Opinions on which direction to take for our family business.

[jinkazama]

So my family and I own a small two-screen theater in my town with a population of around 5,000. The theater has been around since 1942, altho it has been modernized to dolby surround sounds, we havent implemented both of our projectors with the new 3D technology..

This is where my question comes into account. The way we do movies is, the newer movie goes downstairs where the auditorium seats around 230 people, once the movie gets older and we get a newer movie in we move it upstairs and once again put the newer one downstairs.

With all of the movies coming out in 3D now, its not really hurting our business but not helping it either. We were looking into putting 3D in our machines, the technology along with a new screen for both up and down stairs is about 40K each, so we would need two installed so around 80K for the equipment and whatever for the installation.

Once again keep in mind it is a small town, and the next closest theaters around about 30 minutes in one direction and 45 in another. Last year we netted about 150,000 in revenue. Sucks I know right.. out of that we have to deduct film rental, inventory, and payroll.. Leaving with substantially less.

So my concern is if we would benefit enough from installing the 3D machines to warrant getting them. I myself dont mind watching 2D movies by any means, I almost prefer them. With our town its mostly locals that we get and they're regulars. Either elderly people coming to watch Mama Mia or some shit, or soccer mom's bringing their whole van full of kids to see How to Train your Dragon or w/e.. Most the teens who can drive much rather go out of town already were there are chain restraunts and bigger and brighter movie theaters.

My question is do you think it would be worth it to install it or not?

[Plow]

Sure, if you don't mind not having any money for the next like 5 years but are super psyched about the extra few hundred bucks you'll make the first week you get a decent 3d movie.

[Nekonaruto]

Just going by the situation you described: not worth it.

Most elderly people have sight problems so 3D won't do anything for them, on the contrary. Also I don't think that it's worth having 3D given your biggest room (if I got that right) only has 230 seats.

And last but not least...3D is overrated anyways, at least in my opinion. The glasses are more annoying than anything and it's just another thing that will need maintenance at some point.

[Serif]

Break even method fool!

How long does your family think it will take to earn back the money from these two screens will take? If it is a short amount of time, I don't see the problem but if it is longer than you want I wouldn't do it.

Or you could always just save up money and buy them cash

Also, won't you have to charge extra money for these showing because of the glasses fee? I think in a small town people will be agitated to have to pay extra.

[Omnipotent]

Start showing porn. In 3D

[Cochise]

Congratulations on sucking 150k a year out of a town of 5k... thats a miracle!

You would be better to market the nostalgia... people hate change...

edit: Also hire TAPS to come out and investigate... Even if they don't find anything you become an instant tourist spot.

[jinkazama]

lol it'll take a hot minute to make back the cash in this town I think.. We have been looking for more locations to put a second theater at, one with a few more screens and by all means then we would get the 3D put in there..

It seems like a lot of movies these days are coming out in 3D and if the pattern continues it will eventually drive out the 2D market so I would assume in 2-3yrs the technology will be forced to come down a bit anyhow and then maybe we can warrant picking it up them.

But yea like Neko said I think the 3D might actually drive away some of our elderly customers from watching movies they would like to see, except not in 3D.

Edit: And yea I agree with you cochise, people come to our theater for the prices and the nostalgic feeling. Thats also another thing I forgot to mention is that our ticket prices right now are 5.00 anytime, so to be able to fund the glasses we'll have to raise our prices quite a bit too and that may in fact hurt us even more than anything.

[Soa]

I get the feeling that 3D is a fad that will die out, seeing as only 1 movie so far has gotten it right, and even then it wasn't that great. When I went to see Avatar in 3D I had a headache after about 20 minutes and was wishing there was a 2D version I could see instead, and I know I'm not the only one.

On the other hand the technology will continue to improve so it might catch on more and more. You seem to have a bit of a monopoly right now so if I were you I'd hold off to see if it catches on or dies out before making that kind of investment.

[SephYuyX]

Depends on the cost. What do you pay for the projectors youre using right now?

As for the losing customers aspect, thats a simple fix. Run 2D during the afternoon/early evening when most older people tend to watch, and 3D during the night. But also offer one 3D during the day, and 1 2D during the night to accommodate people who cant make the other times.

