I have been reflecting on the ongoing debate about preneed – whether it is a net plus or minus for funeral homes – and have concluded that we are all talking about the wrong thing. It is a distraction from the real issue which is: the accelerating erosion of revenue and margins in funeral service. I fear the funeral profession is fast approaching a crisis stage, and the conversation about preneed is akin to rearranging the deck chairs on the Titanic. Let me quantify reality:
I could go on, but I don't want to discourage or frighten. My point is this: The profession has a lot more to talk about than the merits or demerits of preneed.
I repeat what I said in The Great Preneed Debate at NFDA's leadership conference seven years ago: "Funeral Service has lost too much ground already and the debate about preneed is both pointless and distracting." And here is why: The consequence of this spurious debate is that funeral service does nothing. And there is a cost to doing nothing – a very expensive cost. According to quantifiable data the profession is bleeding. The problem is not that any one is doing anything wrong. They are doing nothing --- and that is what is wrong!
Preneed has simply become a scapegoat in a profession that is bewildered about how to respond to the real issue long-term. While some practitioners may not like preneed, they know it will continue to be a vital part of the service they render to their communities and, properly managed, will have a significant competitive benefit.
I created a CD for a study group I attend (Death Care Management Council) regarding preneed that allows funeral homes to individually quantify the cost of doing nothing compared with the cost of doing something. It's a real eye-opener. The annual cost of doing nothing for a 100-call funeral home after ten years is well over $100,000, including the cost of any preneed shortfalls.
So let's get rid of the distractions and talk about the real issues of declining funeral sales and profit margins, and of funeral homes' future livelihood. To help underscore the point, I've included the following adaptation of Terry Kettering's poem, "Elephant in the Room," which dramatizes what I believe many leading funeral directors are feeling:
There's an Elephant in the room.
It is large and squatting, so it is hard to get around it.
Yet we squeeze by with "Hi, how ya doin'" and "I'm fine..."
We blame our associations.
We blame our suppliers.
We blame preneed.
We blame the media.
We blame the consolidators.
We blame our staff.
We talk about Receptions & Meaningful Funerals.
We talk about our competitor.
We talk about politics.
We are thinking about the Elephant as we talk.
We all know it is there.
It is constantly on our minds.
It has hurt us all.
We talk about everything but...
The Elephant.
Oh, please, let's talk about the Elephant in the room.
Our livelihood,
Everyone's livelihood,
Is at stake!
We need to talk about the Elephant,
We must talk about the Elephant...
Before it is too late.
Can I say "I'm worried about my future" and not have you look away:
For if I cannot,
Then you are leaving me alone...
In a room...
With an Elephant!
Alan Creedy is the President of Trust 100, a third-party marketing firm from Cary, N.C., that has helped hundreds of funeral homes boost preneed sales. You can reach Alan at adcreedy@trust100.com or 800-792-0402.