Convincing a business to use my concept

[thinkingbig]

My plan is to set up a MMS barcode ticketing system for cinemas. I have done all the cost benefit analysis, and it can save the cinemas a lot of money. I have talked to a person on another forum and her mother is the manager of a cinema and i've asked her to ask her on her views on my plan (she has not gotten back to me yet).

I have the customer survey results, and every one wants to see it happen.

The only problem is that i am scared of 2 things:
(1) approaching the cinema chains (who do i talk to, how??)
(2) the cinemas can do everything themselves, so how do i convince them to let me to everything for them.

eg. for 1 million tickets sold, my plan will save them $1.1 million.

This is for New Zealand btw. In US, this is being trialled currently and only just started 2 months ago. There is potential but i am scared

Any advice would be greatly appreciated

 

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[Anon3587x]

Well first my friend you should not post this on a forum with a bunch of bad a$$ entrepreneurs haha.

Anybody on the internet including the lurkers who aren't registered on this site but read it religiously could capitalize on your idea.

Just post the basics of your idea without giving the full plan out.

There is no gain without risk in business.

Don't be scared.

Maybe you should contact the mains offices for the big cinemas and present them with your product.

If it will save them money without a doubt how could they turn it down?

 

[GoldenEggs]

What if you focus on the smaller or independant theaters? They could use your idea as part of their marketing angle, something that sets them apart from the big chains.

 

[thinkingbig]

thanks for the replies.

The only problem i face or the question i ask myself is: what is stopping the cinemas from doing it all by themselves? How do i convince them i should be handling this?

I've told my brother to brainstorm some answers, but its been hard

 

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[moop]

Perhaps you could provide a tiny bit more detail.

To ensure recurrent payment, you need to convince them that you are needed to create the savings. If it's a one off change to their ticketing systems, you might have trouble doing so.

 

[thinkingbig]

^hey moop: what do you mean by 'ensure recurrent payment'.

The cinemas already have an online ticketing option, and i've developed a an alternate internet-to-mobile route. I guess i am going to be charging only a 8% commission on each purchase and will be responsible for all costs (so the cinemas wont have to develop a team and have more labour costs). I mean for each $10 ticket, i'll charge 80 cents.

Are there any industries that depend on others to do aspect of the business for them, so that i can see how it works?

 

[moop]

By recurrent payment, I am referring to frequent repetitive payments for your services. Eg; If the idea is to introduce a feature to their website, you would not recieve recurrent payment as you would simply recieve a one off payment for implementing the change. However, selling leads or providing a platform on a subscription basis would be a form of recurrent payment, which is what you should aim for with your business.

I'm still not sure If I completely understand your idea. Are you selling leads to the cinemas or are you providing them a platform?

Also, you mentioned you can save the theaters 1.1m a year from 1m ticket sales. This averages to roughly 1.1 dollars per ticket. Initially, you might have some trouble charging 80c per ticket as this only amounts to a saving of 30c per ticket for the cinemas. However, if you can improve the ticketing volume with your idea, then you have some bargaining power.

 

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[thinkingbig]

@moop: i'll be developing a platform and an additional avenue of bringing sales for cinemas.

Take for example and average ticket being $10. Of this $10, cinemas make $6.5 and usually end up with around $2.50 profit after all costs.

I want to convince them to shed some employees, because for that one $10 ticket, labour costs are $1.50, while i will charge $0.8. I mean i happy to decrease the commision on every sale to $6.5-7.

So, what are the things beside 'saving time', 'bringing sales' and 'cost-effective' that i should say to convince them. I guess it is the future of ticketing and i could say that.
??

 

[moop]

Thanks for the clarification.

It's good to see you have done in depth research. The best validation for your idea is real world practice. Take your research and compile an easy to understand promotional report. Make sure to include a breakdown of the figures and potential savings in ticketing. Using this report, approach a small theater company and offer your platform on a trial basis. Depending on the success, you can begin charging for your services later on. The results of the trial will also give you some firepower in approaching larger cinema chains.

The benefits you mentioned are the primary ones. Another important benefit is that it is convenient for cinema goers, which may increase ticketing volume.

 

[thinkingbig]

@moop: the chains i am looking at are owned by Village Roadshow Ltd; it owns and operates around 70 theatres in Oceania. Now, they have a website (Home :: Event Cinemas) that is dedicated to online ticket purchase.

Now, my plan is to set up a website myself (my own platform) and have Village Roadshow's cinema's movies listed on my site for MMS ticketing. It would look and seem odd for Villlage Roadshow to have 2 sites, one dedicated to online ticket purchase (Home :: Event Cinemas) and another which will be mine which does MMS ticketing.

What do you think i should say to them? Close your Eventcinemas website and let me start my own and represent you? Like similar to Fandango in the US does.

 

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[moop]

My knowledge about MMS marketing is zilch, but I imagine that software or other types of systems are required to manage ticket sales? This is the platform you would rent to cinemas. You could have a shot at the large cinema chains but make sure its not at the expense of significant time and resources. Targeting large cinema chains will require you to go straight to the top, as you cannot simply approach the manager due to strict franchising policies. Also, there is nothing stopping them from developing their own MMS ticketing system and cutting you out all together. However, for smaller independant cinemas, this may not be economically feasible. As such, you should focus on renting your platform to these types of clients.

With regard to the lead generation aspect of your website, you will have to rely heavily on internet marketing. In order to receive commission for your services, you will need to generate customers for the cinemas. Thus, you need to ensure people are using your website for cinema times and online booking. In my own personal experience, I've never used third party sites to retrieve show times. I simply go to the hoyts/village webpage and retrieve the times I am looking for. As such, you will first need to convince people to use your site for show times as it is imperative to your success. It may be difficult, but it's not impossible. If you can achieve this goal, then the cinemas (large, small etc) would be forced to pay you comission.

