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Movie Theater;

Movie Theater;
Problem Definition:
Starting a movie theatre is not an easy task. In fact, there exists a wider array of costs incurred in starting up a movie theatre. This is because there are many tools and other necessities that should be procured in order to ensure the smooth running of a movie theatre as a business project. Planning to start a movie theatre that has all what prominent movies must offer a competitive advantage. In addition, there is one more important things, may lead to grow profit more quickly. In spite of not having a movie theater in Erie downtown hence we choose place to hold movie theater in a big room such as, room Zurn 104 on the Gannon campus.
Project Definition:
Movies are part of our life and we cannot dispense with them. People are choosing what they prefer to watch. IMDB website says the most viewers of the movies are an adult. My classmates and I choose a movie theater should be worked on Gannon campus. We chose the cost section of the movie theater, which is how to run a movie theater and what it costs to run a movie theater. We picked this section to show how Gannon University could spend to run a movie theater, including the types of speakers and which one of the speakers are good to run 3D movies 2D movies such as AMC speakers. There are different screens or projectors depending on the type of movie, 3D or 2D. Also, I will look at the economy for running a movie theater for the university by selling tickets. In addition, there are many companies that give a license for movies. Not all the companies have license for all movies. There are different companies make license just for some movies such as Warner Bros (WB) or New Line Cinema. Also, there are different types of seats. These seats have different price depending on what factories made them.
Project Benefits and Metrics:
The movie theater would help students to have fun on campus and it is going to be an investment for the university by selling tickets for students or others. It makes students have fun and have everything they need on campus with easy transportation and less cost.
Project Benefits Estimates:
One of the core requirements that is definite for the starting of a high-quality movie theatre is the availability of high-quality theatre seats. The costs of these seats vary depending on the quality and whether they are new or used. Many at times, old theatre seats cost close to $5 per seat. Relatively, we would require close to 250 theatre seats. However, we will not go to buy new ones, but we will choose to buy used ones that would assure less cost and conform for our target clients. The approximate price for used ones is $5. Therefore, the total cost for seats will be (250*$5) which comes to around $1250. Speakers with customized sound and realistic effects are also important for the suggested movie theatre. Since our theatre will be a startup, we will require two high definition speakers, which are likely to cost $3,000. In addition, we are likely to require one projector whose price will vary depending on their make. We will pick for EPSON projector because they have often been hypothesized to be durable, and offer improved showing compare to other projectors. In addition, this kind of projector will offer 3-dimensional outlooks with superior lumen color lightings, it is likely to cost close to $250 ; so, the  one piece will cost $250. Due to limited capital availability, we will choose to outsource food, drinks and snack provisions service to a food outlet that will offer a higher bid. However, we will have our own popcorn machine, which will cost close to $100 (Lobb “Why does that popcorn cost so much?”).
There are other costs that will come up as we start the operations of the proposed movie theatre. Above all, we will incur some costs for getting films from licensed film distributors.
These costs will vary depending on the films available in the market. However, we will spend close to $15 per film. Notably, as our business expands we will choose for independent films because they are hypothesized to provide increased profit (Tyson, “How movie distribution works”). Finally, we will incur costs aligned with the need to pay for an operating license or permit. From the above analysis, we will incur huge costs as we launch the proposed movie theatre. Even so, we will generate increased returns from concessions such as sale of tickets, popcorns and the company that will outsource food; snack and drinks will remit certain percentage of money depending on the profits they generate. We will also be carrying out advertisements as we showcase our movies, such as the movie trailers ,college newspaper, sports advertisements  and this will attract some profits (Ramjee, “What is needed to start a cinema business”).
Work Cited
Lobb, Annelena. Why does that popcorn cost so much. 12 march, 2012. Web.   Retrieved From:http://money.cnn.com/2002/03/08/smbusiness/q_movies/
Ramjee, Priti. What is needed to start a cinema business? Web. Retrieved From: http://www.ehow.com/info_7976031_needed-start-cinema-business.html
Tyson, Jeff. How movie distribution works. Web. Retrieved From: http://www.howstuffworks.com/movie-distribution1.htm

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