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Dispositions and RevenuesPerhaps the most striking change in

today’s funeral practices is the dispo-sition families are choosing for thebodies of their deceased. Not only ispersonal taste in traditional funeralmusic changing, it is clear that theburial practice itself is, too – andtaking its place is cremation.According to the Cremation Society ofNorth America, in 1960, cremationaccounted for just 3.6 percent of finaldispositions in the United States.Today, it is close to a whopping 42percent and still growing. This may bethe most significant change that thefuneral industry has undergone ingenerations.

Since the average funeral homegenerates significantly less revenuefrom cremations compared to conven-tional burials, the advancingcremation rate is causing concern inthe death-care industry. A quantifi-cation figure, promulgated by

prominent industry consultant DavidNixon, is referred to as “the 40percent factor.” What it states is thatfor the past several years, the averagecremation sale produced just 40percent of the revenue of a burial sale.Obviously, this dictates a similar dropin profitability, and analysis of thisilluminates some sobering long-termeffects. The bottom line: For manyfuneral homes, this resultant loss ofincome is unsustainable. It’s come tothe point where some funeral directorsare considering cremations break-evenventures with counter-balancingprofits coming from traditionalburials. “Unsustainable” is the correctanalysis, and the death-care industry islooking for solutions.

The Need to Shift the ParadigmLet’s examine this revenue dilemma

a little closer. Basically, at the heart ofthe 40 percent factor is the lack of acasket sale. Funeral professionals know

that the traditional profitcenter in most funerals isthe casket. The profitfrom this sale allowsdirectors to offer many ofthe other funeral services(transportation, funeralhome use, attendants, etc.)closer to cost. Funeraldirectors will tell you thatthis is “funeral homeeconomics 101” and itkeeps the prices of

funerals to the public reasonable. Theproblem is that this traditionaleconomic model casts a shadow overcremation sales and, for some directors,outright vilifies it.

Fortunately, the shift in economicsdue to cremation isn’t lost on the majorfuneral product companies. Most nowoffer a wide variety of cremationproducts and supplies; all of whichinclude excellent margins. Oddlyenough, though, while most funeraldirectors are aware of a cremationrevenue dilemma, many seem to beslow adopters of the very products thatare designed to help solve the problem.Compounding this is the reluctance ofmany directors to proactively commu-nicate the broad range of cremationproducts available to their clients. Thisis doubly self-defeating; if familiesarranging funerals don’t know aboutthe very products they need and maypurchase, then potential sales are lost.

The first company to take this

52 American Funeral Director • August 2010

CREMATIONB Y T H O M A S Y O U N G

Today in the United States, baby boomers are by far the largest consumers ofdeath-care services and products – and, true to form, they are doing thingsdifferently. For example, as any death-care professional can relate to, funeralservices today focus less on the loss of the deceased and more on celebratingthe deceased’s life by reflecting on the their vocation, passions and interests.During wakes and services, dark “funeral” music is out; lively jazz, pop and rockmusic are in. Today there are actual third-party funeral planners that orchestrateupbeat funeral ceremonies while coordinating with traditional funeral homestaff. Yes, boomers downplay the way things were done in the past and dothings the way that makes sense to them now.

Shifting the Paradigm selling premium cremation products

Pg. 52 Cremation (Young):Pg. 00 Ben Franklin 7/6/10 5:37 PM Page 52

You’d be surprised how many memories it can hold.Beyond protecting a loved one’s remains, a Wilbert MemoryCapsuleTM urn vault can act as a time capsule that preserves cherished symbols of remembrance. It can also serve as a beautiful, personalized centerpiece of a graveside ritual or ceremony that continues the funeral process.

So the next time a cremation family approaches you, welcome your opportunity to offer a full-service memorial that says an appropriate and heartfelt good-bye.

For more information about our cremation products and services, contact your local Wilbert Licensee.

Wilbert, the Wilbert script logo, “Uncompromised service. Concrete solutions”, MemoryCapsule, and WilbertWay are trademarks, service marks or registered trademarks of Wilbert Funeral Services, Inc.© Copyright 2010 by Wilbert Funeral Services, Inc. All rights reserved. ADV-10021009 AFD-AUG10



concept past conjecture and intoquantification was Batesville CasketCo. At the 2008 CANA convention inMontreal, Canada, Nectar Remirez,director of sales at Options byBatesville, presented the results of aprofessional survey that polled 1,250consumers about “the knowledge theyhad received from funeral professionalsduring the funeral planning process.”Here are just some of the results:

• A staggering 59 percent of thosepolled said they were unaware of theexistence of cremation jewelry to holdthe remains of loved ones.

• Forty-eight percent responded thatthey were unaware of the full selectionof urns available.

• Thirty-four percent were unawareof the possibility of product engraving.

• Twenty-two percent didn’t realizethat services for burial of a loved one’scremation remains was even an option.

The message from this report is clear:The major funeral product companies

are presenting plenty of cremationrevenue opportunities to the death-careindustry, but these options are not oftenbeing presented to families of thedeceased.

