Foresight
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The Challenge:
Following the COVID-19 pandemic, one funeral home faced a familiar but urgent challenge: declining case counts coupled with reduced revenue per call. Although total revenue grew modestly from 2019 to 2023, profitability was impacted by this drop in per-call performance. This prompted the owner to engage Foresight to stabilize revenue and improve overall financial health.
The Solution:
Milestone #1: Pricing Optimization
Foresight conducted a detailed review of overhead costs and identified strategic pricing adjustments across services and merchandise. The adjustments added over $1,000 revenue per call within a single year (2023 to 2024), significantly improving margins without sacrificing competitiveness.
Milestone #2: Merchandise Diversification
To counterbalance lower case volume, Foresight recommended expanding merchandise offerings. After assessing market potential, the client introduced gravestones and monuments. This initiative generated a 180% increase in merchandise sales revenue in 2024, creating a new income stream that directly offset volume-related losses.
Milestone #3: Cost Control and Vendor Negotiations
Renegotiated vendor agreements further strengthened the bottom line. By reducing the cost of goods sold (COGS) from 17% to 13%, the business improved operational efficiency while maintaining quality.
The Outcome:
Despite a continued decline in case volume, the funeral home stabilized its total revenue and achieved meaningful improvements in profitability. EBITDA margin increased from 23% to 26%, well above the industry average of 12% to 15%. Through targeted pricing, expanded offerings, and disciplined cost control, the business established a more sustainable and resilient financial model. A model well-positioned for long-term success.