I'm Amazed

It seems as though a week doesn’t go by without someone offering you a seminar, a webinar, or consulting; all at hefty fees no doubt, that is going to increase your business, put you competitors out of business or help you shed a couple of those extra pounds you got sitting around waiting for the phone to ring because business is down.

 The truth be told, that guy, you know the one that always seems to want to remind you, “I don’t care what you do with me when I die” didn’t really mean it when he first said it nor would he do anything less than the very best he could afford if his wife were to die. Now, he has reservations because it keeps getting more and more expensive to live.

I am not looking to burden you with cost of living index statics, but you know how much money you put in your pocket on the way out of the bank on Friday afternoon and you know how much you have on Monday morning. That being said, if you are feeling the economy pinch you can bet the families you serve are also.

Everyone wants to save you money. Check out the grocery store coupons that are only good for stuff that no one in your house eats or the middle of the night deals where you buy one and get the second one free, (just pay the additional processing and postage). Just think, you can go bird watching with your buddy and you can both be wearing binoculars that sit on your nose so you don’t get a stiff neck or back pain from lugging around those binoculars that you bought last year from the same TV pitchman that convinced you that bird watching was good exercise.

The point of this silly story is we are rapidly losing our middle class (we’re the ones that support the poor and help the rich get richer) and everywhere we turn there is someone promising us the moon. (And it’s only going to cost you three easy payments of $19.95 to buy something that only 10 minutes earlier you didn’t even know you needed). Worse yet. There are dummies that keep getting suckered in.

But, hey! I’m not supposed to be writing about widget sales. I’m supposed to be writing about funeral service and more importantly; how you can  improve your business, help the families you serve, meet your bottom line, and still sleep well at night because you managed to do just that.

Yeah! I know it’s easier said than done, but rather than looking for new ideas and products that will be some miracle cure because calls may be down and sales are down. Try looking inside yourself because the truth be known that’s where the answers are. Don’t look to the TV pitchman, in funeral clothes, to save the day. The only day he’s looking to save is his own.

Sometimes it seems like Deja-vu, I’m saying it again. You don’t need to build a better mouse trap for the world to beat a path to your door, just dust the old one off.

There was a time when the philosophy among funeral directors was; “good embalming means repeat business" and calling hours were pretty much set by the family and there was never a concern for cost. Families got what they wanted, your job was to care and to serve, and the best part was, the more you cared the more you served.

Don’t tell me and kid yourself into believing the families you serve would not be interested in longer visitation. Offer it without a price tag!

People have pride! Not many people are walking in your door and saying, “I’m poor! They are also not saying “what’s the cheapest you got” because that can denote lack of feeling or love on their part. And the truth is they did love Grandma.

You can look out the door to check out the car they arrived in and decide what they could afford. Naturally this would require a working knowledge of car makes and models on your part. But, that’s tacky! Why not just give them the benefit of the doubt and assume they are struggling to pay their bills, just like you.

Be the care giver everyone says funeral directors are, and let the business (money) worry about itself. In the end you might just be surprised.

And you just saved yourself a huge consulting fee!

Heres' My Story

I am past my 65^th birthday and while I have Medicare, I still need some sort of supplemental insurance. So, the search is on for the most (and best) coverage I can get.

“No names please”. Company #1 quoted me $80.00 more per month than Company #2. I have a list of other companies whose names I never heard of; so I ignored them and compared the differences between Company #1 and Company #2.

While Company #1 wants more upfront money, the premium cost, than Company #2, their co-pays are overall a lot lower than Company #2 (ex. The out of pocket for me if I need an ambulance with Company #1, is $125.00 less than what they would be with Company #2. Likewise, Company #1 has no deductible for prescription drugs and Company #2 does.)

Ok! Sad to say I am getting old, and while for so many years I paid for medical insurance, I could have done without, I have to look at the coming years as payback time for all those premiums I paid and never took advantage of.

My decision was made, I went with Company #1. Pay more upfront and avoid getting hit with all of the (extras) I would have to pay Company #2.

What’s all this got to do with Funeral Service? People are living longer and while a common fear with “old” people had always been “out living their money” this is now a reality for many. And, the cost of what someone wants and what they can afford regarding funeral services comes well behind what it’s going to cost to live.

Now here’s the rub! Funeral Directors are people too, they want everything everyone else wants. Hence, rising funeral costs.

Basically, no one wants to die. Alright, there are a few and they usually want company when they go, so we have Suicide Bombers and Looney’s that fly airplanes into buildings. Fortunately, there aren’t many.

Anyway, let’s look at funeral costs. The National Funeral Directors Association (NFDA), tells us that in 1960 the average cost of a funeral was $780.00 and in 2012 (52 years later) it was $7,075. What I can’t tell you is, are these figures correct. What I can tell you is, in 1965 I was making $6500.00. a year. I paid my own medical insurance (family plan) about $100.00 a month. Was this coverage enough? I guess it was, it paid for the hospital and doctor to bring my two daughters into this world. After taxes and insurance, I was supporting a family of 4 with $5000.00 a year. Is the story any different today? Yes and No! Why! yes and no? Because, first of all, those people who work (sometimes) inside the beltway (our elected officials, who care more about themselves but will swear they put their constituents needs above their own) are not listening to us. Some people, “I’m one of them” call this greed. And second, that funeral director who is fighting for his own survival in a very unstable economy.

What can we do? Regarding our elected officials, short of a revolution, not much. We elected them and I guess we’re stuck with them.

Regarding funeral directors, pray that more of them begin to lower prices

(Yes, Virginia!) There are a few around that are actually doing just that. And, start expanding on services that require little or no out of pocket expense. Like what? Try expanding viewing hours! And don’t use the excuse that the families you serve don’t want it. Fifty years ago your fathers and grand-fathers started nibbling away at calling hours. Mostly, I think they wanted to be home in time to watch “I love Lucy” In 1960 most funeral homes were offering calling hours from 11 AM to 11 PM and viewing was anywhere from 2 to 3 days. And, consider this: The large firms, the ones with multiple locations and may even be traded on the stock exchange, can’t do this as easily because they have to pay an employee to be at the funeral home during those hours. You’re just missing out on a TV show that you can catch later. What else can you do that will help your families and hopefully your bottom line? Stop pushing death notices that cost money and don’t put any in your pocket. Who reads these death notices in the newspaper anyway? Funeral directors, they want to know what the competition is doing and real estate brokers are checking to see what properties may be coming up on the market.

