july/aug 2007 issue - funeral business advisor...

Perfect and simple in design

Trigard Vaults are based on the strength of the structured arch perfect-

ed by the Romans over 2000 years ago. The arch naturally distributes

weight evenly around its perimeter, giving unparalleled

strength when used in construction. The arch, along

with concrete and the addition of a liner, combine to

give Trigard vaults the ultimate in strength and

durability.

Thicker Cover = More Strength

Trigard realized that a vault is only as

strong as it’s cover, where the stresses of soil pressures and

cemetery equipment are the greatest. With this in mind,

Trigard distributed additional concrete to the cover to give it a

vault proportion of 33% cover and 66% base, which makes it

the thickest cover in the industry.

Trigard Quality and Assurance

Family owned, Trigard has been building our improved vault design since

1969. Today, Trigard vaults are available coast-to-coast with over 300

distributors nationwide.

WHY USE A TRIGARD VAULT?

The Right Choice

®

Trigard’s cover, the thickest in the industry, helps the vault withstandthe stresses each vault incurs from delivery to the interment.

TRIGARD OTHER

3901 North Vermilion • Danville, Il 61834

Toll Free: 1-800-639-1992 www.trigard.com

WilliamsburgTM

AegeanTM

BarringtonTM

ConcordeTM

CarolineTM

TremontTM

HamptonTM

HeritageTM

OxfordTM

10950 Grandview Drive • Suite 600

Overland Park, KS 66210

1.800.732.4237

www.brookefuneralhomeloans.com(All loans subject to underwriting approval.)

Brooke Credit. Financing Dreams.

You’re already working

up a sweat. Why not start

building equity?

©2007 MKJ Marketing

The owners want a way out and you want the opportunity only ownership can bring, but you can’t get adequate financing from the local bank. That is where Brooke Credit comes in; we lend money based upon the value of the business, not just the property.

Give us a call, we’ll work with you to take your career to the next level.

The owners want a way out and you want the opportunity only ownership can bring, but you can’t get adequate financing from the local bank. That is where Brooke Credit comes in; we lend money based upon the value of the business, not just the property.

Give us a call, we’ll work with you to take your career to the next level.

30

Contents

Brian McDonald, VP of [email protected]

Tracy Ogburn, Copy [email protected]

Contents

FEATURE Contents

Funeral Business Advisor MagazineA FMM MEDIA PUBLICATION134 Evergreen Road, Suite 103

Louisville, KY 40243Phone 502.254.7018

Facsimile 502.254.7022 www.fmm-media.com

Funeral Business Advisor Magazine is published bi-monthly (6 Issues a year) by FMM Media, LLC. 134 Evergreen Road, Suite 103 Louisville, Kentucky 40243. Subscriptions are free to qualifi ed U.S. subscribers. Single copies and back issues are $7.99 each (United States) and $10.99 each (International). United States Subscriptions are $54.00 annually. International Subscriptions are $65.00 annually. Visit www.funeralbusinessadvisor.com for fresh content updated frequently and to access articles on a range of funeral industry topics. FMM Media provides its contributing writers latitude in expressing opinions, advice, and solutions. The views expressed are not necessarily those of FMM Media and by no means refl ect any guarantees that material facts are accurate or true. FMM Media accepts no liability in respect of the content of any third party material appearing in this magazine. Copyright 2007. All rights reserved. Funeral Business Advisor Magazine content may not be photocopied or reproduced or redistributed without the consent of publisher. Postage paid at Lebanon Junction, Kentucky.

For questions regarding subscriptions, please call 502.254.7018 or e-mail [email protected].

Postmaster: Send change of address form to Funeral Business Advisor/Circ. 134 Evergreen Road, Suite 103 Louisville, KY 40243

ARTICLE REPRINTSFor high quality reprints of articles in this issue, contact Michael Manley at 502.254.7018 or via email at [email protected].

July/August 2007

SOLUTIONS ON

MARKETING

12 Are you Ready for the Next Generation of Websites? | by Matt Kieffer

22 Getting the Most Out of Free PR | by Alexandra Close

30 Give Yourself a Raise through Merchandising| by M. Lee Schwab

42 IMAGE is More than Just a Suit and Tie | by Michael Feeney

44 Don’t Send a Ransom Note | by Doug Clery

MANAGEMENT

20 Considerations in Buying a Funeral Home | by Ronald H. Cooper

24 Pet Cremators Deserve Respect; Pet Urns Deserve to be Sold | by James Minea

32 Selling – A Bird in the Hand| by Matt Manske

34 Memories: The Making and Preservation of Posthumous Impressions | by Jerome Bacchus

36 Embalming Machine Care will Save you Time and Money | by Jesse Wolfe

38 When Tragedy Strikes: Memorial Items to Help those Hurting | by Brent Durham

40 Growing your Business in a Limited Market | by Gary Halonen

46 Learn About Urns and Profi t | by Wally Synder

Publisher, Michael [email protected]

Creative Director, Brian [email protected]

26 The Next Big Thing

The Funeral Professionalʼs #1 Resource for Business Growth and Profi tability!

TM

42 SPECIALTY VEHICLES 44 ADVERTISERS’ INDEX

Marketing Specialist, Eduardo [email protected]

TM

6 Funeral Business Advisor www.funeralbusinessadvisor.com

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SURVEY

14 Part II of III: Survey by Starmark Funeral Products

E-Aftercare by funeralOne.

Revolutionize the way you connect with client families.

8 INDUSTRY ALERT

COMPANY SPOTLIGHT

10 Astral Industries

Marketing Specialist, Chris [email protected]

Contents


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VIDSTONE Announces “NO COST” 4-month PILOT Program to Funeral Homes, Cemeteries, and Monument Companies

DENVER, Colorado — July 15, 2007 — VIDSTONE,

LLC announced immediate availability of a no cost 4-month

pilot program that enables Funeral Homes, Cemeteries and

Monument Companies to receive display kits its fl agship

product the Serenity Panel. The display kit gives families a

fi rsthand experience of how a video tribute can add special

meaning to a loved one’s monument. The Serenity Panel is

the industry’s fi rst solar powered video tribute device. The

Serenity Panel was developed to accommodate a growing

number of the population who has digital picture and video

collections. “This is the digital future, and memories can now

be shared freely with loved ones” said CEO Sergio Aguirre.

“This pilot program is intended to connect the public to a new

medium of memorialization.”

Program Availability

Due to popular demand, the program will be offered to the

fi rst 500 qualifi ed funeral homes, cemeteries and monument companies.

Founded in 2005, VIDSTONE is the worldwide leader in outdoor video memorialization. Every life creates memories, VIDSTONE creates a legacy.

For more information, press only: Cheri Lucking, 888-292-8693 Ext 706, [email protected]

Deaton-Kennedy CompanyJOLIET, IL. Stationery supplier Deaton-Kennedy Company

recently announced the following:

Cindy Nobles was appointed Product Development

and Design Specialist. Nobles has been involved

in the funeral industry for 28 years and held

management positions in manufacturing, sales,

service, and marketing.

Susan Doyle was appointed to Sales Coordinator

for the company. Prior to being appointed as

Sales Coordinator, Doyle represented Deaton-

Kennedy in Illinois for nine years.

IINDUSTRYNDUSTRYAALERT<<LERT<<

Visit our website, www.lastquilt.comFor more information or a FREE catalog,

1-866-676-1609 (toll-free) or [email protected]

Add warmth and class to your funeral home with a removal cotquilt, a matching pillow case, our Patent pending “Clever Cut”dressing table skirt, or any of our other hand crafted products. At The Last Quilt Company, we understand thatbeing the last quilt you’ll ever need isexactly where we like to be.

WE’RE PROUDTO BE LAST.

Funeral Business Advisor 9www.funeralbusinessadvisor.com

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Evergreen Mortuary, Cemetery & Crematory of Tucson, Arizona — is the recipient of the 2007 BBB Business Ethics Award. The presentation was made by the Better Business Bureau of Southern Arizona. The award is indicative of Evergreen’s high ethical standard of behavior towards customers, suppliers, employees and the community in which it does business.

Meredith Feminis recently joined Deaton-Kennedy Company’s growing sales team. Feminis will service funeral homes in Central and Northern Illinois. She brings more than 10 years of sales experience to the company and

holds numerous awards for achievements and excellence in sales.

Timothy C. Hale recently joined Deaton-Kennedy Company’s sales team. Hale brings to Deaton-Kennedy more than 30 years of experience in sales and marketing in the funeral industry and is representing the company in

Alabama and Georgia.

Deaton-Kennedy, located in Joliet, Illinois, is a leading supplier of bereavement stationery in North America, including retail stationery gift box sets, memorial register books, thank you cards, prayer cards, memorial folders and other funeral home products and services.

For more information, call Deaton-Kennedy at 800.435.4068 or visit their web site at www.deatonkennedy.com.


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Who is Astral?

Founded in 1972, Astral is privately owned and operated, and

has grown into one of the top casket manufacturers in America.

