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David kicked Goliaths ass.  Interestingly, David’s fellow warriors remained on the sidelines, huddled like a covey of quail, and just waited to see David get beat down by the giant.  But David was not only brave, he was an innovator.  He knew there was a simple solution to attack to win, versus the conventional “we’ve always done this way (and getting our ass kicked too)” crowd.

Guess what, fellow family-owned, small suppliers, and free thinkers of the funeral business:  “Goliaths” don’t innovate.  They dictate! 

Think about it.  What new innovation has made serious impact on the way we serve families or make our job better in the last 10 years?

Recently I was having a conversation with a funeral home owner client and he was lamenting how the funeral industry seems to be completely driven by “the big boys.”  And by “big boys,” he meant publicly-traded funeral homes and casket companies, membership organizations and other funeral industry providers who seem to determine our direction.

Over the next few weeks I’m going to address different categories of funeral industry Goliaths and highlight the emerging Davids.  I have a sling in one hand and rocks in another.  Yeah, this is going to be fun!  From the Command Post (West), Cheers Y’all! #thefuneralcommander

 

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Would you buy your funeral business suit from a hardware store? (This question does not apply for the hard working directors in Montana.)  Would you buy a lawnmower in an Italian restaurant?  Would you buy your groceries in a proctologist’s office?  How about buying your next computer at a dairy farm?  Do these questions sound absurd?  It’s a reflection of what we are witnessing from suppliers in the funeral industry.

Why are website developers selling urns?  Why are casket manufacturers selling websites?  Why are vault companies selling caskets?  Why are embalming fluid companies selling jewelry?  Because their foundational businesses are struggling in a market where 13 year old can create fantastic Word Press websites and burial is sharply declining! Thus, this crowd is starting resemble Mr. Haney on Green Acres selling his wares in the back of his truck.

Manufacturers and providers are facing the same problems as funeral homes: declining revenues from their core business. Suppliers keep hawking anything that can turn a profit to the DAM’s (Dumb-Ass Masses) providing no significant enhancement to the funeral home bottom line or operation.  If a cornfield sticker can be put on it (you know the ones that try to disguise the country of origin) it’s for sale! Rather than funeral homes mastering what brought them to the dance in the first place by understanding the business of doing business, they continue ogle at “shiny stuff” that can be purchased or provided at a much lower cost with a quick Google search.

If you are astute enough to pay attention to the signs of how the funeral industry is in dramatic turmoil, please initiate a serious evaluation of your own business to adjust for the ongoing and future rough waters ahead. Shy away from the growing list of funeral peddlers as they are simply grasping at straws in a feeble attempt to stay afloat and try to remain relevant.  If it doesn’t make your job easier, your bottom line fatter or your family experience better, you don’t need it.

Of course for those that don’t “get it” I’ll continue to point out the obvious so at least you may have a clue when reading my posts because you aren’t going to get reality from many out in the “Funeralsphere.” Oh, and please wipe off your upper lip because no one is taking you serious with that Kool-Aide mustache.

Returning from Boot Camp energized for duty, Cheers Y’all! #thefuneralcommander

 

What are the top three obstacles funeral homes are facing that challenge their success? The seriousness of this question muddled with chatter about all sorts of unimportant blither; car model/style, which embalming fluids are best, pants, skirts or white shirts, discounters, direct disposers, the funeral consumers alliance, showing/not showing prices on websites, have a talk, talk about someone else, casket color, urn type, which organization to join, corporates, family owned, and so on. It’s time to address important matters, initiate solutions and take action.

Declining revenue and profit is placing severe pressure on the overall funeral home market. To make course corrections a funeral home has three options:

  1. Raise prices.
  2. Increase market share (conduct more calls).
  3. Cut costs.

Perhaps a combination of all three are necessary, however firms require a complete professional analysis of overheads, pricing and operations.  Identify gaps, create new processes, train staff to follow the specific processes, and measure results. Measurement and training are ongoing, not an annual event. This is quite a simple solution; however the majority of funeral home owners lack the will and ability to make this type of commitment to hold everyone employed in the business accountable including themselves.