What else can you do? Think about the cost of embalming and allied services. If a family is opting for a 2 day viewing and a better casket than they would buy for a direct cremation this seems to be a small price to pay.

With all that said, think about all of those services you provide and would price adjustments be in order?

The idea is to make yourself more appealing to the families you serve, so they want to use you rather than because they have to.

 

The Questions Are:

How do you treat an interracial funeral?
How do you treat a gay funeral?

How do you treat an Atheist funeral? 
How do you treat a family requesting cremation?

The simple truth is we are talking people, they are not aliens from a different solar system, and they are people, no different than you or me. They laugh when they are happy and cry when they are sad. And, they experience all of those joys and sorrows as they go through life like anyone else.

The fact is they don’t want to be treated differently than anyone else. They want to be accepted for what they are, people. They want to be treated with respect and understanding as they deal with a traumatic event in their life.

In the course of my life as a funeral director I have dealt with many different people and I treated them all with the same respect I would want. I catered to their requests if they asked for anything different form the normal level of service I provided, I would have gladly done my best to oblige them, because that is what I was there for. A funeral director’s lot in life is to serve. A funeral director is a care giver and care givers serve.

A funeral director is neither a judge nor a God. He or She needs to be a people person possessing the gift of a good bed side manner. In my mind a basic requirement for a funeral director is a sincere caring, to help a fellow human being. Not to question the color of their skin, who they love, what church they attend or their funeral preferences. And, make no mistake a funeral is a funeral and cremation is a preference for final disposition no different than burial. That I am sorry to say is where a lot of funeral directors go wrong, they themselves see cremation as different. They are confusing funeral with final disposition.

True! Very often when someone is requesting cremation they are looking to eliminate the funeral. Why? Perhaps they want to avoid the additional trauma of viewing a loved one that has been ravished by disease. I’m sorry to say a lot of this points back to the funeral director/embalmer. When I started in funeral service the philosophy was “Good embalming, means repeat business and the funeral director would go the extra mile to make the deceased appear comfortable and at peace”. Today it seems that philosophy has changed and the attitude is “we sell memorialization”. I believe we need to go back to the basics. “Good embalming means repeat business” pay less attention to the casket selected and go the extra mile assisting the family of the deceased.  And, yes, money may be an issue and that could be the reason your family is asking for cremation, they may not see it as such but they are seeking a less expensive means of caring for their loved one by eliminating the funeral; by eliminating a costly casket. It does not mean they are uncaring or less loving and their reasons should never be questioned or judged; least of all by someone who has chosen to be a caregiver.

The only exception to the “how do you treat list” above is How do you treat an Atheist funeral? Different from anyone else? Certainly not because they are atheists. Religion is personal. You never have a problem dealing with families with religious beliefs different than your own; why should you feel differently toward someone who chooses not to believe in God.

Of all the religions in our world very often the final disposition religious customs are very slight but that doesn’t mean they are all the same. Using the services of a non-denominational clergyman may be convenient for you, but that is not necessarily best for the family. In the case of anyone with no religious convictions, if you are not prepared yourself you should have at your disposal the name of a funeral celebrant that will offer a ceremony and eulogy that can help create a meaningful memorial fitting an end of life tribute.

What’s the Value of Continuing Education for Funeral Service Professionals?

The value of Continuing Education for funeral professional oftentimes is not appreciated or understood. The simple truth is funeral service is not an industry that sees vast amounts of change in technology. True change is there but it is very gradual. Hence, the human factor takes over and funeral professionals become complacent. They are basically doing the same thing in the same way every day. The one exception is the internet. They have been bitten by that same bug that has literally bitten every other industry and business around the globe.

And, with the exception of internet death notices which many feel obliged to place on the website, (more times as not because the other funeral home in town does) the website never changes.

So! What then is the value of continuing education? To refresh the funeral director’s thinking to those things learned in school and long set aside. To get him to “think outside the box” (I hate clichés).  Maybe there is another way. The responsibility of the Continuing Education Provider is to motivate him to question just what it is he does. And, maybe even consider making some changes.

Where the funeral industry was once thought to be among the most stable, the volatile economy and the shift in people’s views about funeral services is now affecting this industry. Funerals are a deep-rooted tradition where the primary focus in conventional funeral homes had always been the body.  Maybe it’s time to redirect or rather, expand the focus.

There are a number of trends indicating opportunities for growth:  Cremation services will continue to rise; Funeral facilities are becoming a gathering place for venues such as weddings, birthdays, and other celebratory occasions; Funeral homes will continue to use social media as a means of communication; Home and green funerals and green burials will continue to rise; and Alkaline Hydrolysis as a form of disposition will continue to be accepted.  Maybe it’s time to utilize those mandatory annual CE credits as a way to benefit your standings in the industry and take advantage of growth opportunities.  

Besides the traditional classroom setting, there are a number of CE resources available as a way to obtain these credits as a means of convenience.  Online courses and home study are always an opportune way to achieve this especially when time management and travel may be the issue.  In addition, these courses offer a consistent curriculum, which is vital when trying to educate a group of people from the same organization.  CE credits may also be achieved through participation in events and seminars as well as offering a great networking opportunity with industry professionals.

Continuing Education is a great business and professional tool.  Take the time to evaluate yourself and your opportunities to determine where you might want to grow and make your CE credits count.

Richard A. Santore, Pres. Practicum Strategies

Practicum Strategies is an approved provider of Continuing Education in every State that accepts Online and Home-Study Continuing Education Courses for Funeral Professionals. Richard can be reached by email at Richard@pshomestudy.com or 800-731-4714 Visit Practicum Strategies website at www.pshomestudy.com

Reinvent The Way You Do Business

Have you ever felt like it's time for something different?

Maybe you have felt like what you're doing just isn't working.
The economy is different, you're different, and the people you’re doing business are different. Everything is different in today,

 Or is it you?
 

