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Author Topic: Concession Prices
Dan Suomi
Film Handler

Posts: 53
From: Aurora/Oswego, IL
Registered: Jul 2004


 - posted 03-17-2005 11:13 AM      Profile for Dan Suomi   Author's Homepage   Email Dan Suomi   Send New Private Message       Edit/Delete Post 
I just got word that we are raising our concession prices again and I got thinking. I wonder at what point will raising prices actually hurt concession sales? How much is one willing to spend on a bag of popcorn $5, $10. Has there been any research on this? If I were to go to a theatre I know I wouldn't buy any concession at all at these prices nowadays.

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David Stambaugh
Film God

Posts: 4021
From: Eugene, Oregon
Registered: Jan 2002


 - posted 03-17-2005 11:58 AM      Profile for David Stambaugh   Author's Homepage   Email David Stambaugh   Send New Private Message       Edit/Delete Post 
While I hate the high concession prices ($4 for a tiny mini-size bag of popcorn?), I just ignore the prices and buy what I want when I go to the movies. The concessions are part of the moviegoing experience and I don't see myself stopping unless I'm unemployed or something horrible.

But there are plenty of people who will not buy concessions just on principle because they know they're getting gouged.

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R. Andrew Diercks
Expert Film Handler

Posts: 232
From: Marion, Iowa (In the middle of everywhere)
Registered: May 2003


 - posted 03-17-2005 12:44 PM      Profile for R. Andrew Diercks   Email R. Andrew Diercks   Send New Private Message       Edit/Delete Post 
I believe there must be a plateau somewhere in pricing, but when you consider other items in retail, I don't feel guilty for selling it. McDonald's charges $2.49 here for a quarter pounder. We charge $3.00 for a medium popcorn. You get a lot more in the popcorn and it lasts a lot longer. Also, in sit down restaurants, you not only pay for your food, after that you have to pay a significant portion of your server's wage.

Theatres are still less expensive than sporting events for concessions. At the Brickyard 400 I paid $4.00 for a warm 8oz bottle of water. Oddly enough our concessions is the cheapest theatre in our market and we haven't even switched to the [bs] ty sacks. I would pay 25% more to get a tub. All you hear in theatres with sacks is rustling of paper and the butter leaks through terribly.

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99


 - posted 03-17-2005 01:52 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
The prices are already hurting sales. Otherwise people wouldn't sneak stuff in as much.

But, our prices here are pretty low in comparison to cities, and we still get "sneakers" here too. I don't know what the solution is. We can't sell EVERYTHING at the stand.

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Pravin Ratnam
Jedi Master Film Handler

Posts: 844
From: Atlanta, GA,USA
Registered: Sep 2002


 - posted 03-17-2005 02:20 PM      Profile for Pravin Ratnam   Email Pravin Ratnam   Send New Private Message       Edit/Delete Post 
I always thought theaters in selected areas with the right demos should diversify into higher class concessions while having selected regular stuff like popcorn and coke.

I know experiments have been conducted in using higher class of items at movie concessions in a very limited number of theaters around the country and it probably hasnt been a roaring success or you would have seen many more try to copy it. Personally, I would feel less ripped off when I buy a $3 normally priced item(say a slice of cake at a very good bakery) for $5 at the theater than 3 bucks for candy I can get for less than a dollar outside. I can't get myself to buy a $3 coke either. But I might be more inclined to get a $4 or $5 not so common beverage. The theater is still making 2 dollars or whatever from me in both cases, yet I feel like the candy is more overpriced because of the higher percentage markup and I feel OK with overpaying for something that I can get at the corner convenience store.

Madstone tried to cater to what one would think my tastes are. They would charge steep prices , but at least it would be on items I might have to go to a restauarant or expensive bakery for anyway. The problem? The three dollar cookie looked good but tasted like crap. Doubletree cookies are pricey , but damn good. So I never complain about the doubletree price. As far as liquor sales, I used to think customers would think less of paying for overpriced liquor than overpriced coke(no pun intended). But for some reason, they beer sales didn't seem to take off at our Madstone as much as I expected(I don't have numbers, but from what I observed I rarely saw anyone buy anything). Anyone with experience at similar joints could probably elaborate better on what reality is with such items.

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Dean Kollet
Jedi Master Film Handler

Posts: 591
From: Florida State University
Registered: Jul 2003


 - posted 03-18-2005 01:37 PM      Profile for Dean Kollet   Email Dean Kollet   Send New Private Message       Edit/Delete Post 
quote: R. Andrew Diercks
McDonald's charges $2.49 here for a quarter pounder
are you serious? It's $0.99 cents here, and the highest I've seen one is $1.99.

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Jarryd Beard
Expert Film Handler

Posts: 229
From: Hellertown, PA
Registered: Jul 2004


 - posted 03-19-2005 01:56 PM      Profile for Jarryd Beard   Email Jarryd Beard   Send New Private Message       Edit/Delete Post 
Are you sure that you aren't thinking of a normal or double cheeseburger? I believe Andrew is referring to the sandwich with the 1/4 lb patty, not the normal (smaller) patties. Here, the dollar menu has double cheeseburgers, but a normal cheeseburger is slightly more. Does that make any sense? Less meat, but costs more!

