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TOPIC: vpf drove the costs up?

vpf drove the costs up? 05 Sep 2012 20:23 #39111

  • Mike
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There is an interesting debate right now about the cost of college education wherein the Pell grants and easy access to loans it is argued that they have driven the costs higher and higher as colleges have no incentive or reason to keep costs down. Isn't that what the vpf did? Kept the cost of digital systems high? I am hearing there is a 1/2 price digi projector coming soon. I don't believe it as yet but I do think you will see huge price drops. Or did it create the vehicle that made the companies who build the stuff invest in the new gear? Either way: when the VPF goes away in 25 days it will be a brand new world.
Michael Hurley
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vpf drove the costs up? 10 Sep 2012 21:07 #39155

  • Andrew Thomas
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I think it's pretty much a guarantee that the VPFs held prices higher than they should be at this point. I know the two VPF programs we looked into both required minimum average costs in the 60k range. Ridiculous as we were quoted $52k per screen for our theater! Now with the S2K platform, we will be able to spend closer to $30k per screen.
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vpf drove the costs up? 10 Sep 2012 22:40 #39156

  • lionheart
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Seems like anytime there is more money to be had, somebody is going to go after it.

More examples:

1. Health insurance drives up the cost of health care. Sometimes doctors will charge less if you don't have insurance, but since most people who visit the doctor have insurance, the doctor won't leave anything on the table. Usually, they will charge even more than contracted with the insurance company, so that when they are told they can't charge that much, they will get a write off too.

2. If you are a business setting up utility services, they will charge you more than if you are an individual setting up a residential service. I boldly asked one utility company rep why they charged more for my business account when it didn't require any additional labor or expense on their part. The answer was, "Because the law says we can." And, probably because they believe the business has deeper pockets to get into.

3. A person goes into an automobile dealership dressed in designer clothes and already driving an expensive car. This person tries to bargain for a car for another family member, but ends up paying more than the guy who drove his 10 year old economy car and wore his blue jeans and baseball cap while doing the same thing. (This one is fictional, but I know that is what is going to happen in such circumstances.)

4. Now, a successful theater goes shopping for new digital projectors. And on top of that the company selling and the one making the projectors knows the theater company has some "rich unlces" who are film distributors who are going to help them pay for it. Do you think the theater is going to get a break on the prices? Only if they agree to buy very many. Do you think the less successful theater who asks for a lower price is going to get it? Well, maybe if the people selling the equipment know that this is the only way they are going to get the less successful or smaller theater's business. But this won't happen until late in the gamge because the equipment sellers aren't willing to show their cards until after most of the bigger money has already been raked in.
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