Have you wondered what to do when what had been working didn’t seem to work anymore? Are you becoming obsolete?

Is it that you’re not succeeding with the strategies you’ve been using?

Or, maybe the better questions is to ask yourself  are,

Am I listening to business consultants?

Am I tagging along behind the competition?

Am I listening to others who claim to know more about my business than I do?

 

Change Your Strategy, Change Your Results

 That's what they all are telling you, but are they right?

Maybe it’s time to take a hard look at the world around you and make some uncomfortable decisions?

  

Reinvention can be Easy, but is it always wise?

When you offer people sand to drink rather than water and they seem satisfied, don’t assume you made the right choice. More often than not their drinking the sand because they don’t know any better.

People want to adjust into a world of higher expectations and constant change. They want to trust you; are you taking away their expectations, and offering them sand?

Maybe it’s about time you started rediscovering your roots.

Funeral Service is not about global marketing. It’s about one neighbor helping another

Reinvention strategies for your culture, your sales, your brand, don’t always make a better Funeral Home.

The Good Funeral Director

With so much emphasis being placed on preneed both here and elsewhere and all the bandying about how it builds market share and who should be allowed to sell it. It would seem that everyone has forgotten or at least seems to be paying little attention to At-Need. Although I will admit that from time to time someone will pop-up and say, “Remember every Preneed becomes an At-Need”. Personally, I glad I get the reminder because I wouldn’t have known otherwise. Now, since I like to add my own mark on things let me also say weather we like it or not every life ends with a tragedy, it’s going to end badly, everyone dies eventually and that’s where the Funeral Director, the deathcare specialist comes in.

 So, now lets take a good hard look at this very complicated individual we call a funeral director. I have been in funeral service at this point, and I hate to say it, over 40 years and have yet to meet a funeral director that has not been friendly, cheerful and out-going. Generally he is civic and community minded; always ready with a helping hand. He is some one who can be just as comfortable eating a Hot Dog from the corner vender as he would be at a Five Star Restaurant. He is someone who is dedicated. (How many doctors do you know that will answer their own phone in the middle of the night?) And, caring to a fault, just ask his wife. Ask her how many dinners went into the trash or parties and gathering she attended with the assurance he would catch-up later all because some one whom he doesn’t know has died. I can remember my own ex-wife, yes, funeral service can and does play havoc on many marriages, saying, “Why do you have to go? What do you have employees for?” An yet to detractors of funeral service he is perceived as a merchant of death, some one who looking to take advantage of anyone when they are most vulnerable.

A funeral director needs to be an individual who is mentally very stable, how else could he go for singing Happy Birthday with his five year old to caring and sympathy almost within the same breath. And yet those same detractor will say, “It’s just and act, he’s a phony.” Perhaps some of it is “act” it has to be. Certainly he has built up defense mechanisms otherwise the psychiatrists office would be standing room only. But, there is never a doubt he is caring and sympathetic. Just ask the families he serves. What I find interesting is, if you were to confront many of those detractors of funeral service and ask if all funeral directors were evil or bad, you would usually get an answer something like, “Well, there are some exceptions. The funeral director that took care of my ______ was simply wonderful. I could not believe how thoughtful and kind he was.”   I ask you, “If all those detractors felt that way, where are the bad funeral directors?” I don’t know, maybe they’re on Mars. Okay, I better not die on Mars.

The fact is Preneed or not. When someone dies it’s always the same routine, well not quite. With a preneed you open the file scan it and begin the process of caring for the diseased and perhaps meeting with the family to review those plans they have already decided upon. Preneed is about as close as you’re ever going to get to, “Dying by appointment”

At-need is a whole other story. Everything seems to jump into high gear. Meet with the family. Arrange to pickup the body. Did we ever handle services for this family before? Get out a checklist, can’t afford to let something slip by. Will they want viewing? Which chapel should we use? Is it a big family? Its race, race, race. I’ve got to get ready before they come , I’ve got to make certain _____.

If you’ve ever seen the rehearsal and setting up of the orchestra for a concert you can get a fair understanding of what goes on behind the scenes to be ready when a family comes in for visitation. Perhaps, that why we’re called Funeral Directors.

Short comings and misgiving aside. I’m personally proud to be part of the noble profession.

Stay tuned

 

What is a Funeral Home?

         

A funeral home also known as a funeral parlor, a mortuary or funeral chapel provides burial, cremation, and funeral services. The services that are offered may include a funeral and wake, also known as viewing or visitation. Funeral homes will also help with arranging flowers, catering, and headstones. If this is what is requested. It is totally up to you as to how much or how little the funeral home will help with. Every funeral home can arrange for cremation in lieu of burial.

Above all, the funeral home is also there to provide you with the emotional support you may need at a difficult time. Most if not all funeral homes can provide assistance with filing Social Security forms, insurance forms and aftercare consulting. This can be great relief for most who need this extra support at this time.

The executor (person named in the will who is to carry out the funeral arrangements) or the deceased next of kin should contact the chosen funeral home as soon as possible after the death. A convenient time can then be made for this person to visit the funeral home and discuss the funeral arrangements and any special requests.

The funeral home will take into account the wishes of the deceased and their family and arrange the service in line with those wishes. The funeral home will coordinate with the church, cemetery or crematorium depending on your requests, and obtaining permits are always a service provided by the funeral home. The funeral home will also contact and provide newspapers with obituary information on your behalf. The deceased is taken to the funeral home before the funeral and prepared for either burial or cremation; this may or may not include embalming. While embalming is not required, based upon the type of service requested embalming may be necessary. This means the funeral home will replace the deceased blood with chemicals that it will delay the decomposition if the body.

Funeral homes provide a visitation or viewing room that will accommodate many more people than the average home where family and friends of the deceased can gather. All funeral homes provide for funeral services and/or memorials services.

This means that you really do not need to do anything. A funeral home is there to take control and take the pressures off you. This is welcomed by most after the death of someone close to them. However understand that funeral homes will not do anything you do not want them to. How much they do in relation to the arrangements you make is totally up to you. The funeral home will only do what is asked of them.

