Monthly Movie Budget

We don't really have a budget for movies every month. I go title by title to and go by what each will do for me. I've ranged between 2k and 4k a month for movies. For the stores that use a percent or a strict budget, how do you do it for big months (like this past Dec.) or for slow months (like last June & July). Doesn't it restrict you in ways and force you to leave out some good titles or amount of titles?

[yburan]

I don't have a dollar budget. I buy based on the box art

If I think the title will rent well, I get more, if I am not sure I get just two or three. Sometimes I will run to the big electronics store on a Saturday afternoon to pick up more copies if the title goes well.

[direct007]

We budget 40% of our projected revenue.  We project revenue based on the same month in the previous year.  Then take the monthly budget and divide by # of titles and copies of each title.  Not exactly scientific but it's worked for 22 years.

[omahavideo]

40% of projected revenues, or rental fees?

[direct007]

clarification: 40% of projected RENTAL revenue.  So for simplicity sake:
If we project $12000 in rental revenue (including extra day fees, prepaid rentals, etc.) then $4800 would be set aside for rental inventory.

[sungifts]

I'm with yburan - we don't have any set budget or percentage.  We just buy as we feel we need to.  We do try to keep it under $3,000 or so, but there have been months that we have gone over (and under).

If it is a heavy month, you would have to expect to be spending more than that of a month when barely anything good is released.

We have also been known to run to Walmart on a Friday or Saturday night to buy more titles when the movie did better than we would have expected.

[vatch]

I don't really have a set budget, but try to keep it as close to 35-40% of projected rental revenue as possible...

What makes it a little more difficult sometimes is the fact that I use Rentrak, and never really know the true cost of those titles.

I would love to hear from some of those that use Rentrak as well, and what your budgeting strategy is...

[Anonymous]

every month is not the same, I spend about $3000.00 a month on new inventory.
comes out to 150 DVD's a month, as some weeks offer more and other weeks offer less
I still maintain a set amount on each title never to go over it, the set amount is based on how well it did at the box office, from 18 copies for high to 3 copies for low. some times I am way under 3000.00 or 150 DVD's on a month, and other months I am glad I have a set spending limit.