Carson Cotterell
Econ A3
Reuter
3/7/16
$5 Movie Tuesday’s
On every Tuesday of a week at Marcus Majestic Theater’s there is a promotion for everyone, that movies cost $5 per ticket vs the usual $10; a small popcorn is free and hot dogs and candy are both $2. (Marcus) You think this would cause a trade- off or loss in money for the theatre but really it is the exact opposite. When you go on Tuesday’s the theatre is always packed and there are rarely any parking spots left. So the opportunity cost of going on Tuesday is it will be cheaper but you have to go a lot earlier to get a seat vs going on a different week night it will be more expensive but not as busy leaving more time for other activities.
Another benefit of $5 movie Tuesday’s is it gives a lot of more people an opportunity to go to the movies who more than likely wouldn’t if they didn’t have this promotion. On average it costs a family of four around $80 to go to the movies (that includes tickets and snacks). (Fontana) Where on $5 movie Tuesday it would cost closer to $20-25. This makes sense because the law of demand states that when the price is higher on products less people want it, and the cheaper it is the more people want it. The demand curve of a movie theatre changes based on $5 movie Tuesday’s: because the demographics and income change as more people go to movies who normally couldn’t afford too, more people go in general on Tuesday’s because they know it will be more expensive all other days (future price) . There are so many people coming in vs all other weekdays that the fact tickets are cheaper really has no negative bearing on the movie theatre’s economy.
Citations
Fontana, Anthony. "Save vs Splurge: Movie Theater or Home?" ZING Blog by Quicken Loans. Quicken Loans, 06 Mar. 2013. Web. 07 Mar. 2016.
"$5 Tuesdays at Marcus Theatres | Value Pricing." $5 Tuesdays at Marcus Theatres | Value Pricing. Marcus Theatres, 2016. Web. 07 Mar. 2016.
This is a perfect example of the point of a sale. Under normal circumstances, a change in price would only create an increase in quantity demanded. However, in the case of a sale, the company having the sale manipulates the populations expectations for the future price, causing a surge in demand itself. Not only does this result in overall increased profit, there is a chance someone who came in for the sale will get hooked and come to buy more, causing the demand after the sale to remain higher than the initial demand.
ReplyDeleteI would a agree with the fact that 5 dollars for a movie and and free popcorn is great. I didnt know they made a lot of money from it I thought they would loose a lot from it. But other than that nice job
ReplyDeleteThe only possible way I would go to a movie would be on Tuesday’s. I am only spending $10 instead of $20 which is fairly overpriced especially when I take my girlfriend. Everytime we go, it typically is when the people start piling in, even then the seats are just about 90% filled and there are still 30 minutes until it actually starts playing. Whoever thought of this idea is brilliant because the quantity of people attending will significantly increase due to the decrease of price. People who work there try not to work on Tuesday’s because it is so busy everywhere they go, but does make a lot of money for the theater.
ReplyDeleteThat’s great that Marcus theaters are able to not only provide more affordable entertainment, but they are making a large profit at the same time. It would be interesting to see what would happen if they always had $5 tickets--would everyone be going to Marcus theaters and never to others theaters, or would Marcus not benefit at all?
ReplyDeleteI think this is a great topic to write about. As you stated in your blog doing $5 Tuesday's are benefiting both the theater and the people who are going to see movies on Tuesday's instead of other days. The movie theater experiences more people on Tuesday's compared to Monday's or Wednesday's because on those days it is full price. One thing that might be bad for the movie theater is that there are only so many seats available per movie that sometimes they would have to deny people access to them because there aren't enough seats in one movie for everyone. Also the movie theater might have more to clean up. Since there are more people going on Tuesday's there is more of a chance people are going to spill. Overall this is a great topic to write about and you had great supporting evidence.
ReplyDeleteIn today's economy movies are often a "luxury" because of how expensive they're versus just renting them at your house. My friends and I always go for 5 dollars Tuesdays too because you're getting a movie at half price and free popcorn. 5 dollar Tuesdays also brings a good amount of business on Tuesdays that normally wouldn't be there without the discount. Creating 5 dollars Tuesdays was an excellent sales tactic too because the movie theater is making a lot more money than it usually would on a Tuesday.