Many funeral homes will offer people prearrangement services. This means the funeral home allows you to prepare your own funeral with specific requests before your death. The funeral home will provide you with a detailed estimate of the costs for their services. Often the funeral can be paid from the proceeds of the deceased estate. However if you need to stick to a budget let the funeral home know so they can respect this and offer advice as how best to stay within your budget.

 

New York City Inquisition

Ask any 5^th Grader when the Inquisition was and the answer you receive will likely be the 1400’s. And, that would be a correct answer.

Ask any funeral director in New York City and the answer will be 2012. Also a correct answer.

More than 25 years ago the Federal Trade Commission created the “Funeral Rule”. This “Rule” was established to protect consumers against fraudulent and misleading practices within the funeral industry. Unlike many other industries the funeral industry is not allowed to be self-governing.

We also need to consider a little thing like “States Rights”. Without attempting to write a history lesson, basically Federal Laws are the supreme law of the land, State Laws are those laws not covered by Federal Law or if they are covered by a Federal Law any State reserves the right to expand on that Federal Law. The City of New York also (as a local municipality) has “States Rights” privileges. New York City can expand any State Law and therefore Federal Laws as well.

Normally this is not a problem. Where issues arise between Federal laws and State and Local guidelines generally have to do with air/water pollution. Please don’t chastise me for over simplifying this, the issue here is the FTC “Funeral Rule” and the one were the New York City Department of Consumer Affairs (DCA) is flexing it muscle.

What appears to be going on is this: Employees of the Department of Consumer Affairs in a misguided attempt to protect consumers have started a new inquisition. Taking parts of the FTC “Rule” out of context and attacking Funeral Directors.

I can only guess, but I would say, the DCA received complaints regarding funeral service, and rather than contact the New York State Department of Health or going to the Federal Trade Commission seeking help and guidance, took it upon themselves.to investigate. All too often when that happens confusion and suspicion and distrust rears its ugly head. The DCA, without the background and experience of experts, did their own interpretation of the “Rule”, made what they considered improvements to the “Rule” and sent out inspectors with little or no training to shop funeral homes for violations of the law.

Someone at DCA must, at best, suspect that what they are doing is not right, fair or just and deals are being cut on outrageous fines. Pay us this now or the fine will be doubled if we need to go to court; and since there is no possible way of complete victory Mr. Funeral Director is a loser. It’s cheaper to pay.

The dumbest of the new New York City Regulations is; Funeral Directors are required to tell prospective clients the cost of their average funeral for the preceding year.

First the question is: How much is a funeral? If you ask a funeral director his answer is going to be, the total of his charges PLUS cash advances. You ask Aunt Millie and her answer is the total of the funeral directors charges AND the cash advance items combined, because that’s the amount of money it took to put Uncle Harry in the ground. The fact is, neither answer is wrong.

Now let’s look at this from the view point of the FTC. The funeral director is right. But Mr. Funeral Director is dealing with the DCA and while they acknowledge Cash Advance items DCA  is not telling what you need to base your average funeral on; and since Cash Advance items can vary greatly and because we are viewing this as the FTC would Cash Advance items are not being considered.

Now let’s examine the concept of average pricing.

Let’s say you did 100 funeral services last year. Of the 100 funerals, 50 were at $2,000.00. that’s $100,000.00. You did 25 funeral services at $3,500.00 that’s $87,500.00 and you did 25 funeral services at $4,500.00 that’s 112,500.00. To reach the average you need to add $100,000. plus $87,500. plus 112,500. That’s $300,000. Now you need to divide that by total number of funeral services 100. And your average funeral is $3,000.  That’s $1,000.00 greater than 50% of the funeral services you conduct. You are now sublimely suggesting a family spend $3,000. for a funeral service. Now if you were to do that and the DCA reviewed you books you might just find yourself guilty of price gouging because the average you quoted is $1,000. higher than 50 percent of the funerals you conducted.

What can you do to protect yourself and be in compliance with the DCA of the City of New York? Pray! Because the New York State Department of Health can’t help you, it’s not within their jurisdiction. The Federal Trade Commission can’t help you because it is not within their jurisdiction. And, your own lawyer is going to tell you to pay the fines because it is cheaper than trying to fight, “City Hall”:.

Obituaries & Death Notices

Who Reads them?  Funeral directors and Real Estate Agents

Why do Funeral Directors read them? It’s a “No Brainer” they can check up on their closest competitor without driving past his door.

Why do Real Estate Agents read them? So, they can second guess what houses or properties that may be coming up on the market.

All things being fair and equal an Obituary about a prominent person in the community can serve as a human interest story; After that they are simply a waste of money.

A little history is in order.

You need to understand, only as far back as the 1950’s not every family had a telephone. Early Television Stations as well as Radio Stations’” signed off” at Midnight and began the broadcast day at 6 or 7 AM the following morning.

Newspapers provided many services beyond just “All the News That’s Fit to Print” which incidentally was the motto of the New York Times since 1851. Newspapers were the world’s source for social media not just news. And, death notices and obituaries fell under the heading of Classified Advertising simply because it was not always easy to notify relatives and friends, and associates that were beyond your immediate area. Interesting to note, there was a great popularity of foreign newspapers in our country for the social and hometown local news that wasn’t covered by the World News Section of U.S. Newspapers.  Obituaries and death as well as weddings and birth announcements were important news from home that could only be gotten from the hometown newspaper.

In 1932, Jerry Siegel and Joe Shuster had Clark Kent popping in and out of phone booths to become The Man of Steel, Superman. While I am sure some still exist the average kid today cannot fathom why anyone would need a booth to talk on their cell phone.

Today, immigrants and foreign visitors don’t need newspapers from home. Thanks to the internet, hometown news is just a click or two a way and with Skype they can even talk to family and friends left behind, including seeing them on their computer screen all in real time.

Bottom line, death notices are completely out of date and Obituaries are human interest stories about the life and times of prominent people.

It is the fair honest funeral director that explains the obsolesce of death notices to the families they serve.

It is the intelligent funeral director who doesn’t let himself get suckered into believing online death notices will increase his business

Five Years into the Future

Five years into the future? I’m lucky if I can predict what I am doing next week!! That being said, enjoy these prognostications! My first one is that many of you will wonder if I had to look up that 5 syllable word!

