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Author: Alan Creedy

Social Media: Why Discussion Groups Annoy Me

I recently joined several industry discussion groups. I had heard that Selected Independent had a great one and, since I am not a member and can’t join it, I joined several others.  I guess I am naive because I was hoping to really engage in some meaningful discussion forum about industry issues with people expressing differing viewpoints.  I am sorely disappointed.

Rather than a dialogue among practitioners these group discussion forums are used almost exclusively by vendors seeking to advertise their services (for free).  I don’t know about you but I find this both intrusive and offensive.  Certainly, it is not helpful.  When I joined the CANA discussion group, for instance, I received an email informing me that I would have to wait to be approved for membership in the discussion group.  Great, I thought, they are being selective.  I am a consultant so I half expected to be denied as a non-practitioner.   A couple of days later I was approved. Since then I have received almost daily emails inviting me to new discussions that are nothing more than advertisements.

I find I have two emotional responses to these intrusions: 1) It disgusts me that someone would hijack a discussion forum  2) I mentally take the vendor off my list.

I don’t know.  Am I weird?  I know that it takes time to police this stuff.  I do know that if I ran one of these things and someone reported this activity to me I would take the offending vendor off the list immediately.  But I did report it and… well never mind.

Why Your Business Will Be Worth As Much As 8.8% less in 2013

Remember that bill congress needed to pass to see what was in it?  Well, surprise!!  The Medicare Tax has been expanded to include almost ALL income (active and passive) over $200k for singles and $250k for couples.  This even includes the gain on the sale of a personal residence over the exclusion amount. 

If the Democrats win it is likely the capital gains rate will also increase to 20% and some are saying it could go to the pre-1996 level of 28%.  Here is an example of how it will work:

Let’s say you are married and your annual income from your business is $125,000.  Your spouse works elsewhere and earns an income of $50,000 for a combined income, or AGI, of $175,000.  (NOTE: for most of us the trigger will be our Adjusted Gross Income, NOT our Net Taxable Income).  If you realized a $1,000,000 taxable gain on the sale of your business this year (2012) your taxes on that sale would be 15% or $150,000 leaving you $850,000.  If you sell the business under the same circumstances in 2013 your capital gains tax is likely to be $200,000 (20%) and some think it may be $280,000 (28%).  Then comes the Medicare tax of 38% on the amount over $250,000.  In your case this would be AN ADDITIONAL $35,150 on top of the capital gains tax!!! 

 

 

 

 

 

 

 

 

 

 

 

Of course with any tax change there are nuances and it is not my purpose to practice taxation (or, for that matter to influence your vote).  If you are at the point where you are thinking about the possibility of selling the business (whether to an acquisition firm or to a family member) better to do it this year than next.  If you are enjoying what you are doing and want to stay in the game then it is likely (at least in many instances) that the appreciation in value over time will partially offset this loss in value.

See your tax planner for specific information.

This Post May Not Be Reproduced Without Permission. You may, of course, forward it as a link in its entirety to any parties you feel may be interested.  If you publish your own blog or electronic editorials and want to link back to this article contact me at alan@alancreedy.org

EXPERT OPINION: How to Be Exceptional in the “New Normal”

When asked what it was that made him so exceptional a hockey player, Wayne Gretzky is said to have responded, “I see my job a little different from most other hockey players.”  Pressed for details, he said, “my job is to skate to where the puck is going to be.”

The question that all of us are thinking is where the funeral service puck will be in five and ten years from now, so we can be there.  And if that ability to correctly anticipate the future will be the most important factor in determining whether, when we retire, our careers will be classified as exceptional as was Gretzky’s, or merely non-descript, how do we acquire the skill to foresee the future?

From my view, the pucks of the funeral service future will be numerous and each one will have to be considered separately.  Accordingly, in order for any of us to be classed as exceptional, there will be more than one puck to anticipate.  There are a number of examples; this list contains just a few of them.

Thepersonal services puck will remain, in my opinion, just about where it is now.  Five and ten years from now, consumers are still going to want to be treated respectfully, kindly, professionally, fairly, politely, and with empathy. That puck will not move very much over time.  What will move are the places where and the manner in which those consequential personal services are delivered.

