for the past 4 weeks I have been attempting to spark a conversation about Pricing Strategy against the backdrop of a recent Harvard Business Review article: “How to Stop Customers From Fixating on Price.” Candace Franco responded with great insight:
“Very thought provoking … but here is one I’d like to talk over with someone … why are most of the package offerings I see on GPL’s categorized by final disposition? Such as cremation with full service etc. why not categorize by ceremony … such as “religious remembrance”, “life celebration”, maybe even a “destination” offering? I really like the idea of an “expeditious” package for those who think they want quick. To me the value of what you all do is in the service not the final disposition. The way it is now service always feels like an add on when I think it should be the focus.”
We need to think about this insight and, hopefully, talk about it. My take is we categorize this way partly because customers often start with “I want cremation” so we think we are responding to that issue. But I also think that it is our way of saying: “With casket or without casket”.
Candace’s point has gotten me to wondering if we couldn’t sidestep that issue and do a better job of relating with families if we just let go of the casket issue altogether. Why not have a Catholic Funeral Plan, a Military Honors plan, a Simple plan, etc, etc, etc. I can anticipate that someone might say “too complicated”. 38 caskets on display is complicated…not to mention expensive.
I wonder…
What an interesting suggestion! I admit that I have never previously considered arranging our packages in this way.
Interestingly enough, we HAVE utilized a version of her approach in merchandising our urn display, with “memorial service”, “display in the home,” “place in a niche”, or “bury at the cemetery” as the various types of final disposition options (although technically a memorial service is not “disposition” it does get the consumer thinking about when and where others will see the urn. Our clients have apparently understood that approach and in fact appreciates the help in finding their way to an appropriate choice. Our urn average sale is quite high, but more importantly, our client satisfaction ratings on memorial services with cremation is 100% Excellent.
This approach also eased the minds of funeral directors, who could now ask the question: “Mrs. Smith, have you thought about what you will ultimately do with the urn in which we place Mr. Smith’s body?” That simple question helps illuminate several of the deeper considerations, besides “how much is it?”
So, what if we follow Candace’s line of thought and explore using something similar with service packaging…….
We have been watching your blog pretty closely over the past eeeks, as we are revamping our packages and arrangement rooms. We have thrown our old concepts out the window. We just sent out a worksheets for our staff to discuss packages exactly like Candace mentioned… the Comfort package with a focus on great food service options, Veterans packages, etc. Thanks for sticking with this topic, it has really helped get our heads out of our old packages and headed in a better direction.