The Wall Street Journal just provided an interesting article Younger Generation Faces a Savings Deficit which outlines how the millennial generation is financially struggling. Basically the economy has not been particularity kind to this group and due to many factors; they pretty much have no savings. Why is this an issue for the funeral industry?
We all know the millennial generation, for the most part are children of Baby Boomers. And as we are also aware, Baby Boomers have not been the most fiscally responsible generation of all time. Yep, we (Baby Boomers) are living longer which means we are spending more money on medical care to keep us alive and depleting our funds towards end of life. In many cases, we are still supporting our college educated millennials that have returned home in debt and unemployed (or underemployed working at low wage jobs with a high cost degree). I am privy to daily inquiries for funeral funding of a relative that had no life insurance or made any provisions to pay for their own funeral, but relegate such to survivors. It’s shocking to know that people actually say they have nothing, no funds to pay for their deceased loved one’s final expenses.
If the deceased left noting and their survivors are the generation depicted in the Wall Street article, how is your funeral home going to get paid? Even more disturbing is the fact that millennials will most likely struggle to pay for a cremation out-of-pocket much less a funeral and all the cash advances like cemetery charges. How does that affect the financial health of your funeral home?
I recently posted The Orchestra is Lovely regarding the bad news about Genesis Casket closing and indicators about the future of such companies. If you are in the casket business and depending on millennials to buy caskets for their deceased Baby Boomers, the future is rather dim. Another post from earlier this year Is it About Honoring the Life or Paying the Bill? reiterates the facts regarding how funeral homes are facing an increasing consumer base in financial difficulty.
Whats the good news? We all have time to make smart decisions and choices to meet the changing demographics of funeral consumers. A thorough analysis of operating costs, processes and re-engineering of how our funeral home operates is essential for not only growth, but survival. I am fortunate to have “the secret sauce” with a team of real professionals that essentially function on “continuous improvement.” There are some great consultants that will provide you and your firm the due diligence, solutions and oversight necessary to meet this tide of change. I can attest they are not the ones hawking “new and improved” caskets (not to mention all the other goodies in their bag like websites, urns and funeral toilet paper), but consultants that actually know what a robust and healthy funeral home P&L should contain.
Want more insight? Send me a message and I’ll gladly offer you some ideas of who can help you and how to prepare for the what lies ahead. From the Command Post: Cheers y’all! #thefuneralcommander