The retail pricing puck is likely to move dramatically from where it rests today.  Product unbundling is likely to continue, and that will directly affect pricing.  Historically, funeral home patrons purchased a ‘casket’ whose price included everything needed for a funeral.  Later, a base price was charged for a funeral home’s services and then, in addition, customers selected the casket of their choice.  But today, as funerals have become simpler, fewer and fewer services are wanted, fewer and fewer caskets are purchased, and less and less professional assistance is required from funeral directors.  This puck is definitely moving fast!  And the average funeral sale is moving down each year as this puck moves.

Thecompetition puck will most certainly take a different path in the future.  For generations, brand loyalty delivered steady streams of repeat customers to local funeral homes.  Back then, funeral home selection was seldom a matter of prices or services, which basically consumers knew nothing about.  But that day has passed.  Information is now readily available to almost everyone about retail prices, types of services offered, recent customer satisfaction, and company philosophy.  The result is that consumers are quickly dropping old loyalties and selecting a funeral provider that matches their price and value goals, sells what it is they want to buy, and delivers with a compatible service philosophy.  This particular puck is moving fast and will change local competitive dynamics at a rapid pace.  Increasingly fewer consumers care if your firm has been in business for 100 years.

The funeral home facilities puck is likely to move slowly but surely.  Today’s environment still features many large, beautiful, and expensive funeral homes.  Increasingly, though, smaller, simpler, and less expensive funeral homes are taking the retail stage.  The future location of the funeral home facilities puck, while moving more slowly, must be seriously anticipated because lower retail prices are impossible to deliver from higher cost structures.

Thefuneral director puck could take a dramatic turn in another direction.  For more than 80 years in Florida (where I live), when funeral service licensure began, consumers could comfortably assume that a Funeral Director’s’ license would equal competence.  Today, professional competence is often measured in ways that has nothing to do with embalming, casket construction, burial vault materials, or religious ritual.  Calculating where this puck will be moved to in the years just ahead is very challenging!  What is known is that funeral providers must sell and deliver their services in ways that are acceptable to consumers, regardless of licensure laws.

There are of course other pucks whose future locations we must predict precisely to keep positioning and repositioning for future success.

What we do know for sure is that our company, like so many others, must continue to anticipate, keep reinvesting and taking risks, and listening attentively to those we are honored to serve.  Like Wayne Gretzky, we must keep skating “to where the puck is going to be.”

 

Rick Baldwin is currently CEO of Celebris Memorial Services of Montreal (29 funeral homes / five cemeteries / five crematories / brands are Urgel Bourgie and Lepine Cloutier) and owner of Baldwin Brothers Cremation Society in Florida / Director and shareholder of BankFIRST of Orlando / Board of Directors of ICCFA / Director of UCF Foundation.  Earlier in his career he founded Baldwin-Fairchild Cemeteries and Funeral Homes in Orlando, Fl which he later sold to Stewart Enterprises where he enjoyed a successful career until his retirement in December 1999.  He served as President of Stewart’s Eastern Division and, later, as President of Corporate Development.  He is past President of CANA and the Florida Funeral Director’s Association.

 

 

 

Are Funeral Directors “wired” to Lose in The “New Normal” Part 3

Last week in part 2 of this series we learned that “Challengers” don’t educate,  they teach.  They are not afraid of pushing their customers  to think in new ways.  We also learned that while people may like those who are nice to them, they like those who help them gain new insights even more.

But none of this helps unless we know how they do it.

Challengers, by definition, know more about the product and process than their clients, and so do you.  They realize that most people approach a new or unfamiliar purchase with a distorted paradigm.   So, their objective is to help the customer gain a new perspective on the product or service.   It may seem counter-intuitive,  but the goal is not to have the client say: “I completely agree.” Rather, success is achieved when the client says: “I never thought of it that way.”  Reflection, not agreement, is the goal.

Here is how I would approach developing this skill:

1. I would not start with my most challenging cases.  I would practice with customers I already felt I had rapport with.

2. My goal would never be to convince but to open a new thought pattern by sharing new insights from my experience.  As an example, last week I mentioned my response to scattering ashes.

3. I would create a “safety zone” to retreat to if things got out of hand

4. I would not probe for customer needs.  There isn’t enough time to provide that much insight.  Rather, I would tell the client what I normally see with similar families and how the right choice made a difference.  This should not be aggressive but assertive enough that it pushes them a little out of their comfort zone.

