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competition

      

What do you mean what did we do? We made them put the wall back up-

I have always been a big fan of Todd Van Beck and his writing and consider him a friend. He was one of the first well known funeral directors to really work hard to bridge the gap between FD's and Cemeterians. The first time I heard him articulate his visioin was in Spokane, Washington sometime in the 1990s and I was impressed.
 
Thats why I was struck by his recent blog post yearning for the protectionist days of yore when one didn't have any casket competition. It reminded me of a union negotiation during the 1980s. The same union representing the cemetery workers also represented the Budweiser brewerey workers. During a break in the talks, the union leader proudly told me a story. 
 
(Think thick New Jersey accent here) "You wouldn't believe what those guys at Budweiser tried to do to us. See the way it works is, two guys rolls the barrels from the Brewery to the loading dock door, then two other guys take the barrels and bring them through the door to the loading dock. Those bastards took down the wall so the first two guys that bring the barrels from the brewery could walk right out onto the loading dock, it was unbelievable! We were gonna lose two jobs." I asked him what they did, "What we did, what do you mean what we did? We made them put the wall back up!"
 
Update to today, the plant is closed. The same thing happenned in Detroit and will happen anywhere else when you try to stop time. You can hold things back only so long and then the pace of change will accelerate to makeup for the time you held it back. Trying to be the sole providor of caskets, or trying to keep anti combination legislation on the books or any of these types of anti competitive (and thus anti consumer) actions will distract you from dealing with the current real situation we face. When your wall of protectionism eventually crumbles, you will be that much further behind the curve and the economic dislocation that occurs as a result will be much more violent and disruptive than it would have been had you allowed consumers to excercise the free choice to which they are surely entitled.
 
Get out there and mix it up in the real marketplace that exists and don't try to create artificial situations that only benefit yourself, I think that's another way to look at serving the public.
 

Why competition is good for funeral homes, cemeteries and their customers

Date Published: 
March, 2006
Original Author: 
Don Price
Greenwood Cemetery, City of Orlando, Orlando, Florida
Original Publication: 
ICFM Magazine, March-April 2006

Ever wish the competition would just disappear?
Well, it's not going to happen, and that's OK, says this municipal cemetery manager, because families like having choices. He suggests you learn to thrive on competition rather than trying to eliminate it.

Sometimes competition seems to bring out the worst in both people and companies, but what is our goal in the cemetery and funeral service profession? Is it to steer families to buy the products and services that will help us and our companies, or is it to help families and give them the options that will better serve them?

I like to believe I'm here to serve families. And believe it or not, families that have been treated in a way that serves their best interests rather than yours are more likely to return and reuse your service-whatever the cost-when the next time of need arises.

Badmouthing others is bad for everyone
Last weekend a family called me to ask about the availability of infant spaces at our cemetery. I told them Greenwood has plenty of spaces in our babyland section and said if they wanted me to, I could meet them later in the afternoon to show them the burial options. Naturally, in true dedicated cemeterian fashion, I didn't mention that when their call came I was on the lake fishing and answering it lost me one of the biggest catches of the morning.

I cleaned up and met the couple at the cemetery. Now, since Greenwood is a stand-alone cemetery and not a combo operation, I deal mainly with land purchases and opening and closing charges. The couple said they had been to a funeral home to make arrangements, and when they asked about getting space at Greenwood, the funeral director was adamant that we were sold out! He urged them to consider another cemetery. I was not surprised, when the couple told me which cemetery he had suggested, that it's one owned by the same company that owns the funeral home.

So here was a family distraught over the loss of an infant being told a "tall tale" by the funeral director. They were furious over the time they ended up wasting checking on cemetery availability because of what they viewed as games being played by a funeral director they had assumed was there to help them in their time of need by looking after their best interests. Do you think what this funeral director did will generate any future business for his firm?

When I contacted the funeral director to ask why he tried to keep the family from looking at Greenwood, his response was, "I lost a 3 percent commission on the cemetery sale." Let's see, using my admittedly very Southern math, his commission on what would have been about a $500 land sale would have been around $15.

If it were me, I would much rather have the family happy with my service and open to coming back to my funeral home in the future than to pocket the $15, make them mad and have them bad-mouthing me all over town.

In another case, a funeral director (one I had recommended) told a family a simple concrete burial container would not meet our requirements and that they had to buy a special vault, at an additional cost to them of several hundred dollars. When the family mentioned this at the burial, I was speechless.

I hate to compare our profession to car sales, but I think it's interesting that car dealerships have found that they are more successful when they all operate in a geographically concentrated area and let the merchandise speak for itself.

In most cities, the dealers locate next to and/or across the street from their competitors. This allows shoppers to easily compare vehicles and make an informed decision based on their needs, desires and budgets. Most of us leave our house with a certain make and model in mind but want to shop around and feel comfortable with our decision about this major purchase.

Bringing the concept back to our profession, funeral service guru Todd Van Beck talks about getting his first job at Heafey & Heafey on Omaha, Nebraska's "mortuary row," where there were 10 funeral homes in a 12-block area, so the idea isn't foreign to funeral service.

Instead of badmouthing the competition, concentrate on highlighting the best of what you offer families. Every funeral home and cemetery offers something unique and different to enhance its service. Some might offer night and weekend services, others a fancy hearse; some give back generously to the community; some showcase their facilities through tours and open houses.

Knocking the competition in an attempt to close a sale simply puts the entire profession in a bad light, and as families become more educated about our profession (something that is getting easier to do in this Internet age) and make their own comparisons, they are left with a bad taste in their mouths if they have been misled.

Our cemetery is one of the only ones left in the area that allows upright memorials. Some families come to us for this reason, while others couldn't care less about having this option.

