The Exhibitor (1955)

14 MOTION PICTURE EXHIBITOR Chart No. 2 SLIDING SCALE "B" (33V3% of the ^ilm Rental to be retained as Theatre Profit) RATIO UNIT GROSS** FILM RENTAL % THEATRE PROFIT % o\ Gross of Gross*** Unit Overhead X 1.364 = zr 20* 6.66 Unit Overhead X 1.389 =; 21 7.00 Unit Overhead X 1.415 = 22 7.33 Unit Overhead X 1.429 — — 22y2* 7.50 Unit Overhead X 1.442 — 23 7.66 Unit Overhead X 1.471 — 24 8.00 Unit Overhead X 1.500 25* 8.33 Unit Overhead X 1.531 = 26 8.66 Unit Overhead X 1.563 = =: 27 9.00 Unit Overhead X 1.579 z= — 27V2* 9.17 Unit Overhead X 1.596 = = 28 9.33 Unit Overhead X 1.630 = = 29 9.66 Unit Overhead X 1.667 30* 10.00 Unit Overhead X 1.705 = = 31 10.33 Unit Overhead X 1.744 = 32 10.66 Unit Overhead X 1.765 — 32V2* 10.83 Unit Overhead X 1.786 = 33 11.00 Unit Overhead X 1.829 = — 34 11.33 Unit Overhead X 1.875 = = 35* 11.66 Unit Overhead X 1.923 36 12.00 Unit Overhead X 1.974 = — 37 12.33 Unit Overhead X 2.000 iz: 37 Vz* 12.50 Unit Overhead X 2.027 = zz 38 12.66 Unit Overhead X 2.083 z=; zz 39 13.00 Unit Overhead X 2.143 = zz 40* 13.33 Unit Overhead X 2.206 zz 41 13.66 Unit Overhead X 2.273 zz 42 14.00 Unit Overhead X 2.308 = — 42 Vz* 14.16 Unit Overhead X 2.344 = — 43 14.33 Unit Overhead X 2.419 zz 44 14.66 Unit Overhead X 2.500 =: — 45* 15.00 Unit Overhead X 2.586 — zz 46 15.33 Unit Overhead X 2.679 — zz 47 15.66 Unit Overhead X 2.727 — zz 47!/z* 15.83 Unit Overhead X 2.777 zz 48 16.00 Unit Overhead X 2.885 — zz 49 16.33 Unit Overhead X 3.000 = zz 50* 16.66 * Once again the 1% and the 2y2% slide steps are combined in this single “ROBOT” CHART. ** Unit Gross is the unknown quantity that only the theatre owner, knowing Uie Audited and Allowable Overhead, can fill in. *** Relationship of Theatre Profit to Gross is not a part of any SLIDING SCALE, hut is shown here in order to help theatremen analyze their profit position. as overhead. 42.29r divided into lOO'/f would produce a ratio of 2.370 under SLIDING SCALE “C.” Multiplying the overhead unit of $78.00 by 2.370 would produce a gross unit of $184.86, or a weekly gross of $1,848.60. (Checked out: 41% of $1,848.60 equals $757.93 of film rental; 41% of that film rental equals $310.75 theatre profit; and add these two to the overhead of $780.00, and you arrive at a gross week of $1,848.68). These are the three common Slides, and just to draw a contrast of their effect on the three all-important results of: (1) necessary gross; (2) film rental; and (3) theatre profit; we have prepared the special study (Fig. 1) of the three steps used here in explaining them. Fig. 2 "A" On a Necessary Gross Film Rental Theatre Profit of $1,114.60 222.92 (20%) 111.46 (10%) On a Necessary Gross Film Rental Theatre Profit of $1,138.80 239.15 (21%) 119.57 (10.5%) On a Necessary Gross Film Rental Theatre Profit of $2,025.70 830.54 (41%) 415.27 (20.5%) "B" 250.95 (22.5%) 83.65 (7.5%) 269.10 (23.6%) 89.70 (7.9%) 934.29 (46%) 311.43 (15.3%) "C" 267.50 (24%) 64.20 (5.8%) 284.70 (25%) 71.20 (6.3%) 871.05 (43%) 374.55 (18.5%) A still further analysis would be to take the largest gross, always noted under SLIDING SCALE “A,” and to re-work that gross under the methods of SLIDING SCALE “B” and SLIDING SCALE “C.” The results would be as noted (Fig. 2) . This is a study of only three “steps,” out of the thirty that exist between 20% and 50% in each of the three SLIDING SCALES, if the steps are 1% each. Based on any particular step, the ratio of over¬ head to gross are constant figures. We have only figured three of them here, and the other 27 will be given in succeeding “ROBOT” CHARTS. It will be necessary, however, for each theatreman to reduce his ratio figures to dollars per gross unit, by multiplying each by his overhead unit. In each of the foregoing illustrations, the overhead unit was used in order to arrive at the gross unit, and for ease in calculations the orthodox seven-day-op¬ eration ten units were also used. Should it be necessary to assemble similar data on a nine unit small town or subsequent run situation, it is only necessary to divide overhead by ninths instead of tenths. And in a six-day-operation, where seven units represent the week, it is only necessary to divide overhead by sevenths instead of tenths. All other procedures, in arriving at a gross unit for a particular percentage, are followed as outlined; except that when the gross imit has been established it should be multiplied by ten, nine or seven, as the case may be, in order to arrive at the particular weekly gross. © TIME SAVING "ROBOT" CHARTS to Set Up a SLIDING SCALE Anyone using a SLIDING SCALE, whether A, B, C, or some variation of these, certainly does not want to run a set of computations on each SLIDING SCALE play date. It is for this reason that the careful theatreman will take time out initially, to prepare his partner¬ ship grossing unit steps that will corre¬ spond to the particular percentage steps. To help him, we have assembled and checked certain ratio relationships on each of the three SLIDING SCALES dis¬ cussed here. These are what might be termed “ROBOT” CHARTS (Chart No. 1; Chart No. 2; and Chart No. 3). To use them it is only necessary for any theatreman to multiply his audited and approved unit overhead by the ratio figure opposite each percentage step and to record the dollar result. As future playdates produce dollar unit grosses, it will then only be necessary for him to refer to his chart and note the nearest dollar gross and the film rental percentage that will therefore apply. Under these three SLIDING SCALES “A,” “B,” and “C,” — honestly arrived at and honestly administered — there is fair¬ ness, non-discrimination, and a basic mor¬ ality that will prevent many a law suit. Naturally a distributor who is trying to grab an inordinate share of the boxoffice dollar, or an exhibitor who is trying to build up a case of “triple damages,” will oppose it as a business method. But hon¬ estly audited, honestly administered, and honestly reported at the theatre level, there should be no honest intentioned industryite who will refuse to make the November 16, 1955