Jeff “The Funeral Commander” Harbeson of The Foresight Companies discusses points that will prevent your funeral home becoming a negative headline. It’s worth 8 million dollars to watch! The post How Is Your Funeral Home Avoiding This 8 Million Dollar Mistake? appeared first on Connecting Directors. How Is Your Funeral Home Avoiding This 8 Million Dollar Mistake? published first on YouTube via Tumblr How Is Your Funeral Home Avoiding This 8 Million Dollar Mistake?
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Dead Ringers, a data-based mystery phone shopping service which secret shops funeral homes and cemeteries across North America, has compiled data from October 2015 covering multiple factors including online pricing among funeral homes. In its data, Dead Ringers found that approximately 21% of funeral homes post prices online (this includes the General Price List and any limited pricing such as packages or merchandise). This is comparable to the results of The Funeral Consumers Alliance and the Consumer Federation of America’s recently published FCA Study which found that 27% of funeral providers post their General Price List or some prices online. The Funeral Consumer Alliance wants greater transparency in deathcare including posting General Price Lists online. Dead Ringers encourages funeral providers to post pricing online because this offers the consumer transparency. However, with the advent of websites like Parting.com, a free consumer service which provides pricing information for funeral services in a user’s specific area, pricing has become readily available and accessible to consumers. In addition, Dead Ringers’ research revealed most funeral homes provide pricing over the phone (Dead Ringers data collected shows 62% of funeral providers disclose pricing information even if the provider is not directly asked for pricing). What is not comparable is the belief that all Direct Cremations are the same. In a press conference held by the Funeral Consumers Alliance in January 2018 announcing the results of their recently completed FCA Study, Josh Slocum, Executive Director of the Funeral Consumers Alliance, said that they were surprised at the vast difference in direct cremation prices. The Funeral Consumers Alliance and the Consumer Federation of America pointed to Washington, DC as an example and cited a range of prices from $1295 to $7295. Slocum stated that this range was unfair to the consumer because, by definition, direct cremations must contain the exact same services. The Funeral Consumers Alliance continued by stating that there should be no difference in pricing as the FTC requires direct cremation packages to be identical for all funeral and cremation providers. Poul Lemasters, Esq., an owning partner of Dead Ringers who also attended the press conference, asked why there was an expectation for all direct cremation prices to be within the same range. “If we were to call every hotel in Washington, DC—the same city used in the FCA’s example—and we asked for a standard queen-sized room—wouldn’t we get a vast range of prices?” said Lemasters. “Wouldn’t we also expect and want hotels to have different prices for the same type of room due to many different factors? It would be like comparing a queen-sized room in a 1-Star hotel to a queen sized room in a 4-Star hotel. There would absolutely be a price difference, a difference in service and quality—even though every room would have a queen-sized bed within it.” The Funeral Consumer Alliance and Consumer Federation of America base their study on various Federal Trade Commission Funeral Rule requirements including handing out a General Price List and offering direct cremation but did not explain the Funeral Rule basic service fee. The FTC requires funeral homes to list their non-declinable basic service fee. This required fee, per the FTC states: The fee for the professional services of the funeral director and staff that are added to the total cost of the funeral arrangements. This basic services fee can include a charge for the services performed in conducting the arrangements conference, planning the funeral, securing the necessary permits, preparing the notices, and coordinating the cemetery or crematory arrangements. This fee also may include overhead that you have not allocated elsewhere. (Please note that the FTC allows the basic service fee to either be a non-declinable fee or the fee for services and overhead can be included in the price of the caskets. Almost all providers handle this under the first option—listing their fee as a non-declinable fee). “Why is the basic service fee important? Because, by definition, this fee includes all the costs a funeral incurs for such common things as getting paperwork filed, making arrangements, plus, overhead,” said Lemasters. “It is not hard to imagine that the basic service fee could be, and typically is, different from business to business. And it makes sense, as no business has the same overhead costs or employee costs for providing services.” The basic service fee is a critical point