Embedded in the solution of re-calibrating financial stability is training. Let me be clear, there is a difference in education and training.  The funeral industry plays patty-cake with training funeral directors post school and license testing. There are no ongoing or relevant pass/fail requirements once a director finishes school and national/state testing.  For the most part the CEU’s offered and presented are a serious waste of time. We all know the truth: sit through the class, sign an affirmation of attendance for credit, and return to the funeral home doing the same old thing the same old way.  There is not one problem in the funeral industry that could not be corrected by training.  Training is behavior modification.  Don’t think so? A young 18 year old man fresh out of high school is trained in the military and in a short few years work on gazillion dollar equipment leading two or three more under his supervision.  In five years the same young man is leading five to ten people with multiples for the future.  Training change everything, however it’s non-existent in regular funeral home operations or priorities.

Management abounds and leadership is rare.  Many owners rather be liked than respected simply refusing to demand behavior modifications of the very people that receive checks from their own funeral home payroll. Most owners do not possess the ability or wherewithal to “take the bull by the horns” of their own business.  They are too cheap, prideful or embarrassed to raise their hand asking for help from professionals that have the acumen to provide analysis, solutions, training (behavior modification), measurement and accountability.

A funeral home can overcome barriers by analysis, implementation, training, measurement and leadership. The seriousness of the problems above are evident in P&L statements, national statistics (consumer trends) and the continued decline or funeral revenues. I solicit comments, opinions and of course refute of the content of this post.  From the smoke filled Command Post, Cheers Y’all! #thefuneralcommander

 

TOTT

In the investment world there is a saying “Trees don’t grow to the sky.” The meaning is a warning that stock prices for a given company will not increase forever, they top out. When I thought about writing this post a few analogies came to mind relative to the funeral industry whether you are a funeral home operator or product/service provider.

First, take a look at the tree in the image above. I know there are exceptions (as I am not a tree expert), but trees tend to narrow at the top when they stop growing. If your funeral home has stopped growing more than likely it’s pretty narrow at the top with only a few branches “near the sun” failing to notice the root system beginning to weaken. The same holds true for funeral industry product/service vendors (look what’s happening in the cornfield).

We all know that trees have roots and can live for hundreds of years but the fact is trees reach a peak of vertical growth.  If your funeral home has deep and a strong root system, yet peaked vertical (market) growth, what do you do?  Perhaps just stand tall, firmly rooted and simply continue to serve in your sphere of ground.  It’s not a bad thing at all.  But your funeral home has stopped growing and perhaps vulnerable to planting/maturing of competitive funeral homes in your market.  From a vendor perspective, new technology is being created in some cases before products even hit the market.  Remember all the video folks?  “New and improved” simply by a color or interior cloth change is basically putting lipstick on a pig, it’s still a pig.

Perhaps the notion of planting more trees (seedlings) from the tall and healthy (but ceased growing) tree is an option. Many funeral homes, successful, longstanding and deep rooted have planted seedlings that are maturing. New locations to serve different market areas and new models to serve different consumer segments are signs of recognition the original tree has ceased growing, but recognize the need to have a stronger presence of the brand. There few products and services in the funeral industry that are linear as well as strong enough to survive on their own. Yes, there was a time when funeral home website development, custom casket panels, “personalization” and such were revolutionary. But today many products/services are ordinary and being produced everywhere for significantly less than originally introduced into the market.  Unfortunately, most new products and services are not developed from within or from the traditional industry providers, thus the analogy of the tree.

The point of this post is that trees truly don’t grow to the sky and there is a limit to growth. However, recognition by analysis of costs, market-share, real estate, market (consumer) shifts (demands), competitive landscape and growth potential should be a focal point of funeral home leadership.  Unfortunately, many  funeral home leaders are not equipped, possess the tools, or recognize the importance of such assessments. Conversely many product/service providers have armies of mutants in their basements providing such data, but often try to maneuver/manipulate the market rather than supply the demand. Why? Because their “tree has stopped growing” and still functioning on outdated models not understanding (or blatantly ignoring) the real needs of funeral home operators success.

As a funeral home owner or industry vendor, don’t become too busy at the top taking in the sun and assuming anything. Want to know more?  Let’s connect to assess how to expand your brand for growth in your own forest at 540-589-7821. From the haze of cigar smoke in the 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

blog post 19 nov

The funeral industry continues to evolve and reflect that survival and growth are contingent on consolidation or strategic alliances.  Just recently, Pierce Mortuary Colleges  announced the merger with Worsham College of Mortuary Science.  Interestingly, the announcement was made after a provocative interview on Episode 5 Funeral Nation TV about the need for change in the funeral service education system. Coincidence?

