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d-vs-g

My last post Funeral Industry David vs. Goliath was referring to innovation in the funeral industry. From all intents and purposes, Goliaths dictate and Davids innovate.  There is no greater example of this analogy in the funeral business than casket manufacturers.  Just recently one of the casket Goliaths was recognized for their “innovation.”  What is innovation?

Webster’s Dictionary: Innovation; a new idea, device, or method.

Have we become so complacent in our industry that throwing “old wood” on a casket is considered innovation?  The definition should be expanded to include making products for less cost (Chinese hardware and cloth for interiors) and moving South of the Border for manufacturing. YES!  Now that’s innovative; however with these cost saving measures why are you paying more for Goliath Company’s caskets?

There was a time when the casket peddlers led the industry with messages that their product was “the center of the world” and families would pay premium prices.  At that point in history (before Al Gore invented the Interweb) funeral home owners drank the Kool Aide by selling families Bronze, Copper, Stainless Steel, and Mahogany caskets even some adorned with gadgets.  Good idea, right?  I mean, the profits from these transactions had to be incredible. How’s that “innovation” working out for ‘ya today?  Funeral homes filled their casket rooms (later to become known as Hallmark Stores) with good, better, best, and ignoring the service side of their business.  What did the Goliath’s do?  After the contracts were signed and the rooms were filled, prices began swelling faster than a Krispy Creme doughnut in hot oil. Fast forward to 2016; when was the last time your firm sold a Bronze, Copper, or Mahogany casket at need?  In fact, exactly what material (Gauge or Wood type) is the average casket your firm sells now? Now Goliath’s are spewing “don’t raise our prices, raise your service prices” as they hand you the new X% more casket price-list for 2017.

Interesting that the casket Goliath’s even attempt to be “business consultants,” however 90% of the road warriors haven’t a clue how to interpret a funeral home P&L, much less understand the process of operations.  Perhaps I should create a “funeral home business and operations quiz” so that the next time Skippy the Casket Clown knocks at your door, you may find out just how much he knows about your business.  The results of the quiz will be devastating to Skippy.  But no fear!  Skippy will reach into his bag to reveal that he can improve your website (with a template), increase your cremation revenue (with his company’s Chinese urns and “proven presentation strategies”) along with various and sundry useless items for sale.  Innovation would be to improve the funeral home operating processes and providing solutions to elevate the positive financial posture for profitability.  Wait!  Maybe a trip, game tickets, or a nice meal will make everything better.

Let’s get down to the truth, shall we?   Caskets are made of wood or metal (unless you get the ones made in Mexico, they are wood composite).  The definition (according to my indoctrination in the cornfield) of a casket is “a container for precious materials.”  The deceased (precious loved one) is placed in a casket, their loss mourned, their life celebrated, and they are buried never to be seen again.  If your funeral home’s financial life depends on one of Goliath’s spawn, your business will be in a container for precious materials as well.

What would be innovation for caskets?  How about finding a way to manufacture a quality product for less?  The casket manufacturing Davids have already done so.  A simple price analysis and side by side comparison of local distributor, small manufacturer, or offshore caskets will reveal Goliath is out of touch and David has an arsenal of rocks in his sling.  Oh yeah, one more “innovation” that Goliath created:  “off brand” caskets that are sold through the local distributors.  Yep, the same casket you may be paying up to 50% more with a 1-cent sticker comes right off the manufacturing line as the “off brand” does.

Thanks to the itnerweb and frankly, enlightenment of funeral directors, the casket Goliaths are taking more rocks to the head from the casket Davids.  The Goliath notion of treating funeral directors like mushrooms (“keep ‘em in the dark and feed ‘em crap”)   days are coming to a close.

I am more than happy to further this line of factual thought with anyone that chooses to reach out to me.  I challenge any Goliath representative to a public debate on Funeral Nation TV to refute these points of innovation.  What the heck, its debate season so the floor is open!

From the Command Post (West), without libation or cigar for clear thinking, Cheer’s Y’all! #thefuneralcommander

 

cremation tfc

As a funeral consultant, I interact with at least 25 funeral home owners on a typical week and through social media I’m in contact with hundreds of funeral directors.  When I ask, “What’s the biggest challenge you face in the funeral profession?” almost on key I hear, “cremation is killing us.”  Cremation is by no means the major challenge we are experiencing, it’s our failure of “doing the business of the business.”

Let me explain by asking questions.

