| Why are funerals so expensive?
When compared to other major life cycle events,
like births and weddings, funerals are not expensive. A wedding
costs at least three times as much; but because it is a happy
event, wedding costs are rarely criticized.
A funeral home is a 24-hour, labor-intensive business,
with extensive facilities (viewing rooms, chapels, limousines,
hearses, etc.), these expenses must be factored into the cost
of a funeral.
Moreover, the cost of a funeral includes not only
merchandise, like caskets, but the services of a funeral director
in making arrangements; filing appropriate forms; dealing with
doctors, ministers, florists, newspapers and others; and seeing
to all the necessary details.
Contrary to popular belief, funeral homes are
largely family-owned with a modest profit margin. The statistics
below may be helpful in assessing the true economic picture of
a funeral home:
| Family-owned |
85% |
| Firm in business for |
63 years |
| Average calls/year |
167 |
| BEFORE tax profit |
11.3% |
(Source: 1995 NFDA Survey
of Funeral Home Operations)
What recourse does a consumer have for poor service or overcharging?
Funeral service is regulated by the FTC and state
licensing boards. In most cases, the consumer should discuss problems
with the funeral director first. If the dispute cannot be solved
by talking with the funeral director, the consumer may wish to
contact the Funeral Service Consumer Assistance Program. FSCAP
provides information, mediates disputes, provides arbitration,
and maintains a consumer guarantee fund for reimbursement of services
rendered. (To contact FSCAP, call 708-827-6337 or 800-662-7666).
Do funeral directors take advantage of the bereaved?
Funeral directors are caring individuals who help
people deal with a very stressful time. They serve the same families
80% of the time, and many have spent most of their lives in the
same community. If they took advantage of bereaved families, they
could not stay in business. The fact that the average funeral
home has been in business over 59 years shows that most funeral
directors respect the wishes of the bereaved families.
Is it right to make a profit from death?
Funeral directors look upon their profession as
a service, but it is also a business. Like any business, funeral
homes must make a profit to exist. As long as the profit is reasonable
and the services rendered are necessary, complete, and satisfactory
to the family, profit is legitimate.
Don't funeral directors mark caskets up tremendously, at least
400%?
No. Talking about the mark up on caskets is really
not the point. Most items--clothing, furniture, jewelry--are marked
up as much or more than caskets. The real question is whether
the funeral director is making an excessive profit, And that answer
is "No." Profits run around 12.5% before taxes -- not excessive
by any standard.
Who pays for funerals for the indigent?
Other than the family, there are veteran, union,
and other organizational benefits to pay for funerals, including,
in certain instances, a lump sum death payment from Social Security.
In most states, some form of public aid allowances are available
from either the state, county, or city or a combination.
Most funeral directors are aware of the various
benefits and know how to obtain them for the indigent. However,
funeral directors often absorb costs above and beyond what is
provided by agencies to insure the deceased a respectable burial.
Funeral directors and experienced personnel
from the Reed Funeral Home are available 24 hours a day every day of the
year.
Most Funeral Directors are available 24 hours
a day, seven days a week.
Will someone come right away?
If you request immediate assistance, yes. If the
family wishes to spend a short time with the deceased to say good
bye, it's acceptable. They will come when your time is right.
If a loved one dies out of state , can the local Funeral Home
still help?
Yes, they can assist you with out-of-state arrangements,
either to transfer the remains to another state or from another
state.
So, I've decided on cremation. Can I still have a funeral or
a viewing?
Yes, quite often some sort of viewing precedes
the actual cremation. Your Funeral Home can assist you with the
necessary information for a funeral with a cremation following
or a memorial service.
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