In no particular order, here is what I’m predicting the funeral profession will look like in 5 years:

• Cremation Rate: The national cremation rate will hit 57%. No surprise there but I don’t see this trend changing until the industry starts addressing some of the underlying issues brought on by the shift in demographics and pricing strategies. And this requires change, something we have not been very good at. But we’ll dig into this in more detail in a later blog post.

• Online Funeral Arrangements: 25% of all funeral arrangements will occur online and many funeral professionals will discover that this scary proposition delivers more education and value more easily than when dealing with an actual human at the funeral home. There is a belief out there that quality funeral service requires human contact. This will be challenged and new learning will occur.

• New Business Model: A new business model will emerge that turns the conventional wisdom of funeral service on its head. It will attack the four major costs of the industry—people, facilities, advertising and cost of goods—and dispel the common thinking that these things “are what they are”, and there is nothing we can do about them.

• Publicly Owned Companies: There will be two less publicly owned companies. Time will push people into a corner and grow we must!

• New Major Player: There will be a brand new major player in the industry, possibly not related to the funeral profession, that will approach the challenges of funeral service from a different perspective. I know, I know this has been predicted or feared for some time but I believe their less conventional way of doing things will appeal to the critical mass of Baby Boomer decision makers, creating larger and more attractive opportunities.

• Cost Sensitivity: 70% of the industry will head down the cost sensitive path. I am not sure if we will hit rock bottom but there will still be a large opportunity for firms who believe in supporting the emotional needs of those touched by death.

• Pre-Need: Pre-Need will go through a major shift. The current business model is struggling and as a result appears to be working at odds with the funeral industry. This friction will come to a head, smart business minds within the funeral profession will focus on it and new powerful solutions will emerge.

• Victors of the Future: To the victors go the spoils. The victors of the future will be champions of change and not afraid of risks. In fact, their battle cry will be something along the lines of “Fail faster!!”

For the most part we don’t know what we don’t know, particularly about the future! And I am sure I have demonstrated that point effectively. But take a look around. The challenges we see all around us are the seeds of future opportunities. Risk, Learn, Grow! And in five years we’ll see how we did!

Funeral Service and The New Economy, Ain’t That A Joke

By
Richard A. Santore
Practicum Strategies
http://www.pshomestudy.com/

All over Newspapers, Magazines, TV infomercials and the internet we keep hearing about the New Economy. Buy my (whatever) to protect yourself in the “New Economy”. We can re-educate you for the future, in the “New Economy”. We can do all kinds of wonderful things for you, as you adjust to the “New Economy”. But first you have to give them a big bunch of your money. Money you can ill afford to give away. All are scam artists promising you success and salvation. The simple truth is there is no economy. People and businesses are hurting and these scam artists are taking advantage of them while these people and businesses are clutching at straws trying to survive.

All too many times I have heard, “Oh, you’re a Funeral Director, you’re in an inflation proof business, people are always dying.” Yeah. people are always dying but the funeral industry is far from inflation proof. While a funeral can qualify as a necessity purchase it is most definitely can also qualify as a luxury purchase. So it’s not to hard to see funeral homes are falling on hard times as their clients are searching for less expensive ways to honor their loved ones.

To understand what you can do to improve your position in the marketplace also requires you to take a history lesson.

Early in the 1960’s Robert Waltrip found himself forced to drop out of college to run the family business when his father died. Bobby had a dream, not satisfied to merely running the family funeral home he wanted to expand and operate a chain of funeral homes and with little less than a lot of chutzpah Service Corporation International and a dynasty was born. At about this same time, Paul Hamilton of Des Moines, Iowa started International Funeral Service and the race for consolidation was on. The ensuing years also brought out many imitators, most of which lacked Walthrip’s dream but were merely there looking to put funeral home packages together for resale.

The “Funeral Rule” created in the 1970’s taught funeral directors, that sundry items that they gladly gave to grieving families was no longer permitted. The FTC’s position was and is “no one gives anything away and if you are, you’re inflating your prices to compensate for what you are giving away”. In essence funeral directors began charging for things they have never dreamed of charging for in the past. Now, if I may, I would like to digress just to say, prior to the FTC Funeral Rule, when a family selected a casket everything else was included form prayer cards and memorial folders right down to the hearse and limousine to the cemetery or crematory.

The 1980’s brought about the emergence of Stewart Enterprises and The Lowen Group as major competitors of SCI as well as a young upstart stockbroker from the Chicago Corporation who was looking for that niche market he could develop, which he found in funeral service. Thanks to that stockbroker Funeral Service was now being touted as a growth industry and the consolidation began in earnest. Family Funeral Businesses were popping all over the auction blocks and being sold to the highest bidder. Independent funeral directors who swore they loved the family business started by their grand-father more than life itself and more than their first-born were holding out to sell to the highest bidder. The upshot of all this was, funeral homes were being sold at inflated prices and the new owner (the corporate consolidator) was forced to raise prices and cut back on service to grieving families in order to meet their financial obligations. It is also important to note they closed many properties within market areas and established centralized service facilities to reduce expenditures. And, most important of all we learned Funeral Services is not a growth industry. A growth industry is an industry which is growing earnings and/or revenue faster than the overall market. Growth industries usually contain a large number of growth stocks investments such industries are usually suitable for investors who are willing to accept larger risk in exchange for the possibility of larger returns. The problem with funeral service is the consolidator’s only means of growing was to continually buy funeral homes; there is no internal industry growth. As a whole the industry is dependant on the death rate.

In the beginning independent funeral directors scoffed at the consolidator’s practice of raising their prices on service and merchandise “sell to a consolidator and the first this they do is raise prices.” And, gradually greed began to set in, “if the consolidator can charge that much so can I.” along with reduced service. No, you say! “We provide all the service a family could possibly want.” True, but only at a price! Think about what happened. When you cut back on service families are going to question what they want or need. And lets stop blaming “Baby Boomers” because they think differently than their parents, they’re the ones caught up in the “New Economy”.

