How Much Does a Funeral Cost?”
Written by Rebecca C. Lautenslager

As we speak to various community groups in town regarding the cost of a funeral, it is clearly evident that the general public does not fully understand the costs involved when arranging a funeral. People seem to think that many services are performed at no cost or that the total cost of a funeral goes directly to the funeral home. This article will attempt to educate consumers on what the cost of a funeral can be expected, as well as providing some insight for miscellaneous charges on the funeral bill.

In general terms, most funerals, whether the disposition is cremation or burial, range from $3,500-$14,000 depending on the type of services selected, the merchandise chosen, and the concierge items added. Please keep in mind that a meaningful funeral service really is not about how much it costs. A funeral is for the living and allows for family and friends to gain closure during the loss of a loved one.

To be in compliance with the Federal Trade Commission, funeral homes are required by law to provide the consumer with a General Price List when discussing services. This is an itemized price list of all the services one may choose when making arrangements. Also, at the conclusion of the arrangement conference, the funeral home must provide the consumer with a written estimate of all funeral costs. We must itemize in the following way: services provided, merchandise selected and cash advances. This article will discuss each category in depth so one can gain a better idea of how the funeral costs all come together.

Services of the funeral home include: basic professional fee for the funeral home and staff, which covers all of the work that needs to be done by the funeral home to handle the service. This would include charges for us to be available twenty-four hours a day to help a family with the death of a loved one, the arrangement conference and all follow up arrangements concerning the funeral, as well as basic overhead fees for the staff and facilities. Other services by the funeral home that may be selected include embalming or refrigeration, dressing and casketing of the deceased, removal from the place of death, a hearse or transportation to another location, limousine and flower car. In addition, you will pay for the services selected, i.e. visitation at the funeral home, type of funeral service, such as church service followed by committal in a cemetery, or a memorial service, graveside service, immediate burial, or some combination of the previously mentioned items.

The next area that you will be charged for is for the merchandise selected. Merchandise items consist of caskets, vaults, urns, register books, prayer cards, acknowledgement cards and funeral programs. As for caskets and vaults, most funeral homes offer this type of merchandise with a wide range of prices to choose from. Oftentimes, casket prices range from around $1000 and up. The same can be said for the price of a vault, which is not required by law, but rather a cemetery requirement. Vaults are required by cemeteries to keep the ground level and to avoid the sinking of graves and headstones, which is not only unsightly, but can be dangerous for visitors.

The part of the funeral bill that may be the most confusing is the issue of cash advance items. Cash advance items included may be, the cost of certified death certificates (currently $20 each in Connecticut), honorarium to the clergy performing the funeral service, fees for the organist and soloist, hairdresser fees, pallbearers (if needed), newspaper obituary fees, police escort, crematory fees, medical examiner’s fees and the opening and closing of the cemetery space. These items described are paid out of pocket by the funeral home and we make no profit on these items. We do this for the convenience of the family so they do not have to write numerous checks to all individuals involved in the funeral. Oftentimes, the cash advance section of the funeral bill can be $1500-$2500, depending on the variables. For example, the funeral home’s portion of the bill (service and merchandise) may be around $7000, but the inclusion of $2500 worth of cash advance items may bring the bottom line to $9500. One may believe the funeral home is making $9500 on the funeral. However, by subtracting the cash advanced items, the cost of staff, and facilities, a funeral home only makes a very modest profit off a single funeral. Daniel M. Isard, president of The Foresight Companies, LLC, a management and financial consulting firm based in Phoenix, recently announced the updated figures for the rate of indigenous inflation within the funeral profession for 2008, according to a news release. It was found that the inflation rate for the funeral industry called the Funeral Service Inflation (“FSI”) shot up to 8.91 % whereas the Consumer Price Index (“CPI”) for the same period is only 3.84 %. These numbers can reasonably conclude that the funeral industry has a much higher cost of doing business than many other consumer areas.

As a funeral professional, I often hear the grumblings of how expensive funerals are. Taking into consideration the FSI increase and overall cost of running a business in Fairfield Center, I think it is important to point out some general profit numbers to help the public understand how the business works. According to the Foresight press release, the profit margin for a funeral home in 2007 was on average 6.17 %. In contrast, the profit margin twenty-five years ago was on average 13.73 % showing the profit margins for funeral homes have dramatically decreased over the last quarter century. These staggering numbers can be directly related to the high inflation rate and increase in the cost of running a funeral business. So remember, if a funeral’s bottom line is $9,500, by no means is the funeral home pocking $9,500. You must consider all the costs involved in running a twenty-four hour, seven day a week business and expect to pay for those services.

Finally, I would like to address the issue of purchasing grave spaces. The average cost of a grave is approximately $1800-$2500 per grave, and around $750-$1500 for a cremation space. On top of this charge, will be the eventual opening and closing fee of the grave which ranges from $950-$1700 for ground burial, and around $450-$850 for a cremation burial. Please keep in mind that these prices may go up, so buying grave spaces in advance can save you money in the long run.

Most funeral homes welcome the opportunity to provide information to you regarding the projected cost of a funeral you might choose for yourself or a loved one. There is absolutely no obligation to go to a particular funeral home, even if you should inquire about their pricing structure. Since there are over ninety items to decide about when arranging a funeral, advanced education is key.

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