Astral is one of a handful of casket manufacturers in the United

States that has the ability to produce a fi nished casket from a

raw coil of steel and is the only company that has the ability

to produce a fi nished powder-coated casket from a raw coil

of steel. Over the years, Astral has gained a reputation for

producing caskets of the highest quality while providing great

value to funeral service professionals and the families they

serve.

What is powder coating?

Powder is fi nely ground particles consisting of dry resin and

pigment. When exposed to heat, these powder particles form

a highly durable fi nish. In a traditional solvent-based system,

a solvent is added to resin and pigment to create liquid paint.

The solvent serves as a way to transfer the resin and pigment

to the product. Liquid paint is then heated to evaporate the

solvent, leaving the pigment and resin on the product. Powder

completely eliminates the need to add a solvent. Because of

this, there are no harmful, volatile, organic compounds emitted

into our environment.

Why does Astral powder coat their products?

Even though powder coating requires a large capital investment,

it provides a superior fi nish, and it is the premier coating

technology of the future. Powder coating has been successfully

used in Europe for decades, and automotive companies are

using powder more and more because of its beautiful fi nish and

increased durability. In addition, powder coating lends itself to

automation. Astral’s fully automated powder-coat system uses

electrostatic technology and reclaims over-spray, maximizing

the transfer effi ciency rate, while maintaining consistent and

uniform powder application. So, powder coating not

only helps preserve the world in which we live, but at the same

time, enables Astral to provide funeral service professionals

with competitively priced products today. And, Astral will

continue to provide even more competitive advantages in the

future.

Why should funeral service professionals use Astral caskets

versus caskets manufactured by other companies?

Astral’s product line was specifi cally designed with the

fl exibility needed to service the demands of consumers in

today’s personalized, driven marketplace. The company’s large

varieties of embroidered and styled insert panels are designed

to fi t all of Astral’s caskets – even the non-gasketed models.

By providing families with color choices and personalization

options in every price bracket, funeral service professionals can

increase their average profi t-per-casket sold by creating more

perceived value.

What makes Astral’s product line so fl exible?

Astral’s patented hardware attachment system enables the

company to manufacture standard products that can be

personalized at distribution locations throughout the country

through a simple assembly process. This process, known as the

“Rainbow Program,” enables Astral to interchange hardware,

decal appliqués, insert panels, and accents to create an unlimited

number of unique products from a standard casket, maximizing

the company’s ability to meet the varied needs of families.

What makes Astral different from other casket

manufacturers?

Astral has a different approach to producing caskets than many

other manufacturers in the casket industry. Approximately 65%

of all caskets sold nationwide are stainless steel, 18-gauge steel,

and 20-gauge steel. Astral’s entire manufacturing process is

designed around making steel caskets. The company’s focus

on manufacturing steel caskets has helped Astral become one

of the most effi cient casket manufacturers in the industry

– providing exceptional value to funeral service professionals

and their families.

Does Astral make anything besides standard-sized, square-

cornered 18- and 20-gauge steel caskets?

Yes, Astral manufactures youth caskets and oversize caskets,

as well as stainless steel units – using fl exible CNC (Computer

Numeric Control) machinery. Last spring, Astral introduced

the “American Heritage Collection”, a series of 4-point, hand-

brushed stainless steel caskets that have a full 26” of interior

space. In addition, Astral recently announced that the company

has now increased the interior dimension of their popular

“Lincoln” casket to 28”. Despite the increased interior width,

the “Lincoln” still fi ts a standard-sized vault!

Where can funeral service professionals purchase Astral

products?

Astral has a network of independently owned distributors and

company-owned business centers throughout the United States

and Canada…

For more information about Astral Industries and their products, please contact them at 800.874.1070, or visit the company’s website at www.astralindustries.com.

www.astralindustries.comTo increase your average sales and profitcontact your Astral distributor or call1-800-278-7252 today!


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FBA marketing solution

Matt Kieffer

Are you Ready for the Next Generation of Websites?

The past few articles on marketing technology have been

very informative, covering such topics as the importance

and contents of a website as well as search engine positioning.

Next, I think we need to focus on personalization, so that our

standard of care and service will be refl ected through our

marketing technology.

This article is about looking to the possibility of a future reach

that no longer lies in quantity, but in quality. The common

benchmark for Internet success needs adjusting. It’s not just

about the hits, but the actual session times and responses

from your site to your Inbox that translate into real-world

materialization.

For the past 10 years, we have heard countless times of the

macro-economic reach of the Internet…“Reach millions, watch

your profi ts soar.” This was the fi rst generation of the Internet

experience. Progressive companies fl ocked to the Internet to be

a part of something big. Businesses wanted to show the world

that they were not going to let it pass them by.

Ladies and gentleman, we have entered into the next generation

of the Internet’s growth cycle. The next 10 years will require a

very different commitment and focus on your fi rm’s part. You

will witness a shift from the macro to micro level. It will no

longer be about the quantity, but the quality of your reach. If

you think you can survive in this next generation with a cookie-

cutter, one-size-fi ts-all, low-cost website, good luck!

The next generation needs to engage their website’s visitors.

This can only be provided through more and more interactive

personalization. Your website will need to become more of a

virtual presence which refl ects the value of your organization.

This shift to quality will intertwine your brick-and-mortar

operation with your web presence.

It’s concerning to see that so many funeral homes do not

understand this correlation. Some of these websites haven’t

been updated in several years. I’m also amazed when I hear

that custom-made websites cost too much and “I can get one

for a fraction of the cost.” You can get a fl eet of mini vans for

a fraction of the cost of a new Limo fl eet. But, what would you

offer the families you serve? What is more important in the

long run – the economic decision you just made, or the lasting

impression the families will have about your organization?

When it comes time to allocate funds for this type of expense,

make sure that you’re spending money on interactive

personalization features. For example, the most- used section of

a funeral home website is the condolence message and obituary

program. This is a section of your site that can have tons of

traffi c. Every time you run an obituary notice in the newspaper,

always include a line at the bottom of the obit saying, “Condolence

messages may be sent at www.[yourwebsite].com .”

For the record, I’ve also consulted with many funeral directors

who respond with, “Our local newspaper will charge us if we

want to add our website link to the obituary notice.” What are

you waiting for? Spend the little bit of money this might cost,

and you will be amazed how many people will be using your

website.

My challenge to everyone is to consider investing money

this year, or next, on improving this section of your website.

Provide your website’s visitors with interactive tools that offer

something unique to the families you serve. Here are a few

ideas to get you started:

nPrint condolence messages sent to your website and deliver

them to the family on your letterhead.

nAllow visitors to share multiple photos and anecdotes through

slide shows or photo collages.

nProvide interactive card sharing and guest books.

By being creative and allowing people to express themselves,

they will be spending more time on your site and consequently,

more time in front of your virtual presence.

Our funeral homes’ website has seen an increase in the average

session time, from fi ve minutes to twenty minutes per user. Can

you say, “Infomercial!”? Now we have visitors staying on our

website as long as they are staying at our visitations. Bottom

line, it has to look great.

These next-generation interactive experiences not only apply

to funeral homes. Product vendors will have to make this

transition as well. You should expect personalization which

will allow your staff, or the families you serve, to tailor-design

everything from bronze memorials to casket cap panels.

Be wary of the low-cost websites or marketing solutions. Focus

on a better solution that is going to make your funeral business

memorable to the families and communities you serve, versus

average. Are you ready for the future? Are you ready to be part

of the next generation? FBA

Matt Kieffer is Trigard’s Webmaster. He can be contacted at 800.637.1992, or visit www.trigard.com and www.trigardengravedbronze.com.

MEMORIAL

BOOK

ACKNOWLEDGEMENT

CARD

BOOKMARK

NATURE’S SKETCHBOOK

Order online at www.lastingexpression.comor call us Toll-Free at 1-866-215-4410

Hallmark and Lasting Expressions are trademarks of Hallmark Canada, used with permission. Funeral Stationery Sales and Distribution Managed by Imperial Evergreen Casket Corporation

MEMORIAL

FOLDER

By Marjolein Bastin

FBA survey


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What Cremation Families May Not Tell You - But Want You to Know

Part Two: Will Cremation Mark a Golden Age for Rental

Caskets?

This is the second in a series of three articles based on a

national, independent survey of 400 cremation consumers,

commissioned in early 2007 by Starmark Funeral Products.

All respondents expressed a preference for cremation instead of

burial upon their death. We will email the articles as they are

published to funeral professionals upon request. To register, go

to: www.starmarkfp.com.

In the fi rst article of this series, a survey

of 400 cremation consumers revealed that

although two out of three might accept a

featureless Kraft box for cremation, with

the addition of private or identifi cation

viewing they overwhelmingly preferred

a nicer product. In this case, about 75%

would opt for a wood-grained or blue

cardboard cremation container over a plain

Kraft box or a stainless steel dressing table.

In addition, most of these customers would

readily expect to pay over $145 (or even

over $200) for a nicer container. From this

survey, it appears that cremation service

providers who offer something nicer

(along with limited viewing) will see their

revenues rise accordingly. In this second

article, our survey reveals there is even

more to the opportunity.