in understanding how direct cremation is represented, but it’s not the only factor. “We see a wide variance among funeral home basic service fees and direct cremation fees across the United States,” said Tyler Yamasaki from Parting. Yamasaki went on to say that when shopping all the funeral homes across the United States, “We also see a variance between funeral home sizes, location, aesthetics, all of which explain why costs can be different.” This basic service fee is also important because it serves as the foundation for pricing direct cremation. When determining the price for direct cremation, a provider’s basic service fee must be included. The funeral provider has the choice, per the FTC, to either include their entire basic service fee, or if they believe the entire basic service fee is not appropriate, then the funeral provider can charge a portion of their basic service fee. But, this fee is determined based on the providers costs, which varies. Some funeral homes are brand new facilities while some are old facilities, some have a handful of employees while others had dozens, some are online providers while others have 10,000+ square feet of physical space. All of these items can affect the prices a funeral home may charge. In addition to the funeral homes basis for setting a price, Dead Ringers’ data also showed a number of factors the consumer considers when making a purchasing decision. “Pricing is not always the only factor a person uses in making a purchasing decision,” said Cole Imperi, part owner of Dead Ringers. “It goes back to the hotel analogy, some people choose a 1-Star room for the night while others might choose a 4-Star. Their reasons for doing so are all just as unique as the differences between the hotel room choices themselves.” Dead Ringers collected the following information, based upon Washington, DC data, and it confirms the vast similarities in pricing structure. (See Chart 1 and Chart 2) Dead Ringers data shows that hotels and funeral homes both share a similar range among the high and low available price. The data shows that each have a median range—where most competition exists. For hotels, the data showed a median average of $199.00 and 52% of all hotels at or below 10% of the median. It also showed the highest priced hotel is over 8 times the price of the lowest priced hotel. For funeral providers, this data showed a median of $1,995.00 and 56% of all funeral homes pricing themselves at or below 10% of the median. The data also showed a range of $6,550.00 between the high and low. Additionally, the data showed the highest priced funeral home at just over 7 times the lowest priced funeral home. The data shows that approximately 50% of both funeral homes and hotels exist within a common median price. The data also shows that there are high priced and low priced providers, outside the median and average price. Finally, the data shows that outliers (the high and low priced businesses) are comparably the same distance from the median. What does it all mean? Services and products in ANY service category are very different—and the consumer should have the option and right to decide what they are willing to pay. Consumer groups are questioning why direct cremation prices are different, and are representing to the consumer that all direct cremations are the same. The fact is that not all providers are equal—in any service category. Why would one family choose to pay $7,000 for a direct cremation versus another family choosing to pay $1000? That is truly a choice the consumer should be allowed to make. The real question is how do you properly explain your charge—$7,000 or $1,000 for direct cremation is relative to not only what you offer, but how you offer it. “Educate your consumer so that they see there is a difference, and then let them decide what that is worth to them,” said Imperi. The post Misrepresented Pricing appeared first on Connecting Directors. Misrepresented Pricing published first on YouTube via Tumblr Misrepresented Pricing In 2015, Bloomberg Businessweek published a feature story on the U.S. casket trade highlighting it as one of the last standing industries of U.S. manufactured products that has not fallen to Chinese imports. In 2005, Jim Malamas was one of the first to enter the imported casket business with his company ACE caskets. Malamas was acting on what he saw as an opportunity to capitalize on the inevitable fate of casket manufacturing going overseas. Since the start of ACE Caskets, Malamas has had a difficult path to moving in on marketshare. One of the biggest blocks has been the sturdy infrastructure of Big Casket. Deathcare’s Big Two—Batesville and Matthews Aurora Funeral Solutions—control 70 percent of the funeral merchandise market. U.S. caskets alone are a $1.6 billion business. Historically, the Big Two have been committed to providing U.S, manufactured caskets, although now they have some manufacturing in Mexico. They sell U.S. manufactured products to funeral homes for up to $1,500, while a nearly identical foreign model sells for as