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TOPIC: HOUSE ALLOWANCE

Re: HOUSE ALLOWANCE 06 Jul 2002 12:42 #16193

  • BECKWITH1
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Little did I know when I bumped this back up in February that I was about to get nailed.

Yup!! I have now been sent a bill by FOX!!! for the 90/10 on Ice Age. The real trouble seems to have been that our week 3 was too good. It was spring break and we got a similar gross on both weeks 2 & week 3. They got me for weeks 1 & 2 as well but the real damage came from week 3.

Now I know that my house allowance is $1750 - not previously known by me. Of course it is too low and we will try to do what we can to get it raised on Monday when our booker is in. Based on Roxy's comments about Fox I wonder if it will do any good or not.

It seems that in this business there is always a surprise lurking around every corner. Sometimes it is good and sometimes it is a bad surprise like this one, but a surprise nevertheless.
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Re: HOUSE ALLOWANCE 06 Jul 2002 12:52 #16194

  • sevstar
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I had discussed this with my booker awhile back. And at the time he suggested starting with a $10.00 per seat figure as a starting point. Of course depending on each theatre's specific expenses your own milage may vary. Thought I would pass that along as an FYI.
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Re: HOUSE ALLOWANCE 06 Jul 2002 18:55 #16195

  • Mike
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In my experience they never go back. The time to renegot your house nut is when they don't have any of your money! Discuss it when it's deadsville!

Michael Hurley
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Re: HOUSE ALLOWANCE 10 Jul 2002 02:18 #16196

  • Bird
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We got nailed on Ice Age weeks 1-3 also! Our Fox H/A was low compared to some others, and so we took a nice hit. However, because of that hit, my bookers got it raised in time for Episode 2. Becasue of this, we saved alot of money on weeks 1 & 2 of Star Wars.

We had some luck with Sony also, knowing they were going to have many huge films this summer, I had my booker work on our Sony H/A a few months before Spiderman opened. They raised us very high, and because of that we never had to pay our H/A with Spiderman, nor will we have to for the first week of MIB2.

The sad part is that our Warner Brothers H/A is one third of what our Sony H/A is, so we got stuck with the first week of Scooby.

Yes, it is a good idea to have your bookers work on your House Allowances for you, as the studios would like for our H/A's to stay as low as they were 15 years ago!
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Re: HOUSE ALLOWANCE 05 Apr 2004 12:12 #16197

  • leeler
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Well, I've been hit by it now a couple of times. The first time it was for running the show a few extra times over the holidays but I got hit just because we did really well a few weeks back. My house allowance with Fox is $896. That's ridiculous. Any new stories out there on raising the house allowance?

"What a crazy business"
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Re: HOUSE ALLOWANCE 05 Apr 2004 17:04 #16198

  • outaframe
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LEE <> Yes, that $896 house nut is lame!... But, NOW it's nearly carved in stone, and you're going to have a hell of a time getting it raised!... You SHOULD have fought tooth and nail to get something realistic when you contracted, BEFORE you opened... Yes, hindsight is always 20-20, and when you're trying to get the doors open it's easy to let some things slip, BUT this could haunt you for years!... This is probably going to a tough nut to crack: all you can do is keep trying... The squeaky wheel gets the grease, so camp on their doorstep and demand, complain, beg, and whine!...

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Re: HOUSE ALLOWANCE 05 Apr 2004 20:03 #16199

  • CharlieBo
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In my experience,Fox has been one of the easiest companies to raise H/A.Show how many times you have hit 90/10 vs 35%-this is the real key.I've gotten raises of as much as 20% from them.Still not much,but it will help.
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Re: HOUSE ALLOWANCE 17 Jul 2005 11:25 #16200

  • BurneyFalls
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Just got hit again. My house allowance at one time was 2520. Just this month I played a film of theirs and they lowered the house allowance to 1500. I hit and and got a bill. I called and said my house allowance was 2520 and you lowered it to 1500. He said he would raise it (not retroactively) to 2000. I am going to find a statement that lists it as 2520 and send it to him. He also said my second theatre didn't have a house allowance and assigned it 2500. Seems strange since that theatre is open fewer days and usually underperforms the other one.
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Re: HOUSE ALLOWANCE 17 Jul 2005 16:22 #16201

  • muviebuf
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For newer multiplex theatres house allowance is so much a seat.

For older theatres it seems they use a dartboard and whatever number the dart hits is what you get. Getting a HA assigned to an older theatre is probably better than taking over an older theatre with an existing one.

In my 30+ years of doing this getting a HA raised on older theatre is the hardest thing I have encountered. I imaginge that my repeated letters seeking to raise my house allowance for my theatre have lined several dozen exhibitor's trash cans! I assume that is what they must do with them since they tell you to put it in writing and then never bother to reply.

[This message has been edited by muviebuf (edited July 17, 2005).]
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Re: HOUSE ALLOWANCE 18 Jul 2005 12:14 #16202

  • Mike Spaeth
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Running former Regal houses ... we have never had a house allowance issue. I have some house allowances as high as $21.05/seat.
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Re: HOUSE ALLOWANCE 19 Jul 2005 12:16 #16203

  • Mike
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I wish I hit the 90-10 a little more often.

I generally just negotiate terms. Is there an advantage to terms when using the house nut?

"I'm the house nut around here."

Michael Hurley
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Michael Hurley
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Re: HOUSE ALLOWANCE 26 Jul 2005 06:29 #16204

  • zedpha
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Out of curiosity how many people factor in routine maintenance when calculating their nut?

I'm out, Zedpha
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Re: HOUSE ALLOWANCE 26 Jul 2005 21:59 #16205

  • RoxyVaudeville
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Of course, factor in routine maintenance as it is a regular part of your cost of doing business.
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Re: HOUSE ALLOWANCE 17 Oct 2005 01:57 #16206

  • BurneyFalls
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I still don't understand how they can arbitrarily lower my house allowance. I sent him a copy of an old statement with the H/A listed as $2520. No response. This week I get the "agreement" for this week's movie and it says H/A $2000. That is chicken.
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Re: HOUSE ALLOWANCE 17 Oct 2005 03:19 #16207

  • outaframe
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Yes, Burney, it is arbitrary and unfair, like so many other things in this business... The unvarnished truth is that house allowances are accepted or rejected at the whim of the distributor, and that most are a negotiated figure: you submit an inflated cost and they send back a reduced figure, and then you argue and bargain to get that raised... The final figure usually has no basis in fact, and the best you can hope for is to get it as high as possible... It's an insider thing, they accept bloated figures from the chains, but push the little independent around... This is one of those instances where IF you use the services of a booker with a large number of accounts, he can sometimes push through a figure for you that may look acceptable to them in line with his other accounts, but when you submit the very same figure yourself they will reject it... All you can do is just keep nagging 'em till you wear 'em out!...
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