Do you want to know Why Is Popcorn Costlier at Movies? That’s a nice question read this article to find out Why Is Popcorn Costlier at Movies
The price of a regular size popcorn is approximately $2 outside, whereas it values up to $6 to $9 in the theatres. The demand for popcorn is not the same outside the theatres. Why is that? People usually prefer popcorn to eat at the movies, which is a universal fact but is this really the case, or is that just a made-up fact fed to us by the corporates. A popcorn rate is almost similar to a movie ticket, yet most people are willing to buy it. Popcorn wasn’t always this popular and commercial in old times, but what has changed now? Let us discuss this further.
Comfort over anything
Buying food from a different place or carrying it with them during travel may cause hardship and trouble to most people, especially if they are already running late. Several people prefer their food to be served hot irrespective of the cost. This concludes that even if outside food were allowed, most customers would still tend to buy it from theatres Because people put comfort before anything these days.
Outside food is not allowed inside the theatres
Now it may seem like an easy task to sit and watch a film for 2 hours straight without having any snacks; however, in reality, it is not. It’s not due to hunger people buy popcorn but due to temptation. The sellers use this weakness of the buyers to their advantage to hike up the rates to boost the economy.
On the contrary, if people were allowed to take outside snacks to the movies, then that would result in a massive revenue loss to the theatres because nearly 75 % of a person’s ticket goes to the production company and distributors, so yes, seeking a gain by selling the snacks might be their only way to earn profit. It is believed that theatres make more financial gain by selling snacks than actual movie tickets.
Capitalize on an advantage
The process of preparing popcorn requires fewer manpower needs and raw materials compared to other snacks, so the investment is lesser, and the profit is greater. It is estimated that the seller earns 4x of their investment only from selling eatables. It is portrayed as if it is almost impracticable to the customers to resist the urge to buy popcorn during the intermission, this consequently creates demand, and the sellers make optimum use of this.
According to the census, Less than 12% of the total population goes to theatres because most people prefer watching films and series on ott platforms like Netflix, Amazon, etc., so the revenue collected from the movie ticket alone isn’t sufficient to run the business due to this the theatre owners are looking to make a profit through another source hence the snack rate is overpriced. The purpose of serving high-priced snacks and cheap movie tickets is to collect different amounts of money from various customers.
Popcorns especially attract children and young adults because they all are eager to jump on the bandwagon. In this case, Customers have no other option except to buy it to satisfy their family, friends, colleague, etc.
Other reasons why popcorns are overcharged
- Inflation plays a vital role in this
- No competition
- People are ready to overpay for an appetizing and delightful meal
- It is a monopoly market
- To compensate for other expensive bills like tax, maintenance, rent, etc.
- Peer pressure
Conclusion
This concept is an example of Niche marketing, denoting a strategy of directing all marketing efforts toward a certain group of audience to make a profit. It’s like targeting the big fish at the small pond instead of the small fish at the big pond. The captive moviegoers who love popcorn are the aim here. They obviously wouldn’t mind paying a little more extra to buy their snacks If it means they can enjoy their movie even more with their delicious snack.