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Funeral Payment Plan

Remedy 2

When funeral home owners and managers are challenged regarding their failed payment policy of collecting funds for their goods and services, finger-pointing begins.  Often I hear “Once that arrangement door closes, there is not much I can do” and “We have a payment policy, but funeral directors are just not following it” along with other nonsensical gibberish. When statements are made like this I think about the old saying “The inmates running the asylum.”

I had the opportunity to present a Continuing Education Unit over the weekend at Tidewater Community College on the subject “Cash Flow Solutions for At Need Services.” The attendees were very engaged and truly seeking solutions to create better financial postures and processes of recovering the hard-earned revenues of their respective funeral homes.  The problems can be solved with four steps.

Leadership: Step up and be the leader your funeral directors need and initiate solutions with immediate action.  Any non-action to address failure is failure.

Remedy

Training: Create a training program that is easily adapted, intentional and produces measurable results.  If your funeral home does not have organic competence or experience (most don’t) for training, hire a professional. Interesting in the funeral profession there is much howling of directors “hire professional funeral directors” to consumers rather than use online services, “disposers” or “discounters.” Yet when the same barking ilk are in need of assistance in an area that they possess no background or expertise, they seek remedy’s that rarely produce results by non professions. Some examples: Business Management, Financial Advisory/Oversight, Marketing and Social Media Management.

Remedy 3

Accountability: As a funeral home owner or manager, hold yourself accountable first. If you know there are problems (accounts receivable, discounts, life insurance recovery), then it’ your obligation to raise your hand and ask for help, not the funeral directors or employees.  Once you initiate training, then accountability on all levels may be assigned.

Remedy 4

Monitor/Measure/Improve: Training without monitoring the process, measuring results, and continuous refining is a futile exercise.  In fact, the funeral industry has created the notion that “education/CEU” is sufficient. If that’s the case, why do 30% of our colleagues get repeatedly fined by the FTC for simple GPL violations?

MMI

After reading this post look at your YTD (year to date, you know the start of 2016 to now) accounts receivable and discounts allowed. If you don’t know how to find this data, you are in huge trouble.  If this report reveals any AR balances or discounts given, you are in some trouble because your payment policy does not work. Multiply those numbers x 4 to see how bad your year is going to turn out. If you have $0.00 accounts receivable and have not offered any discounts, congrats as you are among a small few of your peers (or you don’t have a clue and in denial).  Get professional help now, remedies and resources are available but you have to raise your hand (and write a check). Want to know who and how? Contact me.

Look for a BIG announcement from At Need Credit shortly regarding a strategic alliance of funeral industry financial funding leaders forming the most comprehensive solutions group for funeral homes to recover their at need revenues. It’s all about #FNchange, #FNhustle and #FNbrand people!

From the smoke-filled Command Post; Cheers Y’all! #thefuneralcommander

ANC 3

Training funeral directors to proclaim “We are a funeral home, not a bank” is not the solution to get paid for goods and services.  Access to credit for an increasing number of consumers is becoming difficult and funeral homes are not equipped or offering funeral loans. Unfortunately, traditional lenders like banks are not offering funeral loans especially to those who are credit challenged.

The Washington Times reports that the majority, or 56 percent, of consumers have subprime credit scores (below 640), according to a report released (January 2016) by the Corporation for Enterprise Development (CFED), a nonprofit that advocates for policy changes to help low- and moderate-income households. As a result, these consumers are often locked out of the lending markets. And if they are borrowing, chances are they’re missing out on the lowest rates being offered to consumers with stronger credit.  “Bad credit” doesn’t always mean that the consumer does not pay their debts. Credit is a touchy balancing act: a few missed or untimely payments (slow pay) combined with a high debt to low income ratio and the consumer will find themselves in a quick negative credit score spiral.

Yet, family members of the before-mentioned 56 percent are dying and seeking ways to pay for funeral expenses; they can pay, but not borrow money to pay. With a body in building, what do you do?  I have outlined steps previously in posts Funeral Director Training: Secure Payment Before Contract Signed. and Funeral Director Training: “We ain’t got much money.”  Training funeral directors in advance to understand the parameters of your firm’s policy and the tools/services available for them to create a sensible solution for payment is easily accomplished.