5. I would provide several options that are appropriate; but I would also share pitfalls.

6. I would use the dreaded “R” word and work with my colleagues to practice scenarios.  “R” stands for ROLEPLAY!.  Sorry if I shocked you.   Roleplay is out of the comfort zone of most practitioners.  But if you are going to be a true professional it is the price that you have to pay.

Here is how to create a “Safety Zone”:

1. Acknowledge the importance

2. Ask permission

3. Make a reasonable suggestion

AND MOST IMPORTANT: BE VULNERABLE YOURSELF.  IN OTHER WORDS BE AUTHENTIC.  If you can’t be authentic you probably ought not to change what you are doing.

Here is how I might approach the conversation.   After the warmup and before making arrangements I would acknowledge the importance by saying something like:

“Most people I work with only make arrangements once or twice in their lifetime.  Taking care of [relationship of deceased “your dad”] is one of the most important decisions you can make in your lifetime.  There is lots of room for regrets by doing too much or too little.   I will do my best to help you honor [your dad] in a way that meets your needs and your budget.  But sometimes the conversation can get a little awkward.  In fact, sometimes I feel a little awkward but my goal is that you have no regrets.  Is that ok?”

By doing this up front, when things get awkward you can say, “I realize this is uncomfortable but let’s at least explore this so you make an informed decision. Remember my goal is no regrets”

For instance, you are serving the family of a 55 year old man with teenage children,  He was an active member of the community and popular among his fellow employees at work.  You know from experience that there will be a large turnout.  The family has selected a private viewing with an hour’s visitation prior to the service.  The choice is partly economic.   They could accomplish something more at close to the same price by reducing the quality of vault and casket (Now I am feeling awkward).  You could say:

“(name of deceased) was well known and liked.  My experience is telling me that an hours visitation won’t work and here is why (fill in the blank with your experience).  We have a couple of options:  We could do a visitation the night before which would give both you and your friends ample time to share or we could provide a reception for a couple of hours after the funeral.”

THEN SHUT UP

If the family expresses concern over the cost and you feel you need to make compromises then lead them to a larger service and lesser quality merchandise.  (Wow, I said it.  I really am a heretic).

Going back to the “R” word.  Follow this pattern:  Identify several types of customers, list scenarios where your experience could help families do better.  START WITH THE EASY CASES.  As you progress over time and you gain experience with Roleplay start working on your hard cases.  Roleplay is never a one time thing.

 

 

 

 

 

 

Are Funeral Directors “Wired” to Lose in The “New Normal” Part 2

Last week, in Part 1 of this series, we explored the idea that funeral Directors, as consummate relationship builders, may be wired to lose in an environment that has changed radically over the past 30 years.  Based on non-industry research we posited that the “Challenger” style was 13 times more likely to succeed in the “New Normal” than relationship builders.

Based on comments I received, it seems this concept has both struck a chord and may very well prove to be true.  Brad Speaks of Speaks Memorial Chapels in Independence, MO. made this observation:

This is incredibly insightful.  Ancedotal evidence in our firm seems to support your hypothesis, with some of our “old-school” FD’s (yes, they are consummate relationship builders!) yielding results to a group of “challengers” who teach and, perhaps more telling, don’t mind selling one bit. We see higher sales averages with the challengers, to be sure, but the thing that I find most interesting is that their individual survey scores are typically higher as well. In other words, despite being people-pleasers, the relationship builders don’t get the same results from the consumers. Our group is relatively small, with six full-time arrangers plus a manager, so it would be interesting to do a wider study. But my guess is that the results would be pretty similar. 

If we follow the logic of the theory it would seem that, while people do like nice people, they may like people who expand their consciousness even more.  I wonder if they interpret this challenger behavior as more professional and caring.

Now, in a profession (and I believe it has moved in the last half century from a trade to a profession) that is populated largely by relationship builders, it is essential that we understand that challengers are not conflict-oriented by nature. Nor is it their intent to upset the customer.  Rather, they are teachers and they use teaching as a way of differentiation from competition.  We often hear our profession saying “We need to educate our customers.”  There is a big difference.  What we really mean when we say “educate” is convincing people of our way of thinking.  Challengers certainly want to accomplish that same thing, but they see their primary duty as helping clients explore options to help them make the best decision…even if that decision doesn’t necessarily include them.  That may seem altruistic but not really.