  • Cremation is a disposition. As such, funeral directors have the same opportunity to embalm as burial. Why doesn’t that conversation take place during cremation arrangements?
  • Why do burial families pay full price for basic service fee and cremation families get a discount on the exact services performed?
  • Why doesn’t every family receive a complete presentation for disposition of cremated remains including interment, scatter, keep, urn, and jewelry options?
  • Why don’t funeral homes get paid in full or secure payment prior to signing a goods and services contract?
  • Why don’t funeral directors train on their profession (not CEU) weekly to improve their skills (like the four questions above)?
  • Why do funeral home owners pay accountants that give them a P&L statement and balance sheet but no advice on how to increase their profit?

Take a moment and answer these questions honestly.  It’s not cremation; put some mirrors up in the funeral home and you’ll see the problem.  Do you want solutions to these problems?  Email jeff@f4sight.com and let’s schedule a time to chat.

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

WTF 17

I rarely call out funeral homes by name simply because they usually know who they are when I write particular content. However, the high and mighty at Lindquist Mortuaries in Ogden, Utah gets a special Funeral Commander shout out! Wendy Thoresen Green was interviewed by the Standard Examiner, a newspaper in Ogden, UT  with title Meet ‘Funeral Lady,’ a Pleasant View woman who loves all things funeral-related. Linquist, WTF (What The Funeral) are you thinking by distancing  yourself from talent within your own funeral home? Please read an excerpt from the article:

Today, Green sells funeral plans for a local mortuary. We say “local mortuary” because, frankly, her boss would prefer his company not be named in a piece about Green and her obsession. She’s been called “eccentric” and “definitely not mainstream” in an industry where eccentricity and deviation from that stream isn’t exactly the dignified image mortuaries are trying to project

Now you boys don’t get your starched underwear in a wad; the article was published and as usual, I’m just pointing out the obvious.  See, we in the funeral industry are inquiring minds, we just want to know.

“Loves all things funeral related” seems to be a great headline, however this particular crowd doesn’t see it that way. Is passion and a calling into the funeral industry consdiered an “obsession?” Definition of Eccentric: (of a person or their behavior) unconventional and slightly strange. (“My favorite aunt is very eccentric.”) Maybe Wendy is not mainstream in Ogden Utah, but I shudder at the thought of what that definition may include in those parts of our country.

I have a question for the Lindquist’s Mortuary leaders: After looking at your website (with no social media links whatsoever) and seeing your staff, why are there no female funeral directors listed? Are women only relegated to pre-need sales and general staff… is that what you consider mainstream? Another question: Why you would be ashamed of someone like Wendy who projects a positive image for the funeral industry? Why wouldn’t Lindquist’s Mortuary proudly boast about such a devoted and dedicated employee?  Certainly no retribution will come as a result of her sharing her heart to the community.

Ok, all you non-Neanderthals in the business, how about let’s show the value of women in our industry and teach something about social media to the “He-man Woman Haters Club” in Ogden! I implore you to comment, post, and share this story on Facebook, LinkedIn, and Twitter. Unfortunately, it appears the “leaders” don’t know much about this interweb social thing.  However, we can shed light on the darkness of their “mainstream.”

From the Command Post (West) and thick fog of cigar smoke along with being a bit pissed off about how backwards people try to push down achievers…Cheers Y’all!  #thefuneralcommander

 

blog post SC

What does the recent primary in South Carolina tell us about the funeral industry? Let me start this post with a disclaimer: I’m simply providing observations and I am not endorsing or promoting any candidate who is running for the office of President of the United States. Additionally, I will note that my family (both my mother and father) come from the Palmetto State. We have deep roots since the very beginning of this nation, so I know what I’m talking about when proclaiming: South Carolina is considered the bastion of conservatism in America with a history of “sticking to their guns” with whatever they believe. It’s a state that is certainly considered “the buckle of the Bible Belt.”

My takeaway of the primary results last Saturday has relevance to the funeral industry. The winner did what most would consider blasphemous and everything that should have led to defeat.  For example: calling out a much loved and revered former President (especially in SC) regarding the 9-11 attack; calling competitors liars and saying that a controversial women’s medical provider actually does have some good points. All this and more coming from a Yankee spending far less than his competitors  while also using social media to resonate his message: “No more PC gibberish; let’s just call it like it is and make America great again.”

The competitors had the endorsements from the State party establishment elected officials, endorsements from the mainline religious groups, spent millions on trying to convince voters to follow the past “establishment direction,” and even made sure everyone knew the front runner was divorced but was now married to a “foreigner.” The competitors also had infrastructures developed with volunteers knocking on doors and making phone calls.  In the State where a particular religious group reigns, against conventional thought the tactics failed and the stale messages did not stem the rising tide of change.

