Each year the Cremation College at the ICCFA University features a session on the financial realities of today’s death care industry led by nationally recognized funeral business consultant David Nixon.  David has been a professor at the University for many years and does an extraordinary job of sharing his knowledge of today’s economic picture, threats and opportunities, and pricing strategies for funeral establishments to address the growing cremation market.

Without doubt, David knows his numbers.  He has worked exclusively with independent funeral home owners since 1979 focusing on pricing, profit and planning.  He has written numerous articles on funeral service including his “Listening to Cremation” annual cremation study now in its 17^th year. 

One of the issues that David’s clients continually face is whether to serve “cheap” cremations or focus on the well-paying clients families who value full service.  In David’s 31 years of working with funeral home owners and especially recently, he has encountered funeral directors who ask about the effect of losing some direct cremation calls because they are not the cheapest provider in their area.  David has responded by providing funeral professionals with an insight into the numbers game and the potential impact on their business income through a Direct Cremation Break-Even Analysis.   

The Direct Cremation Break-Even Analysis shows you a scenario where one funeral home looks at raising their direct cremation fee.  The chart reveals said funeral home could lose 50% of its Direct Cremation calls and still break-even. Take some time and review David’s Direct Cremation Break-Even Analysis in the Tools Section of the Cremation Coaching Center.

www.iccfa.com/cremation/tools/break-evenanalysis

David is quick to point out that simply raising your prices is not the answer.  One needs to offer more value via raising standards, such as offering a private time to the family to say goodbye.  It is a known fact that people will pay more when they not only see that they are getting more, but they find value in the company’s services. 

Are you charging enough for your direct cremations?  Is the value you provide worthy of the increase?

For more information, you can contact David at 888-541-9560 or by e-mail at davidn@nixonconsulting.com.

ICCFA College of Cremation Services students gather around Professor David Nixon (third from left) after his outstanding presentation.