LEARNING FROM A FAILING BUSINESS

[William Gibson]

So I was watching the short film “Enjoy Your Intermission” about a struggling drive in movie theater. From the looks of the film people love the place, and doing more a little research they have good google reviews and their facebook seemed to have a lot of positives too.

I’m trying to learn more about business so I think its important to study not only what good businesses are doing well, but what bad businesses are doing poorly, so I can avoid and know how to handle these issues.

It is important to ask How can you solve a problem instead of just dismissing the problem

So instead of dismissing this as simply a failed business I asked myself how they could manage to stay open. And here is what I came up with

How can they keep their business?

· Changing to digital film, I feel like your product should always be up to date and as current as possible. Why Ignore technology and the advances other people have made?


· The issue of having to compete with digital would only apply if they were trying to focus on being a theater, but I don’t think the product they are selling is the actual movie, the product they are selling is the culture, the homie feel , the tightknit relationships of all these people. They are selling the lifestyle. And if they are selling the lifestyle they need to focus on selling to that niche, not the mass of movie watchers. But it feels like


· Make it a tourist destination, with souvenirs, merch etc, carry items that when people buy them -they go and tell their friends a “talk-a-bout piece” Which gives people a tangible item and markets the company (is there an actual word for that kinda thing?)(think six flags, new Orleans bars, concert t-shirts)


· Create competitive priced tickets and food so people feel like they are going to a quality place, and once they get in they realize how great the place is (make it worth it).


· Increasing product prices so much that it becomes a luxury item, (nipsey hussle, iPic), they would need to package the product better, it’d have to look like a luxury product, meaning exclusive, in demand. Create bundle deals to make the price work it. Sell the lifestyle of going to the theater rather than the movies themselves

(for those of you who don’t know Nipsey, he is a rapper that gave away his music free but sold that same product, 1000 copies, for $100, he did the same thing with another project but this time selling 60 for 1000, I don’t really like his music all that much although im a big rap fan, his business sense is something to admire.)

It is beneficial for all to participate, you will probably learn something from doing this exercise with me.
CHECK OUT THE WHOLE FILM AT http://www.shortoftheweek.com /http:2015/01/29/enjoy-your-intermission (close the space after the .com)

With all that being said, what do you think the family could do to keep the business going, and make it successful? Fastlane even?

 

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[rivertucky]

Offer on the weekend to play old timeless movies and host a large classic car show, then a free movie afterwards with slightly hiked up concession prices. Such as the state fair does, $9 for a basket of fries, haha. But not that bad.

Create a good family experience and they will come.

There is a drive in movie theater around my area that I have never been to.

Yet never thought of this as of now, but a great place to take dates, maybe offer special movies to be played all night, such as valentines day, the weekend before Christmas, offer to play classic movies (not that cold here in Florida in December) maybe get Sonic-drive in to sponsor the event and offer their food.

Hell, after writing this. I'am quite blind to some advertising ideas I could place forward in my own business.

Keep on keepin on! - Joe Dirt

 

[healthstatus]

most failing businesses either don't have enough customers (because their product doesn't serve a big enough need), don't make enough on each customer or have expenses too high.

drive-ins (all theaters at this point) are competing with your in home big screen, in their own perfect for the customer environment and much more comfort than eating in your car with bugs and whatever temperature it happens to be outside. With blu-rays coming out in as little as 3-4 months after theater release, their just isn't the motivation to have to see a movie in the theater.

this industry is going the way of the pony express or the video rental store in the strip mall.

 

[William Gibson]

most failing businesses either don't have enough customers (because their product doesn't serve a big enough need), don't make enough on each customer or have expenses too high.

drive-ins (all theaters at this point) are competing with your in home big screen, in their own perfect for the customer environment and much more comfort than eating in your car with bugs and whatever temperature it happens to be outside. With blu-rays coming out in as little as 3-4 months after theater release, their just isn't the motivation to have to see a movie in the theater.

this industry is going the way of the pony express or the video rental store in the strip mall.

I get what you are saying, but the point in this is to not take the "this is a dying industry route"
Its too get ya thinkin about how these people can save their business
And when doing that you start to come up with ideas that you wouldnt have thought of before, it puts you in that entrepreneurial mind set

Come up with a few ideas! I know i could definitely learn from you sharing, im sure other people would too! At the very least you work your idea muscle

 

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[healthstatus]

get ya thinkin about how these people can save their business

At the very least you work your idea muscle

but your working the wrong muscle group. Not every business is worth saving, it is as important to know when to move on to the next thing instead of wasting time and effort on something that even if you are heroic only adds 2-3 more years of shelf life. The best times for drive ins were the 50's and 60's, when the competition was an indoor theater or a 14 inch black and white TV with 3-5 channels, most cars didn't have air conditioning so people were used to having the windows down and dealing with what the weather was. No daylight savings time, so in the summer they could have double features. All that is working against you now, shoot the sucker and move on.

 

[William Gibson]

but your working the wrong muscle group. Not every business is worth saving,

I get what you are saying, Not every idea is worth pursuing, not every business worth saving.


But to see it from his perspective.
From the outside looking in, this is just a business that needs to be terminated.
Its not so for the owner though, this is his dream, this is probably what makes him happiest in life. If I were him i wouldn't want to give up a place that ive put so much into, and a place that's given even more back to me. So for him the question is how do i keep my dream alive?

me doing this is just an excercise to change the way i think. Instead of saying this business is going to fail, ask "how can I make it succeed" It puts you in another persons shoes, and you gain a little better understanding of people and how they work.

