Diversified Revenue: Do you have a Plan?
Traditionally, funeral service has been focused on providing service and merchandise to either preneed or at-need families. And yes, there are more mementos, keepsakes, and products associated with death than ever before. But as I’ve discussed before, funeral service today “Is not your daddy’s Oldsmobile.”
It’s never been more competitive in deathcare. Our small family-owned businesses will undoubtedly rely on multiple revenue streams to ensure long-term sustainability and growth. By diversifying your offerings beyond keepsakes and food, you can look to the long-term and provide unmatched convenience and value.
Let’s take some inspiration from the American convenience stores or party stores as we call them here in Michigan. Patrons and customers can find a wide array of products and services under one roof. These establishments have evolved from mere purveyors of snacks and beverages to offering gourmet food options, automotive supplies, lottery tickets, clothing, electronics, and the list goes on. Gas stations have also stepped up their game as well. Think Bucky’s. If you can’t find something in Bucky’s, you would be the pickiest person I know. These establishments have evolved from mere purveyors of snacks and beverages to full-service entities that focus on customer experience and diversified offerings. Funeral homes have the same opportunity.
In another example, estate planning attorneys have set a precedent by offering comprehensive services such as trusts, wills, power of attorney documents, Medicaid qualification assistance, veterans and spousal benefits, probate litigation, and even pre-planning insurance products. In years past, it wasn’t uncommon for the local attorney to write the will. He or she also represented all the DUI suspects in town as well. Now elder law or estate planning is a specialized field where attorneys have made this their sole focus in their practices. By emulating this model, funeral homes can position themselves as one-stop-shops for end-of-life planning and beyond. Maybe it’s time you make the call to your estate planning friend in town and discuss how you can work together to better the community?
Funeral homes have the opportunity to expand their services beyond services and readily available merchandise. Think valet, venue partnerships, unique commodities from local business owners, chartered water scattering services, purchasable perennial flowers that fill your memorial garden. How about a fish tournament coordinated by your firm with families and friends, followed by a committal of the family’s choice? Wherever you are in this great country, you can provide relevant services that have never been offered before. If we can position ourselves as experts in traditional services AND unique (truly unique) offering to memorialize the dead, we will be just fine. If we do nothing, I suspect there is danger for our business onnthe horizon.
Offering a diverse range of services not only provides convenience for families but also opens up new revenue streams for the business. And, likely a very clear differentiator from your competitor(s). Now, this may take some work to develop these types of offerings, but it’s going to be critical that we make adjustments along the way. By catering to the emotional and practical needs of families during their time of loss, funeral homes can solidify their position as trusted advisors and establish long-lasting relationships within the community. But we must continue to strive to provide “relevant” and impactful services and merchandise.
I understand and sympathize with you on the constant changes in our profession, it’s hard work shifting and pivoting in business. Our team here at GLP have tried to approach the ever-evolving marketplace with opportunity, versus frustration. It challenges our team and myself everysingle day. However, instead of fighting the changes in the landscape we have embraced what is in front of us and the future. Diversifying your business portfolio is a consideration for what’s next in funeral service…especially for the next generation of ownership.