Sneaky Ways Movie Theaters Get You To Spend More Money

So, I just saw the new "Spider-Man." The ticket cost $12, my popcorn was $8, the candy was $4.50, and my soda was $6. That's over $30 for just one person. Movie theaters are like theme parks or carnivals. Once inside, you play by their rules. And if you're like me, you spend way more than you expect to. But, my friend, there's more to this story than meets the eye.

The Movie Ticket Mirage

AMC isn't really selling you a movie ticket. They're selling you this food. You can't get in here without spending money. It all starts with the ticket. You might have heard that movie-ticket prices keep climbing, averaging over $9 nationwide, and almost twice that in big cities. Going to see a movie means you have to spend at least the cost of admission. But if you think that money is going to the theater, you're wrong. Chains like Regal and AMC keep only about 50% of the money they take from ticket sales each year. The bulk of that ticket price goes back to the distributor.

The Seduction of Concessions

Movie theaters have mastered the art of temptation, starting with the moment you step inside. Kim Moon, a marketing instructor at the University of Illinois at Chicago, emphasizes the essential role of concessions. She says, "If they did not have concessions, they wouldn't be in business."

Most movie theaters are designed so you have to walk past the concession counter, which is strategically positioned to visually and psychologically entice you. The bright, colorful, and tantalizing displays of popcorn, candy, and soda machines are hard to resist. And then there's that intoxicating smell of buttery popcorn, pulling at your heartstrings and evoking a sense of nostalgia that makes you indulge in treats you wouldn't consider at home.

The Concession Price Trap

It's not just the allure of the goodies; it's the pricing that gets you. At the concession counter, you'll discover that all items are more expensive than what you'd pay outside the theater. You may be tempted to go for a larger size because the price difference seems negligible, but in reality, you end up spending more than you intended.

Furthermore, the theater leverages price discrimination by offering deals like "buy one, get one free," free upgrades, and free refills, encouraging you to spend more than you originally planned. While these deals might look enticing, they're often designed to make you buy more than you need, resulting in both wasted food and money.

The Hidden Profit in Your Popcorn

Believe it or not, the theater makes a more significant profit on concessions than on your ticket. In 2018, 62% of AMC's total revenue came from admissions, while 31% came from concessions. However, AMC was able to keep almost 84% of that concession revenue as profit, compared to just under 50% from admissions. They do whatever it takes to get you to spend more on food, offering combos that may not be as great a deal as they appear.

The Movie Theater Mind Games

Movie theaters are masters of psychology. They list movie start times earlier than the actual start to encourage you to spend more time in the lobby, where you're more likely to give in to temptation. The longer you sit through ads and trailers, the more inclined you become to purchase that box of candy or a refreshing soda.

Rewards, Discounts, and Loyalty Programs

The theaters go even further by enticing you with rewards, discounts, and loyalty programs. Accumulating points for each dollar you spend motivates you to buy more than you normally would, bringing friends and family to pay full price. They're not content with your attention only when you're at the theater; apps give them 24/7 access to your attention and allow them to send push notifications with promo details.

So, should you give up on the movies altogether? Of course not! Going to the movies is supposed to be fun. But it's essential to make sure the movie you're seeing and the food you're eating are what you genuinely desire, not just what's been constantly advertised to you. These tactics are most effective at large chains like Regal or AMC. Consider visiting a local theater for cheaper concessions and tickets. And if you're looking to save some money, Kim Moon has some straightforward advice: "Eat before you go."

In conclusion, while movie theaters have their tricks to make you spend more on concessions, you can still enjoy a night at the movies without breaking the bank. So, the next time you head to the cinema, make sure you're in control of your choices and not lured by the theater's clever tactics.