There’s a story about a Stanford business class who was given the assignment of making the greatest ROI possible on $5 in two hours, at the end of which they would make a half-hour presentation to the rest of the class. Most students tried to buy something for $5 and sell it for a little more within the two hours, making a small return. Others recognized that the $5 was really a distraction and spent their time conducting services like filling bike tires for $1 around campus. They were more successful. But the most successful group recognized that their most valuable asset was neither the $5 nor the two hours. It was the opportunity to present in front of a room of Stanford MBA students, which they sold to a local employer for hundreds of dollars – racking up a return in the thousands of percent.
The point is, don’t get distracted. And definitely don’t get distracted by a dollar figure when you’re considering what you have to sell that’s of value.

I’ve met funeral home owners by the score who shake their heads in frustration and say something to the effect of, “Boy, did we step in it when we positioned cremation as an alternative to the funeral. (And to memorialization, and to ceremony, and to engagement with the funeral home…).” And they’re right. But the good news is, that’s not a mistake we’re stuck with. The trick is not to get distracted. Don’t get distracted by what a family thinks they want to pay. Don’t get distracted by the phrase “direct cremation.” Don’t get distracted by conceptions of yourself as a disposal solution. Don’t get distracted.

The entire concept of “direct cremation” and asking for it as an escape route from your normal offerings is not new. Jessica Mitford was encouraging her disciples to demand it 60 years ago. But there’s some encouraging data that suggests we can still stem the tide.

My firm has conducted more than a million dollars’ worth of research on consumer preferences on death care in the past few years. One of my favorite data points deals with expected costs of death care services. We’ve asked a huge, statistically representative sample of Americans what they would expect to pay for two things: a funeral with a burial, and a funeral with cremation. We can then average all the responses to get a sense of the general perception of cost. When you do this multiple times, in multiple decades, you get to watch how preferences evolve.

Over the past ten years, the answer to the “burial” question has remained exactly the same, when adjusted for inflation, to the dollar. Remarkably, the average American expects a funeral-with-burial to cost exactly what they did a decade ago. But over that same period, Americans’ perception of the cost of a cremation has significantly outpaced inflation. In other words, the gap is closing. And we can expect it to keep closing. Because it was never really about cost.

Americans’ preference for cremation is decreasingly tethered to cost. As with other low-frequency purchase decisions, like houses or cars, cost is simply all we know to ask about. We buy vegetables all the time, and therefore understand to make decisions on cost, but also on freshness, quality, organic, and so on. But we don’t plan funerals often enough to have those reference points, so we revert to the first thing we can think of. That’s why most Americans say the first question they ask if planning a funeral is how much it will cost, but only a tiny percentage of Americans say the cost is the worst thing about the funeral. The $5 is only a distraction. Don’t fall for it.

Here's another key statistic: only 14% of Americans agree with the statement that, “with cremation there’s no need for a funeral, memorial service, or other form of life celebration.” Fourteen percent! To hear your average funeral pro tell it, it’s at least 50. But only one in seven Americans really sees cremation as a “way out” of the ceremony. Now, more than that, one in seven might not want their local funeral home to have anything to do with the ceremony, which is a value hurdle you need to clear. And more from there might not ever get around to dealing with Aunt Maude’s ashes, which is where your experience and leadership come into play. But it’s vital to recognize the distinction: direct cremation isn’t really what most people want. Not even close.

When Apple launched the iPhone, Microsoft CEO Steve Ballmer literally laughed at them for the price tag: “…That is the most expensive phone in the world. And it doesn’t appeal to business customers because it doesn’t have a keyboard.” Ballmer failed to recognize that while the prevailing strategy of the time was to sell phones business-down, Apple flipped the model on its head by going consumer-up. Today, there’s no distinction between your “work phone” and the phone you use to scroll social media. Not only did Apple give us that customer-centric innovation, they charged a premium for it.