If you were surprised to discover that many

cremation customers would not opt for a

Kraft box if given the choice, you may be

astounded to discover that most of these

people aren’t even aware of the alternatives

available to them. Of those surveyed:

n56% did not know that they could

purchase a solid or veneer hardwood casket

for cremation purposes.

n65% did not know that they could

purchase a cloth-covered casket for

cremation purposes.

nOver 73% of those surveyed did not

know that rental caskets were available for

cremation purposes.

So, our next question was, if they did know

about each of these options, which would

they prefer – and then how much would

they be willing to pay?

We showed those surveyed three

alternatives:


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Up to 30 Pictures $75

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A Lasting Remembrance...

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A Time to RememberA Time to RememberA Fitting Tribute...A Fitting Tribute...

“After viewing the tribute for the first time they will tell me that it is the most wonderful service that I provide for the family.”

Hager and Cundiff Funeral Home

Stith Funeral Home

“We began using Loving Honors to make our memorial DVD tributes for our families almost two years ago. It is the single most successful program we have offered our families.”

Family chosen photographsImages are color corrected and retouched3 to 12 hour turn aroundCarefully Selected Licensed Music

www.LovingHonors.com

Call Today 1-866-877-4625

Up to 30 Pictures $75

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$150 Set-up Fee

No Minimums

Why pay morefor less?

1. A solid or veneered hardwood cremation casket

2. A cloth-covered casket

3. A rental casket.

We then asked which they would prefer to use as a container for

private family or public viewing. We did not provide suggested

or typical retail pricing with the products.

The results: Respondents preferred rental caskets by a wide

margin. (Perhaps the rental option appeals to the cremation

consumer’s sense of resource conservation.)

Next, we introduced a series of head-to-head comparisons

showing those surveyed two actual options with photographs

and asked which they would prefer. At this point, we also

introduced representative retail prices for each product.

Following are the survey questions posed and their results:

Would you prefer a Rental Casket priced at $800 compared to

a Hardwood Casket priced at $2,600?

The results: No surprise here. Very few people will opt for a

$2600 hardwood casket over a rental casket priced at $800.

Would you prefer a Rental Casket priced at $800 compared to

a Pine Cremation Casket priced at $900?

The results: Once again, cremation customers preferred a rental

casket to a pine cremation casket even when priced roughly the

same. The signifi cance of this result, for the funeral director, is

that the margin on a $900 pine cremation casket might range

from $350 to $450, while the margin on an $800 rental casket

could be as high as $625 with every use.

FBA survey

(continued on next page)

Would you prefer a Rental Casket priced at $800 compared to a Poplar Veneer Cremation Casket priced at $1,000?

The results: 82% preferred the rental casket. Once again, thesignifi cance of this result, for the funeral director, is that the margin on a $1,000 Veneer Cremation Casket might range from $450 to $550, while the margin on an $800 rental casket could be as high as $625 per use. It may be that a funeral home using a 2X mark-up must sell a hardwood casket priced at $1,200 to net the same revenue dollars as a good rental casket priced at $800 per use.

Would you prefer a Rental Casket priced at $800 compared to a Cremation Casket priced at $600?


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FBA survey

The results: The $600 cremation casket was preferred by a wide margin in this case. (Perhaps the market is so price-sensitive that consumers would jump at the $200 savings. There may also be the feeling that both the rental casket and the $600 cremation casket have a “disposable” quality to them, so why not choose the cheaper of the two?)

The survey results indicate 81% preferred the $600 cremation casket. Once again, the greater signifi cance of this result, for the funeral director, is that the margin on the lesser-priced cremation casket might range from $320 to $400, while the margin on an $800 rental casket could easily be as high as $625 per use. And, even if the rental casket was priced at the same $600 price as the cremation casket, the rental casket would still generate more revenue-per-use than a $600 cremation casket. This is very important because many funeral homes are leaving this opportunity on the table by offering products that simply do not generate the best margins and client family satisfaction.

Conversely, due to price and value sensitivity, if the cremation casket was priced at $800, it would come close to generating a similar margin as a rental casket. But, when given a choice, consumers clearly favored the rental casket. If consumers are going to opt for a casket of a more economical and disposable nature than a hardwood, then which option should the funeral director present?

Survey Conclusions

Following are some conclusions draw from this survey:

nEven among those who have chosen cremation, most people

Funeral Business Advisor 17

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www.funeralbusinessadvisor.com

FBA survey

are not aware of cremation container options available to

them. This is signifi cant since 60% of families prefer to have

a public or private gathering and/or memorial service, and an

astonishing 61% feel that someone in their immediate family

may want to see the deceased again.

nAbout three out of four people did not know that a rental casket

was available to them. Yet, they overwhelmingly preferred this

option compared to hardwood caskets or similarly priced pine

or veneer cremation caskets.

nOnly lower-priced (and lower-margin) cremation caskets

were preferred to rental caskets.

nSince higher or even modestly priced solid hardwood and

veneer caskets are not likely to be major cremation sellers,

there is signifi cant opportunity for

funeral directors to successfully present

other options, such as one or more rental

caskets.

nA rental casket offers by far the most

revenue-enhancing opportunity for

upgrading a low-revenue service into a

profi table one. And, consumers prefer

rental caskets to most other options.

Rental caskets are the second-most used

cremation product and three out of four

cremation consumers are not even aware

of their existence. Consumers who are

made aware of rental caskets clearly look

favorably at them. They like the price

range and the chance to get temporary

use of a high-quality, hardwood product

without the cost of purchasing and

consuming it.

For the cremation service provider, a

rental casket can be purchased once and

rented many dozens of times. In many

markets, they can be rented from $600 to

$900 producing revenues over the life of

the product of ten, twenty, thirty thousand

dollars or more. In addition, rental

caskets can offer quite an advantage

over the essentially “giveaway” Kraft

cremation boxes, or lost sales – because

cremation customers will not purchase

pricey hardwood caskets.

The coming age of cremation will also be

the golden age of the rental casket, a win-

win scenario for consumers and funeral

service providers. What do consumers

really think about the cremation

alternative? Why do so many choose it?

What kinds of services do they desire?

We’ll reveal what we learned about these

questions and more in the third part of

our series! Coming in the next issue

of Funeral Business Advisor, “Part Three: The Real Reason

Families Are Rushing to Cremation.” FBA

Gerald Davis is the president of Starmark Funeral Products, a company of Vandor Corporation. Davis has enjoyed a long, creative career in the funeral business. Davis was a co-founder of Elder Davis, Inc. which is now part of the cremation products division of Matthews International. Vandor Corporation has been a major supplier of casket interior components since 1973. Starmark Funeral Products offers cremation container essentials for funeral homes including rental caskets, rental inserts, ID containers and cremation consumables.

WIN BIG with these Keynote Speakers!

NFDA General Session: Monday, October 8

Mac Anderson, Founder of Successories

Linda Ellis Author of “The Dash”

NFDA Convention Luncheon: Tuesday, October 9

Erin Brockovich, President,

Brockovich Research & Consulting

NFDA Closing Session: Wednesday, October 10

Jim Knight, Sr. Director of Training &

Development of Hard Rock International

If you want to WIN BIG this year, mark your

calendars to attend the 2007 NFDA Convention &

Expo in Las Vegas. Visit www.nfda.org/vegas2007.php

to check out conference details and to reserve your

hotel rooms NOW!


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Ronald H. Cooper

Considerations in Buying a Funeral Home

FBA management solution

If you are a funeral director whose lifetime dream and ambition is to own and operate your own funeral home, or if

you presently own a funeral home and you are contemplating buying a competitor or opening a new facility, remember two important words, “Cash Flow.” In simple terms, cash fl ow is the amount of monies that get deposited in your business checking account, which will be used to pay expenses, such as wages, interest, insurances, gasoline, utilities, etc., and it is monies needed to pay the principle portion of your mortgages and notes. Owning and managing a funeral home with a healthy, positive cash fl ow is the key to fi nancial stability and success.

For many funeral directors, the idea of owning and operating your own funeral home is a very exciting concept, and for most, the ownership and its challenges become very rewarding and gratifying. When deciding to purchase a funeral home, it is very important to set aside your emotions and to evaluate the business as objectively as possible. This means, fi rst and foremost, you should view the acquisition from a business and analytical perspective. This is not to profess that other factors are not important, such as being your own boss and becoming

the fi nal decision maker. But, funeral directors who purchase a funeral home without fully understanding the fi nancial implications can fi nd themselves overwhelmed by working long hours, and pressured by their inability to meet their fi nancial obligations, like paying their mortgage and operating expenses.

The process for acquiring a funeral home should begin with deciding what type of funeral home you are best suited to operate and what fi nancial resources you have to make the purchase. For example, a rural funeral home with one location averaging 75 adult calls per year is operated and managed very differently from an urban funeral home with three locations averaging 250 calls per year. This decision should be based upon your prior operating experience, and, of course, your fi nancial ability to make the purchase. Regardless of the number of adult calls the funeral home is averaging, the process in evaluating the fi nancial merits of the homes is very similar. Once the decision is made that a particular funeral home would be a good fi t, with reference to call volume, geography, demographic, etc., a complete fi nancial analysis of the business


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should be completed. This process begins by obtaining copies of the seller’s tax returns, fi nancial statements, call volume history and statements of goods and services provided for the past three years – and, copies of the same for the current year-to-date. In certain cases, a seller may be represented by a broker who has prepared a prospectus, which contains the information and cash fl ow analysis. However, even when a prospectus or analysis is provided, it is still critical for you, or someone working with your best interest at heart, to review the information and prepare a separate cash fl ow analysis.