ReplyDeleteI do believe they had another day that is 5 dollar day which is Thursday. Sure it's not as cost effective for everyone such as families. But large groups of teens will go with their friends. I am also sure some kids get dropped off which means they don't take up the parking space even though the parking lot is also commonly full on a Thursday too. Also they would get money from their parents which means they are not as careful with that money and spend it like no tomorrow. I do see how Tuesday though is another day that is super busy but don’t forget about Thursday too I think they could come up tied for most busiest.
ReplyDeleteI find this interesting that in fact the lowered price of a movie ticket and better deals on concession items has a positive impact on the movie theater's profit. I'm not sure however if having to get there early is that big of an opportunity cost. This is because many people now either use movie tickets.com or just go way ahead of time to make sure they get a ticket and seat. Although movies played in the smaller theater don't allow one to choose your seat ahead of time, theaters such as the ultra screen will. Another opportunity cost I believe is larger than just having to get there early is having to go on Tuesday in general. For me at least, I'd like to see a movie on a weekend not a weekday. I also wonder what other activities could be done before having to leave to go see a movie.
ReplyDeleteOverall I think it's an awesome idea to have $5 movies on Tuesday. If you think about it, a lot of people don't go to the movies during the week. Having this promotion, it brings in more consumers and bumps up the overall business for the week. I've personally seen the movie theater on Tuesdays and it's packed. By having this offer they definitely are bringing in more money to the economy.
ReplyDeleteGoing to $5 movie Tuesdays is always a good and cheap way to spend a day, but at night it is a very different environment. It is almost impossible to find a parking spot and then find a movie that isn’t sold out, many a times that has happened to me. But the low risk for a high reward is very pleasing, who doesn’t like free popcorn and $2 hot dogs.
ReplyDeleteI do think that is a great thing that Marcus Majestic is selling discounted tickets on Tuesday to bring in more customers, as I use that to my advantage. They also have discounted movies on Thursdays as well for also $5 for students. This brings in a great amount of profit and also advertises what the theater has to offer, which will then bring in customers again on the weekends when their schedules are much more flexible.
ReplyDeleteThis was a great choice of topic and something we can all relate to which makes it easier to discuss. I liked how you related it to not only an individual but also from a family' point of view and how they are able to save so much money from this promotion. The increase of sales on Tuesday would produce more income and continue to have consumers continue to come back for more because of the price which will ultimately keep the business to continue to have this promotion because of the revenue that comes in as well.
ReplyDeleteThe whole 5 bucks a movie thing is a great idea. More people will come and that means even more cash money. Not to mention people will buy sodas and food witch will increase the income of Marcus theaters even more. The only problem I see is that they should not have this deal more then once a week, they still want people to pay the higher fee.
ReplyDeleteIt's awesome that there are $5 movies on Tuesday. If there wasn't $5 movie Tuesday's the theaters wouldn't get as much business during the week because everyone is either too busy with their jobs or have other plans that take up too much time. With the $5 movie Tuesday, theaters bring in more people that are there only for the $5 movies but over time with the money that people pay for popcorn and other snacks, the money adds up with makes a profit for the theater.
ReplyDeleteMy family almost only goes on Tuesday and you're right when you say we only spend about 25 dollars opposed to around 100 dollars. I used to rarely go to the movies now I go at least twice a month and it's only on Tuesday and Thursday when students are 5 dollars. That is another great by Marcus to draw in more students. Movies are always expensive but these two days make it worth the price of seeing what hopefully turns out to be a great movie.
ReplyDeleteNice use of vocab! I myself don't go to the movies all that often--even if it is 5$ Tuesdays. It's a great idea for people who don't have a lot of spending money--and for us students. Since there is also 5$ for students on Thursdays, I would imagine that combined, Marcus makes so much money from these sales. And when consumer taste changes, it can go way up as well. I'm not so sure, but I'd be willing to bet that Star Wars was SOLD OUT on those two days seeing that it was sold out the day it came out too.
ReplyDeleteI enjoy 5$ movies but I wish it was on a more convenient day like a Friday or Saturday. Or possibly not just on Tuesdays but also do it on Thursdays. The theaters will still make a lot of money because like you said there are so many people who show up to the movies on Tuesdays just because it's cheaper. Overall good explanation and good use of the vocabulary we have been learning recently.