Denying the truth doesn’t change the facts. The truth is funeral home owners are not training staff to create solutions for consumers are struggling financially or providing the tools necessary. These facts manifest themselves with discounts of goods and services along with accounts receivable hampering the cash flow of the business. Solutions are available; take a step in the right direction by contacting us at At Need Credit Training to initiate improvement of your financial strength and take charge.  At Need Credit is the only funeral industry company with funeral home leadership and the experience to change your facts. We have some big news on the horizon which will add to our strength as the at need solutions leaders for cash flow in the funeral industry, stay tuned!

From the Command Post, Cheer’s Y’all! #thefuneralcommander

 

 

 

wagmm2

Depending on the zip code funeral directors serve, working with families who are financially struggling is moving from an occasional to a regular occurrence. How is your funeral home training funeral directors to successfully address “we ain’t got much money?” If your funeral home does not reside in such a zip code, then count your blessings. For everyone else, let’s examine how to address this very touchy part of funeral arrangements.

When a loved one dies, most families find themselves suffering anguish from their loss. For a growing segment of consumers, close behind the anguish of loss is the increased pressure of how they are going to pay for the funeral. Training staff for this difficult situation can be proved successful by communicating and creating a solutions .

To start, communication early in the arrangement session is key. The FTC provides us a fantastic tool to address what may be deemed “the elephant in the room.” No matter the preference of the funeral director (development of trust and assurance or collecting important information), prior to discussing services and prices we are mandated to provide the family with a GPL. In case you haven’t noticed, the GPL provides services, products, and are you ready for this; prices (you know, those numbers with a $ in front of them).

Frankly, not addressing this need early on with a family is poor service. Don’t think so?  How many times have you waited to talk about money after complete arrangements have been made by sliding the goods and services statement in front of the decisions makers only then reviewing the bill?  All of a sudden the entire entourage needs a cigarette and a bathroom break returning to tell you that they can’t afford what has been created. You embarrassed them and now you have to start all over again which is a loss of revenue for your time spent, just as a start. This is where everything unravels because many funeral directors will simply offer some kind of discount or claim “we’ll work something out.”  If you sign a contract without securing the payment (see Funeral Director Training: Secure Payment Before Contract Signed), you own this problem.

While proving information about the GPL, consider this language: “The GPL is  just like a menu at a restaurant, it has our services, products, and prices. We don’t charge any more than what’s listed nor do we charge any less. Before we move forward, do you have any questions or concerns regarding our services, products, or prices on our GPL?” From experience, the door has been opened and inevitably the statement “We ain’t got much money” or something similar is floated by the family members in the arrangement session. The response from the funeral director: “How much is not much money? What are your expectations for your loved ones funeral and your financial position to pay for those services?”

If a family states that they desire a “simple funeral” or a “basic cremation” the funeral director should know off the top of their head basic costs. For example: “Our simple funeral with our basic fees (includes staff), transfer from place of death to our care, embalming, casketing, dressing, visitation, interment, funeral vehicles, basic casket and outer burial container is $X,XXX. These costs do not include cemetery costs or cash advances like obituary charges, death certificates or flowers.”  If the family chooses basic cremation: “Our basic cremation includes our basic fees (includes staff), transfer from place of death to our care, embalming, dressing, visitation, a cremation casket, crematory fees and a typical urn is $X,XXX. These costs do not include cash advances such as obituary, flowers, ME fees, and death certificates.”

At this point if the family shares that they do not have enough funds for any of the above, the next logical question from the funeral director: “Share with me your budget and funds available so I may determine what we can provide for you. Please also keep in mind we require full payment prior to us entering an agreement.”  All the cards are on the table. Sometimes, there is not enough for the basics described above. When the family shares their financial position, the funeral director does their job; direct by creating services and products to suit the ability for the family to pay.

Undoubtedly, some readers now are thinking “what if they have no money?” I have been in this business for some time and experienced these very situations. In the six years of our funeral home operations, we have had one family that could not come up with more than $600. Do not compromise. If your funeral home has a “direct cremation” of let’s say $2,000, then that is the cost. In nearly every case, from out of the blue, the funds appear from several sources but mostly other family members. Just this past weekend, a family “had no money” however miraculously, the entire amount was made available prior to engaging in the funeral contract.