little as $408. Low-cost overseas manufacturing is an obvious threat to their longstanding business model. But, caskets are still holding out for domestic manufacturing with imports making up only about 5% of total caskets sold in the U.S. “The funeral industry has had a goddamn easy ride for the last 150 years,” Joshua Slocum, executive director of the Funeral Consumers Alliance, tells Bloomberg Business Week. “Why aren’t as many caskets imported as Chinese dishware? It defies all known rules of supply and demand.” The industry-standard markup rate on caskets is 125 percent and it can be higher on an imported model like ACE. White & Day Mortuary reported to Bloomberg Businessweek in 2015 that they buy the popular Mandarin model, a 20-gauge steel unit, from ACE for $338 and sell it for $2,495. That is a markup of more than 700 percent and is still a competitive price for shoppers. In an industry facing pressure from budget shoppers, internet sales, and rising cremation rates, this additional revenue can can be a godsend for a privately owned funeral home. So why hasn’t the entire industry abandoned the Big Two and jumped on the imported casket train?It likely comes down to distribution. Because the funeral home industry is made up nearly entirely of mom and pop businesses that receive about 100 calls annually. This makes it difficult (or impossible) for them to purchase expensive wholesale products like caskets outright. Since they cannot purchase a container-load of caskets, they often place single orders at the time of need. A small company like ACE cannot deliver products in time for waiting families, but The Big Two have refined distribution channels allowing them to deliver a casket within 24-hours. The Big Two are aware that their hold on distribution is being threatened as small importers like ACE grow and attain more resources. In 2006, A Matthews subsidiary filed a design infringement suit and nearly toppled ACE causing early customers to leave and Malamas and his Chinese importer to amass $2 million in legal fees. Bloomberg Business week reported, “When Malamas entered the market, Big Casket moved quickly to defend its turf. In 2006 a Matthews subsidiary filed suit, alleging that ACE and its Chinese supplier were copying its designs. Matthews also sent letters to funeral homes and distributors, threatening to sue if they continued to buy from Malamas. ACE eventually prevailed in the lawsuit with Matthews in 2012, and the company’s Chinese supplier picked up most of the legal tab. But by then, Malamas’s revenue had been cut in half, his clients were spooked, and the business was in shambles.”
Now, two-years since the Bloomberg story, where does the war on imported caskets stand?For starters, Basteville and Mathews have continued to move their casket manufacturing plants to Mexico, a move that began in the early 2000’s. This was expected and probably long overdue from a business standpoint. Funeral industry expert Dan Isard told the Huffington Post in an interview:
According to Malamas, after Mathews lost the 2012 suite against Wuxi Tractor Factory, they filed an enforcement action against the manufacturer. The enforcement action does not appear to be a lawsuit, but is intended to allow Mathews to conduct investigations to monitor compliance and identify violations. The details of the enforcement action could not be confirmed. Malamas himself still gets letters for court appearances even though he no longer works with Wuxi Tractor Factory. He said he does not understand why he continues to feel pressure from Mathews lawyers. “I am not complying,” he tells Connecting Directors. Malamas and his comply ACE Caskets weathered the storm of the 2012 suite, but not without damage. He told Connecting Directors that his sales have declined 75%. He added, “…but “I have a lot of energy again and we are making progress.” ACE Caskets is no longer the largest importer, giving way to companies like Signet Supply and Best Price Caskets. Malamas has been refining his product line, reportedly visiting 54 Chinese casket manufacturers in person to find the best quality/price combination to offer his growing U.S. client base. All of his wood is sourced in the U.S. and Canada then shipped to China for production. Malamas told Connecting Directors:
The post Learn About the Ongoing War on Imported Caskets. Winners, Losers, and Lawsuits… appeared first on Connecting Directors. Learn About the Ongoing War on Imported Caskets. Winners, Losers, and Lawsuits… published first on YouTube via Tumblr Learn About the Ongoing War on Imported Caskets. Winners, Losers, and Lawsuits… Social media is universal and valuable for every single profession. It’s a language that has no barriers and the only constant that ties it all together is the consumer. The same consumer buying a car or searching for a dentist is also the same consumer that will shop a funeral home. The buying habits of that consumer will not change regardless of the profession or product they are shopping. In this episode, Ryan spends time with Joshua Scott of Studio 8e8 (Dental Marketing company) discussing ATTENTION across the dental space and funeral space. The similarities are many. Learn more about DISRUPT Media: http://www.disruptmedia.co About Ryan Thogmartin: Ryan Thogmartin is a death care entrepreneur and the CEO of DISRUPT Media and creator of ConnectingDirectors.com. | Follower of Christ | Husband | Father | Entrepreneur | Host of #DISRUPTu! and #FUNERALnationtv | Lover of Skittles About DISRUPT Media: Most deathcare companies struggle with Facebook marketing. We provide a process for creating personalized Facebook content that will drive community engagement and measurable leads ensuring growth and profitability. Studio 8E8 The 8E8 (pronounced “88”) Show is a regular dental podcast answering marketing’s most important questions. The show is hosted by Joshua Scott. Learn more about his approach to marketing at http://joshuascott.com. The post DEATH and TEETH | FUNERAL Hustle 019 appeared first on Connecting Directors. DEATH and TEETH | FUNERAL Hustle 019 published first on YouTube via Tumblr DEATH and TEETH | FUNERAL Hustle 019 West Des Moines, IA – The Homesteaders Life Company Board of Directors has appointed Steve Shaffer as the company’s 10th President and CEO in a vote that marked the final step of the company’s strategically planned leadership transition. “Steve Shaffer’s appointment was a clear and easy choice for the Board,” affirmed Homesteaders Chairman and outgoing President and CEO Steve Lang. “Over the last few years, he has shown remarkable commitment to our company and earned the confidence of our funeral home customers, marketing partners and employees. He is ideally placed to ensure Homesteaders’ continued success.” “Homesteaders is well positioned to continue its tradition of growth, profitability and financial strength,” observed Shaffer. “Steve Lang has been diligent in preparing for this transition, and I am honored to assume custodianship of the company.” Prior to joining Homesteaders as COO in 2014, Shaffer co-founded and served as President and CEO of Foundation Partners Group, LLC, and was a co-founder and CFO of Keystone Group Holdings, Inc. He has served as a Funeral Service Foundation Trustee since 2010 and was the Foundation’s 2014-15 Board Chair. Shaffer’s appointment will take effect on March 15. Lang was recently reelected to the Board for another five-year term and will continue to serve as Chairman through February 2019. Homesteaders Life Company is a national leader providing products and services to promote and support the funding of advance funeral planning and end-of-life expenses. The post Shaffer Appointed Homesteaders President and CEO appeared first on Connecting Directors. Shaffer Appointed Homesteaders President and CEO published first on YouTube via Tumblr Shaffer Appointed Homesteaders President and CEO This is a never-ending topic. It has been in the news that there is a push toward the FTC to require funeral homes to have their general price list online (if they have a website). Jeff and Ryan both work within this realm (online and funeral financial world) so they thought it would be a good idea to discuss this issue. Let’s start a discussion, tell us your thoughts on this topic in the comments. Advertisers: The post LIST GPL PRICES ONLINE…or NOT? | FUNERAL Nation 104 appeared first on Connecting Directors. LIST GPL PRICES ONLINE…or NOT? | FUNERAL Nation 104 published first on YouTube via Tumblr LIST GPL PRICES ONLINE…or NOT? | FUNERAL Nation 104 Brookfield, Wis. – The National Funeral Directors Association (NFDA) is proud to announce the call for entries for its Remembering a Life Film Contest, an initiative to inspire filmmakers to create films that commemorate the life of someone who has died, or pay tribute to someone who is still alive. NFDA is working with the Milwaukee Filmmaker Alliance to promote the contest worldwide. Three winning films will debut at the 2018 NFDA International Convention & Expo in Salt Lake City, Utah, and will be supported by unique workshops about storytelling and memorialization. NFDA will also be inviting the winning filmmaker to present at the convention, schedule permitting, providing attendees with a unique opportunity to learn about the inspiration behind the winning film. Following the convention, the films will be introduced to the public through an outreach effort including online promotion and social media. The films will also be available for NFDA members to show in their communities and on their websites. “So many life-stories deserve to be told and we’re excited to see how filmmakers from around the world will showcase the variety of ways life can be remembered through film,” said Christine Pepper, CEO, NFDA. “These films will give us the opportunity to tell the stories of others through the eyes of the people who care about them most. I can’t imagine a more powerful way to demonstrate how memorialization can help people pay tribute to a loved one and begin their grief journey in such a positive way.” The three winners will be selected by a panel of judges representing