Focusing on Additional RevenueForward-thinking funeral directors

are the exception to this. Some timeago they recognized the cremationrevenue quandary and embraced thechallenge. The first step was to stopthinking about cremation dispositionsas break-even propositions – cremationcustomers need to add to the bottomline, too. The second step is to under-stand that the sales of cremationproducts follow the “good-better-best”paradigm just like casket and othersales often do. As any business schoolprofessor will pontificate, there willalways be customers at every buyinglevel, and a salesperson’s job is toidentify a potential customer’s approx-imate level and appropriately offer

products and services for him or her.That being said, many funeral profes-

sionals seem reluctant to move up thespectrum. This is probably due to a fearof being accused of overselling “duringan emotional time.” The safestapproach is to offer just the value-oriented goods and services and leave itat that. The problem with this, ofcourse, is that many families thatwould want higher-end products andservices will never choose them if theydon’t even know they exist! Here’s anew way to look at this: Premiumproducts can satisfy a real need byaddressing new personal tastes inmemorialization, and the sale of suchproducts is good for both the familiesof the deceased and the funeral home.

Premium Cremation ProductsLet’s start with urns. The process of

cremation converts a dead body into itsbasic elements and gases via inciner-ation. The residue is some 4 to 5


pounds of ashes and bone fragmentsthat are usually ground in specialprocessors until it resembles a fine graysand. After processing, the remains aretypically delivered to the funeraldirector in inexpensive, paper-basedcontainers or tins. Most directors willthen suggest to the family that theypurchase a more dignified container forpublic presentation. While most funeralhomes carry a selection of affordableurns, every family should know thatpremium-quality, stunningly beautifulurns are also available. Most of themajor funeral products companies offerthese high-end urns. MatthewsInternational’s Cremation Division, forexample, offers urns crafted fromcloisonné, brass, bronze, finehardwoods and marble. The Optionsby Batesville division offers a similararray supplemented with an industry-leading collection of appliqués,medallions and engraving personal-ization options. Aurora, Kelco and

others also have wonderful collections. Another option that every family

should be presented with is keepsakejewelry. Also referred to as cremationjewelry, keepsake jewelry basicallyconsists of pendants, lockets andbracelets. All have hidden compart-ments for the insertion of a smallamount of cremated remains.Keepsake jewelry follows a centuries-

old tradition of keeping a mementoof a loved one, often a hair clippingor a piece of clothing, in a locket orother piece of jewelry. Joni Cullen ofMadelyn Co. explains the appeal,“Having cremated remains, hair orother memorials of a loved oneencased in jewelry is a very powerfulway to feel that person’s presenceand companionship. We find this

55American Funeral Director • August 2010

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feeling is quite universal andcompelling for many families.”

Keepsake jewelry sales often comein multiples. There is rarely asituation where a family will wantjust one member to have a piece ofkeepsake jewelry. It is far morecommon to have multiple familymembers buying at once. It is goodand proper sales communication tobring these points up for discussionwith families.

A company new to death care,Legendary Timepieces, has developeda new remembrance productcategory with a series of keepsakewristwatches. These fine-qualitywatches look like stylish timepieceson the outside, yet they havecremation remains capsules hiddeninside. On the rear of the watches is abrushed stainless cover that familiescan discreetly personalize withcustom engraving. The watches aredesigned to be easily filled on-site.

And then there is statuary. Severalof the established funeral productcompanies offer absolutely stunningstatuary urns for the memorializationof the deceased. For example,Options by Batesville offers manypieces from its Statuary ArtCollection. These statuary urns arebeautiful works of art that allow oneto seal cremated remains inside.There are statues of horses, wildlife,replicas of famous statuary and othericons crafted from bronze, brass,stone and acrylic substrates. All ofthese are genuine heirloom qualityand would undoubtedly be cherishedby families for generations.

For families that have a taste forthe unconventional, there are plentyof cremation options for them. Let’sstart with trees. Options by Batesvilleoffers a truly unique product withSpiritree. Spiritree is an actual treeseedling encased in a speciallydesigned container. What makes aSpiritree special is that one can addcremated remains to the organicgrowing material, and the residualcarbon from the deceased actuallybecomes part of growing tree.

We would be remiss if we didn’ttalk about cremation caskets.



Cremation caskets are special casketsmade entirely of materials thatdegrade easily. This is quite unliketraditional caskets, many of whichare metal based and designed to lastfor some time. Cremation caskets aredesigned for insertion intocommercial cremators for environ-mentally friendly burials or otherdispositions. Batesville and Auroraoffer cremation caskets that rangefrom inexpensive, simple woodenboxes to robust solid hardwoodmodels and all are designed todegrade. For green funerals,Matthews International offershandsome cremation caskets that areconstructed from a variety ofrecycled materials. For example, thecasket bodies use recycled sawdustand cardboard, the pillows andbedding are made of recycled cottonand all finishing stains and adhesivesare water-based. Cremation casketsare also available from Aurora, Kelcoand many other death-care productproviders.

The New MantraRegardless if it is the death-care

industry or any other business,management strategists tell us thatchange is inevitable and will alwayspresent opportunities as well asthreats. The popular business book“Who Moved My Cheese” bySpencer Johnson, M.D., examinesthis concept in allegorical terms.Using maze-running mice asmetaphors for businesses, Dr.Johnson’s book illustrates that thosewho “fail to change are likely tofail.” And for the death-care industry,experts would agree that the conceptapplies more strongly than ever.

The mantra then is seize the oppor-tunity that cremations represent andmake them a solid, profitable part ofyour business. As mentioned before,you have lots of help with yoursuppliers and product companies.They have put a great deal of timeand effort into programs andproducts to make your businessprosper in the future. All it takes isan open mind and a willingness tochange. •

57American Funeral Director • August 2010

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