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Author Topic: Rounded to the Nearest .25? Matthew Deppe Film Handler Posts: 4 From: Grinnell, Iowa Registered: Dec 2003 posted 01-05-2004 05:32 PM                     I have been reading this forum for 6 months now and have found it very helpful. So thank-you all for that. I am wondering about concession pricing. At our theatre we add tax to the listed price of our concessions. Is this a common practice in the business? I cannot help but think that lines would move faster and drawers would be more accurate if the cashier only needed to work with cash and quarters. It would also eliminate some work from the bank change orders. I guess I am looking for your opinions. I am in the process of working out a written proposal to change our prices to .25 cent amounts and could use some input.  |  IP: Logged Steve Kraus Film God Posts: 4094 From: Chicago, IL, USA Registered: May 2000 posted 01-05-2004 05:55 PM                    No point in having whole-quarter pricing unless you also move to tax-inclusive posted prices unless you post oddball prices which turn into whole-quarter prices when tax is added. Quoting a nice even price...then adding tax...then rounding up to the next quarter is probably going to land you in legal difficulty.  |  IP: Logged Matthew Deppe Film Handler Posts: 4 From: Grinnell, Iowa Registered: Dec 2003 posted 01-05-2004 06:04 PM                     Sorry I guess I was unclear. Our current prices are something like 2.50 for a small pop or corn, 3.00 for a medium pop or corn, . . . upon which tax is added. Bringing the totals to 2.68 and 3.21 respectively. Would it be helpful for our bussiness to have tax inclusive prices? So changing to something like 2.75 for a small pop or corn and 3.25 for a medium. If that were the case then we still would have no need for dimes, nickles, and pennies for change. Hopefully allowing the transaction to go smoother and quicker.  |  IP: Logged Brad Miller Administrator Posts: 17775 From: Plano, TX (36.2 miles NW of Rockwall) Registered: May 99 posted 01-05-2004 06:07 PM                     Yes, yes, yes. Only dealing with quarters makes the line move a LOT faster. Shorter, faster moving lines means more customers are apt to visit the concession stand, and oddly enough you're making a few extra cents on the deal too. Just list as "$3.25 tax included", not $3.04  |  IP: Logged David Stambaugh Film God Posts: 4021 From: Eugene, Oregon Registered: Jan 2002 posted 01-05-2004 06:25 PM                        Seems like there would be a slight psychological advantage too. The customer won't think "$3.00 PLUS TAX for a popcorn??!!". Since concession prices are already high to begin with, to me it just goes over better if the sign says "Tax Included" so I don't have to think to myself "Geez, the prices are high enough as it is, and I still have to pay sales tax besides".  |  IP: Logged Trevor Bailey Expert Film Handler Posts: 113 From: Woonsocket, RI Registered: Jun 99 posted 01-05-2004 08:07 PM                        The first theater I worked at had "tax included" pricing and the only coins we got from the bank were quarters. That was such a logical method, that it had to be changed!! So, to make those few extra pennies, the next price increase simply changed the menu board to read "plus tax". From then on, the lines were slower, and we never looked back. That's what happens when someone at the home office making decisions has never been in the field.  |  IP: Logged Robb Johnston Expert Film Handler Posts: 147 From: St. Louis Suburbs Registered: Nov 1999 posted 01-05-2004 09:21 PM                        You may want to check certain state and municipality codes for pricing. Some areas may require to list the pretax price. I have scene menu boards where they have the even quarter pricing in inch tall letters then in smaller type underneath they list the pretax price and amount of tax. this was required by code or law or something.  |  IP: Logged Jason Burroughs Jedi Master Film Handler Posts: 654 From: Allen, TX Registered: Jun 99 posted 01-05-2004 10:06 PM                     Rounding off to the nearest quarter made SO much more sense (and cents too) than adding tax to an already odd price. While working for UA many eons ago, tax was included and everying was on the quarter. The concession lines on those old cafeteria style concession stands moved along pretty well. Plus it was more frequent for the cashier's to be dead even. Change over to annother chain such as AMC, Tax not included lines were always long, incorrect change always being given, cashier have to take longer for each transaction both when giving change, and when recieving 97cents in change. Only takes a few brain cells to rub together to figure out that having prices that end on the quarter and include tax are the way to go, both for customer service and the bottom line.  |  IP: Logged Jonathan M. Crist Jedi Master Film Handler Posts: 531 From: Hershey, PA, USA Registered: Apr 2000 posted 01-05-2004 11:34 PM                     In Pennsylvania, our state sales tax law requires that all item prices be stated seperately with the sales tax then seperately listed on the receipt as an add on. You are not allowed to post (or collect) such a price as 3.75 (tax included). It would be advisable for everyone to check their individual state (and in some cases additional local) sales tax regulations reqarding this issue.  |  IP: Logged Adam Fraser Master Film Handler Posts: 499 From: Houghton Lake, MI, USA Registered: Dec 2001 posted 01-06-2004 12:02 AM                        We do to the quarter and to the dollar pricing including tax, makes the line move much quicker. 400 Customers @ 2.50 per cap in 1/2 hour with 2 experienced people behind the concession is not a problem with this pricing. Candy 1.00 Normal Candy Bars 2.00 Theatre Packs/King Size 3.00 5-8 oz candy Popcorn 1.00 24 oz 2.00 46 oz 3.50 85 oz 5.00 130 oz Pop 1.00 12 oz 2.00 16 oz 3.00 22 oz 4.00 32 oz  |  IP: Logged John Hawkinson Film God Posts: 2273 From: Cambridge, MA, USA Registered: Feb 2002 posted 01-06-2004 12:31 AM                     Adam, your pricing there is a bit curious...most vendors give a price break as you buy more...but in your case, the $2 popcorn is less popcorn than two $1 popcorn tubs? --jhawk  |  IP: Logged Matt Hale Expert Film Handler Posts: 123 From: Vancouver, Canada Registered: Dec 2002 posted 01-06-2004 01:11 AM                        Not to be a killjoy but I never have a quarter when I need one, or two or three. If you charge me x.25 for something you're probably gonna get two dimes and a nickel or (more likely) one dime and fifteen stupid pennies. So while keeping everything rounded to the nearest quarter is a great idea for speed, efficiency and customer service dont go removing the extra slots from you change drawers - you will have to deal with people like me.  |  IP: Logged Carl Martin Phenomenal Film Handler Posts: 1424 From: Oakland, CA, USA Registered: Feb 2002 posted 01-06-2004 01:54 AM                        and rememer, you may need to keep a couple of nickels as change, for troublemakers who hand you 3 dimes in lieu of a quarter. but yeah, go with 25 cent increments in the final price if you possibly can. carl  |  IP: Logged Mike Olpin Chop Chop! Posts: 1852 From: Dallas, TX Registered: Jan 2002 posted 01-06-2004 03:22 AM                     Naw, Carl. Just tell them you don't have any nickels. Most of the time they'll just tell you not to worry about it. Bam! 5 cents extra profit!  |  IP: Logged Steve Kraus Film God Posts: 4094 From: Chicago, IL, USA Registered: May 2000 posted 01-06-2004 08:38 AM                    Wasn't it the late great Cineplex Odeon ten years back or so that changed from inclusive pricing to plus tax? Maybe around the time they went through the real butter / fake butter cycle.  |  IP: Logged

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