Honestly I think the whole 3D thing is a fad, most people will get sick of it, but if you can get a 3D projector for cheap, id see nothing wrong with it. Ive been working with technology my whole life, and ive learned the hard way to learn never be 'innovator' and it's still risky to be an 'early adopter'. Id personally wait because you know there will be some sort of new version, or major fix, etc, that makes the one you buy obsolete. Granted 3D tech has been mainstream in IMAX theaters since the early 2000s, so on the projector side there may not be that much difference in how 3D works. But idk, ive never bothered reading up on it.

If you can get it cheap, and know you can make it up, and dont mind a loss in profits, then go for it, but I dont see any harm in waiting a bit longer till the price comes down, and we see how stable the 3D industry really is.

You mentioned that people tend to go out of town for more food options, and bigger theaters. Perhapse you should look in to that instead. I know you mentioned something about opening a new theater else where, how about adding an addition to your current theater with a bar and grill so people can also come to eat and drink before/during/after the movie as well?

Always try to look at different angles in gaining customers.

[Ksandra]

here's my suggestion. To get an idea of whether people would like it, take surveys. put it with their movie ticket or something to say "would you have preferred to see this movie in 3-D?" or something along those lines. Obviously not everyone will fill it out, but it'll give you a better idea of what your customers want, vs. what people on bg say who don't go to your theatre.


If it seems like there's enough that warrants getting it, the good idea would be to only do it to the big theatre downstairs. That way, when a movie comes out people can see it in 3d, and for those that don't want it, once it goes upstairs show the 2D version. That'll cut your cost in half for the upgrade if anything else.

[SephYuyX]

While a survey is a great idea to see what customers want, sadly often times customers actually dont know what they want. By the time you do the surverys, find out theyre thoughts, and get a 3D projector, their opinions will probably be different, and they may not want it at all. Asking during a height of a fad can give you some pretty skewed results, however it doesnt hurt to find out what your customers are thinking, there would probably be nothing wrong with asking them what they thought.

[jinkazama]

[QUOTE=SephYuyX;3619857]

As for the losing customers aspect, thats a simple fix. Run 2D during the afternoon/early evening when most older people tend to watch, and 3D during the night. But also offer one 3D during the day, and 1 2D during the night to accommodate people who cant make the other times.

QUOTE]

Its a good idea in theory but the cost of the movies is ridiculously. We dont just give them a flat fee for the rental, we have to give them a percentage of our ticket sales, for example alice in wonderland was

60% First week
40% Second Week
20% Third week..

so if we did 2 prints of big movies like that where sometimes they even require a guarenteed 3K or whatever then we're really taking a huge risk.

[SephYuyX]

Yeah, ive no idea how the theater business works.

Also, dont forget you have to supply 3D glasses, etc, and that will be an extra cost too. Youll also have to raise prices while remaining competitive, so that can also be touchy too.

[Kilhart]

Next nearest theater is 30 mins away?

Don't change anything. People will buy tickets regardless.

[Silviya]

I would say that unless you feel like having the 3D would draw business from those other two towns it's probably not worth it. From what I understand those new projectors are very expensive, and it sounds like you would have a rather large pay-back period with your current revenues.

Personally I do not like 3D movies. I much prefer the 2D versions. As others have said, I too feel like 3D is a fad.

[Plow]

It seems like a lot of movies these days are coming out in 3D and if the pattern continues it will eventually drive out the 2D market so I would assume in 2-3yrs the technology will be forced to come down a bit anyhow and then maybe we can warrant picking it up them

the price will go down


2d elimination though? everybody with glasses would like to say a brief "uh, no, fuck off."



2d won't be eliminated until a typical in-home system is full on virtual placement in the movie world.

[jinkazama]

yea like I highly doubt we'll be able to get it anytime soon atleast not until it drops in price..

Still kind of embarassing having people come up and be like "WTF the commercial said this was 3D" its mainly the commercials and advertising that puts us in a bind..

For example the new "Clash of the titans" preview at the end says

Clash of the Titans
-3D-
2D in select theaters..

it used to be the other way around lol

[SephYuyX]

Just tell them that if theyd like to see 3D they can expect to pay an extra $10 + glasses cost, and then ask if theyre ok with that.
Customers are dumb.

[Olo401]

Well to be honest I don't think the 3D thing will be around very long. I seriously think it's a fad like it was the first time...

.. so try this - if you can find a way to lease the 3d equipment on like a year basis, go for it. That way when the fad dies you can just not renew your contract and can just return the equipment.

[Takedown3]

do NOT do 3d for the love of god