(ThyBlackMan.com) One out of four funerals (blacks: one out of two) in America are held at a funeral home that is part of a chain of funerals homes owned by one of four major corporations. You might not be familiar with the corporate name, but you should recognize the corporate business principles, which is the focus of their operations. Those principles are the same ones used in the other businesses they own and controlled. The principle in question is to sell more products, at the highest prices, for the maximum profit possible. There is nothing wrong with making money, that’s the American way, Right? When it comes to choosing a funeral, home name recognition is like gold because people are trusting of names that are familiar and reputable in the community, especially in stressful circumstances.
The giant big-buck Conglomerates know a good thing when they see one. These giant conglomerates are sucking up independent family owned funeral home and Cemeteries like K-Mart shopper during the blue light special. The largest of the four giants is Service Corporation International (SCI) based in Houston, Texas. In 1995, SCI owned 3,136 funeral homes and cemeteries worldwide including 700 funeral homes and 175 cemeteries and growing in the USA. Recognizing the value of a familiar name SCI retains the names of the trusted funeral homes and when possible they keep the previous owners on staff to operate the home. With the name recognition of the community funeral home coupled with the volume buying power of the giant conglomerate, one would think that the cost of funerals would at least stabilize, but the opposite is true.
According to a Readers Digest article, in Houston the corporation funeral homes perform an average of over 7,000 funerals a year in contrast to a few hundred performed by independent funeral homes. Houston has become the most expensive place to have a funeral in the USA. The costs of funerals continue to rise year after year. In 2000 the average cost of a funeral was around $ 5,000 10 years ago that same funeral cost $ 3,516 that is about a 30% increase. Today‘s average cost is about $7,000 a increase of about 40% from 10 years ago. Can you spend more? Yes you can and black people spend more per-capita overall. Can you spend less? Yes you can.
Since we contribute a disproportionate share to the overspending for funeral goods and services and for a century have provided those same goods and services to our people before so called segregation allowed us to sit in the front of the bus and enjoy equals rights with other Americans.
There are black funeral homes accessible to every black person in the USA with very few exceptions. When I look at the state of the funeral industry I see a four corporate giants dominating all elements of the industry from the manufacturing of Caskets and Urns to the perpetual care of the cemetery, while commanding highly inflated prices and paying huge sums of money to political campaigns. When I juxtapose the state of black America with the funeral industry I see a class of people manipulated into overspending for funeral and cemetery goods and services.
I see black people working in every element of the funeral industry from the casket Manufacturing floor to the caring for the cemetery grounds, but in the employ of those very giant conglomerates that make billions of dollars a year partly due to black people overspending on something they could do for themselves and keep much of that money in our own communities.
Staff Writer; Nicholas McNeal
For Caskets & Urns for your deceased love ones visit this authors website; SavonCaskets.
Also may email brother McNeal at; mcnatejr@aol.com
or call (206) 390-3797
Mr McNeal education about a industry like many others that for years has been supported by black dollars. We must remember not only black dollars support the death industry, but white & mexican, all nationalities. It is a good educational practice to make blacks aware of another controling factor in our economi, but also make others aware. It is a fact that black america spends money. A better educational practice would be to educate blacks on the unnecessary dollars being spent on antiquated concepts of buriel and the emotional direction taken for loved ones at the time of death. Blacks have been taken advantage of for years in the buriel or death arena. Why not educate blacks on the unnessary spending on a controlled emotional standard in america. It is understandable a person wants the best for their loved ones, but is $7,000 to $10,000 spent on a person after death really needed.
There are other directions a person can leave and still support in a persons name many valuable charitable & education memories for $7,000 to $10,000. A persons lifes work should be celebrated with a funeral, but the abvious is a challenge. Mr McNeal is trying to educate on cost which we should be aware of in all areas of life. His product can help at a time when our emotions are being taken advantage of. In any industry there are wolfs, but you have choices use your choices wisely.
As a pastor I see this on a regular basis. We as Africian-Americans often think the higher price tag means better quality or service. I will admit in some cases this is true, however the rules are the same no matter how you are funeralized. We must begin to look at how we can keep certain business in our community as well as properly bury our family without incurring a lot debt. We must begin to plan prior to the moment.
Another timely and informative article with just the floating iceberg tips of awareness news for the masses. What lies deeper is truly a very big and hidden story.
Placing the numbers in table form will make it more quickly readable. If we can see the play analysis we can get it more thoroughly. Your tables will be very small and will open up your article a bit to more white space in a most times dark subject.