both the film profession and funeral service, including Thomas Lynch, president and senior partner of Lynch & Sons Funeral Directors and published writer and poet. “If funerals are ‘sacred community theater,’” said Lynch, “then funeral directors curate a collection of one and only narratives – the uncommon stories of common women, ordinary men, neighbors and fellow pilgrims whose lives become the cinemas, the ‘moving’ pictures of our dreams and memories.” The Remembering a Life Film Contest is open to amateur and professional filmmakers worldwide, including NFDA members, and films may be created in any style and format, including traditional film, animation and films created on a mobile device. The films must be five minutes or less and submissions are due May 1. First prize is $10,000, second prize is $5,000, and third prize is $2,500. There is no fee to enter. NFDA members may visit www.nfda.org/filmcontest for resources that can be used to promote the contest in their community. Interested filmmakers may visit www.rememberingalife.com/filmcontest for details on how to submit a film. About NFDA – www.nfda.org NFDA is the world’s leading and largest funeral service association, serving more than 20,000 individual members who represent nearly 11,000 funeral homes in the United States and 49 countries around the world. NFDA is the trusted leader, beacon for ethics and the strongest advocate for the profession. NFDA is the association of choice because it offers funeral professionals comprehensive educational resources, tools to manage successful businesses, guidance to become pillars in their communities and the expertise to foster future generations of funeral professionals. NFDA is headquartered in Brookfield, Wis., and has an office in Washington, D.C. About Milwaukee Film – www.mkefim.com Milwaukee Film is a nonprofit arts organization dedicated to entertaining, educating, and engaging our community through cinematic experiences. The 2018 Milwaukee Film Festival will take place October 18-November 1, 2018 About the Milwaukee Filmmaker Alliance – www.mkefilmmakeralliance.org Newly formed, the mission of the Milwaukee Filmmaker Alliance (MFA) is to support all forms of media, television, and filmmaking, both artistic and commercial, from Milwaukee to the world and from the world to Milwaukee. The MFA strives to grow and sustain a diverse and vibrant creative community of storytellers through building an industry infrastructure that advances advocacy, education, and financial support. The post NFDA Introduces Remembering a Life Film Contest to Demonstrate Power of Storytelling and Memorialization appeared first on Connecting Directors. NFDA Introduces Remembering a Life Film Contest to Demonstrate Power of Storytelling and Memorialization published first on YouTube via Tumblr NFDA Introduces Remembering a Life Film Contest to Demonstrate Power of Storytelling and Memorialization Sich Casket has announced the winner of their monthly “Year of the Funeral Director” casket giveaway for January. The winner, Joe Wade, is a funeral director at Tri County Funeral Home in Highland, Arkansas. Mr. Wade has won the Sich Wellington, featuring solid Paulownia wood with a Satin Walnut Finish and Rosetan Crepe interior. Delivery was provided by the Sich Warehouse in Little Rock, AR, Sich’s new company-owned distribution center serving all of the Arkansas area. A funeral director for over 13 years and at Tri County for the past two years, Mr. Wade said he had seen the Sich ads promoting the casket giveaway in the trade journals for a while. “For me it was pretty simple,” he said. “I get a chance to win a free casket…what’s not to try and get me one of those!” Upon learning of his winning the casket, he added, “Well, I said to myself, that’s one wood casket I don’t have to buy. It will certainly come in handy and is a nice windfall for both the funeral home and for one of our families. What a nice way to start the year!” Mr. Wade is the tenth person to win a Sich casket as part of the monthly giveaway. Other winners include: Jack (Bill) White Jr. of Brooks & White Funeral Home in Roxboro, NC; Daryl R. Berry of Lyon-DeWitt-Berry Funeral Home in Campbellsville, KY; Todd Schrag of Roper and Sons Funeral Home in Lincoln, NE; Todd Howell of Woodfin Funeral Chapels in Murfreesboro and Smyrna, TN; Howie VanRensselaer of VanRensselaer & Son Funeral Home in Randolph, NY; Brent Shehorn of Lake Shore Funeral Home in Waco, TX, Frank Nosek of Kuratko-Nosek Funeral Home in North Riverside, IL; Larry Gould of Whitaker Funeral Home in Metter, GA and Paul Thomas Ayers Hawkins, co-owner of Hope Valley Hawkins Funeral Service & Cremation in Clinton, NC. As the Sich “Year of the Funeral Director” promotion comes to a close, the final Sich casket giveaway drawing will be held at the end of February. “This has been an exceptional promotion,” said Jeff Tyler, National Accounts Director for Sich Casket. “We’ve had so many funeral directors enter and learn about the value of Sich. We’ve won quite a number of new Sich fans from all around the country. Out of this, we’ve got several exciting ideas in the works that we’ll be announcing shortly.” About Sich Caskets Sich Casket Company is a pioneer of the Chinese casket industry. In just ten years the company has grown from a small family-run furniture factory to a significant international manufacturer of wood and metal caskets and a leading Chinese supplier of caskets in North America. Founded by company president Sirius Chan, Sich sources its materials globally to provide the finest quality and best value at every price point. With more than 250 models and styles of solid hardwood, wood veneer and metal caskets, Sich caskets are sold through a distributor network serving funeral homes throughout the United States and Canada. Their website is www.SichCasket.com. The post Funeral Director Joe Wade Wins January Sich Casket Giveaway appeared first on Connecting Directors. Funeral Director Joe Wade Wins January Sich Casket Giveaway published first on YouTube via Tumblr Funeral Director Joe Wade Wins January Sich Casket Giveaway Jeff “The Funeral Commander” Harbeson of The Foresight Companies discusses points that will prevent your funeral home becoming a negative headline. It’s worth 8 million dollars to watch! The post How Is Your Funeral Home Avoiding This 8 Million Dollar Mistake? appeared first on Connecting Directors. How Is Your Funeral Home Avoiding This 8 Million Dollar Mistake? published first on YouTube via Tumblr How Is Your Funeral Home Avoiding This 8 Million Dollar Mistake? Dead Ringers, a data-based mystery phone shopping service which secret shops funeral homes and cemeteries across North America, has compiled data from October 2015 covering multiple factors including online pricing among funeral homes. In its data, Dead Ringers found that approximately 21% of funeral homes post prices online (this includes the General Price List and any limited pricing such as packages or merchandise). This is comparable to the results of The Funeral Consumers Alliance and the Consumer Federation of America’s recently published FCA Study which found that 27% of funeral providers post their General Price List or some prices online. The Funeral Consumer Alliance wants greater transparency in deathcare including posting General Price Lists online. Dead Ringers encourages funeral providers to post pricing online because this offers the consumer transparency. However, with the advent of websites like Parting.com, a free consumer service which provides pricing information for funeral services in a user’s specific area, pricing has become readily available and accessible to consumers. In addition, Dead Ringers’ research revealed most funeral homes provide pricing over the phone (Dead Ringers data collected shows 62% of funeral providers disclose pricing information even if the provider is not directly asked for pricing). What is not comparable is the belief that all Direct Cremations are the same. In a press conference held by the Funeral Consumers Alliance in January 2018 announcing the results of their recently completed FCA Study, Josh Slocum, Executive Director of the Funeral Consumers Alliance, said that they were surprised at the vast difference in direct cremation prices. The Funeral Consumers Alliance and the Consumer Federation of America pointed to Washington, DC as an example and cited a range of prices from $1295 to $7295. Slocum stated that this range was unfair to the consumer because, by definition, direct cremations must contain the exact same services. The Funeral Consumers Alliance continued by stating that there should be no difference in pricing as the FTC requires direct cremation packages to be identical for all funeral and cremation providers. Poul Lemasters, Esq., an owning partner of Dead Ringers who also attended the press conference, asked why there was an expectation for all direct cremation prices to be within the same range. “If we were to call every hotel in Washington, DC—the same city used in the FCA’s example—and we asked for a standard queen-sized room—wouldn’t we get a vast range of prices?” said Lemasters. “Wouldn’t we also expect and want hotels to have different prices for the same type of room due to many different factors? It would be like comparing a queen-sized room in a 1-Star hotel to a queen sized room in a 4-Star hotel. There would absolutely be a price difference, a difference in service and quality—even though every room would have a queen-sized bed within it.” The Funeral Consumer Alliance and Consumer Federation of America base their study on various Federal Trade Commission Funeral Rule requirements including handing out a General Price List and offering direct cremation but did not explain the Funeral Rule basic service fee. The FTC requires funeral homes to list their non-declinable basic service fee. This required fee, per the FTC states: The fee for the professional services of the funeral director and staff that are added to the total cost of the funeral arrangements. This basic services fee can include a charge for the services performed in