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At Need Payment Training

In my consulting practice, I spend quite a bit of time with funeral home owners and directors providing solutions to get paid for their goods and services.  For the most part, when honest with themselves (and me), their payment policy is useless resulting in increasing accounts receivable as well as pressure on cash flow for the business.  However, the acknowledgement doesn’t always translate into corrective action.  So my question is, “When is the pain of not getting paid for your work intense enough that you actually take action to correct the problem?”

If your firm does not secure payment prior to conducting the service, you have a problem.  If you are not getting paid within 5 days on your insurance assignments, you have a problem.  If you have accounts receivable over 30 days, you have a problem.  If you knew you had cancer, what would you do? Wait until the pain becomes unbearable before seeking help? Or, would you immediately seek the finest specialists to eradicate the disease?

You know you have a problem, but is the pain great enough for you to take action or are you going to wait for the lump to grow completely out of control?

If you have one of the problems above, let’s communicate.  Yes, I am a specialist and I have the solution to your failed payment policy, lack of training, as well as accounts receivable problems.  Email me jeff@f4sight.com so we may initiate a cure.

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

The King and I II

May 2nd began new era for me; I am now the Director of Marketing for The Foresight Companies. Over the last 2 months, Dan Isard and I have conducted in-depth due diligence, meetings, sharing of philosophies concluding that this opportunity is right for both of us.  Learning from Dan as an understudy and gleaning from his vast 30 years of funeral consulting expertise is indeed a fantastic opportunity.

Fortunately, I am not only  going to get a PhD in funeral consulting, I also broaden the platform of reach through The Funeral Commander blog  as well as the Funeral Nation TV with my co-host and social media expert Ryan Thogmartin continuing to “raise the flag” for our industry.  Additionally, the At Need Credit company fits nicely into The Foresight Companies wheel house especially with our Simple Funeral Payment Plan software platform to clean up accounts receivable for funeral homes.

Yes, this a significant change and commitment for both of us.  Dan shaped up his intention for my future in an early email to me: “It was a story told that the young Egyptian kings would eat the eyes of the former king so that the young king would have seen all that their predecessor did.  I am better today at what I do based on what I have seen for 30 plus years.  I have to try to pass that on to my protegé as quickly as possible.”

So there you have it. I’m in the process of fantastic professional growth and educational experience.  If you know both Dan and I , you will also know that our wit and humor are aligned (see Funeral Nation TV Episode #30 to get a flavor of how we are working together. So when you see Dan at future conferences and conventions, take a few moments to ask him what type of service dog he is training with. As for me I’m studying exactly which rum pairs well with eye balls.

From the new Command Post (west) and in dire need to find a cigar lounge that I can work from, Cheers Y’all! #thefuneralcommander

 

 

 

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US funeral homes are owed over $300 million for services and products already provided. Let that sink in. Just this past week I was made privy to a firm that has over $500,000 of accounts receivable. If you are a funeral director that proclaims “I’m here to serve families and I don’t talk about money,” then you have an owner in dire need of a spine implant or major cajones attachment surgery.

The ridiculous notion of allowing such behavior is squarely the fault of funeral home ownership and management.  Why is there over $300 million owed to funeral homes? Because funeral home owners and managers allow the inmates to run the asylum by not training, monitoring, measuring, and continuously improving their staff. Apparently the pain of not getting paid for services rendered isn’t near the pain of leadership by training and holding funeral directors accountable for their actions.

If you are a funeral director reading this and your firm has accounts receivable, then you are the problem  (make sure your owner doesn’t see this post).  If you are a funeral home owner/manager and your firm has accounts receivable and you are reading this, I give you two options:

  1. Take charge and lead your funeral directors with training to resolve your AR problems.
  2. Do nothing and allow your funeral directors to run your business out of business.

If number one above looks palatable and you don’t have the ability or the capacity to effect this change, then email me jeff@atneedcredit.com. If you think number two is your best option, then I have a question for you: How do you stand up without a spine?

Yep, I’m clearly on the battlefield today and loving the smoke of combat. Remember, I’m not going to tell you to go to hell, I am however, going to tell you the truth and it feels like hell. For those of you that feel like hell, Cheers Y’all! #thefuneralcommander

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Quick question:  How much do you currently have in your firm’s Accounts Receivable?  What could you buy right now for your business if that money was in your bank account?  New computers?  A new hearse?  A total remodel?   A new location?  If your funeral home has accounts receivable, your payment policy (immune system) is broken and your firm is suffering from a serious disease.  What I find astounding is that some funeral homes don’t know they are sick.  People die every day because they failed to get regular check-ups and pay attention to their health.  When the news strikes and depending on the stage of the disease, it is sometimes too late for any treatments or even surgery.

Funeral home owners are no different. Ignoring the very information in front of their face; accounts receivables.  I talked to an owner recently with over $300,000 owed for services and products already provided!  The average funeral home has $17,000 in AR’s…folks that over $300,000,000 (three hundred million for those of you that “don’t do numbers, we just serve”) that is due for hard work.

Get a financial check-up.  If you have any money due over 30 days, you’re sick.  It may be a cold (a small amount) or full blown stage 4 cancer.  At Need Credit has the cure, you just have to take your medicine.  Simple Funeral Payment Plan is easy and the technology is far better that poor Mrs. Edna sending out those letters from the book of promises every month, but few checks coming in return.  It’s just that simple, why won’t you do something to make it better?

From out west in Sunny Scottsdale (yes, I’m in training), Cheers Y’all! #thefuneralcommander

 

 

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

 

 

 

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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

 

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