Think about this. You and your spouse decide it’s time for new living room, dining room or bedroom furniture. You are going to visit all of the local furniture stores, you are going to take along a floor plan of the room; you may even decide to travel to factory showrooms to find the perfect furniture for your room. This whole shopping process can take you anywhere from one or two weeks to several months and you are going to spend anywhere from 5 to 10 thousand dollars for furniture you are going to look at and use for the next 20 years. I ask you is it right to expect a family to come into your casket showroom, spend the same amount of money, select a casket within minutes and then charge them extra if this want visitation for an extra day?

Is there a solution to all this? Yes! Adjust some of you service charges, take a hard look at your casket pricing, do those things that will encourage a family to see value in the services you provide.

Prior to Consolidation and prior to the “Funeral Rule” the industry philosophy was “good embalming means repeat business and memory picture was the catch phrase funeral directors used when explaining closure upon the death of a loved one.

I can make you no promises that this will make a difference in your business, but I can tell you that the concept of memorailization and funerals without visitation has been growing for the past 40 years and nothing changes over-night. What is important is, it is a starting place to encourage families back to the value of funeral service.

Shades of Green

By
Richard A Santore
Practicum Strategies
http://www.pshomestudy.com/

We should be concerned with our environment!

Green happens to be my favorite color. I drink Green Tea, love the Green Bay Packers, Green Acres re-runs on TV and as a kid, I read Green Lantern Comic Books, and I recycle, but, Kermit the Frog said it best, “It’s not easy being green”. The problem is being Green can also be expensive. There are people out there that seem to go out of there way to take my concern for the environment as an opportunity to over charge for Green Products because apparently they feel I should pay a premium to be green. Green insulation, made from recycled denim and cotton (cellulose) for my home costs twice as much as the old fashion fiberglass kind which by the way replaced the practice of stuffing walls with crumpled newspaper (cellulose) in the early part of the 20th Century. You are also being encouraged to go back to cotton diapers to cover the baby’s bottom because the new kind has a plastic liner and formaldehyde is used in the production of the absorbent paper part of that diaper as well as the plastic liner. What you’re not being told is the amount of energy consumed to manufacture and clean the old fashion cotton kind out weighs the negative effects and convenience of picking up a package of diapers at the supermarket.

It is pretty much accepted that burning fossil fuel is bad for the environment but don’t let yourself be fooled into thinking our need for petroleum is going to go away with the coming of alternative fuel sources to power your car or heat your home. Petroleum is used in the manufacture of numerous products, mostly plastics.

Something else that isn’t going away anytime soon is formaldehyde. As a funeral director you have come to equate formaldehyde with embalming. The fact is the production of formaldehyde based resins accounts for a good portion of formaldehyde consumption. It is a component in polyurethane paints and is used in the manufacture of explosives. The textile industry uses formaldehyde-based resins as finishers to make fabrics crease-resistant. It is used in the manufacture of adhesives. It has been found is outer space. Simply put formaldehyde is here to stay; we just need to understand that we are dealing with a potentially dangerous chemical compound and need to use care and restraint; while taking advantage of its benefits.

The point of all this is, there are Shades of Green. And there are people and groups that will distort facts and spread fear for their own personal gain. I could go on sighting examples of Shades of Green but I am specifically concerned with the funeral industry and the emergence of Green Funerals. Am I against Green Funerals? No! Am I against Green Cemeteries? No! Am I against marketers that would spread fear to unsuspecting funeral directors and their clients? YES! Am I against consultants that profess to have all the answers so they can charge hefty fees? YES!

Let’s look at the facts. The green burial movement is protesting the use of formaldehyde, which oxidizes to formic acid, the toxin in red and fire ants, adding what may be considered pollution to the ground as embalmed bodies decay. The EPA, along with the Green Chemistry Program, promotes the research, development, and implementation of innovative chemical technologies to support chemical technologies that reduce or eliminate the use of hazardous substances during the design, manufacture, and use of chemical products and processes. But the greening of chemistry is a slow shift, not a revolution. Most chemists lack basic training in understanding environmental hazards while seeking safer solutions.

The Pollution Prevention Act of 1990 established a national policy to prevent or reduce pollution at its source whenever feasible, and provided an opportunity to expand beyond traditional EPA programs and devise creative strategies to protect human health and the environment. Green chemistry is the use of chemistry for pollution prevention. More specifically, green chemistry is the design of chemical products and processes that reduce or eliminate the use and generation of hazardous substances.

Shortly after the passage of the Pollution Prevention Act of 1990, the Office of Pollution Prevention and Toxics (OPPT) explored the idea of developing new or improving existing chemical products and processes to make them less hazardous to human health and the environment. In 1991, OPPT launched the "Alternative Synthetic Pathways for Pollution Prevention. to research projects that include pollution prevention in the design and synthesis of chemicals.

Utilizing this Green Chemistry Philosophy, the body is prepared without chemical preservatives or with environmentally friendly chemicals and buried in a biodegradable casket or simple shroud. A natural burial preserve often uses grave markers that do not intrude on the landscape such as shrubs and trees, or a flat indigenous stone upon which can be some engraving.

Planting native trees, shrubs, and flowers on or near the grave establishes a living memorial and helps form a protected wildlife preserve. Irrigation is not used, nor are chemical pesticides and herbicides applied. Irrigation by the way prevents soil erosion which can cause ecological damage. Cemetery legislation protects natural burial preserves in perpetuity from future development while the establishment of a conservation easement prevents future owners from altering the original intent for these burial grounds. For people who are mindful of the cyclical nature of life, a natural burial is an alternative to conventional burial methods. However, the truth be told, the Green Chemistry Philosophy can be applied to every existing cemetery.

The Green Burial Consil offers the following statistics to justify their existence while also promoting and certifying other Green Burial Products.

Each year, 22,500 cemeteries across the United States bury approximately:
30 million board feet of hardwood used to make caskets
90,272 tons of steel used to make caskets
14,000 tons of steel to make vaults
2,700 tons of copper and bronze to make caskets
1,636,000 tons of reinforced concrete to make vaults
827.060 gallons of embalming fluid, principally formaldehyde

The fact is I have problems with these statistics!

