+307 Movie theaters are some of the most overpriced businesses ever. I'm talking about when you want snacks. $5 for a small box of candy that I get get at the dollar store? Seriously? $8 for a pretzel? Even if you get a small size of something they price it so high it might as well be a large. They're robbing people blind, no wonder people sneak their own food in. amirite?

by Anonymous 12 years ago

It's captive market pricing and it is very effective.

by Anonymous 12 years ago

How is it effective? Almost no one buys the food. Shouldn't effective be where supply meets demand?

by Anonymous 12 years ago

Clearly enough people purchase concessions, because that is how theaters stay in business. It is effective because it creates enormous profit margins, especially on the two biggest sellers -- soda and popcorn. You don't need a high demand with that such a large benefit-cost ratio.

by Anonymous 12 years ago

Yeah ok, I guess you are right. But they could make more money of supply met demand for candy sales... Seems smarter to sell NOT as high if demand isn't that great

by Anonymous 12 years ago

I'm sure the most profitable theaters do reach a supply-demand equilibrium. If a theater finds that only 25% of patrons purchase concessions, they are not going to maintain a supply enough for 100% of patrons. They will drop their supply to meet the demand. Dropping prices only works if the increase in demand is higher than the drop in profit margin. Since almost all captive market entities (theaters, sporting venues, theme parks) follow the same pricing strategy, it's safe to say that overpricing is more profitable than price cutting.

by Anonymous 12 years ago

They need to though because they make next to nothing from the actual movies.

by Anonymous 12 years ago

We just stop by Walgreen's on the way to the movie, buy 3 for $3 boxed candy and then sneak it in the movie theatre in my mom's purse

by Anonymous 12 years ago

this is how it is everywhere. it's so crazy..my dad works at a can factory & said it costs them 45 cents per beer & it's sold (at least where i live) for $5 a can

by Anonymous 12 years ago

Well most of the money probably comes from popcorn, because I don't anyone who sneaks in popcorn to a movie.

by Anonymous 12 years ago

Pretty much all the money from the tickets goes to the people who made the movie. The theaters basically survive on snack sales.

by Anonymous 12 years ago

There used to be a "Dollar Movie Theater" in the mall where I live, so they made up for $1 tickets with $8 popcorn.

by Anonymous 12 years ago

You live in the mall? How awful!

by Anonymous 12 years ago

It's not so bad. Although people keep showing up uninvited to raid my closets and buy all my food. No matter how hard I try, I just can't get them to leave. But then all of a sudden at about 8:30 pm every night everyone starts filing out, my clothes stuffed into paper and plastic bags, and by 9 I'm alone again. I still haven't figure it out hmm

by Anonymous 12 years ago

Aww man, I'm so sorry.

by Anonymous 12 years ago

I work at the movie theatre and I find it hilariously ironic that the people who complain the most are usually the people who buy and spend the most.

by Anonymous 12 years ago

Well I'm not one of those people.

by Anonymous 12 years ago

forget candy, where I live Taco Bell is right next to the theater. I just grab 2 tacos and bring my own soda. edit: my captcha was be careful. lol.

by Anonymous 12 years ago

On a similar note one of my teachers who used to own a restaurant told us that we get ripped off like crazy when buying soda. For a 20oz drink it costs the restaurant about $.17 for each fill and even just for a $2 drink you'd have to stay all day and get refill after refill just to break even. That's why I never get soda when we get fast food unless it's part of a combo or something

by Anonymous 11 years ago