A glimpse into things to come
The state of Colorado is in the news often these days. Demographers tell us that in many ways it appears to be a bellwether of things to come in the United States. It is growing by leaps and bounds, the diversity of the people is rapidly expanding to resemble what America’s diverse population will eventually be, and people are much more inclined to look at new options rather than follow old traditions than in other states — especially in the rust belt, the grain belt, and the east.
On Sunday, the Denver Post ran this feature article on the changing face of the death care industry. It featured many things. . . such as the topic of cemeteries becoming a place for the living rather than only for the deceased. It touched on the fact that as a bellwether state, the cremation rate in Colorado was already 70.3% in 2015 and is among a dozen states set to have a cremation rate above 80% by 2035.
Well known funeral director and former National Funeral Director Association President John Carmon of Connecticut was also quoted about his contention that the evolution of funeral care can be, at least in part, attributed to the changing religious dynamics. Mr. Carmon said, “Many funerals are more about people’s lifestyles. Their work. Their hobbies. What they enjoy, rather than about a spiritual life.”
The article also contained this notation by the author, “Experts in the industry agree that changing attitudes about the end of life – a desire for more personalized ceremonies, earlier attention to funeral planning, environmental concerns and a wish for lower costs – are breathing new life into the business of death.”
Funeral Director Daily take: This is a great article and one that I agree with wholeheartedly. Funerals and cremations services are changing. . . and I have warned traditional funeral homes that without proper attention, business could become bleak if you carry on only as you have carried on for the past 100 years.
However, this article also articulates a blueprint for how to be successful with a little bit of an attitude adjustment. I believe that the author hit the nail on the head when she talked about what is breathing new life into the business of death. . . .you just have to fill your lungs with that new air to see great opportunities. Face the facts. . . people are going to continue to die. Your funeral business just has to be able to offer what the families of those deceased people want. . . and the secret is to do it at a price point that can be profitable.
If I was operating a funeral home today. . . .personalized ceremonies, environmental options, and lower costs would be things I would advocate in addition to what I believe is the main key to keeping revenue coming in the door to be able to do all those things. . . . earlier planning by your potential clientele. . . Your firm’s inclusion in that planning is what may be the difference in your profitability going forward.
Our funeral home was a big advocate of pre-planning and pre-financing your funeral. Especially the pre-financing option. We viewed those people who pre-planned as revenue and profits for the future. We advocated to the public that the best time to look at your mortality was when you were applying for Social Security and/or Medicare – about ages 62 to 65. We advertised in our community that was the time to talk to your family, pick a cemetery, and set aside money for your funeral. If that was done, well, you didn’t have to think about it again during retirement.
From what I’m being told from this article, however, I would probably change that age downward to 50 or 55 and move my marketing to females in that age category. (If you didn’t know, females drive the future planning process in almost all consumer markets). The secret to being successful in any business is to keep the revenue coming through the door. And, in the death care business, meeting those future clients before they need you will almost assure that you can keep their revenue coming in your door.
Yes. . .funeral services and death care are changing. . . but you can change with it and be successful.
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I agree with you in several points you make. However, one that I do not agree with you, is your point of view regarding costs. Please explain to your readers how continuing to lower costs, as SCI and other corporate conglomerates are reporting massive profits from much higher priced services, is the way to remain profitable? SCI, in many markets, is getting over $3,500 for direct cremation, consistently. What you need to be telling independent funeral homes, is too stand their ground and continue to raise costs and actually give them a chance to compete with corporations, who by the way, will own 80% of all death care businesses in Colorado by 2025. “Keeping costs low” is the independent funeral home’s proverbial death sentence. Whether we like it or not, corporations are setting the standard. When your call volume continues to decrease, and theirs continues to increase, despite your direct cremation price being nearly $2,000 less, your firm is doomed. It’s about staying competitive with them. By being a lower price, you’ve just conceded to the unspoken assumption that you are not providing as good of a service as they are–from the consumers standpoint. Fact.