Sunday, July 1, 2012

Is Regal Cinema Government Owned?

I’m a bit cheesed out over taking my grandkids to see Madagascar 3 in 3D.   I know that you pay a surcharge for 3D but I still feel that Regal Cinema’s charge of $28.00 for a senior citizen and 2 under 10 kids is crazy exorbitant.  

What is even worse is that I had a free ticket but that only took off $6.00 from the original price of $34.50 for three and got us way down to $28.00.   Now giving credit where credit is due, the young lady at the snack bar did advise me to get the $8.00 bucket of popcorn which held more than two medium bags of popcorn and was cheaper than two medium bags of popcorn.   The bucket also had a free refill which we did not utilize.  

Admittedly none of my graduate degrees are an MBA but…there were 9 of us in the theater the morning we saw the movie.   So at approximately $9.00 per person that was $81.00 (approximately) of ticket income.   I will hazard a wild guess of 300 seats in the theater.   If they sold 100 seats at $1.00 they would have netted $19.00 more than selling 9 seats at $9.00 each.   So if we triple that at $3.00 per person and assume the lower ticket price would encourage more attendance, we get a $219.00 increase in profit on that showing.   Take the 8 or 10 theaters that are in the building or 15 for all I know and you can see that logic infers that a lower ticket price would fill more seats and generate more profit.

Perhaps charge $6.00 per person at peak times to push more patrons to off hours at a lower price and you generate still more profit.   So are Regal Theaters specifically and movie theaters generally owned by the government and designed to lack profitability.   Or is it just easier to clean up after 9 people than 100 and the heck with the increased profit.

I wish I knew but I know I would take my grandkids for more movies if it was $12 or $15 than $34.50. 
If reviewing a product, it may have been received free of charge. That will NEVER have a bearing on my recommendations.

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