Funeral homes and cremationists would do well to remember that message: when you give the consumer what they’re asking for, you’re providing more value and can charge more, not less. In fact, that’s a pretty solid litmus test for whether you’re actually providing value as a business. Grocery stores discount the stuff they can’t sell otherwise. Department stores discount last season’s styles. If you’re giving your customers a discount, it’s an admission that what you’re selling isn’t really the valuable thing. And they know it.

So, quit being distracted. In the death care space, your disposition services are the equivalent of the Stanford students’ $5. Making money off of it is enticing, and makes logical sense, but if you step back and take stock of the situation, you might notice you have much more valuable assets than that five-dollar bill. You have a market who doesn’t understand grief, who is hurting, afraid, and burdened, and they’re walking into your business. And you know exactly what they need to heal and how to help their community do the same. It doesn’t take a Stanford MBA to notice that’s worth a lot more than a few hours’ rental of your retort.

Imagine stepping into a room filled with forward-thinking professionals eager to explore new, sustainable, and environmentally friendly options in the deathcare profession. The "Thinking Green" CANA Cremation Symposium in February promises innovation, where attendees can learn more about investing in fresh offerings, concepts, and services for their businesses. It's an exciting prospect, and the possibilities are endless.
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But here's the truth: having new, groundbreaking products or services in your arsenal is only half the battle. Without a well-equipped and effective sales force, those remarkable offerings risk becoming nothing more than dust-covered inventory and untapped potential.

In 2022, a certain cemetery (whose name we'll leave out of this narrative) made a noteworthy change. They observed that their top-selling urn vault was, for lack of a better word, underwhelming. It was a plastic, felt-lined, and barely-protective product, yet it was flying off the shelves, and understandably so – it came with an enticingly low price tag.

In response, the cemetery decided to remove this particular urn vault from their price list entirely. They left it to the sales and service team to offer the product only in situations that warranted it, rather than featuring it in literature. It seemed like a logical step towards promoting higher-quality, more protective offerings, and a brief memo was electronically sent to the sales team to let them know that the product would no longer be found in their price book. In addition, samples of the superior vaults were added to each display unit. However, there was a critical piece missing from this equation: thorough communication and sales training. The cemetery failed to inform its sales force about WHY this change was happening and failed to equip them with the necessary tools to effectively sell these higher-quality, higher-priced alternatives.
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Fast forward to 2023, and the results were all too familiar. That low-cost urn vault, the same one that had been deemed insufficient in 2022, continued to reign supreme. Not a single additional unit of the superior, higher-priced urn vaults had been sold in 2023. The cemetery's well-intentioned change had gone unnoticed by the sales team, and the status quo remained unchanged.

The lesson was clear: nothing sells itself. Even when you have cutting-edge, eco-friendly, high-quality, and innovative products or services, you need a team that can effectively convey their value to your customers. As humans, we tend to gravitate towards what we know, what's comfortable, and what requires the least effort. In the absence of a compelling sales strategy, the default option often wins, regardless of its true worth. And contrary to popular belief, yes, salespeople are humans (insert chuckle here).

As we look forward to the "Thinking Green" CANA Cremation Symposium, where innovative and sustainable deathcare options take center stage, let's not forget the pivotal role that a comprehensive sales program plays. A well-equipped sales force is the linchpin that transforms remarkable products and services into tangible solutions for your clients.

Mark your calendars for my session at the Symposium, titled "Growing Sales: Selling with Sensitivity," scheduled for Thursday, February 15th at 8:30am. In this transformative session, we will explore an approach that seamlessly aligns sales ambitions with genuine concerns for families. Join us to discover how empathy, service, and connection can elevate your sales strategy and empower your team to present and sell innovative offerings effectively.
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In the world of deathcare, where innovation and sustainability take center stage, remember that nothing sells itself. It takes a dedicated and skilled sales force to showcase the true value of your offerings. Equip your team with the knowledge, skills, and motivation needed to present these innovations persuasively.