Nicole Vullo
on
Written by Foresight’s Business Unit of Stephanie Ramsey and Axel Jean-Francois
Running a successful funeral home involves understanding where your business stands in the profession. At Foresight, we help funeral home owners gain valuable insights into their business’s financial health by analyzing trends and averages. But what does this mean for you, and how can it benefit your business?
This post offers some practical tips on how comparing your business’s financial results to funeral and cemetery profession averages can help you make informed decisions—without needing a background in finance.
Why Data is Important
As a funeral home owner, you might not think daily about comparing your numbers to others in the profession. But knowing where your business stands is essential for long-term success. At Foresight, we use data to create benchmarks—standard points of comparison—that help you see how your costs, revenue, and other financial figures stack up with others.
This information helps you make informed decisions about your operations, from staffing and pricing to potential growth opportunities. The goal isn’t to compare prices directly but to ensure your costs align with what’s typical for funeral homes of similar size and location.
Key Financial Areas to Watch
Here are some of the main areas where funeral and cemetery profession data can help you keep your business on track:
- Cost of Goods Sold (COGS): This represents the cost of items you sell, like caskets, urns, and other merchandise. Comparing your COGS to profession averages can reveal where you might cut costs or find more affordable suppliers. If your COGS as a percentage of revenue is higher than average, it could be worth re-evaluating how much you spend on these items.
- Salaries and Benefits: Labor costs, including wages and benefits, are often the biggest expenses for funeral homes. Understanding how your payroll compares to others in your area helps ensure you’re offering competitive pay without overspending. For example, funeral homes in higher-cost cities like Boston naturally have higher payroll expenses. Knowing these regional differences helps you balance fair pay with managing expenses.
- Revenue per Service: This metric shows how much revenue your funeral home earns per service provided. By comparing this number to profession averages, you can assess if your pricing matches profession standards or if there’s room to improve your offerings to enhance profitability.
Regional Differences Matter
While it’s helpful to compare financials, remember that not all businesses face the same conditions. A funeral home in a rural area will likely have lower costs than one in a city, where wages, taxes, and regulations tend to be higher. Our analysis takes these regional differences into account, so you’re comparing your business to others with similar cost structures.
At Foresight, we don’t just share numbers—we explain them in context. We help you understand why certain costs may be higher or lower based on your location. This type of analysis provides a clearer picture and helps you make strategic decisions for your business.
Supporting Funeral Home Owners with Insights
Our mission at Foresight is to support funeral home owners through practical financial advice and funeral and cemetery profession knowledge. We want to empower you to improve your business operations without overwhelming you with complex data.
Whether you’re looking to grow, improve efficiency, or make sure your business is financially healthy, comparing your numbers with profession averages can be a valuable tool. We’re here to help you make informed decisions, backed by data that reflects the unique needs and challenges of the profession.