The cash fl ow statement is necessary to determine how much cash is generated, on a monthly, quarterly and annual average basis, to pay expenses and debt, and to determine EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) – which will be used by lenders to determine the amount of money they will lend for the purchase and for what length of time (amortization period). The cash fl ow analysis is critical in determining the reasonable value of the business. Although a very important asset, especially when obtaining fi nancing, the value of the funeral home’s real estate should not be added separately to the value of the business in determining the total purchase price. The rationale for determining the total purchase price on the availability of cash is simply that, regardless of the real estate’s value, unless there is adequate cash available to meet the monthly expenses and mortgage, without providing additional resources, you will be unable to meet your fi nancial obligations.

Tax planning for an acquisition is another important aspect of purchasing a funeral home. This process includes establishing the proper legal entity(s) to purchase the business assets, which normally includes furniture, fi xtures, equipment, automobiles, inventories, real estate, and goodwill. Consideration must be given to federal and state income taxes, along with liability issues, to determine which form of entity is most advantageous. A discussion with both a qualifi ed attorney and a certifi ed public accountant will provide useful information. Extreme caution should be observed if the seller, or his/her counsel, is requesting that the transaction be structured as a stock sale, as opposed to an asset purchase. As a general rule, the value of a funeral home being offered for sale as a stock sale is less than one being offered as an asset sale due to liability and negative tax issues.

The purchasing of a funeral home is a very complex and individualized transaction,

and each purchaser should seek the assistance of professional and knowledgeable individuals to help facilitate the process. FBA

Ronald H. Cooper, CPA is a funeral home accountant/consultant with Cooper & Schoff, CPA, PA. He can be contacted at 866.446.0656, or by email at [email protected], or visit www.cooperschoffcpa.com.

Pre-Need Services / Insurance / Trust


Alexandra Close

Getting the Most Out of Free PR


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As the old adage goes, “Luck is where preparedness meets opportunity.” You might just fi nd yourself lucky when

some free publicity literally falls into your lap. Fortunately, some of the easiest ways to create the most effective publicity are literally free!

Here are some questions to ask yourself and tips that can help you self-create a comprehensive PR campaign to better connect with families, vendors, and providers.

Is your product or approach new and innovative? Everyone loves to get the latest gadgetry, from cell phones to cars. If you are offering something new and innovative, let families and providers know. In your marketing, EMPHASIZE your cutting-edge and unique approach. This angle diversifi es and elevates you above the competition. (A good example would be a funeral business that capitalizes on its product which merges new technology with traditional methods of memorialization.)

Create buzz!Nothing works like word-of-mouth. People recommend the services of a funeral director and provider they trust to their peers, family members, friends, and business acquaintances. Appeal to individuals, make them not only aware of your services, but convince them that you’re the best. Buzz amongst the people can spread like wildfi re!

Educate and get involved in your community. Don’t underestimate the power of educational materials. Making sure that families and providers understand what you are offering is critical. All of the PR in the world won’t help a brand, company, or product that people don’t “get.”

Getting involved in the community increases your visibility and may be more valuable than you think. The sum is greater than the parts when it comes to community participation and contributions, whether it’s service or fi nancial. Because funeral

directors and providers are in a particularly sentimental and sensitive industry, make it a priority to be seen as a positive participant within the community. Be sure that whatever you do, families and providers are aware that you are actively involved and contributing, which increases your profi le and creates a positive association about your company and its services.

Use the mediaSo many forms of media are at your fi ngertips right now! Get a website. Call local news stations and provide them with a news story. Get an article about your unique services featured in the special interest section of the local paper. Use an audio advertisement instead of “on-hold” music for your phone system. And, always be prepared with business cards. These are just the basics. When you encounter opportunities with families and providers on a small and large scale, you will be prepared to give them your vitals and promote yourself instantly.

Be aggressiveDon’t be afraid to pick up the phone! Call vendors and providers. The more awareness and direct relationships that you nurture, the better! Don’t forget, in everything you do, you are always constructing networks and forming allegiances on which you can rely both today and tomorrow.

These are easy, cost-effective methods of self-generating free publicity. Certainly you can do more and spend more, like create a TV commercial, buy a billboard, etc. But, these suggestions can maximize potential with a minimal fi nancial investment, no matter what phase you’re in with your career or business. And, who knows? You still might get lucky with some free PR that falls into your lap… If you do, you’ll defi nitely be prepared with some strong PR of your own! FBA

Alexandra Close is the Director of Communications for VIDSTONE Outdoor Video Tributes. She can be contacted at 800.292.8693, or by email at [email protected], or visit www.vidstone.com.

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July

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James Minea

Pet Cremators Deserve Respect;Pet Urns Deserve to be Sold

In previous editorials, I have sometimes implied that pet

cremators are less skilled or professional than most in the

human cremation industry. This was a true disservice to the

thousands of crematory operators and their staffs who have

spent (sometimes as much as 30-plus) years meeting the needs

of the veterinary marketplace. Most veterinarians have done an

honorable job in performing the diffi cult role of funeral director

for their pet-owning client. My motive was not to discredit

them (my customers), but rather to encourage all of you to take

a look at the pet-loss industry and consider my fi rm – if you

decide to move in this interesting direction.

Often, pet operators will work even harder than you do, for a

lot less money. They may drive hundreds of miles each day;

picking up deceased pets from freezers and transporting them

back to the crematory, and then back again – all for only $65,

on average. Pet-loss clients are often more demanding and

diffi cult to deal with than purely human clients. This is because

pet loss feels a lot like child loss. These powerful emotions

affect people’s ability to make decisions and grapple with their

loss. The normal and customary anger, which they feel toward

the innocent animal doctor, is sometimes directed toward those

trying to comfort them in their grief. In other words, they can be

very diffi cult to deal with.

In the fi nal analysis, there are many ways in which you

probably cannot compete head-to-head with the pet industry.

Your business is generally not set-up to drive volume cremation

through your facility and to operate on pricing structures which

deliver most of the profi t to the “retailing” veterinarian. Ninety-

fi ve percent of my customers are pet crematories and their

respective veterinarians. So, to suggest that the human funeral

professional get into this business was like stabbing many of

my existing clients in the back. I understand their reaction, but

my motivation was to show that opportunities exist for you to

become a “retailer” of pet loss, not a wholesaler.

If you read my last editorial, I talked about how important it

was to be a “retailer.” I feel that the human funeral director

has been slow to progress as a good retailer of cremation and

cremation products – not to mention being attentive to the pet

side of the business. At a trade show four weeks ago, I met a

gentleman with many years experience selling to human funeral

homes, and he described an interesting situation which he

observed after 15 years of calling on many of you. He observed

that funeral directors appeared to be very good retailers when

they (and their clients) wouldn’t bat an eye at spending several

thousands of dollars on a beautiful casket. What surprised

him was that human families opting for cremation services,

who asked “Do I need an urn?” were told, more often than

not, that they could get a cardboard box at very little charge.

What?! You’re retailing, not wholesaling. When you are face-

to-face with the end-user, you are in a position that any of us

wholesaler’s would love to be.

After attending many “trade shows” over the years, I’ve learned

a lot of interesting things. When I attended the NFDA, as a

premier new pet vendor several years ago, I was greeted by

visiting manufacturers from Taiwan and China who were the

only people there taking pictures of my booth and my products

– to email later that afternoon to their copycat factories

overseas. I don’t need that. At other shows I observed that

people would not approach my booth when I was in it. So, I had

to hide in the aisles and swoop in on un-expecting visitors from

the backside to get a chance to talk to them. One wise exhibitor

advised that I “fall out of love” with my product. Great advice,

but very diffi cult to do.

The most intriguing advice I have ever received was from an

animal doctor who approached me in Minneapolis last October

at a local gathering of 300 local veterinarians who own their

own crematory business. I believe this gentleman, somewhere

along the way, attained his own brand of enlightenment which

he passes on to any unsuspecting ear who will listen, but what

he had to say was right. He asked me, “What differentiates a

good hospital from a very successful hospital?” I rattled off

anything I could think of which I thought he wanted to hear. He

said, “No! A highly successful hospital is one that charges 10%

more than the other guy.”

When you are a retailer, and you own the customer, and you

are nine seconds away from closing the sale, the difference

between the guy who simply adds a percentage to his wholesale

cost and the guy who asks for 10% more than that, is a fi rm

which becomes two times more successful. Think about it, in

our business models we are all driven to a 10%, 15% or 20%

net profi t before taxes. What would an additional 10% mean

to your bottom line? Perhaps everything! The conclusion: If

you’re going to close the sale, don’t give it away. It only hurts

you and cheapens the perceived value of the service or product

you are selling. And, pet urns are products to which this theory

applies.

