These days, it is more common to find families that are not involved with a church, or families flying into an unfamiliar town to make funeral arrangements. As a result, they often rely on the funeral director to recommend and help finding a minister for a funeral, vocalist, pianist or organist and even catering in some cases. I can recall one minister, whose credentials I had my doubts about, was earning over $100,000 per year serving as an on-call minister for a funeral home. Likewise, I know my share of musicians in the same situations.
As the times have changed, however, I have become aware of a problem ultimately affecting families. Corporate funeral homes provide commissions to their funeral directors. It is a way for funeral directors to earn more money, without necessarily waiting on raises from their company. Of course, I am sure you can see the benefit to the corporation, right? You want to earn more money? Well, sell more.
Commissions are based on the bottom line of the contract and average contract sales volume. They keep tabs on your individual averages per funeral. If you can increase your average sales, you can greatly increase your commissions. Naturally, casket and vault sales make a difference, especially if you are skilled at convincing consumers to purchase an all-inclusive package. However, in between package sales, how can you raise your average?
One trick often used is with those convenience needs, such as securing a minister, musician, or catering for a family in need. Here's how it works. You need a vocalist, right? The funeral director has the perfect one in mind for you and her charges are $250.00. She has a wonderful pianist who can join in for another $250.00. I can also add a minister. Families love him and typically pay him a stipend of $500. Let me go ahead and arrange catering for you for $1200.00. You make out the check and all the services are taken care of.
The funeral home pays the musician $150.00. The same goes for the pianist. The minister's funeral home check is $250.00. The payment to the catering company, $750.00, will be added to their quarterly payment system. The service providers are happy for receiving their expected payment, the funeral director raised his or her contract total, which raises the commission.
When a death occurs, it can seem like a tremendous convenience to allow the funeral director to arrange everything. However, just be sure you are not over-paying for the convenience.
