About the Funeral Home Business
Members of the public sometimes joke that the funeral home business is "the business that never dies," but there's a lot of truth in the statement. As long as people die, there will be a need for funeral home services. It is the stability of customer need that makes the funeral home industry so incredibly profitable, but like any business, funeral home work has certain idiosyncrasies, trends and requirements.
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Population
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The funeral home business is rising. According to Scott Cytron of Intuit Proline, ironically, this rise in business is in part because people are living longer. Longer life span means that there are a greater number of people in the world at one time, and a greater number of people statistically means that there will be a larger number of deaths.
Trends
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Jim Zarroli of National Public Radio points out that there was a significant trend toward consolidation in the funeral home industry in the 1990s. During this time, large companies bought small mom and pop funeral homes but retained the family names associated with those funeral parlors. Consolidated parlors accounted for 20 percent of the industry. As of 2010, consolidated parlors make up only about 12 to 15 percent of the industry, according to Biosah. Additionally, people are shying away from long viewings and opting for more cost-efficient memorials and cremation, according to Cytron.
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Director Responsibilities
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Funeral home directors do far more than just host viewings and memorial services. The Bureau of Labor Statistics reports that funeral directors also take care of paperwork related to deaths so that the state may issue a formal death certificate, arrange for pallbearers and clergy, schedule the opening and closing of the grave at the cemetery, and prepare obituaries. Directors also provide transportation between funeral or memorial sites and move items such as wreaths and flowers.
Faiths
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Those who work in the funeral industry know that they will be dealing with death. However, the Bureau of Labor Statistics indicates that the funeral industry also requires dealing with many faiths, since different religions have specific beliefs and customs related to disposing of a body.
Licensure
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In the United States, each state licenses its funeral directors, according to the Bureau of Labor Statistics. This licensure is mandatory due to local, state and federal regulations on dealing with human remains. Thus, if a funeral home does not operate under a licensed director, it likely is not reputable.
Wage and Profit
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The Bureau of Labor Statistics states that, based on 2008 data, the median wage for those in the funeral home business is $52,210. The top earners make as much as $92,940. Funeral homes in urban areas encounter more profit than rural areas simply because of the larger number of deaths in the geographical area.
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References
- Photo Credit cremation urn image by GiGiZ from Fotolia.com