To receive our 50-page catalog and wholesale price sheet, call

us. FBA

James Minea is the Owner of Forever Pets, Inc. He can be contacted at 651.450.7727, or by email at [email protected], or visit www.foreverpets.com.

by Marty Kovacs

marketing solution

The Next Big Thing


July

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.

>> FEATURE

As you well know, when someone walks through your door, they’re most likely caught in the emotional quagmire of grief. Your compassionate understanding in those initial hours together, and your ability to successfully lead them through the arrangement process, are the central factors in building a strong relationship with your client families.

But, the question often arises, “Is it the responsibility of the funeral home to provide aftercare for client families once the funeral service is over?”

Joe Joachim, the high-energy, tech-savvy President of funeralOne, and Dr. John Canine, of Maximum Living Consultants, both know that it is the responsibility of the funeral home to provide such service – and they have come up with the most complete, simple and cost-effective solution: e-aftercare.

“After all, the church may not play a big

role in their lives,” says Dr. Canine. “And,

access to professional medical or counseling

services may be limited. We are committed

to providing a low-cost e-aftercare solution

to the client families of funeral homes

around the country.”

Dr. Canine is a recognized leader in grief

education and counseling. Joining forces

with Joe Joachim and the forward-thinking

staff of funeralOne, Dr. Canine helped to

create a 21st-century means for funeral directors to better serve their clients, long after the funeral experience is over.

“Only 33% of funeral homes offer aftercare services for their client families,” continues Dr. John Canine. “Traditionally, creating an aftercare program takes a considerable investment in time, energy, commitment and fi nancial resources, but with e-aftercare, the fi nancial investment is completely affordable to all funeral homes – and there is little or no set-up time or energy required from those who share in our commitment to serve.”

Funeral home staff often feel inadequately prepared Reviewing mortuary school curriculum around the country, it’s easy to see how most training programs don’t offer extensive education in this area. Limited to one or two classes in the psychology of grief, funeral directors fi nd themselves at a loss as to how to effectively help their client families in the months following the death of a loved one.

funeralOne’s cutting edge e-aftercare solution takes the burden off your staff almost completely. With this affordable program, your client families literally receive the best grief resources and counseling available today.

Marketing and community outreachE-aftercare exists not only to provide compassionate concern and assistance for the emotional well-being of members of your client families. It’s designed to provide funeral directors with a fully automated back-end system where they can easily stay in contact with those families served – thereby maintaining a close, caring relationship which will naturally bring those families back when need arises.

“E-aftercare has become an incredible

resource for our families to use. It does not take the place of kind, compassionate, personal care rather it shows the family that you care enough to stay with them long after the funeral has ended,” said Walker Posey of Stephen D. Posey Funeral Home, the fi rst funeral home in the nation to use the product. “The positive feedback we have received from our families is overwhelming. E-aftercare truly is the source for a simple, complete aftercare solution.”

Stand Up! Be recognized as an aftercare authority Not only does funeralOne offer your fi rm a truly affordable way to be a leader in grief aftercare in your community, but it offers exclusivity to those funeral homes who decide to incorporate e-aftercare into their currently existing website.

“We value your decision to be a leader, and won’t compromise your position by providing this to all funeral homes in your area,” affi rms Joe Joachim, President of funeralOne. “We want to build your credibility, to raise you above the crowd; we’d do nothing to undermine that goal.”

E-aftercare combines compassion and cutting-edge technology The growth of the Internet and the rise of streaming video and online chat capabilities have all made it possible

E-Aftercare by funeralOne.

Revolutionize the way you connect with client families.

managem

by Mi-

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FEATURE<<

to bring grief counseling services into the privacy of the home. funeralOne’s e-aftercare is the perfect bridge for families to receive help with their grief 24 hours a day, 7 days a week. It is, without a doubt, the most innovative, complete aftercare program in the world, and it’s available to your fi rm, starting as low as $995 per year.

For your client families, as well as all others in your community who are in need, this fee provides:

nInteractive Online Educational Videos

nExtensive Grief Library

nDaily Affi rmations, Letting the Sun Shine In, delivered via email

nOnline counseling as well as access to grief support groups nationwide

nOnline grief forum where they can share their experiences with others who are also grieving loss.

For the funeral home, e-aftercare includes:

nQuarterly newsletters on grief to send to your client families

n24/7 technical support

nPre-written follow-up letter templates

nA full-service back-end system to manage contact with client families via email and direct mail

nPositioning your fi rm as a recognized grief and loss authority

nDr. John Canine as your Executive Counseling Director.

While funeralOne’s e-aftercare may not be the fi rst available online grief support, there is truly nothing else like it on the Internet today. It is not only a source of information, education, and counseling for people in need; it’s completely linked to your fi rm’s website, and branded as your own. Your client families – as well as anyone else in your local area that is looking for help with grief issues – access it through your funeral home website directly, not through a third party. funeralOne raises the standard for aftercare, with e-aftercare“Our goal is to provide funeral homes with an affordable, world-class solution to providing aftercare. This product is the most extensive aftercare product available at a price any funeral home can afford. E-aftercare is the fi rst product of its type that combines everything it takes to effectively provide client families with the grief support they’re looking for. Our pre-written series of daily affi rmation messages, interactive online videos, and online counseling are going to allow you to connect with your families in new ways,” Joe continues. “The business building tools we offer are also one-of-a-kind; the entire client relationship is completely managed through our automated system.”

Joe smiles proudly when he refl ects on

the longevity of this aftercare solution.

“Whether it has been one day, one week;

one year – fi ve – or even 10 years since the

death of their loved one, your client families

will be able to turn to your e-aftercare for the

help they need. And, it’s highly-affordable;

you can’t do it better than our e-aftercare – at

any price.”

To view a demo of funeralOne’s cutting-

edge e-aftercare program, visit http:

//www.funeralone.com/aftercare, or call

funeralOne for a personalized tour of this

innovative marketing and community

outreach solution.

“The answer to affordable aftercare is here. Simply amazing.” ~ Mel Pennington, Brown Pennington Atkins

“Helping families feel you are truly there in the days, weeks, months and even years after the death of their loved one is not an easy task. E-aftercare is simply the answer.” ~ Walker Posey, Stephen D. Posey Funeral Home

About Dr. Canine:A consultant and grief counselor for over 25 years, Dr. Canine is the President of Maximum Living Consultants, Inc. in Clarkston, Michigan, which provides bereavement aftercare programs in 10 states. With two master’s degrees and two doctorate degrees in related fi elds, he is part-time instructor and an Associate Member of the Graduate Faculty at Wayne State University in the Department of Pharmacy and Allied Health Professionals/Mortuary Sciences. His book, Psychosocial Aspects of Death and Dying, published in 1996 by McGraw-Hill is used across America in counseling and mortuary science school. He teaches and lectures all across America.

About funeralOne: The brainchild of Joe Joachim, funeralOne is a personalization, technology, and consulting company for the funeral care profession. funeralOne’s core services include: strategic funeral home website design, personal funeral service consulting, and funeral tribute video software. Committed to delivering innovation, funeralOne collaborates with its clients to help them reach their full market potential. With deep industry expertise, broad resources and a proven track record, funeralOne can mobilize the right people, skills, and technologies to help clients reach their customers in new ways. Visit their website at: http://www.funeralone.com.

About the Author: Kim Stacey is a freelance writer specializing in writing for funeral service professionals. Her articles have been published in a number of offl ine trade journals, including American Funeral Director, American Cemetery and Mortuary Management. She can be reached for comment at: 831.338.0220, or via email at [email protected].



M. Lee Schwab

Give Yourself a Raise through Merchandising


July

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As a fourth-generation funeral director, I often think back 25

years ago to the period of time in my life when I had just

fi nished college with my degree in Funeral Service. I returned

to my hometown to work at our family-owned funeral home.

The funeral home was established by my great-grandfather at

the beginning of the 20th century. I remember going into the

selection room and seeing a large inventory of 20- gage caskets,

brown colors for the men and pink colors for the women, many

of which were non-gasketed. The outside burial containers

offered were wood or concrete boxes. I asked my grandfather,

“Why is this all you offer?” He replied, “This is what the

people want.” And, I realized that I would have a lot of work to

do by introducing a new way of marketing merchandise in the

showroom of our “hometown” funeral home that had embraced

a lot of conservative traditions.

After I purchased the funeral home from my grandparents, I

soon found out the public I was serving was more diverse in

what they wanted than I, or my grandfather, had ever imagined

– especially when given a choice. As I began to educate

the families that I served on the differences between non-

perishable metals, woods and sealing or non-sealing caskets,

it was interesting to watch my casket sales go from 20-gage,

non-sealing units to 18-gage sealing (often urn-shaped) units

with customized panels.

It is easier for the buying public to understand the value

differences in the caskets that are displayed when diversity is

offered. It opens an avenue to enhance bottom-line profi ts.

To the unpracticed eye of the buying public, all caskets in a

selection room have a tendency to look alike, at fi rst glance.

