Inflation is the worst in 40 years as everyone is aware of by now. The news is relentless in pointing that out. Averaging around 8% depending on who you listen to.
You more than likely have seen your suppliers increasing their prices, in many cases, more than once a year as used to be the custom.
That leaves you raising your GPL and merchandise possibly higher than you wish, due to competitive concerns and possible client-family resistance. I would like to say competition may be a valid concern, however, if you are the market leader in service, this may not be as big of a factor as you may think.
With inflation being so much higher than normal, this leaves another place to consider using a marketing tactic. Thus, it is recommended to take a serious look at your preneed sales program as a key to your future success.
An NFDA study stated that the median cost of a funeral increased in 2021 by 6.6% over 5 years. The median cremation during that same period increased by 11.3%. One can argue that a 6.6% increase over 5 years leaves you with no choice but to raise prices. If not, these cost increases will impact your firm both today and in the future with what you are selling in both At Need and in Preplans.
The good news is that now would be a time to use pricing and inflation to your advantage in marketing and selling preplans. Everyone understands the inflation struggle right now with food, goods, and service prices continuing to increase. The idea of planning and paying for a funeral/cremation now will make real sense to potential clients seeking to save money for their future benefit. It will also save their family so much more than the current inflation factor. When the country was running around 2% annual inflation, it was more difficult to get families to think about the amount of money they were saving. That is not as true now. Consider using this message to your firm’s advantage in marketing and selling funeral/cremation preplans which in turn will also help you increase your market share both now and into the future.