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TOPIC: Percent revenue

Percent revenue 19 Mar 2004 12:05 #24330

  • Twood
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Hi I'm fairly new to this site. I have read a majority of what is posted already, but I have a question about what percent of my revenue will be net income. I have not opened a theater yet and have done a lot of research. I want to verify some numbers though. Here they are:

number of potential customers: 89,985

Average dollar amount spent per year: $68.00

This makes the market potential: $6,118,980.00

The real sales however are more like 74% of that: 4,528,045.20

I have 2 competitors:
1 with 14 screens, the other with 5

My estimated market share of these two are:
1. 60%
2. 40%

I believe that I can get some of this away from them:
1. 30%
2. 15%

This would make the market share look like this:
1. 30%
2. 25%
3. 45%(me)

My sales forecast then is: $2,037,620.25

I was wondering what percent of this might I expect as profit? Also, do these numbers seem to add up right? Thanks for all of the help, and I thank everyone who keeps this site up and running. It is great.

--Twood
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Re: Percent revenue 19 Mar 2004 13:15 #24331

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If your population is 90,000 and you have 18 existing screens, it looks like you are over-screened. NATO and commercial theatre companies think that 10,000 people per screen is a nice number for profitability. Some of us little guys can squeeze out profit from as few as 5,000 per screen.

In that situation, I might try a Specialty Cinema. But you have to make it different, show different film or offer something unique.
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Re: Percent revenue 19 Mar 2004 22:10 #24332

  • wimovieman
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I am wondering how many screens you are planning, as the 18 screen has the luxury of having room for almost anything good.

Also makes me wonder on how it works when more than 2 theatres are in a competative market--I know with 2 it is sort of every other movie--is it every third when 3 are involved?

I am glad I don't have that worry
I am one of those that "squeeze a profit from as few as 5000" (and actually much less--but I am only theatres in the towns)
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Re: Percent revenue 20 Mar 2004 01:02 #24333

  • Twood
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I have a strategy to deal with these competitors. They have some extremely major weaknesses that will help me. What I am looking for is an average percent of the revenue that can be expected as profit.

--Twood
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Re: Percent revenue 20 Mar 2004 01:11 #24334

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Guys I'm sorry I just found my answer in a recent post. My mistake. Thanks anyways.

--Twood
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Re: Percent revenue 20 Mar 2004 08:42 #24335

  • mumbog11
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hello:

you may want to talk to a booker, b/c even though they have some major weakness, they still might kill you with product, ie you won't be able to get good movies.

/mumbog11.
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