Theater lost, lessons gained

Anytime a local business bites the dust, it leaves a bad taste in a lot of people's mouths.

That's how we felt when the owner of Post Falls Theater, just two months after switching to a reduced-cost format, announced that he will permanently turn out the lights at the close of business this Sunday.

The owner, who has every right to be disappointed after operating a respectable business and contributing to a number of community causes over the years, was vehement in blaming not so much his competition in Coeur d'Alene as the community of Post Falls for not supporting his enterprise enough.

In explaining the reasons for closing, the owner told the story of a Post Falls woman who came to pick up a substantial donation for needy kids to play sports locally. In passing, the woman told the Post Falls Theater owner how excited her children were to see the new Harry Potter movie - at the theater in Coeur d'Alene.

We understand his anxiety and have experienced similar stories ourselves, as we know many other local businesses have. But there are several lessons to be gleaned from the loss of Post Falls' only movie theater.

Technology has created challenges for theaters that make profitability tougher than ever. When people can download popular films in their homes for less than the cost of a large popcorn, when their living room sound systems and high-tech TVs are more than sufficient to imitate a theater experience without ever having to hop in the car or change out of their jammies, change is an ultimatum for survival. The only significant ongoing change in the theater industry is that, even in a difficult economy, ticket prices and concession costs continue to go up. None of this bodes well for tomorrow's movie theaters.

Another lesson basic to any business is that customer loyalty generally hinges on demand for the product. Those of us whose businesses contribute mightily to local charities must never misunderstand that goodwill is appreciated, but it is not sufficient fuel in and of itself to keep the business running. Service can be excellent, community goodwill high and prices affordable, but if the product itself is not in adequate demand, that business's future is dim.

There's yet another lesson that comes from recessions' school of hard knocks. It is as old as business activity itself, yet it resurfaces during every economic downturn. To thrive, a business better have an effective marketing plan and the ability over the long haul to sustain it. These days, with more choices for customers than ever, businesses must work harder to distinguish themselves from the cacophony of come-ons from start-ups and one-night wonders. Call that a shameless plug from a newspaper that is expert in local marketing and depends upon advertising for its survival, but ignore the advice at your own peril. Show us a business plan that does not include effective marketing and we'll show you one that, sadly, will follow Post Falls Theater in turning out its lights forever.