What are some of the similarities of the campaign in SC with the funeral industry?  A few observations:  the funeral establishment has long coined rivals (new business models) as discounters and direct disposers which basically means nothing to the consumer. Interestingly, some have their own little discounters and direct disposal businesses but don’t share much about them in public or funeral meetings (sort of like not claiming “that side of the family”).  The rhetoric “you get what you pay for” is a back firing message because consumers are questioning the cost and see no value in what they are paying for with the traditionalists.  Millions of dollars are spent on advertising in an attempt to convince consumers to hold on to tradition rather than invest in creating and seeking solutions to meet consumer demand.  Pundits preach (see a blog post by funeral home owner Dale Clock The New Normal) at conventions and meetings to charge more and show more value but never address the real issues like how to serve the financially-struggling family (who are flocking to discounters and direct disposers).  Value now is the ability to pay in full.

The results from the South Carolina primary offer a glimpse into the future of the funeral industry. Consumers are demanding change, rejecting the established past. They are educating themselves online and taking action on the information provided without visiting nary a funeral home. Consumers couldn’t care less about internal industry bickering and name calling; they are leaving tradition behind. The establishment’s message is fragmented and falling flat for a number of reasons including its methods of delivery (very few funeral organizations use social media or offer consumer-friendly websites). I don’t think nor do I advocate that the traditional funeral home is going away or  it is irrelevant.  However, the recent report, SCI saw fewer funerals, declining revenue in 2015, is news to which every funeral provider should pay attention.

The voters (funeral consumers) are speaking loudly and clearly asking for new models of service and a change in how we go about offering our services. We have an abundance of smart, talented, experienced, willing funeral industry professionals and organizations ready to work together for the betterment of our collective future. The platforms for communicating and working together are right at our fingertips. I raise my hand and volunteer, what about you?

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

 

 

Feb Blog

Funeral service providers have a reputation for reluctance to make changes even if necessary for their own good, are generally slow to adopt pretty much anything new and rarely create from within. What if we took the example of the canary in the coal mine?  You know, a safety net just in case we were to get a sniff of dangerous carbon monoxide and can abandon the mine before coming to harm?  This business is not that simple, however so few ever get to taste the sweetness of success after taking a risk.

Why is that?  If we watch an episode of Wild Kingdom starring Marlin Perkins following the annual migration of wildebeests we can see in real time how we seem to act.  Just keep our heads down, move with everyone else and don’t venture away from the herd.  “Damn that river crossing, I’m staying right in the middle and just trying to survive.” Never mind a new route that may make more sense.

Does the fear of failure suppress risk taking?  Creation of new products or services should be initiated among funeral professionals because that’s where the “rubber hits the road” (more on this particular reference in the next paragraph), but the majority of something new comes from outside, not within.  Is it because everyone is so busy and simply putting extra time into something that may not work out isn’t worth the effort?  Did you know the modern day church truck was invented by Samson Diuguid, a funeral director back in the 1800’s in Lynchburg, Virginia? Because church aisles were too narrow for pallbearers to walk on both sides of a coffin, Diuguid created a much used product that made our job easier and the funeral experience better.

What about taking a risk in the funeral industry that my invoke ridicule and embarrassment?  Oh no, not from fellow funeral professionals!  Back to the Diuguid folks, they actually had the gall to use a rubber wheeled and a motorized hearse to carry a casket!  It’s said that other funeral directors made fun of Diuguid and even coined the contraption “blasphemous to the profession.” We have the same twits in abundance today and you can see them flitting around “busy” at funeral meetings and conventions.  They are easy to spot; usually adorned in full funeral director dress inclusive of suit, white shirt, and not too flashy tie.  Funny, since there isn’t a family to serve in site…impressive huh?  Interesting about this particular sect of the herd is that they themselves have never invested, created or invented anything in their lives however are the first in line with nay saying gibberish ridicule of “my families won’t” or “that will never” and so on. Funny though, when the something new takes hold they follow rest of the herd sometimes too late as the crocks are lurking for the finely-adorned stragglers.

As for me, I’m going deep in the mine with a cage full of canaries and keeping my #FNhustle on to make #FNchange to better our industry. Yep, I’m going to fail at some of my initiatives.  Yep, I’m going to be ridiculed (however not to my face because the before-mentioned finely-adorned, nay-saying eunuchs who literally don’t have the balls to do so).  And yep, I’m going to succeed and just keep mining.

I challenge you to go get some canaries and enter the mine; it’s hard, nasty work, you might fail and get laughed at or you may actually do something to make a difference. If not, please start shopping because the new season of conventions and meetings are starting and you’ll need to be seen.  From behind a thick fog of smoke in the Command Post, Cheers Y’all! #thefuneralcommander

 

 

who is laughing

Many current owners, managers, funeral directors, and leaders of the funeral industry grew up in the same era I did.  As for the younger crowd, this will be foreign to you simply because you were not alive during this period and the world has significantly changed…for the better.

