Oscar Mania continues in Estes Park (Feb 24, 2009)
Posted by Reel Mountain Theater on Tuesday, October 27, 2009
Over
the last 2 weeks, I have tried to answer the general question- of how
'it all works?' So far we've covered selecting films & the
logistics of exhibition.
This week: The Bottom Line
We rely on Hollywood to provide a product that people will buy, and we're just the messengers. That can be an unwelcome burden some weeks, and a great problem to have other weeks...
Friday, Saturday and Sunday we collect most of the income to pay the bills come Monday. It could be alleged that the film companies are right behind the IRS for scary people. Personally, they're very nice people, but unforgiving and driven to collect every cent that is theirs, so we don't mess with them. Film rent is one of the most misunderstood facets of the money shuffle at a theater. We pay between 35 and 90% of the ticket income to the film companies, every Monday. That means, up to $7.20 of your $8.00 admission heads right back out of Estes Park to Hollywood- and the remaining 80 cents will not cover rent, heat and labor. That's why the concession prices at a movie theater are what they are. From the popcorn and snack revenue, a theater has to pay those dynamic expenses. Hence, many many independent theaters have closed in the last 10 years. That being said, I believe that if we can offer the finest popcorn, the fizziest soda, the freshest candy with a wide variety, we can stand behind the price we have to charge. I know it stings the wallet to take the family to a movie, so we're trying to provide the most bang for your movie buck in our town. It is rewarding when a family comes up from Loveland, just to see a new film at Reel Mountain for the value- or when seasonal residents tell us they wait until they get 'home' to Estes Park to see movies at our theater....
An interesting note about the film company arrangement: we book many films on 'settlement' terms. We have a general idea of what it will cost going in, but don't know until the film company sends the final billing as to what the actual rent is. It's like renting a video and paying $3 when you pick it up- then getting a bill for another $2 the next month because the film is very popular! Crazy but true. So why not just book 35% films? That would make us a second run theater, and we'd miss out on the chance to offer you national release dates for the big films... We enjoy the national releases- the films are in better physical shape and we don't have to explain why there are scratches or damage to a print that was abused before it arrived here.
The cycle starts again before it even ends- we're paying attention to what certain crowds are buying - and we have to target our booking toward films that will generate the best per capita at the concession stand. If an artsy film shows and everyone that attends brings their own snacks in, bypassing the concession stand- I can assure you we will not rush after similar bookings. That concession income will make or break our business, so it has to be part of the total equation.
On the subject of sneaking things into theater, a couple of observations. Since you were a little kid, you have known that it wasn't OK to bring your own food into a theater. What lesson are we teaching kids when we send them in with concealed snacks? In addition to being against the posted rules, it hurts our balancing act to keep the theater business healthy and offer you movies year round. This applies to all ages- some of the worst offenders are mature adults that pack in microwaved popcorn and individually wrapped candies. Noisy to sit next to, and not efficient to cleanup after.It's like hauling in your own lunch into a nice restaurant because you like the atmosphere.
I have to mitigate that paragraph with a couple of experiences this past week. I truly appreciate our customers, and will occasionally offer a discount or freebie when I am able. Twice in the last week a customer that stood to gain a free drink or ticket has said 'NO', very firmly. Explaining my appreciation for their patronage they still said no. The reason in both cases? They valued our business and insisted that they be able to contribute to keep it alive and healthy. Wow. THAT was a lesson for me to pass along. That attitude encourages me to do more for customers and the community.
This wraps up the series of 'how it all works'. Thanks for your attention, and as a reward for reading this far, we will refill your popcorn for free when you say POPCORN RULES! when you come back for a refill. This special, secret, hidden offer ends Thursday March 5th. Thanks for being our customer.
This week: The Bottom Line
We rely on Hollywood to provide a product that people will buy, and we're just the messengers. That can be an unwelcome burden some weeks, and a great problem to have other weeks...
Friday, Saturday and Sunday we collect most of the income to pay the bills come Monday. It could be alleged that the film companies are right behind the IRS for scary people. Personally, they're very nice people, but unforgiving and driven to collect every cent that is theirs, so we don't mess with them. Film rent is one of the most misunderstood facets of the money shuffle at a theater. We pay between 35 and 90% of the ticket income to the film companies, every Monday. That means, up to $7.20 of your $8.00 admission heads right back out of Estes Park to Hollywood- and the remaining 80 cents will not cover rent, heat and labor. That's why the concession prices at a movie theater are what they are. From the popcorn and snack revenue, a theater has to pay those dynamic expenses. Hence, many many independent theaters have closed in the last 10 years. That being said, I believe that if we can offer the finest popcorn, the fizziest soda, the freshest candy with a wide variety, we can stand behind the price we have to charge. I know it stings the wallet to take the family to a movie, so we're trying to provide the most bang for your movie buck in our town. It is rewarding when a family comes up from Loveland, just to see a new film at Reel Mountain for the value- or when seasonal residents tell us they wait until they get 'home' to Estes Park to see movies at our theater....
An interesting note about the film company arrangement: we book many films on 'settlement' terms. We have a general idea of what it will cost going in, but don't know until the film company sends the final billing as to what the actual rent is. It's like renting a video and paying $3 when you pick it up- then getting a bill for another $2 the next month because the film is very popular! Crazy but true. So why not just book 35% films? That would make us a second run theater, and we'd miss out on the chance to offer you national release dates for the big films... We enjoy the national releases- the films are in better physical shape and we don't have to explain why there are scratches or damage to a print that was abused before it arrived here.
The cycle starts again before it even ends- we're paying attention to what certain crowds are buying - and we have to target our booking toward films that will generate the best per capita at the concession stand. If an artsy film shows and everyone that attends brings their own snacks in, bypassing the concession stand- I can assure you we will not rush after similar bookings. That concession income will make or break our business, so it has to be part of the total equation.
On the subject of sneaking things into theater, a couple of observations. Since you were a little kid, you have known that it wasn't OK to bring your own food into a theater. What lesson are we teaching kids when we send them in with concealed snacks? In addition to being against the posted rules, it hurts our balancing act to keep the theater business healthy and offer you movies year round. This applies to all ages- some of the worst offenders are mature adults that pack in microwaved popcorn and individually wrapped candies. Noisy to sit next to, and not efficient to cleanup after.It's like hauling in your own lunch into a nice restaurant because you like the atmosphere.
I have to mitigate that paragraph with a couple of experiences this past week. I truly appreciate our customers, and will occasionally offer a discount or freebie when I am able. Twice in the last week a customer that stood to gain a free drink or ticket has said 'NO', very firmly. Explaining my appreciation for their patronage they still said no. The reason in both cases? They valued our business and insisted that they be able to contribute to keep it alive and healthy. Wow. THAT was a lesson for me to pass along. That attitude encourages me to do more for customers and the community.
This wraps up the series of 'how it all works'. Thanks for your attention, and as a reward for reading this far, we will refill your popcorn for free when you say POPCORN RULES! when you come back for a refill. This special, secret, hidden offer ends Thursday March 5th. Thanks for being our customer.