The Green Burial Consil claims there are 22,500 cemeteries in the United States. Since I have no desire to try to count them, I’ll accept their number as correct; but I find myself wondering, are these all active cemeteries or are many old church yard, inactive cemeteries. Let’s assume The Green Burial Consil did their homework and each is an active cemetery.

The casket Manufacturers Association estimates that last year there were 1,771,845 casketed human remains. Assuming that the Green Burial Consil figure of 30 million board feet of hardwood was used in their manufacture; that would only amount to 200,000 caskets. Or 11.3 % of all caskets manufactured. But this is an unverified statement so the actual amount of hardwood used could be substantially less. The Casket Manufacturers Association also doesn’t differentiate between those casketed remains being buried or cremated so I will assume all are buried. Bear in mind that currently the cremation rate nationally is close to 40% and the projected rate of cremation by 2025 will exceed 50%. So, by my assuming all casketed remains are being buried I am being very generous.

The Green Burial Consil claims that 90,272 tons of steel was used to manufacture caskets. This would mean that 1,031,680 steel caskets were buried. But this number as well as the numbers for steel vaults, and copper and bronze caskets is unimportant as these products are manufactured from minerals that are found naturally in the ground.

Likewise the same can be said for concrete vaults; concrete vaults are manufactured from earth friendly materials; sand, gravel, and cement. Concrete solidifies and hardens after mixed with water. The water reacts with the cement, which bonds the other components together, eventually creating a stone-like material. Concrete is used to make pavements, building foundations, roadways, and building blocks Concrete is used more than any other man-made material in the world. As of 2006, about 10 billion cubic yards of concrete are made each year. More than 55,000 miles highways in the United States are paved with reinforced concrete. Only about ½ a cubic yard of concrete is used to manufacture a vault. So I fail to see the significance of mentioning this earth friendly material; unless it is to state that a concrete vault will keep a grave from settling thus requiring less maintenance of a grave site or to protect harsh chemicals (formaldehyde) from seeping into the ground

So, now we are down to the only true potentially harmful material, Embalming fluid.

Allow me to assume that 1 pint, 16 ounces of concentrated formaldehyde mixed with water is used to make two gallons of embalming solution, and 1 pint, 16 ounces of concentrate is used for cavity treatment. That means 118,151 gallons of concentrated formaldehyde can potentially be harmful to ground water. But we need to factor in that earth friendly material (concrete) that will prevent that seepage. Now let us assume that only 25% of all casketed burials are also placed in a concrete vault. That means that the risk of ground water being polluted is also reduced by 25% or 29,538 gallons leaving 88,613 gallons of concentrate. Now going back to the 22,500 active cemeteries and divide that concentrate equally between them you now have 4 gallons of formaldehyde that can contaminate the ground water under each cemetery. Assume that each cemetery is approximately 25 acres the result is, you have approximately 20 ounces of formaldehyde contaminating each acre. I contacted the EPA (Environmental Protection Agency) to determine if this was within acceptable limits. It is!

In the final analysis; if your client wants Green Burial you should comply with their wishes, because you are there to serve. Just be sure you clearly express the facts and they are not being motivated by fear. Fear that they are harming our environment by having their loved one embalmed, placed in a metal casket and a concrete vault. They are not.

Cemeteries are not restricted to using only chemical fertilizers, pesticides, and herbicides. There are many organic or natural, fertilizers, pesticides, and herbicides, available. The point is you can have a Green Cemetery and still have the lush rolling lawns and a park like setting.

It is the mark of an educated mind to be able to entertain a thought without accepting it. Aristotle

Where have all the bodies gone? War

By
Richard A. Santore
Practicum Strategies
http://www.pshomestudy.com/

Well to begin with people are living longer. Today the average American can expect to live to anywhere between 77.5 and 80 years. But, don’t think you can take these numbers to the bank. This statistic includes all deaths; accidents, wars, what ever you like. The statistic doesn’t lie; it just doesn’t exclude rick factors. And, you can’t say “natural causes” because all that means is death was caused by a natural disease process. This same statistic also doesn’t take in account “preventable death”. More and more of us have given up smoking, so assumably this will increase how long we live, but we are eating more and obesity is going to shorten our life expectancy. So let’s hold the concept that the statistics are right on the money and the average American is going to die between 77.5 and 80 years old.

Here’s where all the statistics really get fuzzy, fuzzy because the statistics for 1930 show the average American would live between 59.7 and 61.6 years. What’s so great about 1930? Well if you were born in 1930 or there about you should be dying today and you’re not. So now we just threw that statistic out the window and we need to ask why; why aren’t you dying? Simply put, you were never born, that’s right you were never born.

You see, what happened is this: There was the “Big One”, the war to end all wars between 1917 and 1919 for us here in the U.S. It was a little longer in Europe. Then in 1941 through 1945 we were back at it with the second war to end all wars. It’s a funny thing about wars, they never want “old men” to fight, I guess they figure we’re smart enough not to want to be brave and die a hero’s death so they only take our young men who see them selves as invincible. The total number of U.S. Military deaths during WWII was 504,956.

Talk about population control! Had we not given away all those lives needlessly and each one of those who died fathered 2 children there would be and additional 1,000,000. Americans. Then factor in 4 generation, consider each of those generations doubling, So, without attempting to do the math let’s just accept the fact, there would ne a lot more people

Then to add insult to injury add the lives lost during the Korean Conflict, because it was never classified a war; (this I never understood; guns were shot, bombs were dropped, young men died, sounds like a war to me).Then Vietnam!

Trust me when I say; a year has not gone by that US Military Personal, our fathers, sons, and brothers, didn’t lose their lives on some God forsaken pieces of land somewhere in this world.

Where have all the bodies gone? We keep giving away American lives, and for what purpose, I don’t know. Do you?

But, I’m not done. In 1918 there was an Influenza Pandemic that ravaged the world. It is estimated that 1/3 of our world population died. It is also estimated that between 500,000 and 675,000 Americans died. The funny thing about this Pandemic is it didn’t kill the very young or the old as is usually the case because both of these groups don’t have healthy, strong immune systems. It seemed to have only attacked young healthy adults.