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Aaron Mehocic
Jedi Master Film Handler

Posts: 804
From: New Castle, PA, USA
Registered: Jun 99


 - posted 03-19-2005 04:50 PM      Profile for Aaron Mehocic   Email Aaron Mehocic   Send New Private Message       Edit/Delete Post 
If anybody has been following the news recently, it seems as if another hike in the minimum wage is being discussed by the leadership in Washington. Perhaps certain businesses are reading the tea leaves a little early and making their dispositions accordingly. As for me, I don't think it is worth spending $20.00 in SNACKS to be eaten in a 120 minute time period. One can argue you'd spend that in a restaurant and 60 minutes eating time, but at least you're eating FOOD that sufices for one of your three daily meals - I hope. [Wink]

Recently, I heard a report where a conservative leaning journalist went to a corner convenient store and asked the grumbling customers at the gas pumps, "Whats more expensive . . . one gallon of gas or one gallon of Hagen Das ice cream?" Most customers chose the gas, when really it was the ice cream.

The point is: when it comes to food, we overlook a lot of the price increases as food satisfies our palate and our psychological desire for comfort. Although none among us would probably slap down $10.00 for a large bag of corn, most of us would spend a little more than the going price around the country. (Same thing with McDonalds, Dean. If you were in Ankeny, even though you knew the burger was cheaper in Florida, you'd still spend $2.50 in Iowa without questioning.)

[ 03-19-2005, 06:02 PM: Message edited by: Aaron Mehocic ]

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Josh Mitoska
Film Handler

Posts: 59
From: Brooklyn, MI, USA
Registered: Dec 2001


 - posted 03-20-2005 03:14 PM      Profile for Josh Mitoska   Email Josh Mitoska   Send New Private Message       Edit/Delete Post 
I charge $1.50 for a 46 oz popcorn & a 16oz drink -That's only $.75 each. I show first run movies & my ticket prices are only $3.50 all the time- I used to charge $4.00 for my small combo, now with the cheap prices prety much every single customer gives me the $1.50 & my per cap went up- I started doing this last april-

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Dustin Mitchell
Phenomenal Film Handler

Posts: 1865
From: Mondovi, WI, USA
Registered: Mar 2000


 - posted 03-20-2005 04:03 PM      Profile for Dustin Mitchell   Email Dustin Mitchell   Send New Private Message       Edit/Delete Post 
If every customer buys your $1.50 combo though wouldn't your per cap only be $1.50? That seems a bit low, most theatres I know of can get at least $2, if not more.

And more important than per cap has your profitability gone up? That is, has you concession revenue increased at a greater rate than your concession cost?

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Jim Ziegler
Jedi Master Film Handler

Posts: 753
From: West Hollywood, CA
Registered: Jul 99


 - posted 03-20-2005 04:35 PM      Profile for Jim Ziegler   Email Jim Ziegler   Send New Private Message       Edit/Delete Post 
Hell, my kids landed a $3.00+ percap every day last week. Our prices are low compared to our competition. Our cheapest items are a child drink a $1.50 and small candy at $1.50.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 03-20-2005 11:21 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
quote: Mike Blakesley
Otherwise people wouldn't sneak stuff in as much.

Good question and a good topic to bring up to attention:

Mike do you, or anybody here have a policy on "outside food or drink" policy thingey? And how is it enforced, if any?

What I know is that why theatres have this policy is for two reasons:

1-safety. If a customer slips on a "candy wrapper" cracks his skull on the seat and tries to come back to sue, the insurance isn't gonna pay for injuries due that the candy wasn't sold at this theatre. But the customer is gonna try to sue the theatre company anywho.

2-Health. If a customer who brings in an outside food item or drink, then get's sick on the premises due to the consumption of this and tries to sue, the same thing follows-no insurance coverage since the item wasn't sold at this theatre. Plus, if a food item is more of the exotic side, like a hot sandwich, being brought in and is offered to another customer and that customer gets sick....

-Monte

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Mike Spaeth
Phenomenal Film Handler

Posts: 1129
From: Marietta, GA
Registered: Jul 2000


 - posted 03-21-2005 12:42 AM      Profile for Mike Spaeth   Author's Homepage   Email Mike Spaeth   Send New Private Message       Edit/Delete Post 
We have a "No Outside Food & Drink" policy - however ... it has very little effect on per capita. Century (the only chain I've seen without a policy) has some of the highest per capitas I've ever seen ...

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Adam Fraser
Master Film Handler

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


 - posted 03-21-2005 01:25 PM      Profile for Adam Fraser   Author's Homepage   Email Adam Fraser   Send New Private Message       Edit/Delete Post 
We have an outside food and beverage policy also. When we see it we ask them to take it back to their cars or we will store it for them until the end of the show. Our prices are about average for theatres in our area, but people still sneak stuff in.
Child Pop- $1.00 Small Popcorn-$1.00 Small candy- $1.00 up to
Large Pop-$4.00 and Extra large popcorn $5.00 and Large Candy-$3.00 with sizes in between.

The one time that bothered me the most though was when a family brought an entire pizza dinner, complete with side dishes from a pizza place and was astonished that we would not let them take it into the theatre.

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