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This topic comprises 6 pages: 1 2 3 4 5 6
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Author
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Topic: Debating on buying Drive-In
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Mitchell Dvoskin
Phenomenal Film Handler
Posts: 1869
From: West Milford, NJ, USA
Registered: Jan 2001
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posted 12-15-2009 05:25 PM
> We use to patronize the place until it started going downhill in the up keep.
That could be a warning sign that they were losing money. The other is they are selling for essentially the value of the land.
As others have stated above, you need to see the grosses for the last year or so, and you need to see ongoing expenses, and take into account any additional expenses need to bring it up to code and/or make it look nice. If the theatre is losing money, then you need to ask yourself, What Can I Do Better Than The Previous Owner To Boost Profits?. Then do a little research to see if your ideas will work.
PS. Make sure you are buying the land, buildings, equipment for your $150K. If it turns out they are just selling the business, it is not a good deal at that price. Also remember that in Indiana, you are going to be closed from mid-September though Mid April.
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Steve Greeno
Film Handler
Posts: 15
From: Frankfort, In. USA
Registered: May 2008
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posted 12-15-2009 09:02 PM
I got the figures from the real estate agent yesterday. For the summer of 2009 this place had a total gross income of 111,000. plus. 58,000 paid out for films, booking fees and they had also included concession supplies. Then various other expenses like property taxes, utilities, payroll, etc. After all that the bottom net was at around $28,000.
This place was always hopping but it did better in my opinion when the previous owners had it. They had (and still do but needs some work) a playground, volleyball court, horseshoes, sandbox and other misc activities. It still has a 1955 Chevy as part of their sign that was once brilliant in color and attractive but now all faded and neglected. The current owners have a issue with keeping the place looking nice. Overgrown grass, brush, fence falling down and so on. However, from what I remember, they always had first run movies. I was always impressed with what they had showing.
They (the current owners) use to own the theater in our town then they walked away from it. The theater then was demolished. So, about 10 miles to the south of the place is a town that does have a 7 screen cinema. The town 10 miles to the north has nothing.
I was just wanting to know if independent owners are being forced to change over to digital or is film still going to be around for a few more years. It would be nice to change it over to digital but it would take a few years for us to be able to do this.
Here is a photo of the front back about 8 years ago.
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This topic comprises 6 pages: 1 2 3 4 5 6
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