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Covid – 19 and The Reinvention of Spring Burials

Written by Alan Creedy on . Posted in The Creedy Commentary. 3 Comments on Covid – 19 and The Reinvention of Spring Burials

Covid – 19 and The Reinvention of Spring Burials

Talking with funeral directors across the nation and Canada I am hearing (as you are experiencing) that you are busy but the services are mostly abbreviated or direct. So your revenue is deeply affected. Many wonder what funeral service will be like after we struggle to return to normal.

I am a “true believer” in the value of gathering.  I believe that humans need to be together during times like these which leads me to conclude that, no matter what the proponents of electronic funerals say, nothing will ever really replace a human hug.  This social distancing thing is the proper approach but it ignores the need for human connection and is, therefore unnatural.  I suspect, at an unconscious level, many of your customers and their friends are feeling this.

At the risk of seeming arrogant, I think that if I were in your place I would seriously consider reinventing the spring burial.

Years ago funeral homes in colder climates would hold a funeral for those who died in winter and then postpone the burial until the ground thawed. They would store the casketed body.  Hence: “Spring Burial.” If I were you I would make a presumptive close with each family (including cremations).  I would say something like:

“It’s unfortunate we can’t have a full gathering and service with people present. We have learned that human interaction at the physical level is critical to the healing process. So we are scheduling memorial services for later this year.  We have openings for June 17.  Would that be a good date for you?  That way everyone would know when to schedule to come.”

For those that don’t elect to choose that option I would hold, at a date in the fall, a community gathering to celebrate all the deaths.  I might have a bell I rung as each name were read aloud.  I would invite not only the families but the community.  (remember, by then, people will be looking for human contact). I might even host a barbecue.  BUT VERY DEFINITELY, I would stand up and address the attendees to this community life celebration and remind them why gathering is so important to the healing process.

My two cents…take it or leave it.

The Neurosis That Defines Funeral Service: Perfectionism

Written by Alan Creedy on . Posted in The Creedy Commentary, General Topics. 2 Comments on The Neurosis That Defines Funeral Service: Perfectionism

I have a book on my office shelf entitled “Perfectionism…Sure Cure For Happiness”. The reason this is important is that, having performed almost 100 culture assessments in funeral service I know that perfectionism is the dominant industry neurosis.

Yes, I agree, “Funeral Service Is In The Details”. But it’s how we measure performance that gets it all cockamamie. In funeral service there is a fundamental, prevailing belief that colors our judgment of ourselves and others:

“A good funeral director works long, erratic hard hours.”

In fact, the most common badge of honor is between 60 & 70 hours a week. Now, I am not saying that there are not times when working 60 hours is necessary. But I will say, as I approach 40 years experience, that there are times when it is not. More important, is that the drive to honor this standard frequently produces guilt when one is not at work. This lack of work/life balance leads to family disappointment and guilt and a rising sense of burnout.

In recent years the consulting side of my practice has grown as I help people who still like what they do very much but are plain tired from the work and responsibility of owning a business. Helping the business run more efficiently is often easy. But the real work is in helping owners figure out how they can achieve a better work/life balance. And the single most common barrier to that is guilt. And my greatest champion is the spouse who has seen it all along.

Peter Drucker once observed:

“What is the major problem? It is fundamentally the confusion between effectiveness and efficiency that stands between doing the right things and doing things right. There is surely nothing quite so useless as doing with great efficiency that which should not be done at all.”

What would I do?

 Outside of hiring me to help you center and refocus and “get a life”, I would buy the book “E-myth” by Michael Gerber, take 3 days off in a quiet place (leave your cell phone at home) and read it. You should come away with some serious personal insights and that is where you must begin…with you.

One is often faced with choices. One choice will lead to resentment. The other choice will lead to guilt. Always choose guilt.

 

5 Ways To Breathe Life Into Your Business

Written by Alan Creedy on . Posted in The Creedy Commentary, The Video Blog, Video, Video Gallery. 1 Comment on 5 Ways To Breathe Life Into Your Business

This week I was privileged to be interviewed by Sebastian Thalhammer of Austria. You may or may not have heard of Sebastian but he is a pretty interesting media guru who somehow decided I had something to say. So, Here is my “15 minutes of fame.”

Actually, it’s 45 minutes but it does have some interesting insights on how to compete more effectively and some resources you can access to help you do it.

Get yourself a cup of coffee…or a beer, relax and learn something.

