Whether you’re just starting a funeral business or you’ve been doing it for decades––with the revenue to show it––there is always room for improvement. As the saying goes: In business, if you’re not growing, you’re dying. While this expression might be a bit overdramatic, increasing your funeral home’s profitability can ensure its longevity and even prepare it to be sold.
Changing times call for adaptive business practices, so we’ve compiled three surefire ways to boost the bottom line of your funeral home.
1. Provide Cremation Services
According to the National Funeral Directors Association, the projected burial rate for 2021 is 36.6%, compared to 57.7% for cremations, and this gap is only expected to widen in the coming years. If you currently offer no cremation services, or you outsource them to a third-party crematorium, then you risk falling victim to these changing preferences.
Incorporating cremation services also leaves the potential to offer other related services. With a growing number of cremations occurring, many funeral homes have begun to embrace ash scattering rituals, wearable remains, and even plantable remains.
For the more traditional family, you could also offer combined services, consisting of a traditional viewing beforehand followed by the cremation. This method offers you the best of both worlds and is becoming increasingly popular.
2. Offer Keepsakes
We’re all familiar with the paper pamphlets offered at funerals, and many of us hold on to them as a way to remember our loved ones. With that said, less ephemeral keepsakes such as jewelry, matchbooks, or seed packets are becoming more common. These items can either be offered individually or given to everyone who attends a service.
Some ideas to consider:
- Necklace or bracelet charms
- Memorial wristbands
- Engraved glass hearts
- Forget-me-not seed packets
- Memorial magnets
- Memory coins
When it comes to funeral keepsakes, the possibilities are endless. Just about any tasteful item can be customized, offering attendees a way to remember their loved ones. The key is to offer only a handful of these items. If you offer an entire catalog of funeral merchandise, you risk having your business feel like a beachside gift shop.
Additionally, before you hire an in-house jewelry designer, consider the variety of online outlets offering customized products at surprisingly affordable prices in bulk. Simply order from them and upcharge the price.
3. Hire Consultants
At first glance, it’s hard to imagine how hiring more people could increase your profit; however, getting personalized guidance from experts in the field can help you see what avenues to take, where you can cut costs, and how to build your business. Many experienced funeral directors become siloed in their practice, only to lose sight of the bigger picture, particularly when it comes to data and shifting trends in the death care profession.
Experts at Johnson Consulting Group offer expertise in a number of areas that allow funeral businesses at any stage to function more effectively and profitably. They offer:
- Business Broker Services: If you’re looking to sell your funeral business or begin exploring the process, Johnson Consulting Group can help match you with pre-qualified buyers, expediting the brokerage process and ensuring you get the best deal possible.
- Consulting Services: Their team of experienced funeral professionals can thoroughly examine all aspects of your business, honing in on areas of growth.
- Performance Tracker: With this proprietary software, Johnson Consulting Group can help you survey and manage the family experience at your business, helping you better understand your strengths and weaknesses.
- Accounting and Financial Management: If you don’t have a dedicated accounting team, then the accountants at Johnson Consulting Group can assist with tracking your key metrics of success, in addition to effectively reporting to the IRS.
When hiring a funeral home consultant, they should be an extension of your team that has the experience to guide your business upward. Johnson Consulting Group takes pride in the relationships they build and won’t stop until you’ve reached your goals.Increase Your Profitability