When someone shares with you something of value, you have an obligation to share it with others.
Tuesday 14 October 2008
Funeral Industry Bucks Economic Downturn
Business is holding steady for the U.S. funeral industry as consumers shrug off worries about the economy to give their loved ones a costly send-off. PDF
ORLANDO, Florida (Reuters) - Business is holding steady for the U.S. funeral industry as consumers shrug off worries about the economy to give their loved ones a costly send-off.
“Everybody’s affected by the economy. But people die. They all go to room temperature,” said Bob Hanson, who sells pre-paid funeral insurance for an Idaho company and spoke on Monday on the sidelines of a National Funeral Directors Association meeting in Orlando.
According to the association, funeral services are an $11 billion industry in the United States. And business, actuarially at least, is on track for an upswing.
The association projects the U.S. death rate will increase from eight people per thousand in 2007 to 9.3 people per thousand in 2020 and 10.9 per thousand in 2040, as baby boomers die off in growing numbers.
Underpinning future growth, spokeswoman Jessica Koth said the industry doesn’t follow typical consumer spending patterns.
“People don’t borrow from the 401k to buy groceries or gas,” Koth said, referring to retirement savings accounts. “This is a major life event, like a wedding, so people are willing to borrow from their 401k or cash in that life insurance.”
In more cases than not, funeral directors and suppliers at this week’s meeting told Reuters that business is holding steady, and even growing for some niche products.
Fortress Mausoleums’ cast-stone, above-ground tombs range in price from $5,000 to $15,000, but the $15,000, two-person model is the most popular and still selling well.
“Our business is booming better than ever. It’s a true story,” said Fortress co-owner Don Magallanes.
Andy Lopez of Affinity Caskets sells caskets for military veterans, and he said his company has kept busy meeting the needs of World War Two veterans.
“When it comes to the military service, if the family understands the legacy that is there, the pride, the sacrifice, cost is almost never an issue,” Lopez said.
Traditional suppliers like Dick Stein, national sales director for Newman Bros, maker of bronze markers, urns and other grave monuments, and Larry Stuart, owner of Advanced Crematory Technology, both said business is on par with last year.
CASKETS WITH TEAM LOGO
Filling the void for branded funeral merchandise, Eternal Image last year began selling the official caskets and urns of Major League Baseball teams.
They also offer caskets and urns with the insignia of several universities, including Purdue, Texas Tech and the U.S. Military Academy at West Point. Products branded with the stamp of the Vatican library, the American Kennel Association, the Cat Fancier’s Association and the Star Trek television and movie series are also on offer.
“Because of our niche, we’re growing. We have not been impacted (by the economy). We’ve even made a decision to roll out new products,” said Nick Popravsky, Eternal Image’s vice president of sales and marketing.
Not every funeral-related business has been untouched by the economic downturn, however.
Sales dropped 50 percent in the past two months at Accubilt. The company makes three brands of hearses and had been gaining market share earlier this year thanks to a new hatchback model with an innovative pop-up urn carrier, according to Nathan Hurst, vice president for sales and marketing.
At McWhite’s Funeral Home of Fort Lauderdale, the largest black-owned funeral home in Broward County, Florida, Albert McWhite said his customers had started cutting back on expenses so they can bank more of the life insurance payout.
“I think they’re more alarmed by the (economic) news than anything else,” McWhite said.
1 comment:
Funeral Industry Bucks Economic Downturn
By Barbara Liston
14 October 2008
ORLANDO, Florida (Reuters) - Business is holding steady for the U.S. funeral industry as consumers shrug off worries about the economy to give their loved ones a costly send-off.
“Everybody’s affected by the economy. But people die. They all go to room temperature,” said Bob Hanson, who sells pre-paid funeral insurance for an Idaho company and spoke on Monday on the sidelines of a National Funeral Directors Association meeting in Orlando.
According to the association, funeral services are an $11 billion industry in the United States. And business, actuarially at least, is on track for an upswing.
The association projects the U.S. death rate will increase from eight people per thousand in 2007 to 9.3 people per thousand in 2020 and 10.9 per thousand in 2040, as baby boomers die off in growing numbers.
Underpinning future growth, spokeswoman Jessica Koth said the industry doesn’t follow typical consumer spending patterns.
“People don’t borrow from the 401k to buy groceries or gas,” Koth said, referring to retirement savings accounts. “This is a major life event, like a wedding, so people are willing to borrow from their 401k or cash in that life insurance.”
In more cases than not, funeral directors and suppliers at this week’s meeting told Reuters that business is holding steady, and even growing for some niche products.
Fortress Mausoleums’ cast-stone, above-ground tombs range in price from $5,000 to $15,000, but the $15,000, two-person model is the most popular and still selling well.
“Our business is booming better than ever. It’s a true story,” said Fortress co-owner Don Magallanes.
Andy Lopez of Affinity Caskets sells caskets for military veterans, and he said his company has kept busy meeting the needs of World War Two veterans.
“When it comes to the military service, if the family understands the legacy that is there, the pride, the sacrifice, cost is almost never an issue,” Lopez said.
Traditional suppliers like Dick Stein, national sales director for Newman Bros, maker of bronze markers, urns and other grave monuments, and Larry Stuart, owner of Advanced Crematory Technology, both said business is on par with last year.
CASKETS WITH TEAM LOGO
Filling the void for branded funeral merchandise, Eternal Image last year began selling the official caskets and urns of Major League Baseball teams.
They also offer caskets and urns with the insignia of several universities, including Purdue, Texas Tech and the U.S. Military Academy at West Point. Products branded with the stamp of the Vatican library, the American Kennel Association, the Cat Fancier’s Association and the Star Trek television and movie series are also on offer.
“Because of our niche, we’re growing. We have not been impacted (by the economy). We’ve even made a decision to roll out new products,” said Nick Popravsky, Eternal Image’s vice president of sales and marketing.
Not every funeral-related business has been untouched by the economic downturn, however.
Sales dropped 50 percent in the past two months at Accubilt. The company makes three brands of hearses and had been gaining market share earlier this year thanks to a new hatchback model with an innovative pop-up urn carrier, according to Nathan Hurst, vice president for sales and marketing.
At McWhite’s Funeral Home of Fort Lauderdale, the largest black-owned funeral home in Broward County, Florida, Albert McWhite said his customers had started cutting back on expenses so they can bank more of the life insurance payout.
“I think they’re more alarmed by the (economic) news than anything else,” McWhite said.
Post a Comment