someone needs an excuse to raise prices.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 11-19-2007 06:23 PM                        I would rather raise prices in response to a wage increase than almost any other reason. The general public doesn't know or care how much our utility bills have gone up, or how much our property taxes have increased, or how much extra film rent we paid to get that new blockbuster. But when you say, "It's because of the wage increase" they smile happily and say "Well, the kids deserve it." But, as I said we don't plan an increase this time, even though it might be a good idea given gas prices.  |  IP: Logged Chad M Calpito Master Film Handler Posts: 435 From: San Diego, CA Registered: Apr 2006 posted 11-19-2007 06:30 PM                        Well, as far as the new company, Reading Cinemas that is in the process of finalizing the purchase of Pacific Theatres on December 13th or 14th, I don't know if they will increase the prices at the Box Office and at the Concessions due to the minimum wage increase effective next year and whether or not if they will do any kind of pay raises. More to come, if I receive word of the increases or when I see it.  |  IP: Logged Monte L Fullmer Film God 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 Bobby Henderson "Ask me about Trajan." Posts: 10973 From: Lawton, OK, USA Registered: Apr 2001 posted 11-23-2007 03:28 PM                     Minimum wage increases are one thing, one thing that seems to happen on a fairly rare basis. Workers comp insurance premiums on employees -now that's something that is getting more and more expensive all the time. Perhaps workers comp rates may not be all that bad for a movie theater (don't really know for sure). Our manufacturing business has seen its rates nearly triple during this decade. I contend the rising costs of workers comp insurance is one of the biggest factors driving employers to hire illegal migrant workers or just pay anyone they can off of the books. There's lots of extra costs which come along for the ride when you hire an American citizen or legal immigrant and have that worker documented. Utilities costs for movie theaters are expensive and will get even more expensive with oil nearing $100 per barrel and natural gas prices gaining. Those costs filter through to so many other areas. Let's not forget about the declining value of the US dollar. During the last few months the evening ticket price at the Carmike 8 went from $7.50 to $8.00 and now $8.50 as of 11/16.  |  IP: Logged Jack Ondracek Film God Posts: 2348 From: Port Orchard, WA, USA Registered: Oct 2002 posted 11-23-2007 07:47 PM                        quote: Bobby Henderson .......... During the last few months the evening ticket price at the Carmike 8 went from $7.50 to $8.00 and now $8.50 as of 11/16. Nahhhhhh.... that's because they now have to shell out big bucks every year on a couple of decent bulbs for each of those new digital projectors they have, rather than bleeding cheap ones 'til they explode!  |  IP: Logged Dominic Espinosa Phenomenal Film Handler Posts: 1172 From: California, U.S.A. Registered: Jan 2004 posted 11-25-2007 08:49 AM                     Due to the fact that we currently have a multitude of positions over minimum wage in our theaters including a few folks we didn't lay off with the elimination of a useless position, the 1st of the year raises are going to be regulated by performance reviews. Any employee who typically would be at minimum wage but received raises (several due to the old employee incentive program that was really just manager whim) will have to receive an evaluation that shows they are worth a continuation of elevated wage and may not have a documented disciplinary issue.  |  IP: Logged Martin Brooks Jedi Master Film Handler 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 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 Monte L Fullmer Film God Posts: 8367 From: Nampa, Idaho, USA Registered: Nov 2004 posted 12-04-2007 12:52 PM                     ..and what Jack mentions above is what is in the minds of discount theatre owners and operators. As with us, we have two discounts as with fed min wage hitting $7.25/hr in 2009, these two theatres are going to have to bring in at least $60k more bucks/year through the door just to break even, or do some drastic hourly downscaling/budget cuts to stay alive if the gate and concession incomes doesn't increase. Plus, with this, it could spell doom for the 2 buck houses by raising their tix prices to 3 and entering into the sub-run market (but who wants to give the film companies more money??). -Monte  |  IP: Logged System Notices Forum Watchdog / Soup Nazi Posts: 215 Registered: Apr 2004 posted 12-31-2008 09:00 PM                 It has been 393 days since the last post.  |  IP: Logged

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