The Dollar Rule

The Dollar Rule vs. the Movies

It's a sure sign of getting older, whenever you start to think "In my day, X only cost Y dollars." That's what it seems like when you go to the movie theaters now.

But say it I must. What the heck is with ticket prices now at the movies? Didn't they used to be a nickel? Okay, so I'm not quite that old, but the point is that a family of four now can easily rack up $30-40 at the movies, and that's not even counting associated costs such as gas, parking and food and drink.

Here's a sampling of ticket prices around the country, based on prices seen on Fandago.com:

So let's do our usual thing and see how ticket prices stack up against the Dollar Rule. Most movies now are typically 90 minutes in length, 2 hours if you're lucky. So let's say for a single adult that's 1.5 person-hours of use and/or benefit for $7.50 at a matinee showing.

Already we might feel that going to the movies falls short of being dollar-worthy as the Dollar Rule Ratio (DRR) value is a mere 0.2. The Dollar Rule break-even point, if you'll remember, is a DRR of 1.0 (the higher the better).

And remember that this is just the ticket cost. We are ignoring travel costs and food and drink. By the way, if you tend to have the urge to get popcorn or candy, I suggest having a meal right before you go to the movies. This means eat at home, if you're trying to save money!

But even if we only consider the ticket prices, is there any hope of increasing the DRR value for going to the movies? Remember that we measure use OR benefit. So perhaps you might say that by watching Iron Man you were able to enjoy it while you watched, plus you also got some good discussion time out of it with your friends. Plus maybe you got an hour or two of happy day-dreaming about what it'd be like to fly around and blow up tanks with the palm of your hand, or how cool it would be to be Robert Downey, Jr. So that's 1.5 hrs at the theater + 2 hrs discussion + 2 hours day-dreaming = 6.5 hours.

So at a stretch, maybe you could maybe eke out DRR 1.0. But man, what a stretch. So unless you're a professional or even amateur movie critic (i.e., you actually write an analysis and review of the movie and post or print it somewhere), seems like going to the movies isn't a great use of dollars.

But wait, perhaps I'm being hasty. What if you had a date that included a movie? And let's say the date went great (you fill in the blanks). So even though you couldn't say the movie was the sole reason for hitting it off, you might say it was a contributing factor. Perhaps the one date turns into a steady thing. Then perhaps $20-25 for 2 tickets is easily a dollar-worthy purchase. Maybe some day you can reminisce about that first or second date where you went to see Beverly Hills Chihuahua, even if it was a silly movie.

So again the Dollar Rule isn't really trying to say "Do this and don't do that". It's all kind of dependent on your situation and your spending style. Your date might've been eating at a fancy restaurant and going to the movies. Or it could have easily been a home-cooked dinner and a DVD you already owned.

Of course, from a Dollar Rule perspective the amount you spent going to the theater could've easily paid for one or even two DVDs. Even if you merely waited until the movie was out on DVD in the stores, you'd already be ahead of the game, since you can watch the DVD over and over (plus get all the extras they usually toss in there). The movie theater, while perhaps a great viewing experience, is going to be over in 90 minutes. With the DVD you can still dim the lights and hold hands on the couch, right? Plus no one kicking the back of your chair or talking on their cell phone (hopefully you're being interesting enough that your date is not chatting on the phone!).

Personally, to maximize DRR I will wait to watch a movie. Even after it's out at Blockbuster or Netflix, even after it's in the stores, and even after it's starting to go on sale. In fact I will wait until it is available at the library so that I can check it out and watch it for free. A couple years if I have to. For example, when 300 came out in 2006, I would've very much have liked to have seen it in the theater, having been a fan of Frank Miller (the author of the graphic novel that the movie is based upon). However, I waited until 2008 to see it for the first time. It was and still is a great movie.

It's not just because I'm trying to conserve dollars. By watching it free the first time, I can decide if it's even worth buying for repeated viewings later. That way I'm not stuck with a lot of movies that I thought were great, but turned out to be something I only wanted to watch once. If it's that great a movie that you want to own it, there's no shame in watching the first time for free. In fact, that's the smart thing to do. Plus by this time, if it's a movie you deem dollar-worthy, you can probably get the movie for quite a deal on Amazon or elsewhere.

Of course, if you're not as willing to wait, then perhaps borrow someone's copy of the DVD or just go over to their house and watch it. There, now you've seen it and the urge is somewhat out of your system. If it's still that great a movie that you know you're going to watch it for 20 hours worth, then maybe it's worth buying.

Okay, I'm going to go watch Star Wars now. I hear it's a great flick :-)

 Tags:

• DVDs
• entertainment
• money
• movies
• patience
• time

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