This might be the best time in a generation to be selling Preneed
I enjoy learning and then finding solutions to problems. It’s something I’ve done since I was a child — find out the facts of the situation and then solve the problem. To that end, I continue to read four business newsletters per day. . . I simply enjoy what I learn from them and then try to put that knowledge to a practical use.
I was also a licensed life insurance agent during my time operating a funeral home because it gave me the opportunity to place Preneed insurance as a solution to pre-arrangement financing.
Recently, from what I’m learning in my business newsletters and from what I know about acquiring funeral home customers through the placing of Preneed insurance, I’ve came to the conclusion that this may be the best opportunity in a generation to go all in on Preneed marketing.
Recently, in one of the newsletters a CEO of a major company stated that “gasoline prices have not seemed to hamper the consumer.” And, Nike had record sales quarters – and said the sales would have been higher if they could get shoes produced faster. Here’s exactly what Nike said in their investor report, “. . demand continues to significantly exceed available inventory supply, with a healthy pull market across our geographies.”
General Mills, even in this inflationary period commented “that consumers were paying up. In fact, sales of higher priced products drove all of the company’s revenue growth during the period, which actually saw pound volume decline.
What did the CEO’s of these companies conclude? Here’s a quote from one of the articles, “I think the consumer balance sheet is stronger than it has been previously. Indeed, consumer debt levels are low and cash levels are very high.”
From my point of view, I think three items drive Preneed sales that are not Medicaid spend-down driven:
- Uncertainty — Consumers want a plan for uncertain happenings of life. Preneed fits into this category, just as life insurance and a will would.
- Mortality — All consumers know they will eventually die. I think the Covid pandemic and, quite frankly, the war in Ukraine has been a stark reminder that death could come earlier than we thought.
- Financial Ability — In order to Pre-pay one’s final expenses, the consumer needs to have an amount of cash sitting aside that they can live without. And, while not true for all Americans, there is no doubt that the majority of Americans have been able to save more through the pandemic than they did before.
The following graph on savings rates of Americans (from 2015 tthru 2020) will point out my thoughts. When you lump together, what I believe are drivers of Preneed spending – Uncertainty, Mortality, and Financial Ability — I don’t think that in my time in funeral service, over 40 years, that those drivers have aligned as well as they do now.
Back in 2001, our funeral home got more intentional about driving Preneed as a way of increasing market share. Putting resources into that end and hiring the right people to be our representatives paid incredible dividends. . .and still does. The Preneed companies like Funeral Director Daily sponsor Great Western or the Preneed seminar companies like Laker Planning can help you get started if you are not waist-deep in Preneed at this time and need a nudge to get started.
What was it that former “Miracle on Ice” Olympic hockey coach Herb Brooks said just before the biggest game?. . . . .”Great moments are born from great opportunity.“. . . . I would suggest using this “Great Opportunity” in Preneed to make “Great Moments” for years to come with your business.
More news from the world of Death Care:
- Tetrick celebrates 100th Anniversary. Johnson City Press (TN)
- Drug deaths spur mother’s support group in North Carolina. Reflector (NC)
- Bakersfield National Cemetery commemorates Vietnam veterans and their families. Stars and Stripes
- Congress passes legislation benefitting Veterans’ cemetery. KFYR Bismarck (ND)
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