Solutions exist to “we ain’t got much money” situations.  However the vast majority of funeral homes fail to train their directors how to solve the problems faced with financially struggling families.  If you knew that you had the cure for cancer, would you tell anyone?  I have the cure for “we ain’t got much money.” You can get a start treatments at At Need Credit Training or just keep letting the cancer continue to eat at your business.

Yep, I’m having a great cigar in the Command Post and watching golf while I compose (go Bubba!). Cheers Y’all…#thefuneralcommander

 

ANC 1

Situation: Your loved one just died unexpectedly with no pre-need trust or life insurance available to pay for the funeral expenses. You can’t use the funeral home where you work and you receive no professional courtesy discounts anywhere else. You must pay full price for services rendered, casket, vault, and all the cash advance items including the cemetery space,  opening and closing fees.  How would this event effect your personal financial situation if you had to pay?

My team at The Harbeson Group and I have conducted hundreds of training sessions for funeral directors over the years on subjects like FTC Funeral Rule knowledge, taking shopper calls, removal/transfer procedures and so on. A few months back, I wrote a post Wear Other Shoes about training funeral directors to role play by planning a funeral for their closest loved one who unexpectedly died.  This training provides insight to the emotions people feel when arranging a funeral for someone they love and increases empathy for others in this situation.  But there is another facet to the training; what if you had to pay for the funeral expenses from your current and personal financial resources?

I provide funeral director training on the topic of cash flow solutions for at-need services. Prior to starting the training, I inform the group that I have permission from the funeral home ownership (or organization leadership) to charge everyone for the training they are about to receive.  The cost for the training is equivalent to the price for full burial at the funeral home including casket and vault (let’s use $8,400 for the purposes of this post).  I then tell the group the full amount is due to me at the completion of the training and that I accept cash, checks and all major credit cards…and I pause to let that sink in.

I love seeing some of the reactions on the faces of attendees and to feel the uncomfortable shift in the room. I then say “If there are no questions, we shall move forward with the training.”  Inevitably a hand will fly up with it’s owner asking “Are you serious?”  My answer: “What’s the big deal?”  “You ask the same thing of every family who makes arrangements with you, in fact for about the same amount.”  Silence follows as more air is sucked out of the room.

So I return to my original question: What if you had to pay today from your own financial resources?  Certainly there are those reading this who could write a check or have the credit card balance to pay, and then there are the rest of you. The majority of Americans (and let’s say a few funeral directors) don’t have the financial resources to pay for costly unexpected events in full, they need a payment plan. Sadly, just in the past few days, I read the obituary for a deceased funeral director asking for funds to be paid to help with funeral expenses. Just food for thought, if you had to pay today, would you need the services provided by At Need Credit?  Take a look and decide for yourself.

From the Command Post (no cigar for now). Cheers Y’all!  #thefuneralcommander

 

 

TFC2

I have conversations daily with funeral directors nationally about funeral payment plans and collecting full GPL prices prior to engaging in a funeral contract.  More often than not I get questions from funeral directors: “What if the family?” I’m going to address some of those questions I get from the field.

What if the family does not have any money?  My immediate response (and yes we have trained our staff and we actually give the same response when asked in an arrangement session): How much is no money?  Not anecdotal, but I literally witnessed this same question posed to a funeral director and the family ultimately paid over $15,000 in cash for a complete funeral!  Does your funeral home train how to provide a response?  When a family says “they have no money” what exactly does that mean?  Most funeral directors dive straight to the bottom without engaging further to better understand the financial posture of the people they “are directing.”  The appropriate response is: “How much is no money?”  Then, close your mouth, listen, when appropriate inquire more, and then create a solution that suits their budget.  I know you’re sitting there saying “what if they have NO money?” Back at your here, what do you do?

“What if the family does not qualify for a loan at FuneralPayPlan.com?”  You go back to the drawing board.  The next step is to let the family know that you will accept a minimum of X% (our firm requires 80%) up front in cash, credit card or life insurance assignment.  The family is required to sign up to pay the balance on Simple Funeral Payment Plan which requires them to allow withdrawal from their bank account, not just get billed and send in a check to your funeral home.  By the way, if you are billing a family and charging interest (1-whatever %) and you did not provided a TILA (federal Truth In Lending Act statement) and/or their calculated APR, your firm is most likely out of federal lending regulatory compliance.  No funeral contract is signed by the funeral director until the payment is secured.

