The funeral home industry in the United States is a multi-billion dollar business. Each year, there are over three million deaths in the US, and the majority of those people are cremated. Funeral homes provide various services to their clients, including transportation of the body, embalming, and funeral planning.
Funeral homes can be very profitable businesses. The average cost of a funeral is between $7,000 and $10,000, and many funeral homes have a markup of 50% or more. As a result, funeral homeowners typically make a salary of $50,000 to $100,000 per year. However, despite having 19,000 funeral homes in the country, the industry is still fairly competitive.
Knowing these trends can help you stay ahead of the competition and make the most of your funeral home business.
Cremation rates are increasing
Cremation is becoming more popular in the US, with the cremation rate rising from 24% in 2010 to 43% in 2016. This trend is expected to continue, as cremation is generally cheaper than a traditional burial.
In addition, many people believe that cremation is more environmentally friendly than a burial. Even carbon-free cremations are offered alongside more creative forms of cremation, such as alkaline hydrolysis. As more people opt for cremation, funeral homes will need to adjust their services and prices accordingly.
If you aren’t offering cremation services, now is the time to start.
Luxury Offers Are on the Rise
The funeral industry is starting to see a trend toward luxury services. This includes offering more personalized and unique services such as custom caskets, urns, and memorials. Another luxury service that’s on the rise is mausoleum burial cemeteries. These cemeteries are becoming increasingly popular in the US as they offer a more luxurious and private burial option.
As the trend toward luxury services grows, funeral homes will need to offer more high-end options to stay competitive. This could include partnering with local businesses to provide custom products or investing in a mausoleum of your own.
As stated earlier, there is also a trend towards eco-friendly funerals, which use sustainable materials and avoid harmful chemicals. Funeral homes that can offer these luxury services will be able to charge a premium price.
People are dying later in life
The average life expectancy in the US is 78 years, which is an all-time high. This trend is driven by advances in medicine and lifestyle changes such as better diet and exercise.
As people live longer, the need for funeral homes increases. But, at the same time, people are putting off making funeral arrangements until later in life. This means that funeral homes need to be prepared to provide services for an older demographic.
This trend also has implications for the type of services offered by funeral homes. For example, many funeral homes are now offering pre-planning services and easy payment plans to make it easier for people to plan their funerals.
The funeral home industry is consolidating
There has been a trend of large funeral home chains buying up smaller funeral homes in recent years.
This trend is likely to continue as the industry becomes more competitive. By consolidating, funeral home chains are able to offer a wider range of services and locations to their clients.
If you are a small funeral home, this trend could be a threat to your business. But, on the other hand, it could also be an opportunity to sell your business to a larger company.
Baby Boomers are retiring
The Baby Boomer generation is beginning to retire, which will have a major impact on the funeral home industry.
As more Baby Boomers retire, there will be a greater need for funeral services. This is because retirees generally have more disposable income than younger people and are more likely to pre-plan their funerals.
Funeral homes need to start marketing to retirees now to take advantage of this trend. This can be done through online advertising, direct mail, or even attending retirement fairs.
Technology is changing the industry
Technology is changing the way people interact with the funeral home industry. For example, many funeral homes now offer online planning tools that allow clients to plan their funerals from the comfort of their own homes.
In addition, technology is also changing the way funeral homes operate. For example, many funeral homes are now using drone technology to deliver flowers and other items to gravesites.
As technology continues to evolve, funeral homes will need to adapt to stay ahead of the curve.
The funeral home industry is changing and evolving, just like any other industry. By understanding the trends, funeral homes can stay ahead of the curve and provide the best possible service to their clients.