Our cemetery encompasses over 100 acres and bellows Southern charm, with huge trees hung with Spanish moss and acres of old monuments. Some families prefer a small cemetery, or one with highly manicured lawns.

Our cemetery sits in the heart of downtown Orlando. Some families do not want to fight the traffic to get to the cemetery and would rather have their loved ones interred closer to their neighborhood.

Do any of these reasons for a family not choosing Greenwood bother me? Not one iota. In fact, if you visit our cemetery, I have brochures and business cards from my competitors, both corporate and independent, displayed in the front office.

I am confident that Greenwood offers a unique and special burial place that many families will willingly choose. I would much rather have a family make an informed decision to use Greenwood than "settle" because they felt they had no choice. A family that freely chooses your funeral home or cemetery tends to be a more understanding client in those cases when things don't go exactly as planned.

Get to know the competition
When we offer the public fun and educational programs, I extend an offer to my competition to attend. Why? Maybe they can learn something that will enhance the level of service they offer their families. And why not let them know firsthand what we are doing? If they don't know, they might make it up, so why not make sure they have the straight story?

Our municipal cemetery averages about 12 burials a week and has no preneed or telemarketing sales program. We do no print advertising. Everybody who walks through our gates wants to be here, has family here or has gotten a recommendation to use us from someone else.

In October, our local newspaper ran a story announcing the opening of 220 new spaces at Greenwood. They sold out in six hours. The demand for these spaces was humbling. There are cemeteries in the area that offer extended payment plans, insurance assignments, free coffee and a good looking office staff. We offered a very simple financial plan—one payment, no interest—and still families were lined up to buy.

What you offer to families year round is what entices them to your funeral home or cemetery, not what the glossy new ad states on Sunday. Sure, some families are drawn to your location due to slick advertising, but wouldn't your bottom line be better off if it were based on return business generated by how well you meet your families' needs?

Embrace the competition, show off your accomplishments and make decisions that enhance your level of service. Speak with your competitors; get to know them. Sell yourself and your business—don't knock the competition. Strive to create new and exciting programs; be a leader in your community. Offer programs designed to educate families so they can decide what they want, not to maneuver them into making the purchases you want.

These are the things families will remember.

Code: 
A1348
Linda Budzinski's picture

Want to Spy on Your Competitors?

Just finished watching a presentation by Robin Heppell on "How to Spy on Your Funeral Competitors."

Well worth the 18 minutes, and it's free!

A couple of my reactions:

  • Rob extols the virtues of using Firefox over Internet Explorer. Yea! I couldn't agree more. Nor could my husband, as he so adamantly explained in this post.
  • Rob repeatedly advises viewers to use the information he provides responsibly. I'll echo that.
  • The Quarkbase.com thingy Rob shows us how to use is very, very cool. I looked up iccfa.com on it, and was pleased to find that our rankings are skyrocketing (which is probably due in large part to the fact that the iccfa.com site is new vs. our former icfa.org site). However, I was perplexed to find that our site language is listed as "Croatian." Weird.

Want to learn lots of cool stuff about your own site and your competitors'? Check out Rob's video at: http://www.funeralfuturist.com/how-to-spy-funeral-competitor/

Solicitation

Developed in 1998 by the Government and Legal Affairs Task Force of the
International Cemetery and Funeral Association

 

BACKGROUND

Preneed sellers of funeral and cemetery merchandise and services and interment rights have the right to disseminate truthful information about these items through print and electronic advertising, direct mail, telemarketing, and other lawful forms of communication. Consumers should be protected from fraudulent or misleading solicitation techniques. However, restrictions on truthful solicitation can inhibit competition, making it difficult for consumers to comparison shop and learn about products, services, and pricing. To effectively reconcile consumer and business interests, laws should target deceptive and abusive sales practices without unfairly encroaching on commercial free speech or unreasonably encumbering the activities of legitimate businesses.

In particular, telemarketing has evolved into an integral part of solicitation in many industries. However, the use of telemarketing in the preneed sale of merchandise and services is distinguished from its use in other industries because these items are not "sold" over the telephone. Instead, preneed sellers use telemarketing to ascertain whether a potential purchaser has an interest in setting an appointment at a mutually agreeable time for an in-person sales presentation. Since no "sale" is consummated or even attempted over the telephone, this practice has been exempted under most federal and state laws that govern telemarketing sales.[Note: Since 2003, the National Do Not Call Registry, enforced by the Federal Trade Commission and by the Federal Communications Comission, prohibits telemarketing calls to numbers placed on the Do Not Call Registry, in the absence of limited exceptions.]

At the national level, unfair and deceptive forms of solicitation are regulated by the Federal Communications Commission and the Federal Trade Commission ("FTC"). The FTC "Cooling-Off Rule" further protects the consumer from high pressure sales tactics by providing a three-day right of cancellation for sales occurring anywhere other than the seller's business office.

Additionally, the FTC "Funeral Rule" requires providers, as determined by the "Funeral Rule," to furnish price information on request by telephone, written price lists for in-person inquiries, and other affirmative disclosures.

However, there exist certain instances in which the solicitation of funeral and cemetery merchandise and services and interment rights should be prohibited due to the disadvantaged mental or physical state of the consumer or his/her emotional vulnerability.

PRINCIPLES

  1. Preneed solicitation should be permitted with regulatory safeguards against fraudulent claims and untruthful representations.
     
  2. No seller of preneed merchandise or services or interment rights should knowingly contact a person where death is impending or any patient in a hospital, hospice, convalescent or nursing home, rest home, charitable home for the aged, infirmary, immediate care facility for the mentally retarded, or other health care facility, for the purpose of soliciting or inducing such patient to enter into a prepaid contract unless the seller has received a request from the patient, a family member, or the patient's legal representative to do so prior to the contact.