Archive

Tag Archives: Funeral Home Management

1c7wdc

I have funeral home owner clients that are astounded when the epiphany of the number of calls are irrelevant to their profit.  In a few weeks, the Super Bowl of funeral service is in Philadelphia where the pontificating will be at extreme heights.  One of the biggest of all is the “tale of calls” (not to be confused with the tail of a whale).

Allow me to explain.  A firm touts they are having a great year tracking to conduct 250 death calls over the 225 last year.  If the casketed calls this year are only 40% (100 of 250) of the total versus 50% (112 of 225) last year…is the firm really doing better?  If the firm “picked up” 38 new calls this year which are non-casketed, did those calls even budge an increase to their profit margin, most likely not.

In a recent Funeral Boot Camp where attendees learn how to properly charge for goods and services as well as understand measurement of profitability, I saw something remarkable…or so it would seem.  A 60 call firm had more cash in the bank and net profit than a 200 call firm.  How is that possible?  Revenue per call, proper pricing, and frankly they are a great client of ours (meaning this firm is making good decisions).  Since the revelation or the before mentioned “epiphany,” the 200 call firm has seen the light and now on their own path to profitability with our guidance.

So the next time you hear Foghorn Leghorn “crowing” about his call volume, ask ‘ole blabby what his profit margin is…and listen for the crickets.  The more you know, the smarter you are.

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

 

LICE

With cash flow solutions being my primary emphasis in my consulting business for at need services, I am continually confounded when I learn that a funeral home does not utilize an insurance factoring company.  As many know, I pretty much believe in the “I’m not going to tell you to go to hell.  I’m going to tell you the truth and it feels like hell.”  The truth: Wasting in-house resources (time, personnel, effort, and overhead) to collect insurance is ridiculous. Now, you may not feel like hell, but you may feel unenlightened and marginally distraught.

If you don’t know how this works, please allow me to enlighten you, and in the process, offer your the families you serve, you, peace and payment!  When a family presents you a life insurance policy for the deceased, you may tell the family member that you will accept the policy to pay for their loved one’s funeral expenses.  However, the policy must be valid, non-contestable and the beneficiaries must assign the funds necessary to pay for the expenses to the funeral home. Tracking so far?

At this point, you also inform the family that your firm has engaged a company that will confirm the viability of the policy, accept assignment, and pay your funeral home the proceeds directly.  If the policy has more funds than what is needed for funeral expenses, the company will send funds to the family in about 4-6 weeks. The fee for this transaction is .0x% and that fee will be taken from the life insurance proceeds.  So, by using this process, your loved one has provided you a gift of life insurance to pay for their funeral expenses and it is a cashless event…no money out of pocket.Peace.Payment.

I can hear the rumbling and grumbling from the unenlightened.  “I don’t want to charge a family a fee.”  Let me ask this question, Skippy: “Why not?”  At best, Miss Edna is going to make several phone calls to insurance companies trying to track down your money…yes, it’s your money.  Why are you going to wait the customary 3-4 weeks for your money?  The family will pay for the convenience and relief of a “cashless event.” Oh, another question, Skippy:“Have you ever conducted the service, buried the casket or cremated the body prior to learning that the policy is not viable?” Brilliant. Now Miss Edna is on the phone trying to get the firm paid and guess what the family will tell you: “We don’t have that kind of money.” Miss Edna just has to become a collection agent because you refuse to use common sense and sound business practices.

Peace and payment for both you and the family. The family will pay the fee, certain they wont have unexpected bill later; you will get paid with surety and faster.  If the policy is declined, you know immediately and deal with it before the service. Read what I rant and write, DO NOT SIGN A FUNERAL CONTACT UNTIL PAYMENT IS SECURED!

This is one of many steps in the business of doing business that will keep your firm in a $0.00 accounts receivable status.  Yep, I’m smoking a 6×6 Maduro blowing a thick cloud of smoke on the observation platform of the Command Post (West).  Cheers Y’all! #thefuneralcommander

 

analogy P or p

A few days ago while assisting Mrs. Commander at the grocery store, there was a shortage of “baggers” that normally place our purchases into bags at checkout. Of course being the man of action that I am (Mrs. Commander issued a command), I jumped into position and began performing the bagging myself.  As you read this post, here is where you insert “well, you have finally found something that matches your talent” comments.  I’m old enough to remember when all the groceries were placed in paper bags which meant if something leaked or if it was raining, the bags disintegrated and the contents would spill out.

As our society changed, someone invented the plastic shopping bag that eliminated the leaking/disintegrating problems.  Additionally, the plastic bag also was less expensive to manufacture and I recall something about saving trees making the plastic bags environmentally better.  During this time of transition, we were asked “paper or plastic” by the bagging staff at most grocery stores…remember?