Here is what I would do:

This interview may inspire some dialogue in your business. If I were you I would schedule a staff meeting, bring in some popcorn, cast the video onto one of your monitors (I know you have them). After you finish it these questions might spark a positive dialogue:

  1. What were Alan and Sebastian saying about the market that we are seeing?
  2. How could we respond or assimilate to realize a competitive advantage?
  3. What could we do that might make an impact today?
  4. What should we be planning for today that will make a difference by next year?
  5. Who will do it?

Merchandising Urn Arks

Written by Alan Creedy on . Posted in The Creedy Commentary. 2 Comments on Merchandising Urn Arks


I think I saw my first Urn Ark around 20 years ago. I was immediately taken and still consider it to be the best way to dignify the ceremony in a cremation. Most funeral homes that use them… and, sadly, too many do not…don’t charge for them. That practice doesn’t bother me but I do think things of value should have a price. But that is not the purpose of this post.

The other day I was visiting my friend, Danny Jefferson, of Pierce – Jefferson Funeral Home in Kernersville, NC. Danny is a true innovator. So, as is my practice, while I was waiting for him to finish up what he was doing I wandered around the funeral home. With Danny there is always a good chance you will learn something.

When I wandered into his arrangement office I noticed this display.

If you click on the small images they get a little bigger. so I added a larger image for your convenience. That’s a wooden urn in the center.

When Danny came in I complimented on the display. His urn ark had always been displayed but not with flowers. He told me he had a new onsite florist and she had decorated it for a service that afternoon.

WHAT I WOULD DO

If it were me I would buy some high quality silk flowers and display it with flowers and a high quality urn all the time. I would, of course, sell the arrangement but I would also add a small charge (say $75) for the rental of the ark.  I would have the designer create 3 or 4 floral themes including a military one and have photos displayed above it.

I think you would use it more, sell more and maybe even get a couple of ceremonies you wouldn’t have gotten in the first place. In the service that afternoon the 3 daughters were going to carry it to the gravesite.

IF YOU HAVE GOOD IDEAS YOU WOULD LIKE TO SHARE WHY NOT SEND THEM TO ME AND I WILL FEATURE THE WORTHY ONES.

This Is What I Would Tell My Staff

Written by Alan Creedy on . Posted in The Creedy Commentary, Leadership, Practitioner Forum: Insights and Ideas. 10 Comments on This Is What I Would Tell My Staff

sleeping on jobWhat happened to social etiquette?

You spend a couple of million dollars on a new building and you let the public be disappointed the moment they enter the door.

I visit a lot of funeral homes and the experience ranges from abysmal to glorious with a whole lot more on the abysmal side than the glorious side. We all know first impressions are everything.

So, here is what I would tell my staff:

  • The lobby is not the employee lounge
  • Stand when someone enters a room (stand, don’t struggle to get up)
  • Look people in the eye
  • Greet everyone
    • introduce yourself
    • ask if you can help them
    • say good morning, good afternoon or good evening…not Hey, How ya’ doin’ or some other colloquialism
    • offer to shake hands
  • For frequent visitors like delivery and mail get to know their names and use them
  • Wear your name tag where it can be seen
  • Don’t slouch — stand up and sit up straight
  • Be warm and approachable
  • Offer them a cup of coffee or bottle of water
    • have a bottle of water ready for the mail person every time (they know a lot of people)
  • Be present with everyone
  • Offer them a tour if they are waiting
  • If you offer gifts like note pads, coin purses and the like offer them one
  • Eat your lunch somewhere other than the public areas
  • Take care of your personal appearance
    • Ladies skip the cleavage
    • Men wear your coats
    • Men groom the facial hair

In other words make everyone who enters your door glad they came in.

 

How To Stop Customers From Fixating On Price

Written by Alan Creedy on . Posted in The Creedy Commentary, Money: Getting it and Keeping it. 11 Comments on How To Stop Customers From Fixating On Price

Equalize Price Points to Crystallize Personal Relevance.

This is the first recession to show a measurable impact on DeathCare.  Most surprising have been the many reports from rural and “rustbelt” funeral directors that cremation has recently spiked, not because people in their markets want cremation but BECAUSE THEY CAN’T AFFORD BURIAL.   YIKES!!!!

