Post by Graveyardbride on Jun 25, 2022 7:54:11 GMT -5
Funeral Industry Trying to Keep Rising Costs in Check
Because of a lack of leadership in Washington, the cost of everything is on the rise as inflation pummels the U.S. and the funeral industry, like all others, is encountering higher costs. While data indicate the industry is attempting to absorb some of the financial pain its customers are facing at a time when they need it most, insiders are warning funeral homes may not be able to continue holding down prices much longer.
The latest consumer price index from the Department of Labor shows inflation rose 8.6% in May, however, the cost of funeral services increased only 2.7%. Compare this to the agency’s report from 2017 revealing the price of funerals had risen almost twice the rate of inflation for all consumer items over the three previous decades.
Industry leaders say they are doing everything in their power to absorb the costs, but it’s a hefty challenge. This means consumers, already squeezed by price increases in everyday goods, groceries and gas, could be paying much more when a loved one dies. “Funeral home owners, managers and advisors are going to do what they can to hold the bottom line together. But, at the same time, at some point in time, it’s got to change,” George Kelder, New Jersey State Funeral Directors Association CEO, said.
Kelder, who has been a licensed funeral director for more than 40 years, explained that funeral homes are generally “mindful to keep their charges within the norms of what their local markets can afford as well as any competitive pressure influences” and will reevaluate pricing and make adjustments to their offerings every one to two years. However, due to the financial pressures for “deliveries, supplies, fuel and the like, price changes are now occurring every three to six months,” he added.
Even though it’s a caring industry, “We are also coming out of an intense 2½ years of pandemic, so we can’t simply brush off everything that is financially affecting our ability to deliver those goods and services while endangering our ability to survive in the current rapidly changing market,” he continued. Still, even with the added pressures, some funeral homes are “sitting tight until they absolutely must adjust pricing,” he said.
Jennifer Cooper Finnerty, director of community relations at Rose Family Funeral Home & Cremation in Simi Valley, California, told reporters the company tries “very hard not to pass on higher costs” to families but acknowledged it had to raise prices to some degree to manage its own soaring costs. “Crematory operators have increased their fees. Casket supply companies have increased their fees. Even paper costs for things such as memorial programs and prayer cards have increased,” she explained. “And, of course, fuel … increased fuel costs have most definitely had an impact.” She warned that unless things change, “every facet of life is about to change, including funeral arrangements.”
With families already strapped for crash, the added financial burden of a funeral is an expense many households cannot absorb. The median price tag of a funeral last year, including casket and burial, was $7,848, according to the National Funeral Directors Association’s latest data.
Funeral industry insiders report a sharp uptick in requests for financial assistance from customers and Kelder said he has never had so many people contacting his office seeking financial assistance to pay for a funeral. “It’s a phenomenon I’ve never, never seen before,” he told a reporter. “These are individuals that just got by in paying their rent, if they even did that, or just got by paying their utilities, and now they have death.”
Still, Finnerty added, families are handling the costs the same way they always have, “by pre-arranging and pre-paying for their funeral, setting up a GoFundMe to help with costs and having multiple family members/friends chip in to help financially.”
Sources: Daniella Genovese, Fox News, June 25, 2022; and National Funeral Directors Association.