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Monthly Archives: November 2016

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If your funeral home has accounts receivable, your payment policy is worthless.  The funeral director in charge of arrangements perpetuates the problem and owners are guilty of holding anyone accountable with a lack of leadership.  As a funeral business consultant, I can quickly diagnose the situation by studying the A/R and role playing as a family member in an arrangement session.  Fortunately, I have the solution to fix the cash flow problem; however the decision lies squarely on the shoulders of funeral home ownership.

Why is the decision so difficult for funeral home owners to make a commitment to improve their cash flow and significantly reduce their accounts receivable?  By doing so it’s an admission that their arrangers care less and are unaccountable.  Owners would rather scramble to make ends meet (because cash flow is suffering) than actually take charge of their business by changing behavior of funeral directors.  Additionally, there is a cost for professionals to conduct adequate training.   Professional training solves cash flow and other funeral home operations problems, yet owners rarely seek training as a source.  Rather they create knee-jerk processes with no accountability or device to measure success or failure.  Ultimately, the inmates are running the asylum.

A working payment policy is predicated on use of the GPL and offering payment options near the beginning of the arrangement session.  “Talking about the money” should not be put off until the goods and services statement is provided at the end of the arrangements.  Ever wonder why families must take a bathroom or smoke break when the goods and services statement comes out?  It’s because the funeral director failed to do his or her job by addressing the second most important issue for a family (right behind the death of a loved one); “How are we going to pay for this?”

If a funeral home has accounts receivable, the payment policy isn’t working and neither are the funeral directors.  Don’t like it?  Do something about it and make a damn decision, or just continue the failure to collect the funds needed to make payroll.  Sooner or later, you’ll need to email jeff@f4sight.com.

Back and refreshed from cigars, libations, great food and time with my family at the Command Post (East), Cheers Y’all! #thefuneralcommander

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The largest expense for funeral home overhead is payroll and employee expenses.  Unfortunately, many funeral home owners poorly manage this facet of their business and in doing so not only decrease profit but place themselves in peril for labor lawsuits. Some firms over-staff which puts pressure on margins and others under-staff which places the owner in violation of Department of Labor violations. Speaking of the DOL, we are only weeks away from significant rule changes that have effect on the majority of funeral homes in the United States.  Below are three highlight of the changes that take effect December 1st:

  • The minimum salary level an employee must earn to qualify for overtime will change from $23,600 to $47,476.
  • Highly compensated employees have a new minimum earning level requirement of $134,000
  • New mandatory mechanisms to increase levels of compensation will trigger every three years.

What does this mean?  Frankly, in many cases it’s going to cost funeral home owners more money to operate their business. This means that the three basic tenets of running a business come into play; raise prices, conduct more calls, or cut costs.  Some owners will ignore the regulations (just like the 25% violating the FTC rules) and do nothing. However, if owners choose to operate hoping that a director will not keep his or her notes regarding overtime worked without just compensation, those owners are really placing themselves in a bad position.

I have found in my practice as a funeral and cemetery consultant that many owners think they have covered their bases by having an employee handbook (which has not been updated in years), assigning “exempt” status to employees that don’t qualify, and refusing to get professional advice or council. As I have said many times, I find it interesting that funeral professionals chide families for “buying cheap” or using other services/products than what is offered at their particular funeral home. You know the, “You get what you pay for crowd.” But when it comes to hiring professional experts in subject matter other than funeral, they themselves “cheap out” and regularly fail at the “DIY” method.

Folks, these new Department of Labor changes in overtime status are serious and could have grave (yeah, deadly) consequences for funeral homes if employees are not compensated properly. If you think that having a state inspection is a big deal, try having the federal government on your ass because of an employee complaint. One way or another, funeral home owners are going to have to write checks; when and how much will only be determined based on following the regulations.

Watch Episode #54 of Funeral Nation TV with human resources expert Stephanie Ramsey providing more color on the subject or email me jeff@f4sight.com to find out how to “CYA.”

From the Command Post (West), Cheers Y’all! #thefuneralcommander

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It’s Veterans’ Day and I am going to utilize my constitutional right to voice my opinions.  Although every American has such a privilege, I’ve certainly earned mine.  Yep, I’ve turned into one of those “old crusty guys” and my uniform hangs in a closet. I’m one that places my hand over my heart standing at attention (if not saluting) when our flag passes in a parade or during the National Anthem. Today you may see many like me wearing hats adorned with ribbons and badges that to most, have no meaning.

Every Veterans’ Day I get a bit reflective and at the same time, I think about the blessing of belonging to the best fraternity in the world; people that would give their life for others. See, when we take the oath of office, we swear that we will protect and defend…everyone!  I still keep that oath and I swear, I would still fight today. In fact while writing this, I get a serious case of whoop-ass.

I have been in harm’s way and witnessed the only form of the perfect society.  Muslims, Jews, Baptists, Catholics, Blacks, Whites, Asians, Hispanics, Men, Women, and yes I’m sure a few Homosexuals prayed together because we knew we could die together. We were willing to die for something bigger than ourselves: a common purpose.

Our nation just completed an election, and many think it was seriously contentious.  Yeah, it was a bit rough, but there were times in our history we were literally battling on our own soil, even against each other. The Facebook and Twitter cowboy bravado was hilarious because it was like watching a pillow fight at a junior high girls’ sleepover. I am actually enjoying the aftermath of watching the crying and sore losers. College students are allowed to miss class to grieve the election results and protesters take to the streets because the outcome didn’t go their way, bless their little fragile cupcake hearts.

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Yes it turns my stomach, but I know it was us Veterans that gave them the freedom to display their selfish and myopic behavior. I can assure you that the men and women serving all over the world got up Wednesday morning, put their uniforms on, and did their assigned duties. Why? Because they perform their duties for something greater than themselves: our democracy. In fact, they provide the freedom for the “I didn’t get a trophy” college weaklings, the naerdowell protesters, and the knee-bending attention-seekers.

Today is our day.  The 11th day of the 11th month that honors the men and women that offered to give their life for our way of life.  I have generations of family (including my son) that served and hundreds of people I served alongside for the same principles.  There are few like us and my salute to all.

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For everyone else, just for today, if you don’t like the way things turned out, keep your pie-hole shut unless you thank those that gave an oath for your privilege to vote. From the Command Post (West) and ready to kick ass to someone that disagrees with me today, Cheers Y’all. #thefuneralcommander

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