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predecessor to modern day funeral director was

a cabinet maker or livery/stable owner


early funerals were carried out by

family member


cabinet maker priveded



stable owner provided

horses and hearse


pricing method used until the early 1900s

itemized pricing


the pricing method that followed itemized pricing is

unit pricing


during post world war years brought on



consumerism means

public was getting more dollar conscious.


after consumerism and people were more price conscious ___________became popular again



the business of buying and selling



merchandising includes

the purchasing, pricing, displaying and sale of not only caskets, but outside enclosures, burial garments, possibly monuments and other accessories.


the casket represents how much of the entire cost to the family



A sound merchandising program is based on:

sound planning
accurate cumulative records
basic knowledge of salesmanship


price of the funeral's seven general criteria:

1. overhead (average overhead per adult services)
2. cost of merchandise
3. mark up on merchandise
4. human need
5. competition
6. area pricing
7. business ethics


one of the first steps to developing a merchandising program is to

formulate a budget


four basic pricing procedures and main examples of formula pricing.

1. itemization
2. unit pricing-simplest method
3. bi-unit pricing-one price casket, one price services
4. functional pricing-casket, service, facilities, and automobiles.


how to get selling price:

overhead + wholesale casket cost + markup = selling price


caskets are divided into quartiles. the most expensive units are

first quartile


first quartile usually is

10 percent of the units and then the second quartile, around 20, third around 30 and fourth around 40. sometimes the third is 40 etc. first quartile is almost always 10 percent. (pg 72 green book)


the difference in casket prices should be of enough range so as to provide the family with the opportunity of comparing caskets

price progression


an aid to both the budget and the pricing system. A charge on which all sales are charted showing the number of sales, average sale, median sale, yearly gorss income, from both fornula and non formula sales, total units sold, income in each quartile, percent displayed in each sale.

sales frequency charge


medium sale serves as a



funeral homes should limit the purchasing of caskets to approximately how many manufacturers?

four or fewer


to assure maintenance of a balanced selection of caskets and to further prevent overstocking, the funearl home should maintain

inventory control


program of planned buying

should be developed for all funeral service merchandise


advantages of a good inventory system include

1. simple to use
2. flexible to meet individual needs
3. accurate


Placement or arrangement of caskets:
a specific method of placing caskets at the entrance to the selection room in which three caskets are used in such a way that the first or approach casket is priced at approximately $200.00 above the median sale on the sales frequency chart, the casket to the left is priced at the unit below that of the approach casket; the casket to the right is priced at the second unit above that of the approach casket.

indicative approach


Placement or arrangement of caskets:
approach casket is 125-150 above the median sale, casket to right 25 dollars to 50 dollars below

keystone approach


types of arrangement of caskets

-in order of increasing and decreasing values
-special settings such as raised areas, lighted areas
-separated according to predetermined basis
-active and inactive areas
-other units, including infants, welfare, indigent, contract


this method of selection room selling allows you to be able to better explain prices, demonstrate the quality of merchandise and keep the group together so that they can observe each item of merchandise collectively.

direct selling method


selection of the casket is made without the funeral director being present. good explanation of the merchandise, a selection room planned for this technique, clearly defined prices and casket descriptions, and adequate pre-selling techniques are necessary for this procedure.

indirect selling


casket picked first

clothing picked second


funeral credit differs from ordinary credit because

the family must buy from necessity


includes procedures for obtaining credit information on the person responsible for the funeral expenses

sound policy


when extended payment plans are provided

the Federal Truth in Lending Law must be adhered to


how many funeral homes are in the US?



annual death rate is

10 per 1000 population


cost of building a funeral home varies

0.50-0.75 per square foot


average funeral home size

8,000-16,000 square feet.


funeral homes can be up to

25,000 square feet


rule of thumb when selecting property

select a property that will be four time the square footage of the building.


in a casket room some manufacturers recommend ________ square feet per casket



OSHA Checklist

fire safety
cleanliness and orderliness
stairways and ladders
toilet facilities
electrical wiring plumbing outlets
dangerous machinery, moving parts, pinch points of collapsible equipment
sanitation areas where food is served
dangerous fumes and vapors
protective clothing in preparation process
eye and face protection


staff manual should include the following:

initial educational qualifications
required probationary period
sick, hardship and death leaves,
dress code
telephone procedures,
history of the firm and fringe benefits


provides minimum wage, equal pay, maximum hours, recordkeeping, overtime pay and child labor standards

the Fair Labor Standard Act


who is covered by the Fair Labor Standard Act

any funeral home that exceeds 362,500 annually.