ReplyDeleteUsually when I want to see a movie I go for the five dollar Tuesdays as well. It's really affordable and typically you can get more people to go with because of this. It really helps families out and I think it was a really smart business choice on their end. It's interesting to then think about the reasons why Marcus doesn't just make their movies five dollars all the time since they get so much money from it. They do it because otherwise the supply and demand curve would just even out like how it was before the five dollar movie Tuesdays. People wouldn't come as often because the price is going to be the same any other day, so why bother taking time out of you Tuesday if it'll cost you the same to go on Friday?
ReplyDeleteThis is why Marcus is so profitable. Due to the amount of people attending on Tuesdays their profit for each movie played goes up allowing them to offer free pop corn and reduced snacks and if you get a snack why not a drink yet the drinks are still full priced. So on a Tuesday night you will have a high volume of people attending with cheaper tickets and reduced snack prices but with that many people attending the more likely there are more people buying more drinks and other undiscounted items while filling their seats compared to a normal movie allowing them to yield a higher profit.
ReplyDeleteThe five dollar movie night is a great topic to write about regarding economics. I wouldn't really expect the movie theaters to ever lose money from this promotion, because on Tuesdays the demand for seeing a movie is just not there. With this promotion however, it brings people to the movies who wouldn't even think about it due to the economic incentive. I would've also mentioned how on Thursdays students get five dollar tickets as well. It would be interesting to see a similar scenario applied to an amusement park and see if that has any negative implications.
ReplyDeleteThis is why Marcus is so profitable. Due to the amount of people attending on Tuesdays their profit for each movie played goes up allowing them to offer free pop corn and reduced snacks and if you get a snack why not a drink yet the drinks are still full priced. So on a Tuesday night you will have a high volume of people attending with cheaper tickets and reduced snack prices but with that many people attending the more likely there are more people buying more drinks and other undiscounted items while filling their seats compared to a normal movie allowing them to yield a higher profit.
ReplyDeleteYou did a great job explaining this and used most of the vocab from our units so that is awesome. Me personally I work at the movie theater and every Tuesday is jam packed no matter what. Also people do save a lot a money coming on Tuesday or Thursday but you will need to come early like you said in order for you to get a good seat because usually on a Tuesday everyone comes a half hour early so they can get their food and a good seat. Overall you did a really good job and going to the movies on a Tuesday always will benefit the movie theater because the more people the more money they get and the cheaper it is will bring in those more people
ReplyDeleteWhat a great advertising promotion for Marcus Theatres! Better to fill the seats than have them empty. I recently went to a movie on a Friday night. There was a family with 3 kids ahead of me in line to get food. They each had a popcorn and soda and the bill was $65. That didn't even include the price of the tickets. Expensive outing that lasts 2 hours at the most!
ReplyDeleteThis is a very well worded piece. The fact that the difference in tickets is $5 does indeed become a lot more noticeable with bigger groups. I do however think you could have put in a graph or chart on how much they make on average each week, to show how much money hey make on Tuesdays versus other weekdays or weekends.
ReplyDeleteVery interesting topic, I never thought about it from the view of the movie theater. I always forget that there are 5 dollar movie Tuesdays. This promotion was a great way to bring in extra profits because Tuesdays were probably their slowest days and now they are making a great amount of income. Well it would be awesome to have 5 dollar movie nights on the weekend, their most busy days are the weekends and they might lose profit from that.
ReplyDeleteFirst of all, great job relating the law of demand in your analysis. Also, the mix of facts from sources as well as your own experience flow nicely in your article. I wonder what sort of profit difference $5 tuesdays create when compared to all of the other days of the week.
ReplyDeleteYou made some really good points in this piece. I would agree that the Marcus Theater profits a lot out of this whole idea of $5 movies. Also it is cheap for families too! Free popcorn and low discounted foods is another reason they get their money. With those discounts, people will almost always want to buy drinks, which are still full priced. Since they have this idea on Thursdays too, they are making twice the profit. With there only being the disadvantage of limited parking or limited seats, people will be willing to come at all times during the night, so they will never have a moment were there is nobody! This is a good idea for families and friends, but also the Theater. Good Job!
