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In three years the cost to heat my two theatres has tripled. Without as rapid a rise in theatre going or other income we have very few options other than to take the loss or increase our prices. Even our deliveries for films and concession now have "fuel surcharge". What are you doing as you absorb energy costs that triple and look to continue to rise steadily in teh future?

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Michael Hurley
Impresario

Plus add the increase in costs for popcorn and oil......

But all of us business people are rich you know....at least in the eyes of many customers.

nothing to do about those costs.....

I forgot that the oil price increases lead to ethanol demand and subsidies leading to corn going to ethanol and higher prices for corn in general but also because tractors/trucks/etc. that grow and harvest the corn all cost more to run.

I don't think "there's nothing to be done" really cuts it. if corn and oil and heat and elec and delivery all go up and a lot at that: you have to do something. I'm looking at the options.

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Michael Hurley
Impresario

like?????????

The options are-- cut out shows to save money....never an option as i see it..

Go to air pop corn --no oil needed..(nasty popcorn)

go solar...to much money...
buy your seed at SAMS CLUB AND OIL ..SAVE LOTS ON SHIPPING.

I have already cut out nearly all shipping except for prints. I have cut shows (the reality is some simply dont make money) but beyond that I agree it gets very hard.

As far as heating goes, has anyone considered operating waste oil heaters? Since I have a very large single screen I have been looking into it and I believe it is possible once I get my sprinkler system installed.

The downside is you cant run them while the show is in (at least not the models I am looking at) you would run them before, after and in-between because they are loud. the upside is the fuel is free. I have several junk auto dealers and service garages that will give me all I want. I just need a way to install the heaters, store the fuel, and get the fuel to the storage tanks. Its a steep investment but I'll bet it would for itself in 5 years.

Price increases are inevitable, as long as you put on a good show and arent more than the next guy there is nothing wrong with keeping your prices in line. That doesnt stop public perception though when it costs $50 for a family of four to see a movie.

Roger Detzler
President
IOKA Entertainment Inc

waste oil will become harder and harder to find.

Like what: to me it comes down to raising prices for tiks and concession. I hate to think it/ do not like to do it. But what else is there?

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Michael Hurley
Impresario

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[This message has been edited by Santikos (edited February 21, 2008).]

The local Cinemgaic chain has upped its ticket prices slightly; it was such a small increase that it seems to have had little impact on patronage. Perhaps the best rule of thumb is to make modest price increases with regularity rather than hit the patrons all at once after absorbing cost increases for as long as 'possible.' No need to be apologetic; when's the last time you saw a 'sorry for the price increase' sign at your local gas pump?

A possible option to make price increases go down easier is to upgrade the facility in some meaningful way at the same time. This is an admittedly extreme example, but when Regal abandoned a local 8-plex last summer Cinemagic took over the lease and moved the cinema upscale. They put in a bistro serving alcoholic beverages, a chandelier and player piano in the lobby, converted the auditoriums to stadium and instituted preassigned seating. Tickets max out at $10 for adults in evenings, and even matinees/children/seniors are $8. Unheard-of prices in these parts (Southern Maine) but if this catches on (the jury's still out) perhaps this will create a rising tide of ticket pricing to help other exhibitors in this market hang on through this stagflationary period.

[This message has been edited by cat (edited February 21, 2008).]

Maybe it's time for many of you to take a step back. I don't think the question is "What should I cut?", but rather "What should I add?". Start offering your patrons MORE to increase your business, not LESS. A simple movie, popcorn, and soda just doesn't cut it anymore. People want more. Hannah Montana was a huge hit, for example. Offer food. Alcoholic beverages. Special souvenirs. Two-for-one nights. Pizza. Market your stage. Promote the heck out of 10,000 BC. Whatever brings in more customers to combat the increased costs. Costs increase in EVERY business- theaters are no exception.

The most successful businesses are constantly re-inventing themselves. An old single-screen may "get by" by offering the same thing they always have, but by looking into the future and really offering some great options may easily double or triple business. Then these cost increases have little effect on your bottom line. When costs keep going up and income keeps going down, it doesn't take a rocket scientist to realize that something major needs to happen to reverse the trend... more than simply changing heaters, popcorn oil, or where you buy popcorn!

Many business owners are subconsciously afraid of success and do the minimum just to get by. Cutting shows, offering cardboard popcorn, and raising prices soon seem to be the "only way out" when so many other options are available!

I look at this period as a great opportunity to really beat out the competition big time. While they are all raising their prices (the easy way out) and offering nothing new in return, you keep yours the same and offer them more for their money! It's a win-win for everyone.

As a very popular motivational speaker has said, "Quit whining, get off your ass, and change the world!".

Ironically, I just read an article in the latest Film Journal (March, Pg. 30, "The People Factor") about this very thing!

We actually do most of those things at our theatres besides selling alcohol. I think that anyone who thinks they are going to "reinvent" theselves around and over a triple increase in net energy costs that have yet to truly and fully filter into electric rates and food bills etc. is dreaming.

And that is not to mention when staff starts telling you they need a raise or they cannot commute or heat their home or afford more expensive food. This stuff does not happen in a vacuum.

I think price increase are one of the many answers. Energy management is another. Energy will be one our primary challenges from now on.

My heating bills in two theatres and my home went from 11,000.00 to 34,000.00 in 3 years. To reinvent and create a 23,000.00 net profit to compensate so as to achieve a flat line would mean a net gross increase of 100,000.00 minimum. Heat or no heat: if I could "reinvent myself" into a 100K increase I'd be quite happy to do that regardless. Personally I think 300% energy increases are bad enough without advising people to dance faster! Faster!

I did not notice gas stations keeping prices below their cost and trying to sell more Twinkies and jerky.

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Michael Hurley
Impresario

Wr seem to do everything the most exensive way and it pays off/
We have some of the highest paid employees ($9.00 to $16.00 an hour)Most shifts a manager and projectionist.We buy pre packed seed/oil combos.

Where i save:if its dead a candy /boxoffice selling station combo.
vending costs..get your bag in the box price down ..ThIS YOU CAN DO AND SAVE LOTS.
BUY THE TOPPING AT SAMS CLUB I SAVED $6.00 A GALLON BY DOING THIS.

Slap-
You seem to like to save on concession supplies by talking about your syrup cost and butter topping cost. Go to bulk seed and oil!!! Huge savings.

i know i could save thousands...but...we have the best popcorn ...every batch is the same .........