Film-Tech Forum ARCHIVE: Rounded to the Nearest .25?

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Posted by Matthew Deppe (Member # 2110) on 01-05-2004, 05:32 PM:

I have been reading this forum for 6 months now and have found it very helpful. So thank-you all for that.

I am wondering about concession pricing. At our theatre we add tax to the listed price of our concessions. Is this a common practice in the business?

I cannot help but think that lines would move faster and drawers would be more accurate if the cashier only needed to work with cash and quarters. It would also eliminate some work from the bank change orders.

I guess I am looking for your opinions. I am in the process of working out a written proposal to change our prices to .25 cent amounts and could use some input.

Posted by Steve Kraus (Member # 476) on 01-05-2004, 05:55 PM:

No point in having whole-quarter pricing unless you also move to tax-inclusive posted prices unless you post oddball prices which turn into whole-quarter prices when tax is added. Quoting a nice even price...then adding tax...then rounding up to the next quarter is probably going to land you in legal difficulty.

Posted by Matthew Deppe (Member # 2110) on 01-05-2004, 06:04 PM:

Sorry I guess I was unclear.

Our current prices are something like 2.50 for a small pop or corn, 3.00 for a medium pop or corn, . . . upon which tax is added. Bringing the totals to 2.68 and 3.21 respectively.

Would it be helpful for our bussiness to have tax inclusive prices? So changing to something like 2.75 for a small pop or corn and 3.25 for a medium.

If that were the case then we still would have no need for dimes, nickles, and pennies for change. Hopefully allowing the transaction to go smoother and quicker.

Posted by Brad Miller (Member # 2) on 01-05-2004, 06:07 PM:

Yes, yes, yes. Only dealing with quarters makes the line move a LOT faster. Shorter, faster moving lines means more customers are apt to visit the concession stand, and oddly enough you're making a few extra cents on the deal too. Just list as "$3.25 tax included", not $3.04

Posted by David Stambaugh (Member # 1102) on 01-05-2004, 06:25 PM:

Seems like there would be a slight psychological advantage too. The customer won't think "$3.00 PLUS TAX for a popcorn??!!". Since concession prices are already high to begin with, to me it just goes over better if the sign says "Tax Included" so I don't have to think to myself "Geez, the prices are high enough as it is, and I still have to pay sales tax besides".

Posted by Trevor Bailey (Member # 75) on 01-05-2004, 08:07 PM:

The first theater I worked at had "tax included" pricing and the only coins we got from the bank were quarters. That was such a logical method, that it had to be changed!! So, to make those few extra pennies, the next price increase simply changed the menu board to read "plus tax". From then on, the lines were slower, and we never looked back. That's what happens when someone at the home office making decisions has never been in the field. [fu]

Posted by Robb Johnston (Member # 239) on 01-05-2004, 09:21 PM:

You may want to check certain state and municipality codes for pricing. Some areas may require to list the pretax price. I have scene menu boards where they have the even quarter pricing in inch tall letters then in smaller type underneath they list the pretax price and amount of tax. this was required by code or law or something.

Posted by Jason Burroughs (Member # 68) on 01-05-2004, 10:06 PM:

Rounding off to the nearest quarter made SO much more sense (and cents too) than adding tax to an already odd price. While working for UA many eons ago, tax was included and everying was on the quarter. The concession lines on those old cafeteria style concession stands moved along pretty well. Plus it was more frequent for the cashier's to be dead even.
Change over to annother chain such as AMC, Tax not included lines were always long, incorrect change always being given, cashier have to take longer for each transaction both when giving change, and when recieving 97cents in change.

Only takes a few brain cells to rub together to figure out that having prices that end on the quarter and include tax are the way to go, both for customer service and the bottom line.

Posted by Jonathan M. Crist (Member # 413) on 01-05-2004, 11:34 PM:

In Pennsylvania, our state sales tax law requires that all item prices be stated seperately with the sales tax then seperately listed on the receipt as an add on. You are not allowed to post (or collect) such a price as 3.75 (tax included).

It would be advisable for everyone to check their individual state (and in some cases additional local) sales tax regulations reqarding this issue.

Posted by Adam Fraser (Member # 1074) on 01-06-2004, 12:02 AM:

We do to the quarter and to the dollar pricing including tax, makes the line move much quicker. 400 Customers @ 2.50 per cap in 1/2 hour with 2 experienced people behind the concession is not a problem with this pricing.

Candy
1.00 Normal Candy Bars
2.00 Theatre Packs/King Size
3.00 5-8 oz candy

Popcorn

1.00 24 oz
2.00 46 oz
3.50 85 oz
5.00 130 oz

Pop

1.00 12 oz
2.00 16 oz
3.00 22 oz
4.00 32 oz

Posted by John Hawkinson (Member # 1135) on 01-06-2004, 12:31 AM:

Adam, your pricing there is a bit curious...most vendors give a price break as you buy more...but in your case, the $2 popcorn is less popcorn than two $1 popcorn tubs? [Confused]

--jhawk

Posted by Matt Hale (Member # 1518) on 01-06-2004, 01:11 AM:

Not to be a killjoy but I never have a quarter when I need one, or two or three. If you charge me x.25 for something you're probably gonna get two dimes and a nickel or (more likely) one dime and fifteen stupid pennies.