Let’s take a common example for this brief article: Direct Disposition.  For someone in their 60’s or 70’s with a large social network it’s a bad idea.  You know it but they don’t because they don’t have the ability to think it through.  But you actually have a responsibility to help them do that.  For someone who is in their 90’s or even over 100 with a non-existent social network, however, it can make sense.  But maybe a better option would be to have a small gathering of survivors and close friends for a goodbye ceremony.  Or, let’s discuss the disposition of ashes (I think the word “cremains” is manipulative…sorry).  When one of my friends tells me they just want their ashes scattered in a favorite spot I always respond that, while that sounds like a good idea, it is often not.  That statement always leads into an exploration of why it is important to formally say goodbye and the suggestion that if they want their ashes scattered they should always keep a portion in case someone wants a permanent resting place later on.  It never fails that they are persuaded to at least think about it more and, most frequently, they see the whole process in a different and more positive light.  My style is not preaching but dialogue around common values like family, legacy and consideration for others.

In the foregoing examples was I being manipulative?  No.  Instead, I was using my expertise to help them make a better decision.   I am never argumentative.  Rather, I use my experience to get them to think and explore.  Years ago, Joyce Newcomer, challenged me in a discussion of receivables collection.  “Alan,” she said, “the mistake funeral directors make is they think people that owe them money still like them.”  Perhaps we make that same mistake in other aspects of our business.  Relationship builders are prone to mistaking being liked for effectiveness.  It is a well established fact among researchers that a satisfied customer no longer correlates with being a repeat customer.

Before I close this week I should bring up an observation my friend, Brad Speaks, once shared with me.  I had asked him how he merchandised his service charge.  He responded with one word: “COURAGE”.  Click here to view the video  Courage: How to Merchandise your Service Charge.  Sorry for the quality but when I did this interview I was just learning.

P.S. Several people made comments about the difficulty in challenging customers in a limited time framework.  Having limited time to overcome resistance may be a challenge.  But, that may also be why the physician metaphor is appropriate.  If we have a broken arm, do we want the physician to take leadership and control and fix it or do we want to have him act like a psychiatrist and sort it all out over several visits.  In all my years in this profession I have been repeatedly told that a good funeral director can identify within five minutes what will be best for a family.  Why not develop that expertise.

But the point should be: Don’t make excuses why something won’t work because what we are doing now isn’t.  Try it.  Who knows? You may have fun.

Tune in next week for part 3 of this series.

Are Funeral Directors “Wired” To Lose In the “New Normal”? Part 1

DeathCare has been losing ground relative to consumers for almost 30 years.  Now comes research that may explain why and what to do about it.

To many observers (myself among them) what we sell seems well on the road to becoming a commodity.  As a means of moving market share, differentiation based on price seems more effective and faster than differentiation on quality of service.  This downward spiral threatens all of us as the loss of margin also leads to loss of value.  The industry reaction to this phenomenon is to overserve customers; but it doesn’t appear this strategy is experiencing widespread success.  At least as far as moving market share or average sale.

I recently was exposed to some non-industry research that I feel might explain the challenge we are failing to adequately address.   It’s conclusions made me wonder if we aren’t wired by our predispositions as caregivers to respond ineffectively to the challenges we are facing.

What Changed?: Funerals are no longer simple

There is little doubt that the funeral and cemetery businesses have become more complex in the last 30 years.  This is true in many ways but none more so than the complexity of our product.  For the most part the days of simply choosing a casket are gone.  We have entered the era of “The Complex Sale”.   I believe it is this single issue that could produce the leverage point we need to begin turning the downward spiral around.  The term complex sale is usually used in the context of B2B selling, but i think it is an appropriate application here as complex sales are defined as follows:

