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Topic: Independ Theater owners do you barter for services?

Glenda Cockrum
Film Handler

Posts: 58
From: Monaca, PA, USA
Registered: Jul 2000

posted 02-04-2002 12:23 PM

Does anyone here accept bartering for movie passes? Example; plumber does a sink repair job for 10 passes... has anyone done this type of arrangement? How do you set values of jobs versus passes? How would you deal with the passes, when they are used or in one lump on the books? There are several small businesses that have approached me over the past few months, electricians, plumbers, beauty shop owners and a few resturants. They are all within a few blocks of the theater, and I want to keep good relations with the local businesses, but is this a good idea? Thanks in advance, Glenda

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Ken Lackner
Phenomenal Film Handler

Posts: 1907
From: Atlanta, GA, USA
Registered: Sep 2001

posted 02-04-2002 01:00 PM

We do not barter for services, but we do trade out for gift certificates and things like that for employee incentives. How do you figure the value? Simple. Dollar for dollar. What is the price of your evening admission? That's the value of one pass. Then use the passes to "buy" whatever you want from the other business. Of course you can round, and we usually round up one or two passes to keep them happy.

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This one time, at Projection Camp, I stuck a xenon bulb....

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Wes Hughes
Expert Film Handler

Posts: 175
From: Raleigh, NC, USA
Registered: Aug 2001

posted 02-04-2002 01:17 PM

We trade passes for services all the time...but remember that our company is privately held, so I make these decisions with the owner. Ken, be careful about trading gift certificates for any service or "employee incentive." In most chains this is considered theft I have seen many, many people fired for doing this!

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 02-04-2002 02:24 PM

We are a projection and sound sales and service company. Although we never have done this we would consider a trade for useful, re-sellable equipment. It never hurts to at least listen to a customers needs!
Mark @ GTS

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Rachel Gilardi
Madam Moderator

Posts: 2214
From: Peabody, MA, USA
Registered: Dec 2007

posted 02-04-2002 05:32 PM

We do trade for employee incentives also. Our top percentage saled employee gets a certain # of points for each week they win, which adds up to dollars for gift certificates to local businesses. We have traded passes for GC's at local restaurants, the local Laser Tag, book stores, and clothing stores. It's a great way to keep your employees happy, and everyone knows when they are happy, they do a better job.

Good Luck!

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Brad, you're pretty darn Chipper yourself!!!

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Bill Enos
Film God

Posts: 2081
From: Richmond, Virginia, USA
Registered: Apr 2000

posted 02-04-2002 11:33 PM

We swap goods and services occasionally, right now we're working a trade for a new upright vacuum in exchange for screen ads.

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Glenda Cockrum
Film Handler

Posts: 58
From: Monaca, PA, USA
Registered: Jul 2000

posted 02-05-2002 09:56 AM

Thanks for all the feedback. I am still wondering how to enter this into the books? should I let the service provider decide how to present their bill? Would really help us to have an easier way to have some small repairs done without the big out of pocket expense all at once.

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Greg Mueller
Phenomenal Film Handler

Posts: 1687
From: Port Gamble, WA
Registered: Jun 99

posted 02-05-2002 10:12 AM

I love to barter. Setting value is easy. When both parties are happy with what they are offering and getting you're done. Getting it on the books? NEVER

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Greg Mueller
Amateur Astronomer, Machinist, Filmnut
http://www.muellersatomics.com/

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Jerry Chase
Phenomenal Film Handler

Posts: 1068
From: Margate, FL, USA
Registered: Nov 2000

posted 02-05-2002 10:58 AM

One promotional person I knew always referred to the circuit trip passes as "pink money." I won't say the owner got a new car off the books every year, but...

Trading out passes is a slippery slope, especially if the employees are aware of the deals. Trying to keep an honest crew while doing major shady deals can be difficult. The temptation is there for employees to make deals on a smaller scale and think that they can hold the owner's mis-use of passes over the owner's head.

OTOH, many people have no problem trading out passes for pizza or for radio time, since both are overpriced "soft" items that have no value if wasted, much like tickets. Employees see the pizza as a direct benefit to them, and media trades are so commonplace as to be respected.

I'm not sure I'd want to trade with tradespeople, who would document work done and materials used. Since most states have a sales tax, trading items and not paying sales tax could get you in dutch if either you or the tradesperson was audited.

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Glenda Cockrum
Film Handler

Posts: 58
From: Monaca, PA, USA
Registered: Jul 2000

posted 02-05-2002 10:13 PM

Thanks for all the help. Staff is no problem, we are the staff

just me out front in the box office, my husband in concession and the booth and the daughter and sons running concession stand. Maybe I will talk it over more with the people involved about the billing/ books, just listing or even paying for materials and using the barter for labor. I think the "what makes everyone happy" idea is the way to go. The one plumber interested has 4 kids, he will go through passes quickly, and since this building went up in 1915, believe me, there's plenty of work needed on the plumbing!

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Richard C. Wolfe
Master Film Handler

Posts: 250
From: Northampton, PA, USA
Registered: Apr 2000

posted 02-06-2002 12:18 AM

Back in 1997 I was purchasing a new mini van from the local auto dealer, but we were still $300.00 apart on price. I told him that I wouldn't give him a nickel more, but would give him the $300 in movie gift certificates and that he could use them as a promotion to get people to come and test drive his new cars. Take a test drive and go to the movies free. He loved the idea, took the certificates, and I'm still getting them in to this day.

By the way Glenda, allow me this opportunity to say hi. It's been quite a while since we last communicated. I hope everything is well at your theatre.

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Ken Lackner
Phenomenal Film Handler

Posts: 1907
From: Atlanta, GA, USA
Registered: Sep 2001

posted 02-11-2002 11:23 PM

Wes,

Our Comp Passes are for that purpose -- tradeouts. However, they are not to be used for personal gains, like buying lunch for the managers. That could get someone fired. Employee Incentives and Project Pictures (we use the passes to trade for radio air time, contest prizes, etc. when doing a promotion on a movie) are acceptable uses.

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This one time, at Projection Camp, I stuck a xenon bulb....

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Joel Pantoja
Film Handler

Posts: 12
From: Sacramento, CA, USA
Registered: Nov 2001

posted 02-12-2002 01:26 AM

We used to trade all the time (passes) when I was a manager for the same things that the others have already mentioned. Additionally, we traded for bigger items like website hosting and Internet service with on screen advertisiment.

Now for the technical part of it. If my understanding of the law is correct. IRS says that you would treat the fair market value of the services you receive as income and the fair market value of the passes that you give out as an expense.

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Wes Hughes
Expert Film Handler

Posts: 175
From: Raleigh, NC, USA
Registered: Aug 2001

posted 02-12-2002 07:03 PM

Yeah...income and expense !

my response: "What Passes?!"

the whole point of bartering is to keep it off the books.

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Adam Fraser
Master Film Handler

Posts: 499
From: Houghton Lake, MI, USA
Registered: Dec 2001

posted 02-13-2002 11:17 AM

Just remember, be careful, you are held laible by the film companies for all people you let in your theatre. In the MLA's there is usually a statement that allows you a # of guests, but not specified how many. At least in our area we occasionally (up until about 5 or 6 years ago) saw silent checkers with hand tickers to count how many people are coming in local theatres and making sure they were charging all of them. If they think a theatre is underreporting gross' it is also in most MLA's that they can look at all your books for any indecrepencies.

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Adam Fraser
www.pinestheatre.com

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