Source: U.S. NVSR, 2010The last 50 years deaths have increased 44%. from1.7 million to 2.46 million. Funeral costs have risenform $708 to over $6560.
Source: U.S. Census, 1998The next 40 years data shows deaths will increase 71%, from 2.4million to 4.1 million. While sales and prices have increased, thenumber of funeral homes has decreased from 2000 to 09 by 11%
PROFITABAILITY TRENDS FOR FUNERAL HOMES OVER THE LAST 30 YEARS 1980 - 13.73% 1990 - 8.69% 2000 - 8.64% 2010 - 5.52%PROFITIBILITY HAS DROPPED 59% IN THE LAST 30 YEARS!
Critical Issues PRESSURES ARE WE ALL FEELING IT?! What are the main challenges we Face? What do we do?
CHALLENGESWhat are business implications of recentshifts in consumer behavior? - Cremation - Competitive pressures - Changing workforce - Changing traditions - Lifestyle changes
Mortuary College Enrollees 1971 - 5% Female Today - 53% Female 76% white, 36% over 30 More Second/Third Career Funeral Service Student Older StudentsLess Multi-generational Funeral Service Family Student
Integrate Traditions for Non-Traditional Families The Funeral becomes…A Celebration The Visitation becomes…Final Goodbye The Minister/Priest becomes…The Celebrant The Grave Plot becomes…Memorialization The Casket becomes…Memorial Products The Family Dinner becomes…A Reception The Funeral Director becomes…The Event Planner
Traditional Funeral Home / Non-Traditional Families •Over 50% non-church attendees 80%+ generation Xers no church •Mortality Ages 1921 Death was a tragedy Only 31% died over 65 years •2010 average almost 80 years Older women & Older Couples •20% Women have no kids •Ethnic influences •Bigger people…
How are we surviving?• Staff training (competent arrangers & event designers)• Product and resource center• Chapel/Facilities/Cemetery remodel• Partnerships (Flowers, Caterer, Hotel, Professionals)• Open policy for cremation and other services• Teamwork/Consolidation• Surveys & Aftercare• Wow them…• Willingness to take chances...****Educating Staff and the Public of the value of services and memorialization
STAFF TRAININGSERVICES – Honor/Celebrate the live of the deceased, Publicly say goodbye & share the loss, Support, Personalized, ReceptionsVIEWING – Opportunity of family and community to say goodbye, Private family farewell, feels like you have taken care of them…tucked them in. Last memory picture.CASKETS – Reflect the deceased, Personalized, Types of metal & Species of wood, Last memory picture.CREMATION CONTAINERS – Required, Peace of mind, What you loved one will be cremated in…What your family is comfortable with.MEMORIALIZATION & KEEPSAKE ITEMS – Pay tribute and stay connected with you loved one, Personalized to each family member, Jewelry or item for home with significant meaning, Leave for future generations.
HOW TO WOW• First call – Roses, Quilt, Flag, No body left behind…• Arrangements – Packages, Cookies, Coffee, Candy, Big Screen TVs, Personal Information, Lots of Choices• Services – Video, Personalized Memorabilia & Memorial Items, Receptions, Personal goodies• Aftercare – Personalized information and help