There was a time that American consumers made fun of foreign-made Datsun, Honda, and Toyota cars because they were classified as cheaply made and unreliable especially by the American auto manufacturers.  Fast forward to 2016; Datsun (now Nissan), Honda, and Toyota are all on top of the heap for value, reliability, and sales in the U.S.  Evolving from those same manufacturers are the Infiniti, Acura and Lexus luxury brands.  I’m certain the haughty and powerful American auto executives back in the day would be mortified at just how wrong they were having underestimated the resolve of their competition and the change in American consumer attitudes toward these cars today.  Anyone catching on yet?

  • “My families would never cremate.”
  •  “My families would never use someone else.”
  • “My families would not like that.”
  • “You get what you pay for.”
  •  “We are a full service funeral home, not a discounter.”
  • “Using computers in arrangements is impersonal.”
  • “If they want our prices, then they will have to meet with us first.”
  • “We only use American made caskets, urns and fleet.”

Many in the funeral industry have the same echo hubris as the auto exec’s of yesteryear regarding their competition and the consumer market.   But, what if?

What if the competition made a better product or provided a better service, value, and dependability?  What if the competition could reach the same families with a better message moving market share?  What if the competition figures out how to offer the current funeral consumer options they are seeking rather than what is customary?  What if the competition could do what you do, but better?  What if import caskets are a better value (price and quality) than cornfield caskets?  You don’t think this is possible?  Ask the good old boys from Detroit that smoked cigarettes in their offices (if any of them are alive), who’s laughing now?

There are flashes of brilliance out in the funeral world from multi generational funeral providers, forward thinkers, and manufacturers who are executing #FNchange by taking chances as well as simply out #FNhustle everyone else.  Meanwhile, the rest of the herd hasn’t looked inside the door of their American made car to see where the parts come from, still believe that caskets assembled in the cornfield are American made (I guess if Mexico and China are new states, this is true), think cremation is just a fad, and lead the discussion of whether women should wear pants or skirts (below knee with pantyhose, of course) who will continue their decent into the abyss of irrelevance (remember travel agents?).

Got comments or thoughts or are you just going to sit there and smirk?  What are you doing to #FNchange and #FNhustle? From a very thick fog of cigar smoke generated by a 60 ring gauge Maduro in the Command Post, Cheers Y’all! #thefuneralcommander

 

parting-logo@2x

Parting.com launched its site which has virtually every funeral home in the United States with pricing for services listed for consumer comparative analysis.  This disruptive innovation is the first of its kind in the funeral industry; the FTC, State and other funeral directory websites have never been able to accomplish…listing General Price List information for consumer comparison.  It’s reported that a small percentage (9%) of funeral homes offer any pricing information on their website which provides Parting.com with a tremendous opportunity for consumer search using the internet for funeral homes.

Parting.com offers line item pricing from the GPL for basic services, embalming, visitations, etc. as well as direct cremation from the funeral homes listed.  As a service to the consumer, the listed funeral home’s prices for at typical funeral (basic service fee, transfer of remains, facilities for viewing, facilities for ceremony/staff, embalming) are conveniently added from the GPL listed.  Average national prices for a casket, dressing/casketing and outer burial container are separately listed but all added together to provide the consumer a comparative look at firms in the particular area of search.

In addition, most of the funeral homes listed have photos of the location (most look like Google earth shots), a link to make an appointment as well as a function for a consumer to review the service provided at the funeral home.

Innovation in the funeral industry continues to evolve especially in technology sector.  I remember in the recent past funeral homes that did not have a computer in the building (I still get applications for one of my companies that appear to be completed on a typewriter) and had a fax with the rolled paper.  From my vantage point, Parting.com has created a truly disruptive innovation site that no doubt is defined below:

Wikipedia defines Disruptive innovation: is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995.[2] More recent sources also include “significant societal impact” as an aspect of disruptive innovation.[3]

Interestingly, if a consumer is already searching the internet for a funeral home, they certainly have no or very little relationship with a provider.  Consumers now will have the benefit of comparative pricing if they are so inclined to use Parting.com instead of having to call or visit the funeral home for additional information.  Parting.com has “upped the ante” for funeral homes to create more interactive and informational websites to showcase their particular value, services, etc. to secure the internet shopping consumer.

Want to know more?   Tune into Episode #9 of Funeral Nation TV we interview the founders of Parting.com and learn about their disruptive innovation in the funeral industry.  From behind a thick fog of smoke and the Command Post, Cheers Y’all!  #thefuneralcommander

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