The environmental superiority of the plastic bag took a turn for the worse as they do not fare well in trash dumps and identified as a litter hazard.  Then, in some states, the paper and plastic bags were “outlawed” or taxed.  A consumer must purchase an environmentally friendly bag for repeated use or reuse the plastic they had from “days of yore.”

If you read this blog, you know that I am one that enjoys providing analogies about the funeral industry (see Funeral Directors: Are You Practicing Basic Blocking and Tackling Skills and The Hotel and Funeral Industry: What Can We Learn?).  There was a time (not so long ago) that we all went to the funeral home and it was assumed that we would have a burial (just like we got paper bags at the grocery store).  At some point, and perhaps about the same time we started getting the question “paper or plastic,” consumers increased their ask for cremation rather than burial while at the local funeral home.  Just like the transition from paper to plastic, cremation is becoming the preferred choice over burial for consumers.  Consumers are shopping online for their funeral needs and DIY choices are becoming popular (just like bring your own bags to the grocery store to “save the environment”).  Not only are consumers not pining for the paper bags, but some are not even going to the local grocery store (ordering online and grow your own)!  See the shift?

Unfortunately as a whole, our industry is still acting like we are going to have a huge comeback to the paper bag era.  The casket companies continue to try convincing the sheep that “paper will never go out of style” offering useless contracts, taking up valuable funeral home space with “showrooms” (Hallmark stores…how well are they doing?), and of course charging more/discounting more, etc. etc.  Consumers are flocking in droves to the internet for information, yet few funeral homes post any pricing forcing the consumer to either call or “stop by” if they want information. I have asked this question many times; if you were shopping online and the website had no pricing information, what do YOU do?

Our society is continuing to change for many reasons including diffusion and views about how we treat our dead is certainly noticeable.   What is your funeral home doing to transition from “paper to plastic?”  From the desk of The Funeral Commander, Cheers Y’all! #thefuneralcommmander

P&C

We are entering a fresh season of baseball; from Little League fields to professional stadiums baseball players are honing their skills to play their part in the games on the schedule.  On a daily basis, our military trains to prepare for the moments of battle that will require their skills to be put to task.  Whether turning a double play, laying down a bunt, knowing fields of fire or following a battle plan, practice and training are essential to win a game or in the most dire of situations, stay alive.

When it comes to practice and training on a regular basis in the funeral business, regular meaningful practice and training is a rarity. Yes, I do understand that funeral homes are busy and we never know when the next phone calls can mean days and hours of focusing on one of the most important event of a person’s life; a funeral for their loved one. I also understand and know that there are times where there is not such activities being conducted where we could hone our skills.

From my experience, some of the best ideas are the result of practice and training sessions when those involved have engaged not because of mandate, rather the innate opportunity to carry out “the play” or “scenario”  and revealing gaps otherwise not recognized.  At our funeral home brands, practice and training for the many tasks required of this profession have created a culture of continuous improvement.  What are the results?

Elimination of mistakes by following process.  Mistakes are made by everyone; however training eliminates repetitive errors.  If you think about it, errors may be simple or drastic, some may be costly.  For instance, how many times in transition from the funeral home to a place of service has items been left behind?  It costs money and consternation to return to the funeral home to retrieve forgotten items (CD.’s, Reserved Markers, etc.). How about receiving a body at the funeral home?  Identification measures and process is a training opportunity; we have recently read news stories of the wrong body being cremated, do you think that  mistake is going to be costly?

From my assessment,  for every mistake or mishap in a funeral home, training would have been a preventative measure.  Think about it, what problem in our daily funeral home activities cannot be corrected with practice or training ?  Funeral home leaders must be intentional and make the time for practice and training; the results are worth the effort.  Literally taking 15 minutes a few days a week can create a culture of continuous improvement and better morale…after all, who does not like to win?

Well as you know if there is a gap, I’m paying attention. Don’t let your untrained heart be troubled, help is on the way!  Stay tuned.  From the desk of The Funeral Commander, Cheers Y’all!  #thefuneralcommander

washed outIt’s the time of year that summer comes to a close…the end of a season associated with happy, warm and carefree days. However, this description of summer is not necessarily reflective in the funeral industry.  Just like the ocean, the death rate has an ebb and flow; historically the death rate is higher in the 1st and 2nd quarter of any given year and the 3rd quarter (summer) is significantly slower.  This historical trend offers the opportunity for timely discussion.