A recent article in Harvard Business Review entitled “How To Get Your Customers to Stop Fixating on Price” outlined 4 strategies.  I found the most appealing strategy to be: Equalize Price Points to Crystallize Personal Relevance. The article’s authors pointed out that in :

“most mature markets customers have become unresponsive to marginal changes in value.  They have lost interest in how each product option might serve them… [so] they default to price minimization.  In fact, (and this was interesting) a list of options at different prices doesn’t make [consumers] examine the relative merits of those options, it activates their predisposition to pare the price.” [emphasis mine]

Not a week after reading the article I found myself experiencing the very strategy I liked the most and it was exciting.

I encountered a funeral director who had courageously narrowed his casket price offerings from a low of $1,100 to a high of less than $3,000.  As I stood looking down a row of caskets I actually found myself saying (as if I were a consumer): “Wow, I can pretty much have anything I want.”  Having been in so many selection rooms over my career, at first I was shocked.  Then I found, to my amazement, a feeling of relief.   Here is a picture:

1. Solid Mahogany Urn shaped, Velvet Interior $2,650    2. Brushed Copper, Velvet Interior $2,995  3. Solid Cherry, Urn shaped, Velvet Interior $2,550  4. 18 Ga round end brushed, Velvet $1,740.  5. Oak Veneer, Velvet Interior $1,845  6. 18 Ga two tone blue, square corner, Crepe interior $1,495 7. Stainless brushed velvet interior $2,150 8. L  98 Mandarin $1,150 9. 18 Ga Blue round end, crepe interior $1,575 10. Solid Cherry, Velvet Interior, $2,600.

As I surveyed the selection room above I found myself moving from thinking about what I could afford to which casket I liked best and which would be a good fit for me (just like the research said I would).  And, as if I were an actual customer, I felt relief.  Some years ago I picked a Pembroke Cherry for my prearrangements.  At the time it sold for under $4,000.  I watched it creep up above $5,000 but just figured that was inflation.   When it went over $6,000 I made a mental note to find something cheaper.

Once a consumer realizes they can get pretty much whatever they want for just about the same price they move from thinking about what they can afford to what they want.  The research found that this allowed sellers to price above their normal average.

The implication is this:  Let’s say that your average casket and service sale is running about $7,500 and the range of caskets you are currently offering to reach that average is from $2,500 to $15,000.  The concept of equalizing your price points would suggest that as you narrow your price range you could accomplish two things:

First, you would change the playing field for handling price shoppers and likely increase volume.

Second, you would (as the research found) be able to realize a higher over-all average casket and service sale on what you are currently serving (say from $7,500 to $8,000 for traditional burial).

Of course, this implies that you have exercised some aggressive tactics to control the wholesale cost of your caskets.

This post first appeared in The Creedy Commentary on June 22, 2010

Are You A Change Champion?

Written by Alan Creedy on . Posted in The Creedy Commentary, Leadership. 1 Comment on Are You A Change Champion?

There are, in fact, many firms today that remain in denial that our profession has changed dramatically and will continue to change into the foreseeable future. We cannot help them.

I have lost count of the financial statements I have analyzed over the last several years. What strikes me is that virtually all of them have experienced a three year decline in average sale. WORSE, THE OWNERS WERE UNAWARE. Try it yourself. Take your total revenue minus any cash advances (this is your net sales) and divide that amount by your TOTAL number of calls for the last three years. My bet is that the overall average has declined.

While it is only my opinion, it is impossible for us to continue this trend without doing SOMETHING! So let’s start with the number one error most business owners make: lack of urgency.

If you are an owner then part of your job in these tumultuous times is to BE the change champion and to develop a base of allies within your firm. People resist change. We know that. According to John Kotter, retired Harvard professor and author of the book “Leading Change.” There is no urgency until at least 75% of a company’s management is honestly convinced that BUSINESS AS USUAL IS TOTALLY UNACCEPTABLE.

An old axiom says: “People will tolerate the conclusions of their leaders…they will only act on their own conclusions.” It is not enough to TELL people you have to change you must create an urgency to change within your constituency.

HOW do we do that? I have found over my career that the truth is surprisingly compelling (assuming your people trust you). A calm well prepared meeting with key staff is in order. Panic is not.