So while keeping everything rounded to the nearest quarter is a great idea for speed, efficiency and customer service dont go removing the extra slots from you change drawers - you will have to deal with people like me.

Posted by Carl Martin (Member # 1146) on 01-06-2004, 01:54 AM:

and rememer, you may need to keep a couple of nickels as change, for troublemakers who hand you 3 dimes in lieu of a quarter.

but yeah, go with 25 cent increments in the final price if you possibly can.

carl

Posted by Mike Olpin (Member # 1115) on 01-06-2004, 03:22 AM:

Naw, Carl. Just tell them you don't have any nickels. Most of the time they'll just tell you not to worry about it.

Bam! 5 cents extra profit!

Posted by Steve Kraus (Member # 476) on 01-06-2004, 08:38 AM:

Wasn't it the late great Cineplex Odeon ten years back or so that changed from inclusive pricing to plus tax? Maybe around the time they went through the real butter / fake butter cycle.

Posted by Jason Burroughs (Member # 68) on 01-06-2004, 09:09 AM:

Around 1992 Cineplex was Price + Tax, but then they also charged for butter or "topping". Not just extra topping, but topping period, and concessionist were required to push the topping sale.

Even if the tax is not included on the menu board, its not hard to price them so that the price comes out to a nearest .25 after taxes, just like they do at the box office.

Posted by Kevin Wale (Member # 1851) on 01-06-2004, 09:20 AM:

quote:
Not to be a killjoy but I never have a quarter when I need one, or two or three. If you charge me x.25 for something you're probably gonna get two dimes and a nickel or (more likely) one dime and fifteen stupid pennies.

That happens from time to time, but the VAST majority will just give you dollar bills waiting for thier quarter in change. All the theatres I have worked at had the tax included in the price with all prices being in .25 increments. 95+ percent of the people do this. In fact, I would venture to say that 99+ percent of the people do this. Especially people who frequent the theatre. They get to know what works best. We are not the only ones who react to things.

Posted by Thomas Procyk (Member # 1170) on 01-06-2004, 09:39 AM:

And if someone gives you non-quartes, no big deal. We got a lot of senior citizens at a theater I worked at in South Florida. Out box office was always rounded to $0.25, but we'd get the charming little grandmas that would open their knit change purse and dump out a bunch of nickels! I would sort these out to $0.25 piles in the remaining drawer slots and use them to give change to the next customer. Usually by the end of the day, you're left with only quarters as coins.

=TMP=

Posted by Michael Gonzalez (Member # 593) on 01-06-2004, 02:10 PM:

All we ever seem to get is twenty dollar bills. A customer will pay for their one ticket with a twenty and will be given change. They will then pay for their concession with another twenty dollar bill. Needless to say we go through change like crazy in concession and boxoffice.

Posted by Adam Fraser (Member # 1074) on 01-06-2004, 08:09 PM:

John,

The oz indicator on popcorn tubs doesn't directly correlate to the amount of popcorn in the tub, it must have something to do with the shape. I can pour 2 smalls into a medium and still have room at the top to add more, so the pricing is close to the same per oz.

I know our pricing is not scientific, but it just ended up that way with rounding off which I guess is one of the drawbacks of the system. When people ask we do tell them the oz sizes of pop or popcorn so they can figure out where they could save a few cents here or there.

[ 01-06-2004, 10:56 PM: Message edited by: Adam Fraser ]

Posted by Darren Crimmins (Member # 1116) on 01-06-2004, 08:51 PM:

"Bam! 5 cents extra profit!" ...To the concession worker! [evil]

Posted by Kris Brunton (Member # 432) on 01-06-2004, 08:53 PM:

I always liked the pricing rounded to the nearest quarter. It is easier for concession staff to add totals in their head and easier for the customer as well.

Posted by Barry Floyd (Member # 385) on 01-06-2004, 11:35 PM:

We use 0.25 stepped pricing too... tax included. My wife has some spreadsheet that backs out the taxes at the end of the night.

In our cash drawer... we have both QUARTERS and HALF DOLLARS. You should see the look on their face when you hand them a half dollar.

In our boxoffice, we give the gold "dollar coins" as change.

Posted by Daryl C. W. O'Shea (Member # 1303) on 01-07-2004, 12:08 AM:

quote:
In our boxoffice, we give the ... "dollar coins" as change.

I do that too. [Wink]

Posted by Erick Akers (Member # 875) on 01-07-2004, 12:43 AM:

Daryl,
Sounds like you're a loonatic [Devil]

All this from a Country that makes magnetic quarters. [Roll Eyes]