Who is subject to the Federal Wage and Hour Law

any funeral home exceeding 362,500 annually


Federal Wage and Hour Law

all funeral establishments must pay an overtime rate to an employee who works over 40 hoursper week. The overtime rate must not be less than 1.5 times the employees regular pay.


definition of a work week

seven consecutive 24 hour periods totaling 168 hours. may begin any day of week or any hour of the day.


not considered working while on call

an employee who is not required to remain on the permises and is free to engage in his own pursuits, subject to the understanding that he leave word at the funeral home as to where he may be reached, is not considered working while on call. (waiting to be engaged)


hours spend waiting to go on call must be counted as hours worked

engaged to wait


how old must you be to work full time at a funeral home

16 years old


how old to help with non hazardous clerical work



work week may not exceed how many hours during regular school terms



work week may not exceed how many hours when school is closed

40 hours


Funeral home must keep

1. name of employee
2. address including zip code
3. date of birth
4. sex and occupation
5. time of day and day of week
6. regular hourly pay and basis of wage payment
7. daily and weekly hours of work
8. daily or weekly straight time earnings
9. overtime compensation
10.additions or deductions from wages each period
11. total wages each period
12. date of payment and pay period covered.


individuals who are 40 but less than 65 are protected from

age discrimination


any form of public announcement intended to aid directly or indirectly in the sale of a commodity is



used to make citizens of a community aware of the funeral service facilities, which would help create a funeral home preference

funeral service advertising


informative advertising accomplishes

1. keeps the name before the public
2. attracts people to the firm
3. it helps to build a good reputation
4. helps build preference before need by establishing the funeral home name in the minds of the public.


Federal trade commission started to investigate the funeral industry

in 1972


original funeral rule went into effect in

1984, with mandatory review in 1988, then on January 19, 1994 it was revised by the FTC with required compliance by july 19, 1994.


any person, partnership, or corporation that sells or offers to sell funeral goods AND funeral services to the public. not one or the other

funeral provider


goods which are sold or offered for sale directly to the public for use in connection with funeral services

funeral goods


any service which may be used to: care for and prepare deceased human bodies for burial, cremation or other final disposition and arrange supervise or conduct the funearl ceremony or the final disposition of the deceased and some activity involved in the final disposition of deceased human bodies.

funeral services


in order to be classified as a funeral provider

1. offer or sell funeral goods
2. offer services to care for and prepare the remains for final disposition
3. provide service for the arrangement, supervision and conducting of final disposition


disclosure over telephone of price information

required by the funeral rule


the funeral provider may limit the hours price information is readily available to callers to regular business hours. however

if it is an at need situation, the caller must be provided with the disclosers at the time the request is made.


Goals of GPL

1. provides the consumer with a reasonable uniform or standard price list of services with which to compare prices between different funeral providers.
2. the general price list serves to advise consumers of legal and practical requirements of the goods and services offered.
3. the general price list allows the consumer to purchase goods and services on an itemized basis, rather than requiring the purchase of packaged units.



GPL not needed to be given when funeral director asks permission to embalm


funeral provider must disclose that

embalming is not required by law


first page of GPL

name, address and telephone number of the funeral providers place of business.
heading "general price list"
effective date of the general price list


GPL must have the price of:

forwarding remains
recieving remains
direct cremation
immediate burials
transfer of remains
other preparation of the body
use of facilities and staff for viewing
use of facilities and staff for funeral ceremony
use of facilities and staff for memorial service
use of equipment and staff for graveside service
services of funeral director and staff
casket prices
outer burial container prices
casket price list
outer burial container price list


a statement that must be given to the family that includes, funeral goods and services to be selected and the prices to be paid for each of the goods and services to be provided.

Statement of Funeral Goods and Services Selected


itemizations are required under the rule however,

the funeral director may use packaging. no limit to the number


GPL disclosures

1) embalming -not required by law
2) casket for cremation-cannot require casket for direct cremation
3) required purchases of funeral goods or funeral services-rule prohibits funeral provider from placing a condition on providing any funeral goods or services upon the purchase of any other funeral goods or services
4) casket price range- "a complete price list will be provided at the funeral home"
5) outer burial container page- "a complete price list will be provided at the funeral home"
6) services of funeral director and staff-basic services non declinable fee


Outer burial container price list disclosure

local law doesnt require outer burial container, however some cemeteries do, grave liner or burial vault will satisfy those requirements


statement of funeral goods and services selected disclosure

"charges are only for those items that you selected or that are required. If we are required by law or by a cemetery or crematory to use any items, we will explain the reasons in writing below."


statement of funeral goods and services selected disclosure

1) selected and/or required goods and services-"charges are only for those items that you selected or that are required. If we are required by law or by a cemetery or crematory to use any items, we will explain the reasons in writing below."
2) embalming-not required unless funeral home requires it.
3) cash advances-must be disclosed they are being charged for cash advanced items.


casket handling fee cannot be charged if

consumer provides their own casket.


the rule that requires that all disclosures be made in the manner prescirbed. violation to have information that can be contradicting or construed.

comprehension of disclosures


the funeral provider is required to retain all required documents for specified periods of time. all price lists must be retained by the funeral provider for one year after the last date they were last in use. copies of each statement of funeral goods and services selected must be retained for a period of one year from the date of the arrangements conference.

retention of documents.


refers to the federal trade commission

"the commission"


any individual, partnership, corporation, association, government or governmental subdivision or agency or other entity.