As a funeral home owner/manger, how do you prepare for the ebbs and flows of the death rate for expected “slow times?” Does your firm adjust prices based on recent revenues?  What type of marketing campaign do you launch (if the phone isn’t ringing, then go out singing is one of our firm’s methods)?  Or  are you the proponent of the ever popular “we have experienced this before” and do nothing?  The problem of decreased death rate in today’s atmosphere is coupled with other issues; competition (locally and online), shopping consumers, increase of cremation, decrease of traditional burials, and of course when a call is lost, so is the revenue along with that family most likely not returning either.

Lest we forget: it’s price increase time!  Yes, if not yet, your happy supplier will visit soon telling you how much you are loved and appreciated…and that love will cost you more this upcoming year!  Now, don’t forget that suppliers have to make profit and if you review the wall street owned ones, they do handsomely.  Nothing wrong with profit, frankly I’m in favor.  Back to my point, this time of year.  The funeral homes that I am owner/partner, we operate our fiscal year January-December.  However, the major suppliers find it necessary to impose their fiscal calendar upon us to suit their financial needs…this time of year.

What does this mean to you and your firm?  Well, first it’s time for you to make adjustments to your GPL and product price lists or absorb the product price increases starting October 1.  Remember the “slow” summer season just ending?  Now you have to account for those losses and adjust for upcoming increased product costs.  Frankly, if your firm has been adjusting prices along the way, this is not a big deal.  However, the majority of funeral homes in the US only make price changes this time of year, when dictated by suppliers, if any adjustments are made at all.  I know it’s hard to believe, but I see GPL’s and price lists that are actually dated “2010.”  Second, are the prices you are paying for products (and getting ready to pay more) a value to your firm and families?  At some point, there is a price for “loyalty,” just ask consumers.  I’ll address this question in another post soon.

So for discussion sake, how does your funeral home address “slow periods?”  Anyone out there heard the latest price increase numbers?  What are your methods to formulate price adjustments? How often does your firm adjust prices and what time of the year if only annually? Happy Labor Day (I’m working, but doing so with a cigar as part of the celebration).  Cheers y’all! #thefuneralcommander

like respectI have been around the proverbial block of leadership in my life from both positions of leader and follower.  Just recently I was having this discussion with one of my partners about behavior modification in funeral homes.  Behavior modification is quite simply changing poor habits and continuous ineffective or unproductive behaviors.  Funeral director training is a behavior modification tool that alleviates continuous ruts.

However, funeral director training is one thing, actually conducting and coaching is quite another.  In our discussion, the topic of like versus respect was broached.  A challenge for many funeral home owners is the difficulty of operating in a close environment.  Conversely, how do other organizations seem to efficiently function in similar “close quarters?”  We discussed an example of a particular funeral home owner that struggles to “take command of his troops” even for the overall good of their firm.  The firm as mired in a continuous struggle for profitability and lacks consistent revenue performance from the revenue makers…funeral directors. The owner just doesn’t want to “rock the boat” which means he fears making necessary decisions, training and performance demands because he may “upset someone” thus not being perceived as “their friend.”  We have both heard many times )I just can’t do that; these people are my friends.”

Another example we discussed is being a parent.  Making decisions as a parent is often adverse to how friends would interact.  However, the inability to make often life decisions for the sake of “being a friend” may have severe consequences for the child over time.

So for the sake of discussion, which would you rather be as a leader, liked or respected?  I believe there are circumstances for both; certainly my answer would be that I would like to be liked and respected.  Let’s narrow this down to the work environment in a funeral home. Would you rather work in an environment and culture of like or respect?  What’s your choice? Cheers Y’all.

 

get it doneFuneral director training…how many funeral homes have a consistent training regimen for their funeral directors?  I was part of a meeting that we were challenged to list the top 10 issues/problems that are challenging funeral home owners. There was quite a range from marketing to gain new business to financial sustainability.  Most interesting to me, nearly all of the subjects could be resolved or at least part of the problem resolved with funeral director training.  Funeral director training must be mandated and supported by leadership. Meaningful and relevant funeral director training creates a culture of learning along with collective solicitation of better ideas.  Funeral director and apprentice development is enhanced by assigning topics training of their own peers.  Deliberate time for training is possible, even in the busiest of firms.

Three mornings a week for 15 minutes could make a difference in performance, morale, family satisfaction and even financial stability (how about training sessions of accounts receivable and collection of payments prior to signing a contract)?  Make the sessions fun…bring in some goodies to eat…how about a prize for the best training of the week (a lunch gift certificate).  It’s not difficult to offer funeral director training, it’s a matter of priority.

Funeral home owners; want to solve some of your problems?  Train your funeral directors and staff.  CEU’s are not sufficient or many times relevant to your funeral home needs.  Everyone can be trained and everyone needs to have training…even professional baseball players have batting coaches and take batting practice before their games.  How are you preparing your funeral directors and staff for the game?  Cheers Y’all.

%d bloggers like this: