Sometimes when you really need to know about your business, you should listen to somebody from the outside.  They see that perspective from another view — and many times it is the view that Mr. Outside can see that Mr. Inside has overlooked.

So, today, I have found two articles from the people on the outside — people who follow the stock market — and their perspective on the funeral industry that we maybe don’t always see.

First, here is an article from The Bull.com out of Australia that compares the two major public death care companies in Australia — InvoCare and Propel Funeral Partners.  It is not the individual stock commentary and comparison that interests me, but The Bull’s overall positive outlook on the death care industry that is enlightening.  Two highlights they point out is that the death rate is rising and population is expanding – which can only mean more business — and death care companies are showing annualized total returns of 13.4%.  Evidently, The Bull is bullish on the funeral industry down under.

The second “outsider” article I found was a Seeking Alpha article that you can read here.  The article is entitled “A Catalyst for StoneMor Partners” and explains what the author sees as tailwinds in the industry.  It’s interesting that this “outsider’s” opinion is that these tailwinds come from an aging population and what I find interesting, the trend toward cremation preference.

The trend toward the aging population is similar to the Australian writers and something we insiders have seen also.  What this Mr. Outside sees, however, is that burial costs may be more but have gross margins of only 60% whereas a company like StoneMor may be able to take cremations and with the costs of niche or ground space, cremation vaults, opening and closing costs, and marker costs get cremation costs over $7000 and with it carry margins close to 90%.

This writer believes that if you can make those ancillary sales and get that total to $7000, your gross margin may be more than an earth burial.

Funeral Director Daily take:  These are both solid articles where – if you read them – you will take something away that will help you in your business thinking.  These “outside” writers may be right or they may be wrong with their opinions, but that should not matter.  What they really do is force a good funeral businessman to think about what they are doing.

I’m a firm believer that you have to be intentional in what you are doing on the business side.  A smart business person will seek out all sorts of opinions and perspectives on such before making his decisions.

Don’t be afraid to look at different points of view when setting your business goals.

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