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DECEMBER 2009 <strong>FUNERAL</strong> <strong>HOME</strong> & <strong>CEMETERY</strong> NEWS Section A<br />

Walmart’s New Casket Sales<br />

Underscores Importance of<br />

Aftercare Opportunities By Timothy Miles<br />

If ever there was a signal that the funeral industry is undergoing<br />

fundamental changes, Walmart’s entry into the casket<br />

business has to be diffi cult to ignore. October 28 th saw news<br />

that the world’s largest retailer introduced 15 value priced caskets<br />

on their website. Th e caskets are being supplied by Star<br />

Legacy Funeral Network in McHenry, IL. Prices range from<br />

$999 and cap under $2,000 excepting the “Sienna Bronze”<br />

weighing in at $2,899.<br />

Recent years have seen the introduction of online casket sales<br />

with numerous companies off ering a wide variety of caskets but<br />

Walmart dwarfs them all. With over $400 Billion in sales and<br />

100 million people visiting Walmart weekly, they just mainstreamed<br />

online casket sales and the assumption will be that<br />

Walmart off ers greater values than local funeral homes. While<br />

this assumption is disputable, the truth will have little to do with<br />

the overall eff ect. Th e casket sales capture rate that funeral homes<br />

realize will diminish while casket margins in many homes will<br />

be further reduced. Still, in the end, this could turn out to be a<br />

really good thing for funeral homes across America.<br />

Over the past 20 years, the funeral industry has evolved slowly<br />

but steadily. We’ve witnessed trends away from burials and<br />

towards cremations and trends toward honoring and celebrating<br />

the deceased’s life instead of mourning their death. We’ve<br />

seen the decentralization of the family and the mobilization of<br />

Americans eff ectively changing the size and nature of funeral<br />

services. Th en, the explosion of the internet, coupled with new<br />

regulations, opened the door for online casket and urn sales.<br />

However, the impact of all these margin challenging realities<br />

has been greatly mitigated by a steadily growing number<br />

of customers, a quality unique to the funeral business and one<br />

that will continue for many years to come. Th is circumstance,<br />

increasing business to off set shrinking margins, has allowed<br />

many funeral homes to hang on to the status quo rather than<br />

aggressively seek new ways to eff ectively increase profi ts.<br />

Th is unique convergence of realities, coupled with the funeral<br />

industry’s iron grip on traditional business practices, goes a long<br />

way towards explaining why the funeral industry has an inordinately<br />

low percentage of establishments using websites compared<br />

to other service oriented businesses and why so few are open to<br />

fully exploring the signifi cant profi t opportunities presented by<br />

the growing after-care market and online marketing.<br />

CONTINUED ON PAGE A27<br />

Why join<br />

Homesteaders?<br />

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Security<br />

At a time when many companies are abandoning<br />

the services and programs funeral home owners<br />

and their families demand and <strong>des</strong>erve, the people<br />

of Homesteaders are even more committed to<br />

your success.<br />

As a result, more funeral home owners, like<br />

Frank Joyce, are turning to us for thought-leading<br />

solutions that protect and enhance profits. These<br />

strategies help funeral homes like yours to endure<br />

regardless of economic conditions.<br />

Homesteaders has a singular commitment to your<br />

success – but don’t just take our word for it. Let your<br />

colleagues tell you why they trust Homesteaders to act<br />

with integrity and provide the support you need to meet<br />

your families’ demand for secure prearranged funeral<br />

funding. Visit homesteaderslife.com and find out<br />

why funeral home owners join<br />

with Homesteaders.<br />

800-477-3633<br />

Page A25

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