Of course the last time I got water from one of those places it tasted like the local water which is utter crap... I honestly think Disney bribes the local water authority to keep the local water tasting like garbage to insure people buy the bottled stuff.
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Why Do People Struggle So Much With Snack Prices?
- Thread starter Chef Mickey
- Start date
Of course the prices of the concession items in sporting venue is often required to generate money to maintain the stadium that often get very little usage in any given year. Think about how often some football stadiums are actually used? Sure they can have some arena events there besides football but most don't have that many you probable are lucky to see any given stadium used more than 20 times in a year... but the stadiums need constant upkeep whether used or not
Disney makes almost nothing on park tickets and have nearly infinitely higher fixed costs than a movie theater. It's a different model, but concessions are even MORE expensive at the movies.
Do you not understand Disney needing to charge more for snacks/merchandise to pay for employees, $100m attractions, maintenance, etc? $49/day on an 8 day Park Hopper isn't covering it. IF you can understand it for the movies, you can surely understand it for Disney.
You're making my point. Disney is an even better value than the movies.
Disney's food quality is good and much better than the movies. Your statement has no factual basis.
Most people don't go for 8 days. 4 days is probably a more reasonable number of days so assuming they don't do a park hopper its just over $80/day not 49... That's your first mistake. The other big mistake is assuming this nearly infinitely higher fixed costs... Fixed costs are also known as sunk costs because it's money that was already spent and is irrelevant when you are looking at how much cash flow you can generate. Whether they spent 1 billion dollars or 1 million dollars to build the mine train ride doesn't matter that money is already spent so whether they sell 10 tickets or 10,000 in a day that cost doesn't matter any more it gone. The only costs that matter on a daily basis are the variable costs which is your cost of water/labor and utilities. I don't think you have much difference in the cost of labor between a college student working at Disney and one working in a multiplex, so your only other costs are utilities... And while Disney's might be higher Disney also spreads those costs over a lot more people than you do in a theater because you have a lot more tickets sold on a daily basis to Disney than you do in a theater.
As for maintenance costs... Well I see lots of maintenance when I go to Disneyland, but a lack of it at Disneyworld. In the end you are simply wrong and trying to justify over priced water... Give it up the reality is Disney is ripping people off not because they need to to cover their operating costs but because they have a captive audience that can't simply pop out to a walmart in the middle of the day and then pop back in - that's a fact.
EvilQueen-T
Well-Known Member
I'm not crazy about the huge mark up either but I don't think you can complain when they allow you to bring in all the food and drinks you're willing to drag around all day. Anytime someone brings up the subject to me I smile and nicely remind people that.
Goofyernmost
Well-Known Member
I think I understand what you are saying about fixed costs, but, it isn't previously spent, it is anticipated regular expense, it still comes out of daily income. Fixed cost is more a line item then a hard and fast dollar amount. Some of the fixed costs can vary depending on a number of factors. Some fixed expenses can vary by the number of people in a park at any given time. Capital investment still has to be paid for. They usually borrow money to cover major expenses or the may if they have that much of a cash reserve they still have to amortize it over whatever number of years the item is allowed. It is considered an expense over those years, regardless of the source of the money. So, some of it is to cover those expenses. A billion dollar expansion still requires payment of a billion dollars, it isn't a freebee.
As fans we tend to overlook many things and that is just how much it costs to run a theme park. Think of the cost of electricity alone. That would be a fixed expense that varies depending on weather or needs to supply the people in the park. The problem is that at some point, it bottoms out to a much higher ratio because it factors regardless of whether there are 10000 people in the park or 12, the equipment is still running.
As far as maintenance is concerned, seriously, how can anyone think that all that stuff can run day after day, after day for, in some cases, 40+ years. They idea that no maintenance is being done is absolutely ridiculous and based on the fact that someone saw a paper towel on the ground. Or that one of those older attractions occasionally break down regardless of how much maintenance is performed.
drp4video
Well-Known Member
As has been stated, Disney snack prices are similar to sporting events and other theme parks. If you buy ice cream at an ice cream parlor at home, the price is similar. Popcorn in the theatre and a water, similar. For the cost I am spending on a disney vacation, snacks are just a small percentage of the total cost.