Thank you. Informative as I said, and as I meant.
The Real Sam I Am
I thank Mr. Jones for reading my article, and I apreciate him for taking time to comment. He is correct,I am indeed urgeing the black community to select black funeral homes. It is important for the black funeral industry’s survival as well as contributing to the communities economic stability. Doing business with a white man per se, can be in the communitiy’s best interest, but doing business with anyone who controls all segments of a market, and uses the business practices discussed in my article can not. I appreciate that the 2011 numbers make my case better, and I am glad I made my case. I am also happy to hear, especially from a proponet of the conglomerante perspective, that he feels that the black community perfers the locally owned funeral homes. I don’t see that in my hometown. What about yours?
In many sectors of this economy too few suppliers enjoy considerable discretion in setting prices unless subject to some direct government.
I believe that the author is attempting to urge the black community to select black funeral homes. I understand that thought process as many in the black community believe that doing business with the white man is not in the best interest of the black community. Although I, as a white man, disagee with this theory, I also understnd the thought process and have no problem with that concept.
The author creates crdibility problems when he states SCI owned x number of funeral homes and cemeteries in 1995 which includes foreign locations which have mostly been sold since 1995. The numbers are much different in 2011 and they are readily available in SCI’s reports. (The new numbers actually make his case better than the 1995 numbers.) Additionally, as a resident of Houston, and a past employee of SCI, I also know that his statement that independent funeral homes only do a few hundred a year is totally false. Please use current and accurate facts to support your thesis.
The author needs to get his facts straight. Even his cost figures are off.
A final fact that was not addressed, the conglomerates have very few funeral homes that perform mostly black funerals. That is not because they have not tried to be a player in that market – it is due to the reality that most attempts to acquire and continue to run a black funeral home has ended in financial disaster for the company as families changed to non-corporate owned black funeral homes. The same problem existed for a Dallas based consolidator owned by blacks that purchased black funeral homes. Right or wrong, the black community prefers the LOCAL owned funeral home especially black owned, but will do business with a local white firm.
I have no experience when it comes to funerals or burials except when it involves family members. Having said that, i know that the money we spent on such funerals was over the top, even those for my Grandmother and an Aunt that were prepaid. As to those prepaid ones we found at the time of burial that there were additional cost that were not included in the prepaid plan. These costs not included were for the opening and closing of the grave, the grave vault, the marker and cost related to the upkeep of the cementary grounds. None of this was mentioned in the Funeral prepaid plan. As a results of what happen concerning the pre-need package, my family has sense buried our loved one on a as need basics. We not only saved money doing it this way, we put the pre-need money in a CD with our bank and earned the interest ourselves. This has been a win win situation for our family and keeps us in a ready mode when that times arrives again ! What we as Black people need to learn and do is turn our dollars over in our community.
The big companies like SCI, pointed out by Mr. McNeal don’t need us or care about us. In my home town there are Black owned funeral homes that have stood the test of time for 30 or more years and are connected with other black business’s that serve each other by turning over dollars in our community. Plus, knowing that there are Black Owned Casket Suppliers out there give people like myself opportunity to support them as well.
Large Conglomerates are part of the reason this country is the economic state that is in now, sending jobs out of the country and cutting unions. Lets not get it twisted, we don’t need the large companies to make it, they need us!!
It is very easy for a family to overspend for the funeral of a loved one. I did at a Black owned funeral home when While no one told me to do it, because I was not informed about what a casket should cost, and there was money to cover the expense. I went all out. In the industry this is called “emotional overspending.” For the past 3 years I have been working in the industry learning and teaching my community, encouraging them to purchase pre-need funerals and cemetery property in advance, and take up to 5 years to pay, sparing their family from making expensive decisions quickly at the height of their emotion. I bought cemetery property where I work over 30 years ago. I know today’s value and it is thousands more than I paid. What SCI is able to do is proved assurance that your pre-need arrangements, and the mortuary you bought from will be there and available 30+ years from now.
I am an advocate of purchasing pre-need, but caution anyone against shopping strictly on price. Will that small privately owned mortuary be there when you need them? Recently, The Neptune Society, a private crematory here in Southern California, had to shut their doors due to inadequate funding to upgrade their furnaces. Thousands of owners of pre-need with Neptune are very concerned about their investment and what will happen. Large may be unpopular with you, but you stand a better chance of them being there when you need them. They can also offer coverages that smaller companies cannot.