I went to the airport the other day to pick up my delayed bags. While coming back from airport, I again used Ola cab. There was a difference of Rs.35/ on the same trip, the return trip cost more. I checked the invoice and found that they had charged, airport pick-up charge. Ola and Uber both now have stands at the Pune airport. For this facility they pay yearly fees to the authorities. They are passing it on to the customers. At a time 8 to 10 cabs are always waiting at the airport!
The other day, we went to a multiplex to watch a movie! I did my booking on the website. Besides buying high priced tickets, I was charged convenience fees above the price of the tickets. I asked my young friends, who are savvy in such things! A friend suggested that we should use the website to check the tickets availability; if plenty of tickets are available, simply go the multiplex and buy the tickets. No convenience charges are applied.
So far so good. While watching the movie, we thought that we must follow the tradition and decided to eat popcorn, sandwiches and coke (diet of course!) Popcorn was freshly made, sandwiches were ready to eat; probably made in the kitchen near the back office. Coke was from the fountain. None of the product sold were legally “packaged” food. “Packaged” stuff under the law of MRP! Non packaged products do not have MRP and there is no need to “declare” it price!
(MRP) Maximum Retail Price is a maximum price which can be charged to the consumers in India, as specified by the authority. Under the Consumer Goods (mandatory printing of date of Production and Maximum Retail Price) Act, 2006, consumers cannot be charged more than the MRP mentioned on the packing of the products.
When my card was charged I realized that there was not a single packaged item. Hence there was no MRP for whatever I bought. I realized that the multiplex owners must have had robbers as their ancestors! They simply robbed me on food prices, and there was nothing I could do about it. The total cost of food was much higher than the price of movie tickets. Since the items did not come under MRP laws, they could charge me whatever they wanted! Mind you there was a big queue to buy stuff and apparently people have money and do not mind spending money on entertainment. I asked my young friend later, the trick to overcome this issue. I asked her, if we could take stuff from home to eat. She said that we are not allowed to take outside food in the multiplexes due to security reasons; and that is the law! My theory about ancestry was proven!
So far so good, the movie was nice so we did have a good time in spite of meeting the robbers! Now what is the law on this? Somebody has recently taken these multiplex guys to court. Arguments are going on in the court. The court has made an observation that when we go to five-star hotels, we pay whatever they ask for the food! We never expect the prices to be similar to other smaller restaurants. Similarly, I know that the prices of movie tickets in single screen theaters are much lower than what multiplexes charge. I am sure pop-corn, sandwiches also cost much less in single screen theaters. The court will check only the legality of billing done for food, if needed. Compliance of taxation will be checked by tax department! But nobody can tell them at what price they should sell the food!
The stories apart, is the high price for food charged by multiplexes justified? I am not sure but the multiplexes are projects by themselves and there is a lot of investment made in each such project. The movie business is unpredictable in general, so sell of tickets will depend on how popular the movie becomes! Their earning from movies is also unpredictable. The movie tickets are priced from Rs.80/ to Rs.400/ plus, for morning shows to most popular movies later in the day. I am not aware of their earning per ticket. So, what they are charging us for food is as per their business model. We are going to five-star movie theaters where we have fancy theaters, escalators and all the modern things. Prices will be high and we will have to accept them.
In India, when we travel by railways, we don’t pay extra luggage charges. But when we fly we are required to pay additional fees to the airlines as per rules. On some airlines they provide food free because the price of tickets is inclusive of the food. But on some low-cost airlines, we are required to pay for the food. Recently on our first leg back to India, on Seattle to Toronto flight, Air Canada was charging for food but they were serving coffees and cokes free, though it was an international flight! They probably decide based on the duration of the flight. On New York- San Francisco flight we were served food, since duration was 6 ½ hrs. So, each of the businesses have their own business model! We shouldn’t crib about it. We choose whatever is suitable to us, itinerary wise and price wise. So, we have options to see a movie in a multiplex! We have choices! Single screen theaters, YouTube, Netflix. We have to decide ourselves, nobody is forcing us.
What is the solution to this issue? For me there is no solution! But yesterday a party known for its rough politics, man handled a restaurant manager in a multiplex, for selling popcorn at “high” price. Is it the right way to handle things? What can the manager do about it? The prices are decided by the management! Taking law into your hands is never justified whatever the reason!
There was one new Ranbir Kapoor movie being released! In the second week when the ticket prices are down, we can go for the movie. Tickets are on me, food is on you! Offer open only for multiplexes! Are you game?