It is necessary, therefore, to do everything possible to enhance

the differences of these caskets. This is done through lighting,

variety, and showroom placement.

Then came the education process of helping the general

public understand why they would want to purchase a burial

vault or graveliner when the cemetery did not require one. I

decided that I needed to educate the cemetery people about the

importance of “requiring” at least a graveliner for defi ning the

grave space and helping to maintain cemetery aesthetics. That

was an easy sell. All the wood boxes that had been buried over

the years were rotting away and the cemetery maintenance

crews were having to fi ll in all of the old graves every spring.

The cemetery people were excited to know that there were

alternative products available that were not going to deteriorate

over time. Now, I was able to offer the families I serve the

funeral home options with added value and protection for the

money they were spending on a graveliner or burial vault.

Outer burial containers can be merchandised in a manner that

allows families to become educated about: the differences of

protective or non-protective; why non-biodegradable is desired,

and what makes the units non-biodegradable.

Once again, to the unpracticed eye of the buying public, lack

of diversity makes it diffi cult to offer added value and justify

major price differences for increased profi ts. By offering

additional vaults, like metals or high density polymer vaults,

diversity is achieved. When an “air seal” (dome with a base)

unit is offered along with the traditional “top seal” vaults, the

public will be given choices which helps to merchandise the

burial vaults. When comparing lightweight polymer vaults

with traditional plastic-lined concrete vaults, the polymer

units are easier to handle and cost less money than concrete

or steel. Plus, in most cases, they may be sold to the public

for a higher price because they offer added value, such as:

being non-biodegradable as well as providing a water-resistant

environment and permanence in protection. Polymer products

have not only brought added value to the funeral industry,

but to other industries as well. The building and landscaping

industries are using polymers for ease in maintenance and

longevity. Polymers do not rust or deteriorate, they are non-

biodegradable.

Profi ts are realized when a family is willing to pay more for

added value as diversity is offered. Caskets and outer burial

containers are not the only kinds of merchandise a funeral

home has for sale. Most funeral homes sell cremation urns,

urn vaults and memorial cards. By offering diversity in all of

these products, additional profi ts can be realized in each and

every area. For example, added revenues can be realized with

merchandising in a cremation room. Providing miscellaneous

products, such as rental caskets, cremation caskets, thank

you cards, prayer cards and personalized programs, will add

diversity. Additionally, modern technology allows us to be able

to offer personalized video tributes and memories on CDs or

DVDs – to add even more diversity and memorialization to our

service.

When a family analyzes their choices in selecting a casket, burial

vault, and optional merchandise, they are often willing to pay

more money for products that offer protection, memorialization

and personalization. Most importantly, we are putting service

back into funeral service. Why not give yourself a raise through

merchandising? FBA

M. Lee Schwab is the Owner / Executive Offi cer of Polyguard & Co. He can be contacted at 800.654.1067, or by email at [email protected], or visit www.polyguardvaults.com.

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July

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Matt Manske

Selling – A Bird in the Hand


If you are considering the sale of your funeral home, you need

to know what’s happening in the market. You need to know

who is buying; which buyers will be interested in buying your

business; how desirable your business is; what prices buyers

can afford to pay; what fi nancing options are available to

buyers, and if any seller fi nancing will be required of you. Each

of these questions represents a different factor in the equation.

Knowing the current market and addressing these factors will

help determine the right selling strategy for you.

As the Spanish author of Don Quixote once said, “A bird in

the hand is worth two in the bush.” This quote has never been

more appropriate for the funeral industry. Large corporations

are rarely buying any fi rms at all. Even when they do attempt

to buy a fi rm (usually 250-plus calls per year) they do not offer

much over two times revenue. After the feeding frenzy of

the 1990s, corporations learned the hard way not to overpay

for acquisitions. They also learned how important an owner’s

personal touch can be to retaining business.

Because large corporations were banking on economies of

scale and lower expenses, they anticipated operating margins

signifi cantly higher than those normally achieved by an

individually owned fi rm. This is why the corporations thought

they could afford to pay higher prices when consolidating

small- and medium-sized fi rms. Years later, the importance of

personal service and owner personality showed up in the form

of lost call volume and decreased revenue. This is why they

have divested a fair number of small- and medium-sized fi rms.

So, where does this leave current funeral home owners? Large

corporations are not the premium buyers in the market. They

have consolidated, lost money, deconsolidated – and are not

likely to start the process again. This means the days of a

corporation offering an owner three times revenue are gone

and not coming back. They are not coming back because

stockholders of large corporations lost so much money from the

initial consolidation, it caused a deconsolidation. Right now,

individuals and small regional fi rms are offering the best prices

to sellers in the market.

What types of fi rms are individuals and small regional fi rms

www.foreverpets.com

Ask about our special volume prices.

Call 1-888-450-7727 to request a FREE copy

of our wholesale catalog


July

/Aug

ust 2

007


looking to buy? Most individuals are looking to buy a funeral

home doing 75 to 150 calls per year. (A more experienced

individual may go for a larger volume.) Small regional fi rms

are looking to buy funeral homes doing 100-plus calls per year

as long as they are within a reasonable distance from their other

fi rms. (They may forego the distance

requirement if the local manager can

partner with the regional fi rm and buy-in

to an ownership position.)

If individuals and small regional fi rms

are offering the best prices, what kinds

of prices are they paying? Current

selling prices range from four to six

times adjusted cash fl ow, or up to 2.25

times net revenue. The fi nal price is not

dependent or correlated with net revenue,

but is sometimes expressed that way. The

fi nal price is directly correlated with the adjusted cash fl ow

because that is what shows lenders how much debt service the

business can afford. In simple terms, the adjusted cash fl ow is

the amount of money the new owner will have available to pay

debt service after the sale. This is where competitive fi nancing

comes into play, because lower interest rates translate into the

ability to fi nance more debt. An easy example of this is how

lower home mortgage rates have allowed people to buy more

expensive homes. Competitive fi nancing can be from a lender

or from the seller. Since the rates on seller fi nancing are often

very competitive, including seller fi nancing in the sale is often

a great way for a seller to get a premium sales price.

Sellers in today’s market will often seek the advice of an expert,

and they are often told their business is worth more than it really

is. Be very cautious of: anyone telling

you they can sell your business for over

2.25 times revenue; anyone trying to sell

you an expensive business appraisal;

anyone trying to sell you an outside

management contract; anyone trying

to sell you accounting services without

the direct services of a Certifi ed Public

Accountant, or anyone trying to get you

to sign an exclusive listing agreement.

As a seller, the last thing you want

is to hang-on too long hoping for a

premium buyer that never comes. Work with your accountant

to maximize your cash fl ow and make sure your buyer has

competitive fi nancing. And, if you do want a premium price,

be willing to carry some of the fi nancing for the buyer. FBA

Matt Manske is the President of Business Services & Funding, LLC. He can be contacted at 888.665.4BSF, or by email at [email protected], or visit www.4BSF.com.

“The days of a

corporation offering

an owner three times

revenue are gone and

not coming back.”


Jerome Bacchus

Memories: The Making and Preservation of Posthumous Impressions


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Throughout time, man has always been fascinated with

recording the history of peoples’ accomplishments and

other events of importance. Some may argue that, at times,

these preservations of history have been self-serving, while

others may present differing opinions on the value of re-

capturing memories long after there is anyone left to retell them.

In days gone by, entire communities employed storytellers as a

means of preserving the accomplishments, culture and history

of individuals and communities. Regardless of the motives for

preservation of history, we can safely agree that we all have

better appreciation and understanding of

people and events when we are presented

with actual records of them.

In the funeral services industry, we

are indirectly charged with the same

responsibilities as the aforementioned

storytellers when our families speak with

us in pre-planning or at-need interactions.

If we are to believe that the rituals of

funerals are steeped in celebrating the lives

of the deceased, then by natural extension,

everything we do is designed to support the

preservation of memories of peoples’ lives

and their accomplishments, posthumously.

Our industry, like many others, is faced

with the dilemma of providing a highly

personalized level of service in a world

which is increasingly becoming quite

commoditized. So often, clients are left to

choose from “variations on the theme” or

“me too” offerings. We continually strive

to create a differentiated client experience

which can set us apart from the pack. Yet,

we have the added challenge of providing

our services tastefully and affordably;

whilst ensuring that our funeral business

remains profi table and economically viable.

It is at this juncture, that funeral service

professionals have the ability to determine

the right balance between serving their

families well; creating a differentiated client

experience, and ensuring the long-term

survivability of their enterprise.

If “a picture speaks a thousand words,” then

the right image speaks volumes at portraying

and preserving the right impression. What

we choose to deliver to our clients, and how

we choose to deliver it, ultimately creates the

impression of our ability to meet our clients’

needs. When a product or service is offered

that accurately portrays what was important


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in the life of the deceased, it usually strikes a resonant chord

with their families, and this is where we have an opportunity to

preserve a posthumous impression.

In a purchasing environment, the decision-making process

for most people is predicated by a need to positively affi rm

answers to the following three questions: (1) Do you care?

(2) Can I trust you? (3) Are you committed to my well-being?

