This post is a continuation of the discussion I started in last week’s post Funeral Payment Plans for At Need regarding an epidemic of consumers that are struggling to pay for funeral expenses. Determining if your firm needs a funeral payment plan to offer families you are serving requires a bit of research and math. It’s a relatively simple exercise; however much like any program for improvement, the first step is to question if you have a problem.
Here is a quick way to determine if your firm should have a funeral payment plan:
- Look at the last 100 cases performed at your funeral home.
- On each goods and services statement, did you collect the exact amount for each item equal to the amount listed on your General Price List?
- No matter the reason is there a difference between collected/charged and listed price (was there a discount)?
- List the amount of difference per case and add the difference for all 100 cases.
- Do you have any accounts receivable (money owed from those services) over 30 days?
- Now add #4 and #5 together…what’s that number?
If there is any amount of money either discounted or owed to you, then you have a problem. Your firm either gave something away (discounted) or you have not been paid for what your firm provided (goods & services receivables) which inhibits your cash flow (the lifeblood of a financially healthy funeral home). I know that there are thousands of funeral directors out there that tout “we collect all our money up front before services rendered, period!” Yeah, okay so why do you have accounts receivable and why did you discount from your GPL prices?
Now that you have determined and recognize that your firm has a problem, the second question is what are the steps/process for correction? This is a critical yet difficult part of the process; do you have the intestinal fortitude (noun: courage; resoluteness; endurance; gutsto make a change in your arrangement process and behavior? Or in Funeral Commander terms can you grow a pair, take charge of your business and actually lead your people to the promise land of getting paid for the work you do?
The third question to ask yourself is how do I fix the problem? Well, I have the answers with training and I’ll be rolling out a new suite of funeral payment plan solutions shortly with At Need Credit. In the meantime, I challenge you to do the math above and send me an email email@example.com so we can initiate the conversation.
From the Command Post through a thick fog of smoke on the front lines in the war of funeral reality, Cheers Y’all! #thefuneralcommander