When you enter the business world you have the option of who you want to entice as a customer of your business.  Think of the dining out category of businesses and you can easily see the different business models that owners use in trying to make a profit.  There is the McDonald’s or Taco Bell model that pushes out tons of food at relatively low prices, with little hospitality, to draw in the masses.  That is one model to make a business profitable.

On the other end of the spectrum there are those restaurants that cater to offering a unique experience and tremendous hospitality to a limited amount of consumers, but then charge a relatively high price to the consumer for that experience.  Think of restaurants like Capitol Grille, Ruth Chris Steakhouse, Smith and Wollensky, and the like.  That is another model that is a proven business method.

It seems that when we talk in those types of terms in the death care business, we usually talk of the McDonald’s/Taco Bell model.  We talk about direct cremation without services and wonder how low we can get the price, with no frills, to get the consumer to our business.  It seems like we race our competition to the bottom dollar to try to drive the consumer to our door.  That method can work, but you need lots of customers to be able to make really good profits.

Very seldom in the funeral business do we hear of charging a “premium price” but then giving such outstanding concierge type of services that we can get people to pay for it.  Most of the time in the funeral business, even for those of us who believe are services are absolutely outstanding, we tend to offer “value” pricing to capture the consumer.

Because of those perceptions, I find this article about the Holy Sepulchre Cemetery in the Greater Detroit area so refreshing.  Specifically, it gives information on the private mausoleum being built for Little Caesar Pizza magnate and owner of the Detroit Tigers and Detroit Red Wings Mike Ilitch.  Ilitch, died in February 2017 and is being held in a temporary mausoleum until his two-person mausoleum is finished in the cemetery.

The article states, “The neo-Classical mausoleum at Holy Sepulchre Cemetery in Southfield, carved out of white granite mined from a California quarry, features bronze doors and twin angels and serves as a throwback to a gilded age when lumber barons, auto industry pioneers and politicians built cavernous crypts in historic Detroit cemeteries.”

Michael Fisher, a funeral home owner and relative of auto pioneer Charles T. Fisher whose family is buried in the plot next to the Ilitch mausoleum is quoted, “It’s really kind of refreshing, in a strange sense of the word, to see someone invest that kind of money in an old-fashioned burial.  You don’t see that anymore.”

Michael Huggins of the Roselawn Memorial Park and a member of the Michigan Cemetery Association commented that he has seen a rise in the interest of private mausoleums.

And, the article makes a point about the death care industry possibly seeing a potential growth opportunity in higher end services.  The article states that the industry, even while seeing a rise in cremations, will see a opportunity at the high end as personal disposable income continues to climb for many.  For instance, the Ilitch mausoleum is estimated to cost $750,000 or more.

Funeral Director Daily take:  Working in the industry as long as I have I know that not everybody wants the least expensive option available.  On the other hand, not many people can afford what the Ilitch family is doing in their memorialization efforts.

However, I think it is important that we realize that there is a percentage of future clientele out there who want more for their death care options than many of us think.  In many instances, the “value” proposition has hurt funeral service.  We need to understand that if we do an unbelievable valuable service for the clientele, that there are those out there who will pay for that service.

Your business has to be profitable to keep moving forward. . . .but just because the other guy charges a low price doesn’t mean that is the only option for your firm.  Can your firm be profitable by losing some services to price conscious consumers, but being the Cadillac provider to others?

In this day and age, that is a difficult question.  However, something that differentiates you in service may be just what some consumers are willing to pay a premium for.  Interesting thoughts for the weekend.

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