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TOPIC: How Do You Effectively Get the 90/10 House Allowance Raised?

How Do You Effectively Get the 90/10 House Allowance Raised? 29 Jan 2004 11:07 #7318

  • muviebuf
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As the owner of an older historic theatre my house allowance with many of the distributors for purposes of the 90/10 deal is well below my actual operating overhead.

Whenever I inquire about raising the overhaed figure with a particular distributor, they say put the request in writing with supporting documentation. That I do every couple of years or so. Does it do any good? Not much. Often they do not respond (ignore) the letters (and my overhead stays the same). Sometimes they respond and refuse. Others do raise the overhead some minimal percentage (say 5%) (they claim that it the maximum they will raise at any one time) but often my costs have gone up 7 to 10% in the same time period.

When a new muti/magaplex opens in my area, it seems the distribs assign a per screen overhead which again bears no relation to actual costs. In my area it seems they use a national average for the per screen overhead figure, but since construction costs in my area are somwhat cheaper, it often turns out that these plexs have an overhead figure in excess of their actual oeprating costs (thus assuring they rarely hit the 90/10 deals).

Any suggestions??????
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Re: How Do You Effectively Get the 90/10 House Allowance Raised? 01 Feb 2004 01:25 #7319

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I am given to understand that the amount used to compute the 90/10 overhead for a new multiplex build is $15.00 a seat (and more if stadium.) Can anyone confirm this?
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Re: How Do You Effectively Get the 90/10 House Allowance Raised? 01 Feb 2004 13:20 #7320

  • CharlieBo
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Thats about right,tho companies vary.Getting older house allowances increased is very hard to do.If the theatre hits 90/10 often,you can usually get a raise.
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Re: How Do You Effectively Get the 90/10 House Allowance Raised? 01 Feb 2004 20:15 #7321

  • BECKWITH1
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I can really only commiserate with you. We had the same problem with our single screen. I believe that our house allowances calculated out to $5-$6 per seat. We tried getting it raised but only had partial success. Some of the companies raised it a little bit, while others didn't respond. We used our booker to get this done and so did not contact them directly. We did not have to provide any supporting documentation but we did specify the additional amenities such as digital sound that we added to our theater. I have no idea how the house allowances at our current theater were set but they are all about double the amounts. We figure that it will be a long time before we hit them and so have not taken steps do get them raised. Your post makes me think that we should try to fight this battle every year so that we don't get left behind by the increasing ticket prices/increasing costs of keeping the doors open. But I sure don't want to tackle it if I don't have to. It occurs to me that this is a very successful way of getting older theaters to close as it clearly favors new builds and punishes older, classic theaters. When you start getting those bills 4 months after you sent the movie out that takes all the wind out of your sails. It just prices you out of business.
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Re: How Do You Effectively Get the 90/10 House Allowance Raised? 02 Feb 2004 15:55 #7322

  • Mike
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Argue nicely and debate. Complain and whine. Keep at it. The squeaky wheel gets the grease.

Michael Hurley
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Michael Hurley
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