These questions are usually not verbalized, but rather form

a subconscious barometer to which all interactions in the

purchasing environment are referenced. Positive validation to

these questions usually results in the formation of relationships

built on trust, with clients showing a high degree of receptivity

to guidance.

When we get right down to it, most of us feel signifi cantly better

when we are assured that our needs are being met. Families

coming to see us in their time of need, or in an anticipatory

manner, can approach us with the survivors’ needs as well as

the needs of the dying or deceased. It is at this time, that their

need to feel assured is even greater and more heightened.

The affi rmation of our commitment to look after the

survivors’ needs is rooted in our ability to actively listen and

provide comprehensive offerings to meet those needs. Most

people develop hobbies, interests and passions throughout

their lives, and surviving family members usually have

memorabilia, photographs and understanding of the degree

of importance these may have played in the life of the dying

or deceased – which they can provide to us. The creation of

a posthumous impression of the deceased will be strongest if

we can understand and interpret what the survivors feel were

important aspects in the life of the dying or deceased and then

incorporate those aspects to offer a lasting tribute. This level of

personalization is key to creating a highly valued posthumous

impression of, and for, the deceased.

Funeral service professionals who can develop a level trust

with their clients which yields the salient aspects of the life

of the dying or deceased, and who offer a product or service

which will allow them to recreate important memories in a

timeless manner, will undoubtedly reap the rewards of creating

both a highly valued posthumous impression, as well as a

differentiated client experience.

Remember, if “a picture speaks a thousand words” then the

image we choose to portray will speak volumes. We never get a

second chance to make a fi rst impression. FBA

Jerome Bacchus PFP, ST is the Director - Strategic Alliances, for Crystal Sensations. He can be contacted at 800.798.8318, or by email at [email protected].


Time is money, right? Well, the time investment that you make in performing care and maintenance on your embalming machines

will save you money and aggravation.

Rinse, Rinse and Re-rinse. The single most important item of preventative maintenance that you can do is to simply rinse your machine out thoroughly. I would recommend that you rinse the tank out three times. Fill your machine with water, then drain. Fill the tank half full and drain. Finally, fi ll the tank one-third full and drain. After rinsing, fi ll the tank half full and leave the water in the tank until you use it again. Rinse out the tank after every use. If you leave embalming fl uid in the tank between uses, suspended solids may settle in the pump and damage the pump seals. There are models that have no seals. However, embalming fl uid can cause the impeller or pump vanes to stick, then you have a machine full of fl uid that you cannot pump out. So, when in doubt, rinse it out.

Use the Right Stuff.Most embalming machine manufactures tell you not to use fl uids that contain phenol. In many cases, the use of phenol will void the warranty on these embalming machines. Also, if you use a fl ow meter that is made from acrylic, do not use a phenol-based fl uid because it will melt the plastic. There are glass-lined fl ow meters, and you can safely use


Jesse Wolfe

Embalming Machine Care will Save you Time and Money


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phenol-based fl uids in these meters. Once the tanks are discolored, they cannot be cleaned and therefore, must be replaced.

Embalming machine exteriors vary from stainless steel to plastic. Stainless steel is by far the easiest to maintain. To clean-up after spills just wipe it dry to keep it looking like new. Machines with painted or plastic exteriors are more diffi cult to maintain. They are also diffi cult to disinfect. The best solution that I have found for these machines is to apply a barrier coat of paste wax to the exterior.

Injection hoses on your machine may be any of the following: natural rubber, gum base, neoprene, or a high pressure vinyl-coated. Always inspect the hose for wear and damage. Replace the natural rubber hose annually to prevent rupture.

Service your Machine.Your embalming machine is the one appliance in the prep room that makes you money over and over again. It is essential that it be well maintained. It is worth the small, time investment required to keep it operating and looking like new. FBA

Jesse Wolf is the President of Noayr Machine & Supply Co. Inc. He can be contacted at 866.236.2896, or visit www.noayr.com.

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Brent Durham

When Tragedy Strikes: Memorial Items to Help those Hurting


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We all recall the horror of that day when 32 students were killed while attending classes at Virginia Tech. It’s hard

for most to imagine the grief of a parent who sends their child off to college to prepare for life, only to have tragedy strike in such a horrible way. Funeral directors see this grief every day, and yet fi nd ways to bring comfort to those in their darkest hour.

Provide Comfort through Memorial ItemsOne way to help those hurting is to provide memorial items. It is becoming a major trend for families to give out memorial items at the funeral services of their loved ones. For this purpose, it is essential to have access to a wide variety memorial items available through your funeral business. Further, these memorial items must be from companies that can provide delivery in time for the funeral services.

Two funeral directors providing services to the families of the victims of the Virginia Tech tragedy did this with memorial wristbands, which were rush-produced and given out at the memorial services of Emily Hilscher and Henry Lee.

The family of Emily Hilscher, the fi rst person killed, purchased 300 wristbands through the funeral director handling her arrangements. The bands featured Emily’s name with the Virginia Tech logo on each side, and were made in both the maroon and orange school colors.

Henry Lee’s family ordered 1,000 wristbands from their funeral director in white, featuring his name and dates of birth and death. Both orders were processed on a “one-day rush” basis. That means the orders were placed Wednesday, April 18, and shipped Thursday by next-day air – in time to give out at the memorial services on Friday, April 20.

Publicity Increases OrdersPerhaps you know about this already, as the news media picked up the story and sent reporters to our Kentucky-based factory to fi lm the production of the wristbands. The story was then sent out around the nation as a human interest story on ABC-affi liate TV stations. The publicity has resulted in orders for thousands more memorial wristbands from funeral directors who were previously unaware of the availability of these products.

Why These Families OrderedOf the 32 young people killed, two of their families ordered wristbands. The question is: Why those two families? The simple answer is this: The funeral directors who handled the arrangements for these families had a small display of these memorial items, available from the manufacturer. The other families were probably served by funeral directors who did not have this available. The reward for the funeral directors who did have fast-ship memorial items available and who had a display of these items (in this case, wristband and decal

displays) was threefold: nSatisfaction in providing a meaningful memento to help families through diffi cult times.nFree publicity: In high-profi le services like these, the wristbands often make local news, generating “free” publicity and community goodwill for the funeral director. Additionally, those wearing the wristbands are constantly being asked “Where did you get that?”nProfi t: Funeral directors are free to sell these memorial items for whatever price they wish. However, most manufacturers will offer a suggested retail price, and at suggested retail pricing, a 300-piece sale generates a $204 profi t, and a 1,000-piece order generates a $400 profi t. Furthermore, the 300-piece order placed in the Virginia Tech Tragedy was followed a few weeks later by a “re-order” of 200 pieces, generating even more profi t.

Be PreparedIf you don’t have displays of fast-ship memorial items available for your families, you are not prepared to offer the best possible services for your families.

Most memorial product suppliers advertising in Funeral Business Advisor, and other trade magazines, have sample kits available. In the case of the wristbands described in this article, those kits cost $25, and that $25 is refunded with the fi rst order. With terms like that, many funeral directors will place one display in the arrangement room, and a second one in the lobby where they may receive orders from visitors, for other purposes, such as fundraising for youth soccer teams, etc.

Why Some Companies ChargeSome funeral businesses do not understand why memorial products companies have a token charge for a sales kit, which is refunded on the fi rst order. You would think these companies would send a free kit to every funeral business in the country, to increase their products’ exposure. Interestingly, most memorial companies have found sending out free displays simply doesn’t work. The reason is human nature. If a telemarketer called and offered you a free sales kit, your response would be “Sure, send it.” After all, you have nothing to lose, and if you don’t like it, you can simply throw it away. However, if you’ve spent a little money for it, even as little as $25, you have an incentive to at least show it to a customer to make that fi rst sale and get your $25 back. Once you make that fi rst sale, you will realize how smoothly the process goes; how much profi t you can make; and how delighted your families are. Then you are more likely to show the display of memorial items to the next family – providing more valuable services as well as more profi ts for your funeral business! FBA

Brent Durham is the President of Brass Reminders Company. He can be contacted at 888.272.7773, or by email at [email protected], or visit www.brassreminders.com.


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Company SpotlightFBA management solution

Gary Halonen

Growing your Business in a Limited Market

The death care industry surely has a niche market. When someone needs our services, we are there ready and waiting;

when they don’t, we are there ready and waiting. Without taking matters into your own hands, the fact is, there’s a limited number of potential customers in your area every year, and you will have to

share them with every one of your competitors.

While you are limited by the volume of potential customers available, you will always have control over the percentage that chooses to do business with you. In order to attract more than your

share, you need to provide something that your competitors cannot, or do not, bring to the table. In the town hall of small business, the fi rst idea opened to the fl oor is always some unidentifi ed voice yelling from the back, “Lower Prices!” But, lower prices will actually make you the loser in the end. People seek a sense of value when something matters to them personally, and if you choose the lower price option, that means you are out of ideas.