Here are some facts you might want to share:

  • Over the past 12 years the national Compound Annual Growth Rate in cremation is approximately 4.17%. Notice that up until 2000 cremation basically absorbed the marginal growth in deaths. Burials remained flat. Since then there has been an actual erosion of burials.Screen Shot 2013-11-24 at 8.18.09 AM
  • Analyze your own average sale and share it with them. Ask them what conclusion about change they draw? What impact might it have on salaries and size of staff?
  • Invite them to join you in creating urgency for change and developing an action plan.
  • BE AUTHENTIC! BE OPEN!

Expert opinion: What To Say When They Say “Dad Wanted Nothing”

Written by Alan Creedy on . Posted in The Creedy Commentary, Practitioner Forum: Insights and Ideas. 1 Comment on Expert opinion: What To Say When They Say “Dad Wanted Nothing”

A few years ago I was meeting with a husband and wife who operated a very successful funeral home. Like most successful people they were always looking for new ideas to help them stay in front of their competitors. To protect their privacy I’ll call them Bill and Jane.

Over the course of our two days together we talked about a wide range of marketing topics. At one point Bill was asking my advice on his arrangement process. It seemed that he kept running into the same obstacles over and over again; families that said that Dad didn’t want a funeral, families that said they were told not to make a fuss, families that said they weren’t going to do anything.

We launched into a lively conversation at his white board where we mapped out the entire arrangement process. The board was filled with opening statements, responses, transitions and closing statements. If they say…here’s what you say….if they say that…switch to this…and so forth.

After watching us for about 30 minutes Jane started laughing hysterically. Here’s how the next few moments played out…..

Jane: “you guys are really over complicating things”

Bill: “what are you talking about this is brilliant?”

Me: “Jane, what do you say when someone says Dad didn’t want a funeral?”

Jane: “I ignore the men and turn to the eldest female in the room and ask her how she feels about that. We talk about her feelings, and the feelings of the other women in the family, and then I help her find a compromise.”

Me: “What do you mean by compromise?”

Jane: “The women always want to do something but they feel that their hands are tied. Their loved one said they didn’t want a funeral and they want to honor their wishes. But they still want to do something so they really just need a new option.”

I was curious about how effective her approach was so we checked some of their performance reports. Of the 5 people making arrangements at their funeral home she had the highest average revenue. In fact, the next closest was 25% behind her.

Bill and I had approached the problem from our male perspective. We had looked at the arrangement meeting as a negotiation and had carefully planned each step in the process.

Jane, on the other hand, approached the arrangement meeting as a conversation that included her and the other women in the room. The focus of the meeting was not the social security number or the obituary information or even the events surrounding the death. The focus was on feelings….a topic that makes most men run for the safety of the nearest Home Depot tool aisle.

As I mentioned earlier this experience happened a few years ago. Since then I have studied over twenty books on the topic of marketing to women. My favorite is a book called Why She Buys by Bridget Brennan, which I highly recommend.

In today’s society women control the vast majority of purchase decisions, especially when it concerns a family event (like a funeral).

Gentlemen, if you disagree with me go home and have a conversation with your wife then call your sister to confirm. They will straighten you out.

If you want to see an immediate improvement in your business you do not need to go to an expensive academy to learn new arrangement techniques. You also do not need to bring in an expensive consultant (yes, that includes me). You only need to do three things.

  1. Accept that women are the decision makers.
  2. Learn how to have a conversation with them on their terms.
  3. Help them balance the wishes of their loved one with the needs of the family.

Learning how to communicate with women will definitely help your funeral home business and it may even help your home life as well. In my own study of this topic I have learned to be more comfortable talking about emotions but I’m also careful to spend adequate time at Home Depot just to keep things in balance.

John Callaghan is owner of Funeral Success.com.   His Blog is one of my favorites and I strongly recommend you subscribe

Differentiating Your Funeral Home: Reinvent The Obituary

Written by Alan Creedy on . Posted in The Creedy Commentary. 3 Comments on Differentiating Your Funeral Home: Reinvent The Obituary

No One Dies So Poor

He Doesn’t Leave Something Behind.

Blaise Pascal

Ya wanna know how to make a difference and set your funeral home apart?

 

Take some of your advertising budget and hire a good journalist to do what this video talks about and post them on your site.  Don’t put it in the public press unless the family pays for it.  Make people come to your site to get it.  Give copies to families that buy services.  Charge families that don’t.

Conversation Portrait: The Perverse Pleasures of Obituaries from Flash Rosenberg on Vimeo.

