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Topic: Recommendations for consultants
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Terry Lynn-Stevens
Phenomenal Film Handler
Posts: 1081
From: Toronto, Ontario, Canada
Registered: Dec 2012
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posted 12-05-2013 02:51 PM
quote: Martin Thuss I need to fill in my business plan such as expected startup and operating costs and revenues.
I wonder how far along you are in your planning of your theatre and I really do wonder if you really have market where you are located.
Now that Cineplex has absorbed Galaxy Cinemas, Famous Players, what's left of AMC, and most of Empire Theatres, Cineplex Odeon dominates that Canadian market. Their marketshare is somewhere between 70-75 percent. Cineplex is very difficult to compete against and they own the two largest theatres in London and together they both gross close to $15 million per year in London.
You are located about 25 minutes away from each of the two Cineplex locations, the north London Silvercity is at the most northern spot on London just on the outskirts and does double the business of the Westmount location. The Silvercity is drawing from everywhere in the London area as well as outside of London.
A few things to consider:
Are you playing 3D?
What content are you planning to show? Cineplex has the power to block competitors as per the terms of agreement when booking. Generally Cineplex will leave you alone if you are far enough away.
If you run first run, you are likely stuck with the product for two weeks minimum on many runs.
Are you planning to be open all day? The Cineplex Scotiabank Scene card program is huge, are you planning to compete with that?
How many screens are you planning?
The SilverCity North London is an IMAX destination, 5 of the top 6 locations in Ontario are IMAX destinations.
I am not trying to say your plan is bad, but you are closer to London than you think. Cineplex is very difficult to compete against and the location you are closest to is a $9 million per year theatre. The north London Silvercity was the fifth highest grossing theatre in the entire province of Ontario for the Catching Fire movie in both of the last two weekends.
Edit: I just read your website and some of the questions have been answered from your FAQ
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Martin Thuss
Film Handler
Posts: 20
From: Strathoy, Ontario, Canada
Registered: Nov 2013
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posted 12-06-2013 09:56 AM
We don't plan to compete with the London cinemas with respect to residents who live closer to London than to Strathroy, although some may come anyway due to the lower cost (depending on how it balances out with the cost of travel/time). Our primary draw will be residents of Strathroy-Caradoc (population ~ 21,000) and immediate surrounding communities.
As you mention, several of your questions are answered in our FAQ, but I will summarize a few of them to save others on the thread the time of going to our web site to look for them:
- We plan to be 3D capable on at least one of our screens - We don't plan to compete with the "VIP" experience (as the increase in ticket cost takes away too large a share of lower-cost options for our customers) - We don't plan to implement IMAX, Dolby Atmos, D-BOX or other technologies typically implemented only at large megaplexes - We have confirmed that we can rent first-run wide-release movies (for example; Thor: yes ... Captain Phillips: no, at least not initial release as it was limited) - Per screen, we will likely have one evening show Sunday-Thursday, two evening shows Friday, a matinee and two evening shows Saturday and a matinee on Sunday. In the early going (when it may be busier due to people wanting to check out "the new theatre"), we may also add a late afternoon show on Fridays, Saturdays and Sundays if the demand warrants it - We won't (can't) accept the SCENE card but may implement our own loyalty program at some point - We are planning on three screens, approximately 600 total seats
We definitely don't expect to compete with the theatres in London to the point that they'd really notice. Based on the information we have gathered so far, we expect roughly $600k net revenue (after subtracting HST) including admissions, concessions and other sources of revenue.
My wife and I don't plan on becoming rich from this venture by any means. We simply want to provide a much-needed service to our community while earning enough to make a living. The feedback we have received from the community so far has exceeded our expectations to the point that we aren't concerned about making ends meet.
Right now, I'm working full time in a job I hate that pays really well. I'd much rather make less money (likely 2/3 of what I make now, by my projections, possibly less) and do something that I enjoy and am passionate about.
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Michael Covey
Film Handler
Posts: 1
From: Iola, KS, United States
Registered: Dec 2013
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posted 01-03-2014 07:44 AM
Mr. Martin Thuss,
We at Sonic Equipment have a few different levels of consulting that we offer to theatre exhibitors, depending on how much consulting the exhibitor would like. We are partnered with B&B Theatres, who gives us an advantage with having a great relationship built with an actually theatre exhibitor to help with operational consulting support.
Sonic is a full Sales, Installation and Service company that cover all of the United States, and have done business in British Columbia, Canada.
We would be more than happy to assist with your project. If you would like, send me your contact information and I will call you at your convenience.
Thanks, Michael Covey Director of Strategic Planning Sonic Equipment Company
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