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So, I just saw the new "Spider-Man".
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The ticket cost $12, my popcorn was $8, the candy was $4.50, and my soda was $6.
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That's over $30 for just one person.
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Movie theaters are like theme parks or carnivals.
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Once inside, you play by their rules.
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And if you're like me, you spend way more than you expect to.
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AMC isn't really selling you a movie ticket.
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They're selling you this food.
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You can't get in here without spending money.
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It all starts with the ticket.
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You might have heard that movie-ticket prices keep climbing, averaging over $9 nationwide, and almost twice that in big cities.
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Going to see a movie means you have to spend at least the cost of admission.
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But if you think that money is going to the theater, you're wrong.
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Chains like Regal and AMC keep only about 50% of the money they take from ticket sales each year.
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The bulk of that ticket price goes back to the distributor.
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And if you want to see higher-quality format, you have to pay a huge premium.
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But it doesn't really matter how much your ticket costs, because if you're going to a movie theater, chances are you're buying some food.
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AMC reports that more than 71% of attendees purchase something at concessions.
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If they did not have concessions, they wouldn't be in business.
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That's Kim Moon; she's a marketing instructor at the University of Illinois at Chicago.
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And she's right.
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Without concession sales, both AMC and Regal would not make a profit.
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So, when you walk into a theater, you will see tons and tons of imagery, as it relates to food and beverage.
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Most movie theaters are designed so you have to walk past the concession counter.
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The actual movies are tucked away down long, dark hallways.
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But as soon as you get inside the theater, the food is bright, colorful, and, thanks to the glass case, visible at every angle.
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You can see popcorn popping, stacks of candy, and giant soda machines.
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The big, huge boxes serve, sort of, like, a billboard effect.
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They're enormous and... and, so, calling out to you more than an appropriately-sized box.
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When you open it up, though, it's about the same amount of candy in there as a small box that you might find at the drugstore.
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All of this is surrounded by TV screens that loop beautiful shots of soda and popcorn.
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Food is constantly grabbing your attention.
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Unlike a restaurant, where the food is prepared out of view, a movie theater makes everything right in front of you.
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Visually taking over the space, they also are physically taking over the space; it's really hard to get around it.
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You kind of have to stop, figure out where you're going, and, in the process, you're being exposed to all that stimulation.
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We're queuing people, psychologically, to want something.
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And then there is the smell.
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Ugh, that heavenly smell!
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Ingrained in every moviegoer's brain is the smell of buttery popcorn.
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This smell gets your attention as soon as you walk in and evokes a sense of nostalgia.
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You probably don't eat a tub of popcorn and a box of Buncha Crunch at home, but here, you do.
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And in bigger theaters, there might even be multiple concession areas.
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If your auditorium is on a higher floor, get ready to pass by two or three tempting displays.
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And because no outside food or drink is allowed, if you want to eat something during your two-hour movie, you have to get it at the theater.
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OK, so you want to buy just one thing, something small and cheap.
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Well, good luck.
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All of the items at concessions are more expensive than what you would pay outside the theater.
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And, often, you can't even find a small size.
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So you have to choose between regular and large.
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What does regular even mean?
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The large seems like a better deal; It's only a dollar more.
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So you may be tempted to spend a little extra.
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And if you're going to eat all of that salty popcorn, you're probably going to get thirsty.
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So, you'll buy a drink, too.
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And that's great news for the theater because all of the food sold at concessions has a huge profit margin.
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That means they're cheap to make but are sold at a high price.
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Remember that $8 popcorn?
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Theaters make a lot more on that bag of popcorn than they make on your ticket.
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Let me show you what I mean.
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In 2018, 62% of AMC's total revenue came from admissions, 31% was from concessions.
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But AMC was able to keep almost 84% of that concession revenue as profit, compared to just under 50% that they are able to keep from admissions.
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Basically, if you spend $1 on food, AMC keeps 84¢.
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But if you spend $1 on a ticket, it keeps only 50¢.
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So it will do whatever it can to get you to spend more money on food.
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Buy one, get one free; free upgrades; free refills; what they're doing is using price discrimination.
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That means they'll offer you a greater value with a larger size.
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The margins aren't as good, but the theater is still getting more of your money.
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And movie theaters love to offer combos.
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Popcorn with soda, a hot dog with fries, candy and a slushy... pretty much any combination you can think of.
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Unfortunately, those combos usually aren't a great deal.
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Unless you're sharing in a big group, you'll probably be stuck with more food than you can eat and free refills that you won't use.
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They end up wasting a lot of that popcorn, but, most importantly, they end up wasting that money.
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Many theaters have also started offering things like alcoholic beverages and full meals.
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These might bring a better experience, but they also allow theaters to charge an even higher premium.
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Like this AMC deal that offers a hot dog, curly fries, and a chocolate-chip cookie for $13.
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Combine all of this with bright-red colors, warm lighting on the food, and brand tie-ins, and it's tough to walk away from the counter with just one thing.
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But the tricks don't stop at the lobby.
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Theaters list movie start times that are 15 to 20 minutes earlier than when the movie actually starts.
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This helps the theater in two ways.
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It allows them to show more commercials before the trailers, which is another source of revenue, and it keeps moviegoers sitting and waiting for longer.
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If you have to sit through 20 minutes of ads and trailers, you might give in and go grab a box of candy, especially if those commercials are for food and soda.
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And delayed start times also remove the pressure of missing the beginning of the movie.
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So you might not mind waiting in line for some snacks.
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Each interaction is designed to get you to spend money on concessions.
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Just look at the ticket window compared to the concession counter.
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At this AMC, the ticket window is plain and not very stimulating.
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But the concession counter is bright, colorful, and branded.
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It immediately catches your eye.
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But those are the tricks they use only when you're actually at the theater.
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Theaters are also experts at getting you back to see another movie.
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Reward points and special-access programs get consumers to go to the movies more often.
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Gaining points for each dollar you spend is a great motivator to buy a little more than you normally would.
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They report their members going to movies more often with the subscription than without.
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And, of course, these members will bring their friends and their families, who will pay full price.
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And if you saved money on your ticket with a program like AMC A-List, you might be more willing to spend money on food.
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Some of these programs can actually save you money, but you shouldn't spend more just to get points or discounts faster.
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Of course, if your loyalty program is on an app, the theater has 24/7 access to your attention and can send push notifications with details about promos and deals, like this AMC ad that offers free popcorn when you purchase a ticket for your friend.
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Even when you're not at the theater, they're still trying to get you to spend money.
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You might be pretty annoyed at movie theaters right now, but it's not an easy business.
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Avid moviegoers want modern, well-maintained theaters with high-quality formats, and because so much of the ticket price is going to the distributor, theaters have to find alternative sources of revenue, which means snacks and drinks.
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So, should you just stay home, throw some Orville Redenbacher in the microwave, and watch only what's on Netflix?
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Of course not!
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Going to the movies is supposed to be fun.
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But you have to make sure the movies you're seeing and the food you're eating is what you actually want, not just something that has been constantly advertised to you.
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And these tactics are employed best at big chains like Regal or AMC.
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At a local theater, you'll often find cheaper concessions and tickets.
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So, what can you do to save money?
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Eat before you go.