 

[thinkingbig]

hey moop: Currently, there are no third party sites that offer show times. I guess if you type in your city and movies times you will get the closest cinema's chains website.

And what do you thinkg about Home :: Event Cinemas. They advertise tickets for around 70 theatres but don't do the MMS ticket. How would i fit my service with them, because i was thinking of setting my own website advertising tickets for others? If i get Event Cinemas to use MMS ticketing, will i be entitled to 8% commission on every MMS ticket even though they are bringing in the customers and not me?

I guess my website would be like any hotel accomodation website, where even though the clients have their own websites for booking a room, the website will offer an alternative sales avenue? Like Wotif.com: Hotels, Accommodation, Motels, Serviced Apartments, B&B - Online hotel bookings with instant confirmation

 

[moop]

If event cinemas are generating the customers, I highly doubt that they would pay you 6-7 figures per year to rent the platform. They could probably develop their own MMS system for a fraction of the cost. If you are intent on creating a platform to rent to cinemas, focus on small independent cinemas. Their turnover is relatively small and they have less resources available compared to larger chain cinemas. This reduces their capacity to create their own MMS system and cut you out.

Wotif is a lead generation site. They make a ridiculous amount of money from advertising for hotels/motels etc. If this is the route you want to take, you will have to create a website similar to eventcinemas.

 

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[thinkingbig]

I'm trying to do what Wotif has done, only that my website will be intrinsically involved with the cinemas's server and data capture systems.

I want to generate that lead. I will not be asking the cinemas to pay me 6-7 figures/year to rent. If i get one customer purchase a ticket, i will ask for 60 to 80 cents as commission only.

I think i might have misled you into thinking that i was renting my platform. My concept is more a website that a product.

With this mind, do you think the cinemas would be happy to have another website (mine) advertise their tickets only as a MMS. I mean if accomdation reservation sites can do it, why can't i. For example, Wotif advertises Hilton hotels and accomodations, even though Hilton has its own website.

 

[moop]

Ah, ok. Apologies for going off track.

If you are generating the lead, then I'm sure the cinemas will have no problem paying you commission. When you mentioned MMS marketing, did you plan on utilizing it as a marketing tool to give you an edge over competitor websites (eg eventcinemas)?

 

[thinkingbig]

I haven't thought of that (have read about it a little), but not sure how it will work.

Do you think it will hard to convince them to let me gain access into their central system to set up my site? All i need is permission and the go ahead, and will defintely get them the sales.

your views are really helpful!!

 

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[moop]

From what I understand about lead generation, the hardest part is generating customers. I'd imagine that most cinemas, even the big chains, would have no problem making an agreement as long as you are making them money. Although, you might have some trouble contacting the correct people in order to get setup.

Why do you need access to their central servers? Are you planning on referring them customers to their web page or handling the payment on your website? If it's the latter, you would need to setup an agreement on how to pay them.

 

[thinkingbig]

Given how MMS will really the future of ticketing and seems to be popular with the young generation from my survey, i think it could fly. I mean currently the monthly search number for 'cinema' is 55 millions and 12 million in australia/new zealand.

I need access to their central servers to get timetables for the movies (which would be updated quite frequently) and for sending copies of each transaction to them (for security purposes). I'll handle the payment on my site and it will delivered to the relevant cinema. I'll recieve a weekly revenue from comissions plus the surcharge i will have for using my service.

 

[moop]

I have to agree. Practically everybody has a mobile phone these days. Adding to this, more and more people are using interactive high tech phones, like the iPhone. This provides a great opportunity to jump into a burgeoning market.

For timetable updates and payment forwarding, I don't think you need access to their central servers. This is something you will have to discuss with the clients but I don't imagine it will be a difficult issue to resolve.

 

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[thinkingbig]

Mate, thanks for the advice. You've really opened my eyes about some things i neglected.

The only concern i will have till the day i might get lucky and get the cinema's green light is: they so easily do it themselves.

And one thing i found out: In Australia, there was an independent who implemented the same type of mobile ticketing in 2006 (crazy so early) and i gave them a call today and asked if they still used it. They said 'No' and that it was only used for a month.

Another concern is that Village Roadshow have a stake in Village Cinemas in Singapore who have only 2 months implemented a mobile ticketing service with BCode. What i am worried about is that because they have developed a relationship with BCode that they might use their concept in Australia and New Zealand

 

[moop]

Np mate, It's my pleasure :cheers:

I wouldn't worry about focusing your website completely on MMS ticketing. The MMS system is simply one of the methods you can utilize to bring in commissions. Once you have things up and running, make an arrangement with a local cinema to guage it's success.

As I mentioned before, the central issue you will be facing is internet marketing. If you can market better than the cinemas, then there is very little they can do to stop you.
After all, if they implemented MMS themselves, it would be useless unless they can create customers. Also, make it clear that you can make money for them. If they choose not to use your services, they are sacrificing potential revenue and inadvertently providing an edge to their competitors. In time, you will have to prove this statement to them.

And remember, things have changed since 2006. The number of mobile phone users has dramatically increased and consumer behavior has changed

 

[thinkingbig]

yeah...good points.

I know this can take off even with internet marketing because its MMS (and a slightly new thing) and some of the girls and guys i talked to loved it.

I'm going to bookmark this and let you and others know of my progress. In 3 hrs i'm going down to a little more survey. Hoping to get 200 people's views in total.

thanks

 

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[moop]

That's great to hear. You seem to have a gung-ho attitude, which will serve you well as an entrepreneur.

Best of luck!