Simply as a member of a community I was again reminded this past week that transformation, and especially technology transformation, continues to happen at a rapid pace in the Death Care profession.  Last week I intended to go to a visitation of a deceased gentlemen who for the most part of my funeral director career volunteered as a caretaker of a small cemetery in our greater community.

The gentleman was a very nice person, humble as can be, and everytime I would see him in the community he was always friendly and would inquire as to the well-being and interests of my children and wife.  Simpy put, I wanted to make sure that I went to his visitation to pay the respect to him that he deserved and wanted to share these comments with this wife and family.

Well, I woke up Sunday morning and by habit checked the obituaries of the funeral home I used to own.  I then realized that I missed the gentleman’s visitation and funeral.  It happens . . .  But the reality of that is I did not get to visit with the family in-person as I believed I should.

At that point in time I had to look at my “next best option” to communicate my condolences and thoughts to the family.  Luckily, as most funeral homes have now, my old funeral home allows “messages” to the family on the decedent’s obituary page.

That’s what I did . . . and appreciate that the funeral home had that type of simple technology available to me.  And, I’m glad that they had kept up on that technology so I had a “next best option” to communicate with the family.

Tom Anderson
Funeral Director Daily

More Realities —  It’s interesting because on Sunday at church I also saw the President of a local bank I will call ABC Bank.  ABC Bank was sold to XYZ Bank last summer and the transformation of accounts was completed in the last couple of weeks.  ABC Bank was my mom’s historical bank and I’ve been a client there since 1974 when as a 16-year old my mom brought me there to open a checking account  — so that’s a client relationship of over 50 years.

ABC Bank was not my business bank and is not my main bank today, but I have retained that personal checking account to pay monthly bills and have automatic withdrawals taken from it.  In that regard, it has been a foundation of my personal financial bill-paying system my entire adult life.   When I think of my ties to that bank — automatic withdrawals to savings accounts built my retirement and paid for my children’s college education from it.  There’s a lot of history and sentiment that I have with that bank.

However, when I saw the bank president at church my thought process was that he will soon be the president of the bank where I “used to” have a checking account.

You see here is what happened just this month. . . . I use an “external” bank transfer from my main bank to ABC Bank once per month to pay those bills and have money in the account for automatic withdrawals.  It was done overnight — i.e. I initiated the transfer on Wednesday and the money was in the account ready to pay bills on Thursday.

Well, once set up with the new XYZ Bank system I initiated the “external” transfer on a Wednesday and the money shows it is out of my regular bank account that night.  However, XYZ Bank does not acknowledge the receipt of that transfer for five days  —  making my money unavailable for five days.

That is maybe not the biggest issue in the world to worry about. . .so the money gets there 5 days later.  One answer is to initiate the transfer five days earlier and everything is fine.  Or, another thing to do is to go online and tell my automatic withdrawal accounts to take that money every month out of my main bank account instead of XYZ Bank and then simply close the XYZ Bank account.

The point is, either through a policy decision or the lack of technology to process “external” bank transfers in what I consider a timely fashion, XYZ Bank is now going to lose a customer that they have had for over 50 years.

Why that should matter to you —  Transformation, especially among technology is happening extremely fast in the Death Care world.  It’s almost so fast that there is a “dizzying” effect on all of it.  I was happy that I was able to send a condolence to a family whose visitation and funeral I missed  —  and, quite frankly, I expected to be able to do that from the funeral home website.

However, in just the last couple of months I’ve received information on technology improvements such as preneed prompts from online funerals, obituary writers for families from funeral home websites, and the ability to offer recorded services online with no fear of music license offenses.

My guess is that your families expect all of that and more.  From your website can a consumer:

• Get a mobile phone calendar reminder about attending a funeral or visitation so you don’t miss one like I did?
• Check their preneed balance?
• Pay a bill?
• Plan their services including knowing the price?
• Buy a preneed plan?

We live in a day of a new consumer mindset.  I believe that if a consumer can’t find the information that they want on your website or if your reaction time is slow or late, you will risk losing that consumer forever.

It’s happening all the time. . . .Saturday night of last week I was on my own for dinner as my wife was gone.  It was a great day watching college football and college basketball for me.  I decided to order a pizza to be picked up and brought home.  I have three choices within two miles of my home — Caseys, Dominos, and Pizza Hut.  What was my deciding feature for which one I purchased Saturday night? . . . . . It was the amount of time from order to ready for pickup — not price, not flavor, but reaction time.  And, if a pizza restaurant didn’t list that on their website I just disregarded them.  Technology is transforming pizza sales, too!!!

Final Thoughts — Transformation is happening. . . and, it is happening everywhere.  The consumer mindset is different and that consumer really wants answers when they search.  And convenience really matters — it is almost hard for me to believe that I will admit to ordering my evening meal almost simply on convenience.

