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1948-49 Theatre Catalog, 7th Edition, Page 517 (502)

1948-49 Theatre Catalog, 7th Edition
1948-49 Theatre Catalog
1948-49 Theatre Catalog, 7th Edition, Page 517
Page 517


1948-49 Theatre Catalog, 7th Edition, Page 517

one year. Latter figure is to be determined by averaging the profits for the last three years.

HOne such prospective purchaser turned down the deal because he felt the price was too high. Nonetheless, Paris book values for theatres is a long drop below present valuations since they were fixed in the pre-war era when profits and material costs were far lower],

As yet, no mathematical formula has been devised for evaluating the worth of a business in terms of the managers ability to win friends and influence people but this is definitely one of those intangible factors which enter into a really accurate breakdown of theatre income. \

Conclusion

Recently an outstanding firm of certified public accountants worked out a composite percentage table based on the budget on several theatres. Their figures are presented in Fig. 2.

In any discussion of theatre operating expenses, the reader should always re

Theatre Budget Table





Average for Average for a group of 26 producer neighborhood circuit theatres theatres Film costs . . . . . . . . .. 29.4% . . . . . .

Premiums . . . . . . . . . .. 3 5% . . . . . .

Total . . . . . . . . . . . . . . . 32 9% 32%

Rent . . . . . . . . . . . . . . . 9.6% 12%

Advertising . . . . . . . . . 7.6% 7%

Salaries i . . . . . . . . . . .. 18.5% 17%

Taxes . . . . . . . . . . . . . . . 1.3% .

Insurance . . . . . . . . . . . .9% { z% Light, power, heat . . 4.0% 3% Maintenance . . . . . . . . 4.5% 2% Depreciation . . . . . . . . 3.9% 5% Other expenses . . . . . . 4.5% 5% Total . . . . . . . .. . . . . 87.7% 85% Net profit before de duction of income

taxes and ochers' h, 1};

salaries . . . . . . . . . . . 12.3% 15% Total . . . . . . . . . . . . . . . 100.0% 100.0%

FIG. 2

member that no accountant, mathematician, or statistician can establish an infallible blanket criterion for all of the more than 18,000 theatres now operating

in the United States. To attempt to do so would at once place the perpetrator of such fallacious reasoning in the same category as those inventors who claim to have discovered perpetual motion.

The information and figures given in this article will serve a useful purpose only if each exhibitor utilizes them to set up a tentative norm for his own guidance. With such a practical and at the same time hexible guide he can decide with some degree of accuracy whether or not he is making a fair profit, or if his expenses are out of line. If his business seems too sluggish, he can easily check his expense list against that of other exhibitors and discover which items are abnormal.

On the other hand, if a personally conducted survey indicates that his margin of profit is well above average, he will know that his business is healthy and that he can keep that bottle of red ink locked in the theatre safe for a long time to come.

IF PROJECTORS WERE BOXOFFIGES . . .

Back in the days of our youth, there was a prominent manufacturer of men's garters who used the advertising slogan: "If you wore them around your neck, yould change them more often!" While he was caught in the later vogue of Itsloppy Joes," with socks that drooped over the shoe tops, and has probably by now switched to making the more conspicuous Countess Mara ties that do get changed, there was and still is, a lot of merit to that slogan. And we donit mean in relation to garters!

In many theatres that we know (and according to servicemen and supply dealers, there are thousands more just like them), there are projector heads, amplifiers, lamp houses, and sound heads that should long ago have been hit with an axe and retired.

Now, while it is a great tribute to their fine manufacture originally that many of these pieces of equipment are still turning out a type of sight and sound that causes no actual distress to, or squawk from, the paying audience; we wonder how many theatremen realize the Hpenny wise and pound foolishl, policy it indicates? The same owner who will spend thousands of dollars for a new Sign or a. new boxoflicc, or blow his bankroll on over-upholstered chairs and air conditioning, but will send his 20 year old projector heads back for

repair or even a factory rebuilding, is very shortsighted indeed.

The sign, the boxofiice, the chairs, and the air conditioning are necessary, but they are not enough to make and keep a satisfied patronage. Entertaining sound pictures are still what this industry is selling and what creates the traffic flow past that boxofiice on which we all live. No sound picture can accomplish its maximum in entertainment if the screen light is poor, the picture is jumpy, or the sound ductuates and rasps even slightly.

Unfortunately, the necessary Fire walls prevent the patron from seeing the projection room, just as the draperies and screen obscure the speaker assembly, so that the patron isn't as conscious of decrepit equipment in those locations as he would be of a rusted out Sign or a rococo boonice.

But, like the garter of old, you can just bet that: If the projector was out front where the boxofiice is, it would be changed more often.

As it is today, many an old projector is a inillstone around the neck of an otherwise well appointed theatre, and the owner doesnt seem to realize it.

Reprint of an. Editorial originally published in. the PHYSICAL THEATRE DEPARTMENT of THE EXHIBITOR under data of June 30, [948.

THEATRE CATALOG 1948-4?
1948-49 Theatre Catalog, 7th Edition, Page 517