Vandor Corporation and C.J. Boots Casket Company, Inc. announced a strategic merger agreement this week which will strengthen their collective positions in the funeral marketplace for manufactured and fine hardwood products.

Earlier this year Matthews purchased Aurora Casket creating a funeral service/product manufacturing giant.  The new company is the only of its kind offering caskets, cremation solutions/equipment, memorialization products, cemetery products as well as funeral home management solutions.  Interestingly, their primary competition in this sector has been woefully left behind scrambling around the cornfield seeking headlines of significance.  Of course the acquisition of Stewart by SCI sent a message exemplifying the necessity to consolidate for growth and survival of funeral homes.

What I have found most interesting is the reactions by funeral professionals to merger/acquisitions mentioned along with others that have been occurring as of late.  I can best categorize the majority of reactions as emotional rather than a business perspective.  When I say emotional, I mean like a street corner argument between the Sharks and the Jets in West Side Story.  “I’ll never use so and so; I’m glad I went to school here because blah, blah; these guys are taking over the world” and so on.

consolidation

The decisions of merger, consolidation and acquisition are for strategic and financial stability long term.  The due diligence ( defined as a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential for those Dancing with the Stars readers) is conducted with expertise probably not taught in most mortuary school accounting classes.

Most that bitch and complain about the business of consolidation and merger rarely have done anything other than receive a check for their employment.  So little contributed yet so much said.  Few business owners or those that have developed businesses engage in the junior high cafeteria rhetoric because they have a true sense of the difficulty operating in our current market environment.

In a nutshell; in order to survive and thrive in the funeral industry whether a learning institution, funeral home, manufacturer or service provider, consolidation is key.  The decisions are made for the overall good of the brand and enterprise, not because of which colors look the best in the logo or the proverbial “we have always done it that way.”  Get used to the headlines and I can assure you there are many more such alliances ahead.  These are exciting times; either jump on board, do something yourself, create disruption or just stand there waiting for the good ole days to return.

From the Command Post and through a heavy fog of cigar smoke, Cheers Y’all! #thefuneralcommander

 

 

doc n a box

Recently we’ve been made privy to reports from NFDA (2015 Member General Price List Survey) and CANA (Cremation Rate Doubles in 15 Years & Correlation Between Cremation/No Religious Affiliation.  These reports provide excellent data of where we came from, where we are now, and initiates further need to focus on where we are going to meet the demands of consumers in the future.  In fact, Ryan and I discussed these topics at the top of Episode #2 of Funeral Nation which will air Tuesday October 13th.

I have been a proponent of continuous improvement of our funeral service brands from training, technology, services/products provided to the physical environment of where we operate.  This focus in my not so humble opinion is how we will both survive and thrive in the years to come as funeral service providers.  As I was watching this morning’s news, a medical segment was profiling an online or “virtual doctor visit.”

The online consultation is provided by a licensed physician or nurse practitioner though a webcam for personalized treatment.  When necessary, the professionals can submit an e-perception for pick up at a local pharmacy.  Online consultation is for the convenience of the patient and according to this particular story; patients are moving this direction in droves.  Convenience? Eliminating the hassles of scheduling an appointment during “normal clinic hours,” long waits at the ER or urgent care,  and the costs associated with a doctor visit, etc.  This new service allows the patient to remain in their comfortable surroundings and receive consultation; any guesses of what’s in the next paragraph?

As I write at this very moment I can see “we’ve always done it that way” (aka WADITW) smirking and thinking “that’s terrible service and unprofessional.”  Is it?  Similar service is being provided now across the country by savvy funeral directors that are in the quest of continuous improvement.  Yep, total online offerings with the consumer never leaving their comfortable surroundings and the cremated remains delivered to their front door.  Ole WADITW is smirking once again thinking “well, they can’t get a burial done that way and my families would never go for this.”   Yeah, you’re right Sparky.  But make sure and read the before mentioned reports above and maybe conduct some consumer research.  Remember when we heard “nobody will use a dang card instead of writing a check and I need a travel agent?”  Cremation is rising like the Pillsbury Dough Boy’s brother in a 400 degree oven!

As usual, my mission is provide fodder for thought by funeral professionals to consider and discuss.  If you don’t like the message or challenge for continuous improvement, then how about this provocative question: matching suits and ties or not?  From the Command Post and a thick fog of cigar smoke, Cheers Y’all!  #thefuneralcommander #funeralnationtv

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