I believe you can learn just as much if not more from a bad idea/business, than you would with a good one. You could probably learn more about the way people work from a homeless man than a millionaire if you took the time to listen

I may not ever own any sort of theater, but I believe i will be able to use knowledge I gained from studying this broken one.

 

[ilrein]

@William Gibson I haven't watched the video, nor will I.

Looks like it's a story about a dieing theatre that relies on screen projections, a drive-in.

So, the business is one that was born in an analog world, and is not able to survive because it hasn't embraced the customized experience that the digital world brings.

Here's how this drive-in analog theatre works:

1) The owner picks a movie
2) He plays that movie at a set time

It's really no different than cable programming in the 90s, someone decides the content and the time, and its up to the consumers to make their schedule work that someone's decisions.

Honestly, this is why analog based businesses are dieing. Good riddance. There's no personality there.

You want to bring an archaic business to the digital world? You have to innovate. First idea: mobile app that allows users to vote on the content. Actually, I don't have a second idea, because that's about all you can do with this one -- assuming its a drive-in/outside theatre operated by a projector. Anyway you can customize the experience, is your best bet of upgrading analog businesses to digital ones.

Well, I do have a second idea. Currently projectors are emitting unto a rectangle. Give us curvature. A half-cylinder screen. Where does sound emit from? From behind you? Can you line the ground with lines of durable speakers, so that sound emits from all around us, instead of directly behind us?

What about lighting? Is it just a world of darkness? Could there be lights that respond dynamically to the experience of the film?

Could we have a such a personalized experience? Or are we still stuck in a world where some entity arbitrarily decides what's the best average for the greatest number?

Can you imagine a drive-in theatre, which uses a wide, curved screen for visuals; a well-spread, connected field of speakers for a truly surround sound experience; integrated RGB lights which react to the emotions of the film -- and to boot, lovers of this experience can enjoy it even more by suggesting/voting for future flicks to watch?

Because that's the drive-in of the 21st century.

 

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[healthstatus]

Its not so for the owner though, this is his dream, this is probably what makes him happiest in life. If I were him i wouldn't want to give up a place that ive put so much into, and a place that's given even more back to me.

If he made money previously he can pour all that money back into it, if it makes him that happy that shouldn't be a problem. You can't fall in love with your business. It's business, and it's very similar to the old superstar ball player that won't retire, but is hard to watch because he doesn't have the skills anymore. You have to know when to get out. As @MJ DeMarco 's book says, doing what you love doesn't make you money.

Can you imagine a drive-in theatre, which uses a wide, curved screen for visuals; a well-spread, connected field of speakers for a truly surround sound experience; integrated RGB lights which react to the emotions of the film -- and to boot, lovers of this experience can enjoy it even more by suggesting/voting for future flicks to watch?

Because that's the drive-in of the 21st century.

I think most of these transmit low power to your car stereo. But you are still dealing with an environment not as comfortable as your 50+ inch TV at home. Foods a pain, bathroom is a pain, no pause, my car is comfy, but not as comfy as my couch to sit in for 2.5 hours, with your car windows down you hear what is going on in the surrounding cars, with daylight savings no movies start before 9:00-9:30 in the warm months. I don't have to vote I can pick what I want to watch. You can even buy outdoor projection screens for your backyard that are better than what you are suggesting.

 

[MJ DeMarco]

I think no matter how you try to dress up a typewriter, it cannot be saved. Dying products and services die for a reason.

 

[Wal-Mart Vendor]

My thoughts are maybe catering to children. When I was a kid I loved the drive inn because we got to play and be outside. Maybe he should put up a really cool play ground and show mostly kids movies?

 

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[MJ DeMarco]

My thoughts are maybe catering to children. When I was a kid I loved the drive inn because we got to play and be outside. Maybe he should put up a really cool play ground and show mostly kids movies?

Actually a great idea. 1/2 playground, 1/2 kids movie playing.

 

[rivertucky]

We all see that it is essentially a "blockbuster" type business that will eventually close down in some time but I think OP's prospective was to learn from it, if and when it fails or try to squeeze every ounce out of it, by out of the box thinking.

I've seen internet cafe's in Ohio on a wedding trip as well as dial up internet still being utilized. Their favorite past time is pubs and a killer business is a car wash.
Maybe this theater is in a town where they don't know netflix or equivalent. Seems kind of hard but maybe?

 

[healthstatus]

My thoughts are maybe catering to children

I am not sure a lot of parents want to drag their kids out at 9:30 pm for a couple of hours... just my experience....

 

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[William Gibson]

We all see that it is essentially a "blockbuster" type business that will eventually close down in some time but I think OP's prospective was to learn from it, if and when it fails or try to squeeze every ounce out of it, by out of the box thinking.

exactly, thank you

I am not sure a lot of parents want to drag their kids out at 9:30 pm for a couple of hours... just my experience....

What a theatre in my town did was make sunday a kids day, They made it $10 a show which included a small popcorn, and It has been a huge hit from what i understand.


I really like that play ground, movie idea cause it focuses more on the experience and what else this place can offer, rather than just the movie cause people aren't coming to their place to really watch movies, they go to hang out with friends and loved ones and get away for a few hours of their lives

 

[Mattie]

Back home before I left Michigan, I'd go the Drive In. lol Two Movies for $10.00, sit in lawn chairs, or the back of the truck. They had a playground. Kids would go play while parents made out. I watch all my movies online though for free.

 

[MJ DeMarco]

Any update?

 

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