Discover a New Way to Make Your Funeral Business Profitable in 2019 and Beyond
If you were to take the traditional approach of burying your deceased — using the minimum burial necessities of a cemetery grave site, burial vault, and casket — it would cost you approximately $14,000.
This cost does NOT include a memorial service, which for many plays a significant role in saying “goodbye” to their departed loved one.
According to an article written by Jason Devine and published on the United States Census Bureau website,
“The aging population of the United States is propelling the nation toward a milestone… Deaths are projected to reach more than 3.6 million in 2037, 1 million more than in 2015.”
This mortality rate is unprecedented in the United States and largely due to the passing of what is known as the “Baby Boomer” generation . Combine this with the escalating costs of traditional burial and it’s no wonder why more and more people are looking for less expensive ways to bury their dead.
If you were to choose cremation, it could cost you as little as $2,500 — which includes: the cremation fee, an urn for the ashes, and a special location to place the urn for posterity.
With such a dramatic price difference, it’s no wonder cremation is becoming increasingly popular in the U.S. — the rate of those being cremated hit 50% in 2016 alone. According to the National Funeral Directors Association, this rate will continue to rise with expectations of 63.8% by 2025.
With the rise in popularity of cremation, many funeral directors are seeing a decline in income and profits. As requests for cremation services continue to grow, it forces funeral homeowners to adjust their business strategies to create more options for families with deceased loved ones.
While it is always good to invest in your business and future, some changes need to be thought through carefully. One idea funeral directors consider is starting a cremation business and adding a cremation chamber to their space.
If this is you, the question you should be asking yourself is:
Will building a crematorium give my business a competitive advantage in the funeral industry?
Consider the following four steps to walk you through this decision-making process about starting a cremation business:
1. Create a marketing and sales strategy for cremation services.
2. Research other local funeral homes and study their marketing strategies, equipment, branding, and types of services offered.
3. Talk with families to understand their needs and requests as it relates to cremation services.
4. Review your total 3rd party cremation costs, they may be approaching the same monthly expense as financing the your own crematory equipment.
The positive aspect of owning a cremation chamber is that you become a “one-stop” funeral home. This makes it easier on those grieving and gives you complete control over the process of cremation from start to finish.
It is also more likely for a grieving family to choose a funeral home when:
● A funeral home can offer a visitation prior to service
● Offer videos to play on a screen
● Have special music
● Perform a ceremony
Another positive with going through a funeral home for cremation is that funeral directors are caregivers and professional administrators. They are trained to answer grief questions and advise those grieving on what to do. They also can make all arrangements for transportation and completion of paperwork and other options.
Eventually, your decision will come down to the financial impact a crematorium will have on your funeral home business. Such aspects as loan payment for equipment, lease or construction costs, hiring additional staff, and inventory versus revenue generated from services will all factor into the final outcome.
Cremation will continue to be a favored choice for many people. As the mortality rate within the United States continues to rise, additional options for lowering memorial expenses will also increase. Some funeral homes have already made the transition by adding a cremation chamber to their services.
If you would like to learn more about cremation equipment and whether or not it is right for your given situation, please Contact Cremation Systems. As a division of Armil CFS, Inc., we are experts in the business with almost 50 years’ experience in furnace technology. For quick information right here on our site, please read our informative page on starting a cremation business.