This past week, WalMart and Target reported 3Q2025 results.  They were strikingly different — Target’s sales declined 1.6% and WalMart’s sales increased 5.8%. . . .There might be some argument about “what type” of customers shop at each store and how the growing “K-Economy” has affected those customers.

However, WalMart CEO John David Rainey thinks it is more than just that.  Remember ten years ago when you could first make a WalMart grocery order online and have it delivered the next day? . . . .Here’s what Rainey said about that, “Walmart — by way of 4,700-plus US stores — is regularly delivering orders to people’s houses in less than 30 minutes. . . . Walmart has leveraged its mighty financial position to invest aggressively in its supply chain, allowing it to be a more trusted destination for shoppers than Target.”

My suggestion. . . . Make the investments necessary to turn that “new consumer” into your client.  And, you need somebody in your trusted corner who understands the technology as well as someone who relies on that technology to be fair, but critical and honest, in their reviews of what you are offering your community.

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“A servant’s attitude guided by Christ leads to a significant life”

I operated my funeral home from 1980 to 2013 and in that time period we increased prices every year.  I always looked for an average of about 3% but was able to increase my cremation prices more than that as cremation was growing in popularity.  And, it seemed that our price increases also increased margins as the inflationary rate of our costs, on average, were less than we increased prices.

As our number of services increased, so did our average margins, and profitability also did.  There is no doubt that as you set your budgets for 2026 growing margins may be somewhat difficult to realize when you consider the costs of your goods and services to operate your funeral home are continually rising.  According to Gemini artificial intelligence the average annual rate of inflation from 2000 to 2020 was about 2.2% annually. . . .meaning a 3% rise in prices would theoretically increase margins.  However, when asked the average inflation rate from 2020 to 2025 Gemini AI aswered “approximately 4.53%” to the same question. . . . .  That would make a 3% average increase in prices result in a loss of margin per case.

And of course, the traditional funeral home business is somewhat unique in that the choice of use and services consumers use is a one-time decision for each person.  So, if your highest priced and highest margin services are increased too much one ramification is that a consumer may choose a different service — such as direct cremation — to move their price point downward. . . . and with it, lower your margin on that case.  In the reality of this dynamic, setting price-points for your various services can be a difficult dance.

And at least for the short period of time I don’t see these inflationary costs going away anytime soon.  As you can read in this notice from the Bureau of Labor Statistics “The all items index rose 2.9 percent for the 12 months ending August, after rising 2.7 percent over the 12 months ending July.”  That means that in spite of our hopes of it receding, inflation was at a higher rate in August than it was in July.

I’ve also noticed in some articles, that I’ve linked below, predictions that other cost items will increase as well.  Items such as employer health care plans and commerical property insurance are expected to become more expensive moving forward.  Here’s some quotes from those articles:

 

• The total health benefit cost per employee is expected to rise 6.5% on average in 2026 — the highest increase since 2010 — even after accounting for planned cost-reduction measures. 

 

• Employers estimated that plan cost would increase by nearly 9%, on average, if they took no action to lower cost. 

 

• Based on the projections, 2026 will be the fourth consecutive year of elevated health benefit cost growth following a decade of moderate annual increases averaging only about 3%. 

 

• (a survey showed) 59% of employers will make cost-cutting changes to their plans in 2026 — up from 48% making changes in 2025 and 44% in 2024. Generally, these involve raising deductibles and other cost-sharing provisions, which can lead to higher out-of-pocket costs for plan members when they seek care.

 

• Employees are likely to see higher costs for their health coverage in 2026. 

 

• Employees could expect their paycheck deductions for health coverage to rise by about 6% to 7% on average. At the same time, because many employers will raise deductibles and copays to limit premium increases, higher out-of-pocket spending may also be a factor for some employees.  

 

• Commercial insurance rates in the US continued their upward trajectory in the first quarter of 2025, with the composite rate rising by 3%.  Umbrella and excess liability coverage, along with commercial auto, saw the most significant increases, both climbing by 6.7%. 

 

• Commercial property insurance premiums rose by 3.6%, with business interruption coverage seeing a similar increase of 3.6%.

 

Related Articles:

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  I would suggest that the least favorite responsibility that I had in operating a small business took place every October when I received the employee health insurance quotes from our providers and had to make a decision on how we would handle employee health insurance for the next year.

I also knew what I would take for insurance if I was making the decision simply for my family. However, in a small business every employee has a different situation and trying to make a decision that could please all of them was virtually impossible.  I don’t envy any of you having to make that decision.

And, the decision brings other decisions that are also difficult to make.  For instance, if you pick a plan that is quite a bit more expensive than the plan you had for the calendar year 2025 then you also have to figure the costs into your prices and try to figure out what the increased prices may do to your selected product mix (i.e. burial/cremation).

It’s a delicate balance between providing the best situation for your team members while also understanding that your fixed costs drive your price points and that the price points for differing types of services make a big impact on not only if consumers will use your firm but what services they will select.

