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As a funeral business consultant, I scour internet articles and search for relevant business content that is industry specific.  Interesting, but not surprising little fresh content is available for the masses regarding funeral or cemetery business.  Try yourself; google funeral business news.  The top of the page is none other than www.connectingdirectors.com which is no surprise.  Frankly, that’s the only accessible site for daily funeral and cemetery news at one location.  Everyone else in the space demands payment or a subscription. I do believe the effort necessary to create and deliver in-depth content, a fee should be charged to access the information because of the expense to produce such work. Not everything you read should be free.

But from a different angle of “how to,” let’s dig a little deeper. What if you were a funeral home owner wanting information on particular subjects, let’s say “how to reduce accounts receivable for funeral homes?” Go ahead, Google it.  There are a few articles that pop up including yours truly Funeral Director Training: Failed Payment Policy is on the Owner’s Shoulders and  Funeral Director Training: When is the pain too much? .  Still, there is no one easily accessible collection point for professionals to conduct research or “study up.”

Wouldn’t it be great to have volumes of relevant funeral and cemetery business content at your fingertips without having to subscribe or dig thorough printed magazines for articles? What if, and this is a big one, I hate to use Dan Isard’s most hated F word, but let me state it here: THE CONTENT WAS FREE?

Of course, there is a point to this post.  As a loyal follower of The Funeral Commander you know I have a purpose for my penetrating questions and provocative prose.  Friends, there is good news and I’ll give you a little whisper in this season of joy: there is new innovation on the horizon.  It will offer a new way of sharing business content that can be implemented to make your business better.

Yep, it’s a magical time of the year and The Funeral Commander is busy innovating and creating.  Be on the lookout…more to come.  From the Command Post (West) and yes, a thick fog of cigar smoke, Cheers Y’all! #thefuneralcommader

 

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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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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.  Be smart and contact me jeff@f4sight.com for your own epiphany.

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

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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

 

 

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