Let me go back to the war issue because this is important to understand. Between the Civil War and that first “War To End All Wars” the military must have been on sabbatical because we had only 7,779 US Military deaths.

Now let’s try to piece this altogether so it makes some sense.

Anyone born between 1865 and 1900 could expect to live 60 years. So, if you were born says, between 1880 and 1900, you could be considered too old fight and too old to die from influenza which means you would be dying in the 1940’s. It is also important to remember that there was no mandatory draft during WWI so your birth year could be pushed up to say 1910, meaning that you escaped WWI and the flu and also WWII, and very likely you would live into the 1960’, 70’s and 80’s. Bottom line is a lot of people were dying between 1940 and 1960 and then it gradually began to slow down during the 70’s an 80’s, all of which is well within the range of the life expectancy for that period in time.

With the lost lives caused by the Influenza (over a half million and the U.S. death toll during WWI a lot less people were born hence fewer people were dying by the 1980’s. and these numbers are going to continue spiraling down. Now, if you’re attempting to do the math be sure to factor in the 4 generations mentions above. Also you need to bear in mind that none of this includes Military deaths from WWII to the present, which is over one half million.

Where does this put the death rate? It’s going to continue its downward spiral well into the 21st Century.

Where have all the bodies gone? We keep giving away the lives of those we hold so precious, our children.

Asia Expo! WHY!

If you’re against foreign trade; you shouldn’t read this article. Trade with foreign countries is a good thing.

Coffee has never been grown successfully in North America nor has tea. These two products are always imported. I mention these only because everyone is familiar with both. But the truth be known there are numerous other products that we can’t produce ourselves or of the same quality as the foreign variety; Irish Wool and Turkish Mohair just to name a couple. Or, at least that it what we the consumer, is lead to believe by importers and distributers. Champagne only comes from the Champagne Region of France. We produce some very excellent sparkling wines but none the less if you’re looking for a bottle of Champagne, it has to come from France. And, if you want an overpriced automobile import; it can only come from Italy or Germany. That aside, American Auto Makers produce some of finest quality automobiles in the world; even allowing for the fact that GM is in very serious trouble that you, if you’re driving a foreign import has contributed too.

Before I go too far afield I had better point out that virtually every product we import into America can be produced right here. So, why are we importing these products? Because, over the last decade we have had “Global Economy” stuffed down our throats until we are blue in the face. The fact of the matter is “Global Economy” is hurting the American Economy. Worse yet, while we are being fed the line that we can save money we are actually paying more. American unemployment has been steadily on the rise with no end in sight while “Third World” countries are taking over our job markets. And, if you don’t think this is hurting your pocketbook, think again.

For the past 20 years American Manufacturers have been outsourcing American jobs. Open the back of your Cell Phone, Computer or Television; each and everyone is manufactured in Asia. Virtually all the clothes you wear are imports, mostly from Asia. All this is going on at the expense of the American middle class. I wonder; do we still have a middle class for surely we are being reduced to the poor and the very poor?

Think about this as you’re walking through the local Home Depot, Wal-Mart, or Target.
Yes, you’re there because it’s convenient; everything is under one roof, but, how many merchants are no longer in business or maybe scratching at the crumbs while these “superstores” are stocked with foreign made products; which they buy by the trailer load, container load or ship load at reduced prices, due to volume buying. While I really can’t fault the practice of volume buying because it is capitalism in its highest form, it is hurting our country, because very often they are seeking out foreign manufacturers and saying, “make me 10 container loads of (what-ever) and I’ll pay for it at the dock” and American Manufacturers are being left out in the cold. I should also add our Congress has encouraged this practice by making deals with foreign countries with reduced import duties, and import taxes. If you think I’m making this up consider how NAFTA (North American Free Trade Agreement) has affected us.

What does this have to do with funeral service? Well!! A long time ago, 1963 to be exact, a lady by the name of Jessica Mitford wrote a book; The American Way of Death. It was written as an expose of the American Funeral Industry and became a bestseller. Mostly, I believe, because every funeral director bought a copy to see what truths Ms. Mitford was distorting at our expense. Well, the content aside, the title of the book was certainly catchy and true. The way we care for and treat our loved ones is uniquely American.

Now almost 50 years after the book was written and a decade or so after they started pushing “Global Economy” down our throats the National Funeral Directors Association has apparently jumped on both bandwagons by co-hosting the Asia Expo. The simple truth is American Casket Manufacturers will suffer with the importation of caskets manufactured in Asia. The American Funeral Supply Trade will suffer. And, ultimately so will you.

I could be wrong, but if NFDA is truly as their website states: “the world's leading funeral service association, serving 19,000 individual members and more than 10,000 funeral homes in the United States and internationally (mostly in Canada), and informs, educates and advocates helping members enhance the quality of service they provide to families”, you would think that the attendees at the 2009 Asia Expo would have wanted to come here and attend NFDA’s annual convention where they can learn.

NFDA also states that funeral service is a global enterprise. I could be wrong but, “enterprise” in my mind means a business venture and if this is the case I can’t see how an Asia Expo can benefit the American Funeral Director. The basic philosophy of funeral service has always been: “Neighbors helping Neighbors”. While the simple black and white of this philosophy may have become grayed with the founding of corporate owned funeral service in our country, even corporate owned funeral service holds to this principal in each of the locations. Their managers are encouraged to be active in their local communities.

Again, I could be wrong but, if NFDA truly wants to help its membership, your membership dollars should be used here at home rather than helping entities that could presumably have a negative effect on the American Funeral Industry. One way they can do this is; rather than co-hosting an event half way around the world, is to use that money it will cost them as Co-Host of this expo to reduce registration fees and membership fees so more American Funeral Professionals can afford to attend their Annual Convention. Assist State Associations that are struggling to have State Conventions by Co-Sponsoring regional conventions that would help the States involved and make things more affordable to suppliers who are finding it harder and harder to participate in State conventions due to spiraling costs. This would go a long way to advance funeral service here at home. NFDA needs to slow down and acknowledge the fact that they are in existence to serve funeral professionals here at home, not to be served by them and squander their dues money on the other side of the world.

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