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This topic comprises 4 pages: 1 2 3 4
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Author
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Topic: Concession Per Caps?
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Michael McGovern
Film Handler
Posts: 57
From: New Britain, CT, USA
Registered: May 2008
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posted 06-05-2009 08:26 PM
My belief has always been that Per Cap is a bell curve, and once you raise your prices too high you're doing yourself more harm then good, the sales your losing due to the high prices isn't being offset by the people left who are paying the high prices. This is a lesson that the chains don't seem to understand. Regal on the whole has the highest concession prices in the industry it seems, and their popcorn and drink sizes are outrageously large, while their candy sizes are significantly smaller than everywhere else. If 7-11 can sell a 64oz Fountain Drink for a $1.75 and still make a profit, there's no reason at all that you need to charge $7 for for a 52oz drink at the movies.
I know the concession stand is where we make all our money (although with the amount of advertising deals the chains have now, that may be debatable), but has anyone ever tried radically lower concession prices to see if the increase in sales leads to a higher overall profit, or am I living in la-la land? Do people simply do not care about the prices and pay them regardless? Sometimes I can't really tell.
One thing I have noticed however is that the advent of 3-D Films definitely eats into concession purchases. The surcharge now raises matinee tickets by an additional 50%, so it now costs people close to 50 dollars to take the family out to the movies, when previously it could be done for 25 or less. When people are paying this much at the box office, they simply don't have the money to stop at the stand anymore, and per-caps suffer. Previously the 3-D technology was mostly relegated to larger urban areas, people had to go out of their way to get the the one AMC or one Regal that had the 3-D film, so once they got there, they knew what they were getting into price wise, so it wasn't a problem. Now that the 3-D technology is becoming more common, and theaters in less affluent areas have the projectors, this is definitely going to become a larger issue. If people have to make a day trip to get to the theater showing the 3-D film, they'll spend the money, but if they can just go to the theater down the street, they will definitely be less apt to do so.
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