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“A servant’s attitude guided by Christ leads to a significant life”

April 4, 2025

Losing a loved one is an emotional and challenging time, and navigating the funeral process can feel overwhelming. Whether it’s your first time making funeral arrangements or you’re unsure about certain aspects of the process, it’s natural to have many questions. Understanding the typical procedures and options available can help ease the burden during this difficult time. Here are some of the most frequently asked funeral questions and their answers to guide you through the process. 1. What is the difference between a funeral and a memorial service? A funeral typically involves a ceremony held with the body of the deceased present, either before or during burial or cremation. It often includes a viewing or wake, where family and friends can pay their respects. A memorial service , on the other hand, takes place after the body has been buried or cremated and does not involve the presence of the body. Memorial services may be held in various settings, such as homes, churches, or other venues, and can be personalized to reflect the life of the deceased. 2. What is embalming, and is it required? Embalming is a process that involves preserving the body to delay decomposition, usually for viewing purposes. It is not legally required in most places but may be necessary if the body is to be displayed at a public service or transported over long distances. In cases where there will be no viewing, embalming is typically not needed. However, certain states or countries may have regulations about embalming or the timing of burial. It’s important to check with the funeral home to determine what’s required in your area. 3. How much does a funeral cost? The cost of a funeral can vary greatly depending on factors like location, the type of service, and the funeral home you choose. There are options to help manage funeral expenses, such as cremation (which can be less expensive than burial), choosing a less elaborate service, or purchasing a funeral plan in advance. 4. What is cremation, and how does it differ from burial? Cremation involves the process of reducing the body to ashes. Many people choose cremation for its simplicity, lower cost, and flexibility in how the ashes can be kept, scattered, or interred. Some people opt for a cremation memorial service, where the ashes are present but there is no body. Burial , on the other hand, involves placing the body in a casket and then burying it in a cemetery. This option may include the purchase of a grave plot, headstone, and other related services. The choice between cremation and burial depends on personal, cultural, and religious preferences. 5. What are the steps in planning a funeral? Planning a funeral typically involves the following steps: Notify family and friends : Reach out to close family and friends and inform them of the passing. Choose a funeral home : Select a funeral home to help with arrangements, including embalming (if applicable), obtaining necessary permits, and coordinating transportation. Select the type of service : Decide on whether you want a funeral, memorial, or graveside service. You’ll also need to choose the location and any religious or cultural elements to incorporate. Choose a casket or urn : Select a casket for burial or an urn for cremation. There are many styles and price ranges to choose from. Plan the ceremony : Work with the funeral director to plan the service, including music, readings, eulogies, and floral arrangements. Arrange for transportation : The funeral home will coordinate the transportation of the body to the service and burial or cremation site. 6. Should I pre-plan a funeral? Pre-planning a funeral is a personal choice. Many people choose to pre-plan to relieve their loved ones of the burden of making arrangements during a time of grief. Pre-planning allows you to specify your wishes for the service, casket, burial, and other aspects of the funeral, ensuring your desires are respected. Additionally, pre-paying for a funeral can help protect your family from rising costs in the future. However, it’s important to carefully consider pre-planning options, as funeral costs can vary, and you’ll want to ensure that the plan is flexible and fully understood by the family members who will carry out your wishes. 7. What are the options for scattering ashes? If you choose cremation, there are many options for what to do with the ashes: Scattering : Many people choose to scatter the ashes in a location that had significance to the deceased, such as a favorite park, beach, or nature spot. Keepsake urns : Some families choose to keep a portion of the ashes in a special urn or piece of jewelry. Interment : Ashes can be interred in a family plot or at a cemetery, either in a niche or within a memorial garden. Other creative options : There are many creative options for commemorating the deceased, including turning ashes into diamonds or using them to create a memorial reef. 8. What is a death certificate, and why is it important? A death certificate is an official document issued by a governmental authority that confirms the death of a person. It is essential for handling legal and financial matters, such as settling the deceased’s estate, claiming life insurance, and closing accounts. The funeral home typically assists in obtaining several copies of the death certificate. 9. Can I personalize a funeral service? Absolutely! Many families choose to personalize the funeral service to reflect the deceased’s personality, passions, or hobbies. You can incorporate meaningful music, photos, special readings, or even display personal items that were important to the deceased. The funeral director can help guide you through creative options for personalization. 10. What should I do if I can’t attend the funeral? If you’re unable to attend the funeral in person, consider sending flowers, a sympathy card, or making a charitable donation in the deceased’s honor. If the family holds a memorial service, they may also offer the option to participate virtually, such as through a livestream. It’s always thoughtful to express your condolences in any way possible. Funeral planning can be complex, but understanding the answers to these frequently asked questions can help make the process easier to navigate. Whether you are arranging a funeral for a loved one or pre-planning your own, it’s important to take the time to make informed decisions. By doing so, you can create a meaningful, respectful ceremony that honors the life and memory of the deceased, while providing comfort to those who are grieving.