Tradition rules the day during a ceremony. What you choose to do, before and after the ceremony, will defi ne the experience with which your customers will walk away. The small innovations you provide in that time span will determine what percentage of your potential market does business with you. If you want your bottom line to grow, you need to be creative. Being creative can be through: better follow-through; new products that your competitors don’t offer; improved presentation, or clever methods of handling grieving customers – like having many individual bathrooms instead of multi-stall facilities.

Newly introduced products with little market saturation have the most potential to grow your business’ percentage. If none of your competitors have the new product that you have for your customers, not only do you benefi t from the positive feedback from that new product, people also begin identifying the new product with your brand. So, the public perception shifts to put you in the “Cadillac position” of local vendors, and pushes your competition into the “Lower Prices” category. If there is anything your customers do not want, it is the perception that their family member’s fi nal ceremony was performed at the local discounter. Keeping an open ear to the ground for new developments and new ideas will put you miles ahead of your competitors. FBA

Gary Halonen is Co-Founder of Roadside Memory. He can be contacted at 612.309.4699, or by email at [email protected], or visit www.temporarymemorial.com.


Michael Feeney

IMAGE is More than Just a Suit and Tie


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As a practicing funeral director, and as a senior programmer

for my company, I have had the privilege to visit many

funeral homes, developing a unique view of the funeral service

profession…Yes, profession. I dislike when any company or

speaker refers to us as the funeral service “industry” and I vow

never to purchase products from them. Unfortunately, some

in our profession also treat it like an industry. Their image

is one of corporate greed, apathy toward family needs, and

lack of compassion where a family is just a number. Lack of

compassion is what changes one’s life’s work from a profession

to an industry.

Your IMAGE is all around you, and it does have an impact on

your business and our profession.

Your building and property are your family’s fi rst image.

Neatly trimmed grass, fl ower beds that are weeded, and a look

that is fresh and appealing will display an image of attention to

detail. Peeling paint and fl owers replaced with maintenance-

free greenery portrays a lazy, shortcut-taking funeral home.

And, what about the side of the building that you think families never see? Is that manicured also? It should be! Upon entering your funeral home, another image is formed. Is it cluttered? Is the carpet worn, and are the furnishings dated? Are the rooms dark with very little natural light? Or, is it museum-like, pristine, and too sterile? The exterior of your funeral home refl ects on your service, no matter how good your embalming and cosmetology is, and the interior of your funeral home can easily make a family feel uncomfortable, scared to sit or touch anything, and apprehensive about bringing children to the service.

Speaking of children, curiosity items are nice, but when the parent has to keep scolding the inquisitive child not to touch, then you are not accomplishing the positive image you need to portray. If you do have such items, have an attendant nearby to explain them to the children. Remember, these children are learning from you, and you are a role model. These children are also tomorrow’s decision-makers, who may opt for direct cremations because you never allowed them to truly experience


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the benefi ts of a funeral...A funeral is supposed to be a memorable experience. A happy medium for your interior design is clean, but not museum-like, light and not stuffy, comfortable and not cluttered. The old cliché “home-like atmosphere” is still the best funeral home image you can portray (but, don’t fry onions on a viewing night). And, always make sure the ladies room is always clean, even during services. Image is also important in your arrangement and conference room. I have been in cluttered rooms with squeaky chairs as well as in opulent rooms where I am sure families are thinking to themselves, “This is going to cost a bundle.” Remove the clutter! Clean the shelves and throw out old magazines and fake fl owers that have graced the coffee table since Moses. A round conference table (dining-room-style) is most relaxing for a meeting with the family, while a desk can be a comfortable setting – if it is uncluttered. The family should be able to see you from around the pictures and the Inbox (both should be on a table behind your desk). Have a pitcher of water available and something to occupy the kids. Most of all, do not sit families in the middle of the casket room to ask biographical questions…Ugh! Plus, arrangement room software, properly designed, can easily make casket rooms a thing of the past. Your computer program could be another overlooked image destroyer. I have been at conventions, and I have seen software companies handing out computer-generated forms that were really bad. You may think the “VA-Flag” form appearance is not important since you are only taking it to the post offi ce. However, if your form looks like a child completed it while your competitor presents a professional-looking form, and the postal clerk is the decision-maker for a family member who is near death, chances are your sloppy form could lose you the call.

Additionally, always remember to pay attention to the details. For example, are your prayer cards, folders and register books centered and neat? Did you fi ll out ALL the register book pages? To a family, your IMAGE also means the little things, like fi lling out those pages. And, have you ever used your coat sleeve to clean fl ower petals or dust off the casket while family and friends watch? Ever think what is going through their mind when you do this?(“Does he use his sleeve as a napkin

too?”) Carry a clean handkerchief just for that purpose. It’s more professional.

Finally, embalming and cosmetology also refl ect your image, but if any of the above destroys your image fi rst, the best embalming and cosmetology will not overcome that. Call me for my FREE list of “100 Image Busters.” Image is more than just a suit and tie. Image is everything! FBA

Michael Feeney is a licensed, practicing funeral director in Pennsylvania and the Owner of Funeral Data Manager. He can be contacted at 888.478.9775, or by email at [email protected], or visit www.funeraldatamanager.com for more information.


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Doug Clery

with every other communication that bombards your customers daily. Don’t add to the bombardment by sending multiple looks. Instead of sending two, or three, or 10 different images to the customer, send 10 of the same images. United Parcel Service (UPS) is a master at presenting one image. Its brown trucks and brown uniforms and brown planes are ubiquitous and instantly recognizable – strengthening and reinforcing brand awareness.

Consistency of look does not mean you can’t change. You can change. You probably should change. But, once you change your trade dress, change everything to match. The Betty Crocker cake mix label and Aunt Jemima syrup label have changed through the decades, but they have not confused the consumer. St. Pauli Girl has been using different St. Pauli Girl models for advertising and in-store promotions for years. But, the St. Pauli Girl “look”

stays the same – continuously building brand awareness, brand

recognition and brand recall. Sending a ransom note will just get

your company’s growth rate arrested. FBA

Doug Clery, a.k.a. The Mastermind, is President of adfi nity, an advertising agency specializing in the death care industry. He may be contacted at 877.251.1222, or by email at doug@adfi nity.net.

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Collect a sample of every printed communication you now send or show to your customers. Get a sample of everything

now in use, regardless of when it was originally designed or printed. Gather samples of current advertising, sales literature, billboards, product packaging, company newsletters, logos, stationery, signage, brochures, websites, Yellow Pages ads, truck or vehicle decorations, uniforms, parking passes, visitor badges, annual reports, trade show booth panels – everything the customer might see. Paste each sample, or photo, or rendition, in tight adjacency to one another on large poster boards. What does that composite visual look like? Are the colors, illustrations, images, typefaces, layouts, messages, copy style and logos consistent and harmonious, presenting a unifi ed look? Or, does your poster board look like an “amateur’s ransom note” – an understandable message, but one communicated in a hodgepodge of letters and graphics? Your poster board displays how your customers see your company and your products. Each visual should reinforce the other. You must have a consistent look – a consistent trade dress.

Your job is to train the customer to instantly recognize your company. You do not do this by confusing the customer, but by providing a familiar, memorable look. Your message competes

Don’t Send a Ransom Note


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Wally Snyder

If there is to be a service with the urn present, appearance is a critical factor, and family and friends are more likely to remember and comment on a beautiful urn with color and style as opposed to something that is primarily utilitarian. While even a ceramic urn can be permanently interred in the raw earth, if done properly, the family selecting this type of urn is much more likely to purchase an urn vault – providing an additional source of income to the funeral home.

It is smart to offer a good selection of attractive, moderately priced, urns, and to sell them on a regular basis, rather than to push for the purchase of an expensive urn to offset a lost casket sale.

The product should be one that was created for the singular purpose of

holding cremated remains and thus it should be of proper volume to

provide a method of closure exclusively appropriate to that task.

For a free catalog of quality ceramic urns, please contact S & S

Cremation Urns. FBA

Wally Snyder is Owner of S & S Cremation Urns. He can be contacted at 877.711.0266, or by email at [email protected], or visit www.snscremationurns.com.

When I installed a crematory in our funeral home years ago, I didn’t realize how little I knew about cremation urns. I learned

the hard way – through trial and error – that families want selection in style, composition and price.

Bronze, wood, ceramic, stone and other materials can all be used to produce an urn. While there is, on rare occasion, a place for something extremely unique, most families prefer to select something they can duplicate, if necessary, for future deaths. Color affects almost every aspect of our lives, even our mood. So, it’s essential to offer a selection where color becomes a distinguishing factor. As for color, no other common material used in urns offers the wealth of color options that are available in a ceramic urn. While pastels are more popular (as they are in caskets), deep rich colors, like burgundy, navy, and green, may well entice a family to purchase something more than just a basic urn.

Square corners and fl at sides may provide the greatest volume in the smallest overall dimensions, but there’s also a reason the “classic” urn shape has a curve with a reducing radius. Unlike hand-formed or wheel-thrown pottery, a ceramic urn cast in a mold offers almost limitless opportunity for attractive curves and rounded shapes that can be identically reproduced in each casting. Again, while something hand-painted may be unique, the intricate detail in a multi-colored fl oral decal is identical on each urn.

Learn About Urns and Profi t


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