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?

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

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

Anonymous +12Reply
@It's captive market pricing and it is very effective.

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.

Anonymous +4Reply
@It's captive market pricing and it is very effective.

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.

Anonymous +3Reply
@It's captive market pricing and it is very effective.

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

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

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

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

LittleReds avatar LittleRed Yeah You Are +10Reply

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

ScottyDs avatar ScottyD Yeah You Are +3Reply

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

PurpleMonkeyss avatar PurpleMonkeys Yeah You Are +3Reply
@PurpleMonkeys There used to be a "Dollar Movie Theater" in the mall where I live, so they made up for $1 tickets with $8 popcorn.

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 smilie

PurpleMonkeyss avatar PurpleMonkeys Yeah You Are +2Reply

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

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.

Anonymous 0Reply

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.

Anonymous 0Reply

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

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haha it's not as easy as you think! one time my friends and i were trying to sneak in coffee so we placed the cups in a shopping sack. right before we went in, they spilled through the bag onto the floor, with our luck, right in front of the manager of the theatre. he got pretty pissed. so i guess it all depends on how carefully you plan it :P

fj95s avatar fj95 Yeah You Are 0Reply

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

DanniDolphins avatar DanniDolphin Yeah You Are -2Reply
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