“What if the family can’t come up with the X% up front?”  You are offering them the wrong service and products; they simply can’t afford the current services or product selections!  I wrote about this a while ago “I Only Have Bus Fare But I Want a Cadillac” and basically once you know that a family can’t afford what you are offering, then you must change their options.  If not, you are part of the problem.

“What if the family gets money from FuneralPayPlan.com deposited in their account but they use it to buy something else?”  Well, I guess I can only answer this one: “here’s your sign”

TFC1

I have much more to say from experience and training firms to cash flow better for at need services, so this subject will continue in other posts. This post will generate enough fodder for those that #FNhustle and want to make #FNchange; so feel free to contact me to initiate training to make positive steps to build your #FNbrand. Of course, the others will simply smirk and continue upon their path of “often wrong but never in doubt.”

From the smoke filled Command Post, Cheers Y’all! #thefuneralcommander

 

economics post

The issue of families struggling to pay funeral expenses is ongoing and I believe poses an increasing threat to funeral home financial health.  Take a few moments and read an article posted in Forbes last month: 63% Of Americans Don’t Have Enough Savings To Cover A $500 Emergency.   Now let that sink in a bit…

Depending on the zip codes your funeral home serves, regularly working with families who struggle paying for your goods and services may not be an issue.  However, there is enough negative economic news to support my continued message that we as an industry need to start paying attention.  Take a look at the chart below (courtesy of the St. Louis Federal Reserve and found by my fellow funeral professional Raymond Aikens):

FED Economic Data

One of the solutions for dealing with this problem is to train funeral directors how to address families in an arrangement session regarding payment options.  Yes, I know that your firm accepts full payment before services rendered and you have a payment policy.  So why do you have accounts receivable? Because your funeral directors sign contracts prior to securing the funds to pay for services rendered, the family walks out the door, the service is over and you have an unpaid bill. It’s your fault, period.

At Need Credit offers training and solutions of how to secure payment before a funeral contract is signed and also programs that will put your funeral home in a $0.00 accounts receivable status.  If your firm has past due accounts, our Simple Funeral Payment Plan provides a program to not only collect much needed funds, but also keep your firm in compliance with federal lending regulations.

This year I will be offering CEU’s at conventions and meetings to address cash flow for at need services. Contact me for further details and let’s do something about the ongoing problem with a solution, not just talk about it.  From the Command Post, Cheers Y’all! #thefuneralcommander #FNhustle #FNchange

 

FD training GP

Getting paid for services rendered and products sold should be as much of a priority as “a satisfied family” for funeral homes.   As a funeral home owner or someone managing the business, securing payment is one of the most important tenets of accountability, but rarely emphasized.  If you don’t think so take a gander of seminar presentation and CEU training provided at the majority of meetings or conventions.  Anyone training funeral directors to collect money due? No.  And most likely not at your funeral home either.

How can a funeral home get paid for every case, every time?  Training.  Why does a funeral home allow a contract to be signed without securing payment first?  Securing payment means a confirmation for pre-need payment, a life insurance policy is verified and assigned for payment, a check or credit card for full payment has transacted, or a payment plan has been agreed upon (signed) which includes a Truth In Lending statement along with full APR calculations of interest.  Otherwise, no contract signature from a funeral director should be made to engage for services.  It’s that simple.

If you are reading post and don’t think that your firm has an issue, I’ll give you a little process to follow:

  1. Look at every case from last month (January, 2016).
  2. Review each goods and services statement for signature of both funeral director and customer.
  3. Check total due amount.
  4. Check date funds received and amount paid.
  5. Is there any amount due today?
  6. If there is an outstanding amount due, why?
  7. If the case was not paid in full, what is the current status?

At Need Credit offers training to provide funeral homes the path to secure payment prior to contract agreement.  Anything short of $0.00 accounts receivable at a funeral home is simply unacceptable and a direct reflection of poor management.  If you want to get paid, train your staff.

From the Command Post and all payments secured, Cheers Y’all! #thefuneralcommander

 

 

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