Market Research

We all want to think that our funeral home offers the best service when compared to our competitors. We want to assume that the work coming out of our prep room is superior as well. Why would you be in business if your goal was to be second or third best in your market? How do you really know if you’re the best? What quantifies the meaning of “best?” If you are not regularly surveying your families, you have no idea. The Foresight Companies can even survey families who did not choose your firm and give you insight as to why. We must, from time to time, conduct an operational audit of our firm. The results of which will (if we’re honest with ourselves) yield an answer to the question: Are we really the best in our market? Even if […]

Almost every article published today has an underlying call for “change” within the funeral profession. In my opinion, the notion of change may not suffice—scorch the earth and start all over again is likely a better solution. The funeral operating model is broken, and it is ludicrous for practitioners to attempt to hold on to the glory days of the past. If you look at the facts, change is so much easier. What hasn’t changed are the simple mathematical equations underpinning our businesses: Revenue – Overhead = Profit GPL + P&L = EBITDA Retail Price – Wholesale Cost of Goods = Profit I want to focus on the last equation for caskets and vaults (aka outer burial containers) sold within our industry. Over a span of a few years, our funeral business has evolved from a local service to one […]

One of the characteristics that drew me to funeral service more than 28 years ago was the fact that funeral service professionals had to be proficient in such a wide variety of subjects. Truly, in our business, no two days are alike. Everyone who has taken the National Board Exam, for instance, has studied the complexities of embalming, restorative art, microbiology, pathology, chemistry and anatomy. I’m a product of the “old school,” where the appearance of the body is a big deal, and so I believe that the prep room and our ability to excel there should not be minimized. However, our industry is rapidly changing direction. According to the International Conference of Funeral Service Examining Boards, it is possible to acquire a funeral director-only license in 29 U.S. states, including Washington, D.C., and four Canadian provinces. That means that […]

Dear OG, I call you OG cause my pops and grandpops have always told me about you. You’ve been around 4ever! You are Old Guard. I am a player in the New Guard! I am also the newbie in the fam biz. I know you might need to go low to get high, but I don’t want to go low when it comes to cremation. My heritage been doing that, thinking it’s all about price. But, you know, I’m the new dog and they don’t listen to me. I want to make peace with my OG, but there won’t be any big bucks for me at the rate they’re going. Help, OG, I need to know what I can do to keep our profit real! Rockin’ Cremation Profits in Princeton   Dear Little Digger, As an OG, I can dig […]

Some of you may be familiar with The Foresight Companies as a provider of a range of financial consulting and accounting services. As director of business analysis for Foresight, one service that my department provides our clients is an annual review of their pricing and General Price List. Our process involves producing a realistic budget to accurately forecast anticipated overhead. We then compare GPL pricing to see how likely you will be to exceed the target. I have looked at dozens of GPLs in the last two months and am repeatedly struck by a consistent mistake that funeral home owners make in pricing the Federal Trade Commission-mandated direct cremation package. Let me first lay out several assumptions that lead me to this conclusion. Funeral service is undergoing a significant transformation with the nationwide increase in the cremation rate. Some families […]