  • they are expensive
  • they have a technical component
  • they involve multiple roles from both seller and buyer sides
  • they require that you build and sell value
  • they include “why buy at all?”, as opposed to “why buy from me?”
  • they involve buyer side resistance
  • They often involve multiple decision makers and a consensus approach
Why we fail:
For, literally, generations it has been believed that the best performing sales people were relationship builders.  It is likely that this was true when products and services were simple.  But in the 1970’s many industries discovered that sales was increasingly more complex.  Investments were made in research and, subsequently, retraining entire sales forces to “Master the Complex Sale.”  Successful Funeral Directors are consummate relationship builders.  In fact, I believe DeathCare in general is a “relationship industry.”   Personally, I love that about it.
But, recent research by the Sales Executive Council across 6,000 sales reps in every major industry uncovered a surprising fact about how personality traits influence effectiveness in a complex selling environment.   They found that personality types tended to cluster into 5 different types.   Among these are Relationship Builders and Challengers.  More interesting yet was the discovery that, in a complex environment, Relationship Builders and Challengers are at opposite ends of a continuum.  Relationship Builders represent only 4% of high performers while Challengers accounted for 54%.
It is easy to confuse the word challenger with a confrontative personality and while there is an element of that, Challengers are no jerks.
Relationship Builder               Challenger
Gets along with others                   Teaches
Is likable                                           Tailors
Generous with time                       Asserts control
In other words Relationship Builders are accommodating and judge their effectiveness by how much they are liked and appreciated.  Challengers adopt a teaching and tailoring style to guide the customer to the best solution.
The Good News:
Challenger skills can be taught.  More to the point they fit better with the new role I have been preaching that funeral directors need to adopt: Expert.  
An expert teaches.  Challengers teach for differentiation.  An expert tailors their solution for each client so that their proposal will resonate.  Finally, they take control of the process because they know so much about their area of expertise they believe they can help the client make a better decision.
The most common metaphor used for the process of mastering the complex sale is that of a physician.  A physician doesn’t give you an array of all he offers for treatment and let you decide.  If he did we might pick an antibiotic to treat cancer so we could avoid the pain of the real solution.  Instead, he carefully explores the patient’s entire history and symptoms and even tests before he makes a recommendation.
In the coming weeks I will get more specific on how you can learn how to be a challenger and stop overserving and start helping your clients.
P.S. Many funeral directors believe they don’t sell.  Hogwash!  Everyone sells every day!  It is the passive selling system that so perfectly fits our relationship builder’s hearts that we cling to with our deathgrip that is preventing us from building what has been for millenia a valuable and meaningful contribution to society.

 

Happy New Year! Here Are a Few of This Year’s Favorite Posts

Here are the year’s top favorites:

a tv ad that will move market share

To Guarantee or Not Guarantee

Preneed Trust Vs. Insurance

Video Interview with Steve Mckee: “When Growth Stalls”

free sites that let you spy on your competitor’s website

10 Reasons to Be Optimistic About DeathCare

The Emperor Has No Clothes

Sometimes A Sharp Stick In The Eye Can Be A Good Thing

Great Advice on Turning Your Business Around

Are You too Proud to Succeed

In the past year the Creedy Commentary has grown by more than 100%.  Thank you.  Next year will feature an expanded venue with expert guest writers.

Do me a favor and email this to your friends and invite them to join.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Sites That Let You Spy on Your Competitors Website

Google adplanner

is a site analyzing any site for those thinking about buying advertising.  I doubt you will find either your or your competitor’s stats as the traffic would be too small. Here two screenshots showing the results for dignitymemorial.com.  Click to enlarge.

 

 

 

 

 

 

 

 

 

 

 

 

 Compete.com

This is my favorite because it tracks smaller activity sites.  It will find your small competitor as well as yourself.  Here are screenshots for Dignitymemorial.com as well as a smaller funeral home in my market with less than a thousand unique visitors a month. Click to enlarge.

 

 

 

 

 

 

 

 

 

 

 

 

 Trafficestimate.com

Like Google Adplanner, this site may not hit smaller sites.  But it gives a ton of helpful information.  Below are three screenshots for dignity memorial.  Note the activity but then note that it lists the keywords the site is targeting and competing sites as well as sites that seem to be associated.  If your competitors site shows up it will show the key word targets.  Of course there are other ways that target this as well if you know where to look. Click to enlarge.

Traffic Estimate

 

 

 

 

 

 

 

 

Key Word Targets

 

 

 

 

 

Sites that compete for keywords

 

 

 

 

 

 

 

 

 

Close affiliate sites

Apparently some people aren’t too proud to use humor…hats off to Schmidt and Bartelt

A week ago I published a post that suggested humor would work in funeral service but expressed doubt anyone would do it. Well, I am grateful to say I was wrong. Congratulations to Schmidt and Bartelt. These ads will work but I do have one suggestion. The “call-to-action” should be stronger. A close something like: “Call Schmidt and Bartelt today to talk about planning on your own terms.”