Or, here’s another idea, collaborate with your local newspaper after you copyright the idea so they won’t steal it.  Then every Monday have one of their better journalists do a special obit like the one’s they describe here on a local person (hopefully deceased not necessarily prominent) as a feature article sponsored and paid for by you with your logo prominently displayed.

You should negotiate a discount because it should be a collaborative effort that might help the paper sell obituary space with better obits while giving you exposure with the subtle but clear inference that you are promoting the celebration of the uniqueness of life.

Go out and be different today!!

A Different Way To Think About Packaging

Written by Alan Creedy on . Posted in The Creedy Commentary. 3 Comments on A Different Way To Think About Packaging

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…

How To Stop Customers From Fixating on Price Part 3

Written by Alan Creedy on . Posted in The Creedy Commentary. 2 Comments on How To Stop Customers From Fixating on Price Part 3

Part 3 Willfully Overpricing to Stimulate Curiosity

Last week we discussed the commoditized customer and the second of 4 pricing strategies: “Using Price Structure to Clarify Your Advantage.”  If you didn’t think I was certifiable last week there is a good chance you will be thinking about sending me for treatment this week.  Please remember: our goal is to use these insights to begin to rethink funeral service’ pricing strategy.

According to the article from Harvard Business Review, from which these discussions originate, this week’s strategy has proven to be particularly effective for mature industries.  Their examples range from coffee to high priced elevator systems.

In a price competitive mature market the logic behind willful overpricing seems counterintuitive.  At the same time, I can well remember that our primary pricing strategy at the funeral home I managed was to be $100 higher than anyone else.  This “strategy” is one I have often encountered as well as its evil twin: being $100 lower than anyone else.

According to research, customers don’t automatically dismiss the higher price model.  Instead, a  higher price often seems to motivate them to take a closer look.  That closer look could (and should) reveal information they care about that works in your favor.  (it bears repeating here that the point of all these strategies is to get consumers focused on value over price)  Some of the things I can think of are quality (“your mother never leaves our care”) or reputation, or an unconditional guarantee, etc. 

In one experiment products were priced at an 80% premium.  Subjects were able to recall twice as much product information than the comparison products; this enabled them to cite more arguments in favor of buying the products.  “The overpricing also evoked a more passionate response to the products which led to a willingness to pay much more than was originally intended. By contrast, people who were exposed to a premium close to their expectations (10%) or one that was outlandishly high (190%) simply acted according to their pretested inclination…”  THIS IS IMPORTANT because most funeral homes in price competitive markets are only marginally higher than the lower priced firms.  This research would tell us they are not enough higher to provoke the necessary attention to value.

The implication is that a price range exists above what customers thought they would pay that causes them to ask value questions.   Willfull overpricing can reverse the downward “price cutting” trend common to mature products and services.  Starbucks deliberately set a price point for a product that, at the time, most restaurants gave away. The price made people rethink the importance of coffee in their lives.

In another example Kone, the Finnish elevator company, used willful overpricing to introduce innovation.  In the 1990’s the elevator industry had become very price competitive.  In this highly commoditized market Kone introduced an innovation that the market (being entirely price focused) was unprepared to take into consideration. 

In order to provoke consideration of their advantage, Kone began responding to RFP’s with two proposals:  A normal proposal with old features and normal pricing and a much higher priced proposal for their innovative elevator system.  It took a while but it caused buyers to talk about the new concept and even to call Kone for an explanation.  The high price enabled them to have conversations about value with people who wanted to know why it was higher priced.

How could this work in funeral service?

Why not create two price lists:  one that is price competitive but strips out all the liability and quality of service (in fact one that maybe highlights some of your competitor’s disadvantages without mentioning them by name) and another that highlights features, safeguards and other benefits that are included.   For instance:  Transfer of remains to the funeral home: 

Normal: use of a 3rd party trade service at our convenience.  We are not responsible for problems or errors $350

Full service:  The deceased never leaves our care, two attendants and a Cadillac Funeral Coach within 2 hours of the first call. $650

I just made these up but maybe you can think of some better ones.

A last point of caution:  the research suggested that if you use this strategy the overpricing should be 50-80% above what people expect.  What price shoppers expect is generally a function of your competitor’s prices.

So, the next time someone says “your price is a lot higher than the others.” see it as an opportunity.  The trick is not to focus on the value that YOU think is important but the value THEY think is important.

funeral pricing, funeral home management, funeral consulting, funeral price strategy, funeral price shoppers