Losing a loved one is a difficult pill to swallow for everyone else. But, to funeral homes, the time for business is here! While it may be difficult to rationalize why this is the case, the best explanation is that funeral homes in Baltimore, MD, are there to make money no matter how sad anyone is.
But then, this does not fully explain how funeral homes make their money. In 2019, the funeral industry was reported to have made about $17 billion. In the US alone, there are about 19,000 funeral homes. So, with this industry making billions of dollars yearly, there has to be a way they are making this much. Well, you are about to find out.
Where Do Funeral Homes Make Their Money From?
Funeral homes are businesses, and one way or the other, they have to make profits. To do this, they have often put in place some services and add-ons for their clients. The following is how they make their money.
Basic Service Fee: Of course, anyone seeking the service of a funeral home will have to pay a fee for the service rendered. This fee may run into $2000 or more depending on the elaborateness of the funeral. These funeral homes often have a fixed price, so it is not negotiable.
Body Transportation: When a loved one dies, one of the first things to do is to call a funeral home for the transportation of the body. This transportation is not free, and the money charged differs from the basic service fee. Therefore, this serves as another means of making money.
Embalming and Corpse Preparation: Many things would be done after the funeral home has gained custody of the body. One is embalming or refrigerating. Unfortunately, this comes at a price too. The price depends on how long it will take to keep the body embalmed or refrigerated.
Also, the funeral homes will have to dress and groom the body, barb the hair, and do other cosmetology.
Sale of Casket: Funeral homes also sell caskets to make money. The sale of caskets happens to be one of the most profitable ventures that funeral homes engage in. Usually, they make the caskets necessary for each family. And to say the least, the coffins are priced to make a profit.
Factors Determining How Much Funeral Homes Make
There is no doubt that funeral homes make money through their service. However, these funeral homes don’t make the same amount of money. What they make depends largely on some factors. These factors include
Management Style: Like every business, the management determines the progress. Funeral homes need to be managed diligently to make enough money to sustain themselves. This entails meeting prospective clients and handling their requests.
Location: The location of a funeral home also influences how much it makes. Having a funeral home in an urban area means more business and clients with more money. This is different from having your funeral located in a rural area where the cost of living is low.
Funeral homes in Baltimore, MD, are like other businesses around; they exist to make a profit. This means they would do things in their power to achieve this, provided the law permits it. If you want to set up a funeral home, the above content will guide you on what to consider when strategizing how to make a profit. Call us today.