So, I will buy the bottled water, and I will not refill it at a drinking fountain, I would rather purchase a second bottle, because the water coming out of those drinking fountains tastes awful!
So, I will buy the bottled water, and I will not refill it at a drinking fountain, I would rather purchase a second bottle, because the water coming out of those drinking fountains tastes awful!
Yes the cost of a single bottle of water is very small compared to the cost of admission and a room... But then if its Florida in the summer you don't just drink one bottle of water 4 dollars hear, 4 dollars there.... pretty soon it become significant especially if its a family of 4.
flynnibus
Premium Member
30k rooms on property.. how many people are we thinking Disney has on ticket media a day? 30k? 50k?
50k x an average of about $50 dollars a head is $2.5 million a day in ticket revenue alone. Pretty sure that's not insignificant to their daily gross
Or this writer's take on ticket revenue..
50k x an average of about $50 dollars a head is $2.5 million a day in ticket revenue alone. Pretty sure that's not insignificant to their daily gross
Or this writer's take on ticket revenue..
http://www.forbes.com/sites/greatsp...neys-u-s-theme-parks-operations/#74894ea77df6
Only thing I think you under estimate is the average ticket price. Since Disney pushes the 4 day tickets in most of their campaigns the odds are the average price isn't 50/head which would assume 7 day tickets... so that number for 4 day stays would be about 80 giving a daily gross of 4 million a day.
Pumbas Nakasak
Heading for the great escape.
Pumbas Nakasak
Heading for the great escape.
Well the nimitz class strollers that block paths are certainly large enough to carry rations for a full assault group and being wheeled you dont have to lug them around. Perhaps if there were more lockersit would be a more practical option for those non mechanised park commandos.
Disney Parks' margins are reasonable. They are <20% operating margin most quarters. That's a fact. Apple, Microsoft, Netflix, and Pfizer rip you off far more.
flynnibus
Premium Member
I took a conservative number because it was enough to prove the point
flynnibus
Premium Member
Way to compare completely different markets... Software veer se theme parks erc
Stunning
Cesar R M
Well-Known Member
I dont think you can offload your costs to china for the parks like apple, microsoft does.. or use bulk solutions like netflix. Or just "swim" in the patent bs that pfizer does.
AEfx
Well-Known Member
No matter how many people repeat this silliness, it isn't any less idiotic to compare to sporting arenas or theaters.
The difference is, Disney markets itself as a "one stop" destination who does everything they can to keep you on their property from the moment you arrive in Orlando to the moment you leave. That means 3 meals a day, every thing you ingest for a week.
At the venues people try to compare it to, people aren't feeding families substantial meals because they are only there for a few hours.
So yeah, I'm sure it's kind of shocking for a family of 4 or 5 to budget $40+ for a few water breaks every day, especially since most places don't advertise that you can ask for free ice water and I doubt most guests know about it. If they did, Disney would stop doing it...
xdan0920
Think for yourselfer
I've been to Disney Parks a lot of times in my life. I've yet to see someone request free water. I'm guessing the vast majority don't know it's free, and another non zero amount are embarrassed to ask for a handout.
Goofyernmost
Well-Known Member
Regardless, it is still their choice to do it that way. I have very successfully gone to WDW for 34 years, and have yet to be in their clutches. If I paid for something, I did it because I wanted too. Everyone has that choice. They are all in self imposed exile. Their decision completely. Other options are indeed available and have been since the day they opened the gates. When they opened the gates it was the rare one that stayed onsite making themselves prisoners to the prices at Disney. There are still hundreds, if not thousands of hotels just offsite, no one is forced to be there unless they want to be. So don't try and make me cry crocodile tears because Disney charges a lot for their snacks and everything else for that matter.
Disney does market themselves as a one stop destination, but, I don't recall them ever saying... "stay here, it's really the most inexpensive place ever created".