conducting the arrangements conference, planning the funeral, securing the necessary permits, preparing the notices, and coordinating the cemetery or crematory arrangements. This fee also may include overhead that you have not allocated elsewhere. (Please note that the FTC allows the basic service fee to either be a non-declinable fee or the fee for services and overhead can be included in the price of the caskets. Almost all providers handle this under the first option—listing their fee as a non-declinable fee). “Why is the basic service fee important? Because, by definition, this fee includes all the costs a funeral incurs for such common things as getting paperwork filed, making arrangements, plus, overhead,” said Lemasters. “It is not hard to imagine that the basic service fee could be, and typically is, different from business to business. And it makes sense, as no business has the same overhead costs or employee costs for providing services.” The basic service fee is a critical point in understanding how direct cremation is represented, but it’s not the only factor. “We see a wide variance among funeral home basic service fees and direct cremation fees across the United States,” said Tyler Yamasaki from Parting. Yamasaki went on to say that when shopping all the funeral homes across the United States, “We also see a variance between funeral home sizes, location, aesthetics, all of which explain why costs can be different.” This basic service fee is also important because it serves as the foundation for pricing direct cremation. When determining the price for direct cremation, a provider’s basic service fee must be included. The funeral provider has the choice, per the FTC, to either include their entire basic service fee, or if they believe the entire basic service fee is not appropriate, then the funeral provider can charge a portion of their basic service fee. But, this fee is determined based on the providers costs, which varies. Some funeral homes are brand new facilities while some are old facilities, some have a handful of employees while others had dozens, some are online providers while others have 10,000+ square feet of physical space. All of these items can affect the prices a funeral home may charge. In addition to the funeral homes basis for setting a price, Dead Ringers’ data also showed a number of factors the consumer considers when making a purchasing decision. “Pricing is not always the only factor a person uses in making a purchasing decision,” said Cole Imperi, part owner of Dead Ringers. “It goes back to the hotel analogy, some people choose a 1-Star room for the night while others might choose a 4-Star. Their reasons for doing so are all just as unique as the differences between the hotel room choices themselves.” Dead Ringers collected the following information, based upon Washington, DC data, and it confirms the vast similarities in pricing structure. (See Chart 1 and Chart 2) Dead Ringers data shows that hotels and funeral homes both share a similar range among the high and low available price. The data shows that each have a median range—where most competition exists. For hotels, the data showed a median average of $199.00 and 52% of all hotels at or below 10% of the median. It also showed the highest priced hotel is over 8 times the price of the lowest priced hotel. For funeral providers, this data showed a median of $1,995.00 and 56% of all funeral homes pricing themselves at or below 10% of the median. The data also showed a range of $6,550.00 between the high and low. Additionally, the data showed the highest priced funeral home at just over 7 times the lowest priced funeral home. The data shows that approximately 50% of both funeral homes and hotels exist within a common median price. The data also shows that there are high priced and low priced providers, outside the median and average price. Finally, the data shows that outliers (the high and low priced businesses) are comparably the same distance from the median. What does it all mean? Services and products in ANY service category are very different—and the consumer should have the option and right to decide what they are willing to pay. Consumer groups are questioning why direct cremation prices are different, and are representing to the consumer that all direct cremations are the same. The fact is that not all providers are equal—in any service category. Why would one family choose to pay $7,000 for a direct cremation versus another family choosing to pay $1000? That is truly a choice the consumer should be allowed to make. The real question is how do you properly explain your charge—$7,000 or $1,000 for direct cremation is relative to not only what you offer, but how you offer it. “Educate your consumer so that they see there is a difference, and then let them decide what that is worth to them,” said Imperi. The post Misrepresented Pricing appeared first on Connecting Directors. Misrepresented Pricing published first on YouTube via Tumblr Misrepresented Pricing |
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