Industry Trends in Funeral Trade as seen by A Team Master's Casket Store owner

"Getting clients the best price & services ~ ~ on ALL Funeral Caskets and
or Burial / Cemetery needs."

Researching funeral industry trade from A Team Master's Casket store.
Industry size --- In the USA there are about 23,000 funeral homes, approx. 700 casket stores, and many more sellers in the trade, cemeteries, vault companies, cremation vendors, monument suppliers, flowers, printing, manufacturers of product and so forth. If all these individuals are totaled -- it adds to an awesome amount of people that depend on the death care industry to make a living.
Trends --- There is a very low rate for failure in the funeral home business. As most are with no competition. Large corp. have bought out independents and not changed the name, but increase prices considerably. This also cuts down on their competition. The state of NY for example, had so many buy outs of smaller parlors from SCI that they forced the reversals and sell off some of their property. So people could have more freedom of choice at have a fairer price. Also, pre need sales have risen with these aggressive firms. Most morticians are professional people, some however work for large corporations that are “profit pushy” or are involved in questionable practices that drive the bad press and incidents. Must say the trade has many fine upstanding caring people as well - working within a chosen trade that sometimes demand unusual working conditions and hours..
Stability, and Cost of employment --- There is or can be quite a turn over in the lowest paid workers at a funeral home. They are required to do everything from mow the grass, wash the cars, answer the phones - to helping pick up the deceased. It is for the most part, non union and overtime is included in a salary. More can be found at http://www.bls.gov/oes/2000/oes119061.htm The owners and select few are highest paid.
Profit drivers in the industry --- Some firms play on fear of the unknown. The public is getting more informed - here is class action lawsuit "Batesville and sealer caskets" Consumers Recover $3.75 Million for Deteriorating Caskets www.classactionamerica.com/cases/case.asp?cid=1823 . Cremation used to be a money savings' way for the families' funeral purchase. Now however, some funeral directors have found ways to make it more costly (read profitable). Boomers are ordering custom made caskets, urns and services. The cost of a funeral and burial (including grave plot and monument) often run into $10,000.00. “Funeral expense adjusted for inflation, has risen 26 percent since 1991.” (From BULLETIN BOARD "The Rising Price of the Final Curtain. 6/2002") This scare is often used to sell pre need plans - not always the best choice. "Paying in advance costs report from ABC News.
Cost structures and margins --- Numerous morticians have been well known to charge for product 3 or 4 times to what the cost of a wholesale price is. They also have a non declinable basic service fee that can also hide a lot of profit, although it is supposed to be for overhead. Most casket stores mark up the fee of the retail casket or product 1 time the wholesale cost .
Factors influencing growth and decline ---Death is seasonal, more happen in the colder months, and the age of the “baby boomers” (the largest segment of population in the USA) is near the expected death rate - for over the next 10-15- 30 yrs it will grow. Many might choose cremation, but with the funeral home having the non declinable fee, they will still be required to overpay if they do not shop around. The FTC is supposed to be reviewing the funeral rule, but it is taking years. More can be found out about the FROP at www.ateammasters.com/Orders.html
Expected trends, barriers of entry --- Because the funeral trade had no competition for nearly one hundred years, they were/are hard to break into. They have built a “good ole boy's network” and many suppliers such as Batesville, York and Wilbert refuse to sell directly to the casket retailers, for fear (??) of boycott from the morticians.

Consumer Alert: updated 10/04 There are no state or federal laws that require bodies be placed in a casket for burial, if the burial is done within 30 hours, or if the body has been kept in a certified freezer at a crematory or mortuary. Consumers should be aware that Federal Trade Commission regulations allow for the purchase of caskets from 3rd party sources. Casket prices vary greatly from company to company. Comparison shopping is suggested. It is a fact, caskets are NOT purchased by one asking for name brand, that is what the industry pushes. NOW, a manufacture of caskets is advertising "authorized Batesville dealers" only, and trying to scare the public into fear if purchased elsewhere (in transporting, obtaining, etc.) Yet, it is only to protect their clients, the directors (profit), not the publics' satisfaction. All brand names are registered trademarks of their respective companies. Batesville, Aurora and York product names do not represent an endorsement from or approval by their owners. Nor is our firm recommending those over our other units. Higher priced and more advertised does NOT mean better. It is indeed a shame that any USA firm is resorting to this, as no others, like contact lens, and medicine, when they had to compete with lower cost firms, did not try to scare people away from buying from their competition!! Not working anyway, just a farce that this (SEMI!) closed market is still trying - as many are not overpaying now at parlors, thanks to casket dealers like A Team.

In fact, the retailers can and do get these products to offer to the public, by going through a broker. It is getting more well known, the product is always going to be less expensive by going outside of the funeral home. The funeral directors have for the most part, become aware it does no good to try to bad mouth the competition, or haggle with their customer once they find that the sale of the casket is lost, although, some of that still happens. Detailing this is burialitems.com also showing a price list of caskets. Offering a large variety of UNRESTRICTED PRODUCT CHOICE at bargain prices.
Industry Regulation, does the industry fall below the government's radar --- While the Federal Trade Commission (FTC) does try to monitor it, the FTC has so limited staff that there is little threat to non complying issues if unreported by the public first. To file a deserved complaint online The FTC strives to track and settle concerns, but file a report so they're informed.
Not only is a warning issued when the FTC does a "sweep" (general inspections) in a given area -- if caught non complying with the funeral rules , that parlor gets a second visit -- to see if indeed it was by mistake or not (that the General Price List or whatever information wasn't handed out as required at the start - to take home.). Then if caught at this 2nd visit again, they are given a choice. They can enroll in a self industry monitored (Nat. Funeral Dir. Assoc.) NFDA “class” or are subject to be fined $11,000.00. The cemetery is not under the FTC rule, nor are casket stores. However they have many other federal and state regulations that apply to their business. We have all heard of horror stories involving funeral directors, cremations, cemeteries but none on casket store retailers. So the FTC rules seem to matter little, or not as much as being an honest business person, proud of the firm's reputation, prices and service. The funeral rule is important, and adding the whole death care trade under this “RULE” would not be a bad thing, if more strictly enforced. The death care industry works within a trade that is in demand, and trust should be foremost before all. Research into the subject by the public is needed so that the price paid is fair and open. This field has been in the dark too long.
What technology factors play in the growth and future of the industry --- Firms using the internet and computers are more forward thinking and able to keep up with trends better. Firms like Hollywood Forever Cemetery in Calif. have taken it one step farther, recording a tape to play at the push of a button, that will allow the survivors to hear and see a 10- 15 min. segment of the deceased, at the grave site. Casket retailers can use lap tops to show perspective customers a full line of caskets that the store has available, without the need to have them all on hand. Funerals are also being broadcast on password protected internet for those unable to make a trip to the loved one's funeral -- by select funeral homes. Traditional is not a tradition any more, people are customizing and they do not just provide an open wallet in this sensitive purchase, they shop! Forward thinking people hate "bundles" or "packages" and get better value without them, by individualized choices, that are perhaps more meaningful also.
Key success factors --- Like any business, advertising is a must. Keeping the name out in front of the public is important. (WE sponsor a family member's stock car with our name and url of www.burialitems.com on the side of it) More ideas seen at http://www.icfa.org/kip.htm. Customer service, compassion, dependability and pricing are important as well as being knowledgeable about what the person's needs are. In the mix of things, it is really best for the public to learn all they can about the purchase of funeral product and services, before the need. A great site for this showing statistics, reports and links is at casketstores.org
Compiled by Betty Brown, CEO A Team Masters 440-942-8769
or 800-595-1313 as we service/ship all USA