ReplyDeleteI believe that Marcus did a great job coming up with this idea of $5 Tuesday's. It is only once a week, and I know personally that my aunt and my three little cousins go on Tuesday's because it reduces the price from $42 for all of them to $20. I know my mom loves this deal as well because it makes sense, why wait to go see a movie on the weekend when we could see it for a reduced price? I believe the biggest determinant would be the consumer expectations for future price, which draws the people in on Tuesday's. And the fact that you also get a free small popcorn (a inexpensive good for the theater) also adds to the desire to see a movie during this day. Overall, it helps the theater because they receive money and it helps the people as well.
ReplyDeleteI love $5 dollar movies on Tuesday! Tuesday nights are then when Marcus can bring in the same amount of money as they would on a night when they are selling tickets for the usual price because more people are coming and paying less. So if half the number of people see a movie Monday night as the amount of people that saw it on Tuesday then they are still bringing in the same amount of income/profit. So then the producers are happy with the profit they have made, since if they didn't offer the promotion they wouldn't make as much money and consumers are in return happier because they got a "deal.
ReplyDeleteGreat article!
It's a win-win!
DeleteHaving five dollar movies every Tuesday and Thursday is a great way to increase profit for Marcus Majestic on days that business is slow because Friday and Saturdays are the two most profitable days for movie theaters. People will want to go more now on Tuesdays and Thursdays because the price is cheaper plus you get free popcorn which is always a plus while seeing a movie. Overall this was a great topic.
ReplyDeleteThe expected future price of a movie ticket drives consumers to $5 Tuesday movie nights at Marcus, therefore increasing their demand and overall profit. While some people are curious to see what profits would be like if the movie tickets were always $5, I would argue Marcus would lose revenue just because they're making a huge profit on more expensive tickets for a Friday and Saturday night when most people attend movies out of boredom. Creating the $5 Tuesdays increases profit due to the future expected price, so if the price was always the same, there would be less people buying tickets and concessions on an otherwise unpopular night, Tuesdays, which I believe is the whole point of $5 Tuesday movies. Overall, good topic choice, lots of students can relate to attending the Tuesday night movies.
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ReplyDeleteI agree with this essay. It is jammed pack on Tuesdays because the price in some cases are less then 50% off even. You can save a lot of money but it takes more time up out of your day. As the old saying says time is money. Marcus has another great deal for us students if you don't want to deal with all the people on Tuesdays, you can see movies for $5 on Thursdays! This is great so you don't have to worry about the opportunity cost, while you enjoy your movie with better seats. This may even help the people on Tuesdays a little bit because the students will wait to see the movies on Thursdays!
ReplyDeleteThis is a good topic choice. As the theater, the opportunity is that they’re making less money on Tuesdays, but it’s actually a gain. A couple years ago, Tuesdays were always the slowest and barely anyone came to the theaters. They decided to have this deal to increase the amount of people that come on Tuesday and it became the most popular day of the week for theaters.
ReplyDeleteOn Marcus Theater’s behalf, the $5 movie promotion is a great way to bring in more customers, especially on a weekday that would normally be relatively slow. Tuesdays are typically days where people don’t have the time to go out because students may have homework due for the next day in school or adults might want to go to sleep earlier for work the next day. However, with this deal, the opportunity cost is changed from the customer spending their hard-earned money to a lack of productivity in exchange for the marginal benefit of seeing a good movie with some friends. For Marcus, the demand for these cheaper movie tickets increases due to the lower cost they offer, which will benefit Marcus and the customers alike. Although Marcus Theaters run the risk of losing money by not having enough customers, they strategically place the deal on a Tuesday where they might not get many customers anyway. The marginal benefit of having more movie-goers on a Tuesday night pays off for their lowered price, whereas at a higher cost not as many customers would come in on this weekday.
ReplyDeleteIt's a great deal to take advantage during the week for a break from school. I also would have thought that this would decrease the income to the theater because they are drastically decreasing the prices for several items. But it does make sense that it brings in a lot more people to the theater which would counter act the decrease in prices. I think that this deal is a great for students on a budget to get some fun in for not a great deal of money.
ReplyDelete$5.00 Tuesdays. Possibly the greatest invention in the movie theater industry. I like our topic and your analysis of the consumers point of view. I wish you had provided some more information on whether or not the increased revenue on these days makes up for the lack of margins. I'd assume it does because if not they wouldn't do it. But I am still curious how much greater profits are from this promotion as opposed to a normal weeknight.
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