There’s a famous saying in Sunday School circles, “What would Jesus do?” abbreviated “WWJD”. People wear those initials on bracelets and charms as a reminder to think before they act, seeking better answers to life’s challenges in the teachings of Jesus. Well I think I’m going to adopt a new phrase for myself when dealing with salesmen, “What would Wal-Mart do?” or “WWW-MD”.
Recently a salesman presented me with a new register book concept in late prototype stage. [Note: I will not mention the company’s name because the product and pricing may well change before final release.] Full color, beautifully designed, organized so that families could add special “chapters” or theme pages designed to capture special attributes of the person remembered in the book (for instance, patriotic, special holidays, special vacations, marriage, 20 in all). Very comprehensive and again, very beautifully designed. However, the pricing is dramatically higher than what I pay today.
Here’s a portion of what the salesman wrote to me yesterday in response to my questions about pricing [Note: the numbers here are for illustration purposes only]:
“As for your mark up and what it costs a family? Well that's relative. You can buy a book for $20.00 and triple it and make $40.00 or you can buy a book for $40.00 and double it and still make $40.00. The difference is about $20.00 to a family. However, they get a much better value with the latter because they're getting dollar for dollar value for the additional $20.00 netting 50 cents in merchandise per $1.00 spent as opposed to 33 cents per dollar spent on the cheaper book.”
On the surface that sounds “reasonable”, but let’s turn this around and ask the “WWW-MD” question. Would Wal-Mart accept the idea that their costs would DOUBLE on a product and in the process they would make no additional money? No, they would not, so why in the world should I accept this form of cockeyed salesmanship? I shouldn’t and neither should you.
Doubling the company’s cost of register books (or any item for that matter) while seeing no improvement in profitability means your company has ended up losing money. At the very least you have to carry an inventory, so instead of tying up $2,500.00 in books you tie up $5,000.00 in books. This doesn’t sound like a lot but if you let that happen over and over again in a number of product areas, service prices have to go up in order to cover the cost of that money now “invested” in paper goods and lost to the operation of the business.
It is TOTALLY UNREASONABLE for vendors to come to our places of business and try to feed us this line of nonsense. Adding value means that EVERYONE—including the funeral home—gets to benefit. The family gets a better product, the funeral home adds profitability and the vendor gets to make money, a good old fashioned “win-win-win”. This other nonsense of the vendor makes more, the family gets more and the funeral home sees no benefit has got to stop. This only drives up service fees to cover the lost profitability and worst of all, that puts more and more financial pressure on those in our communities least able to afford funerals. That’s just bad business all the way around.
So start asking the “WWW-MD” question and see if that doesn’t change your perspective on how you care for your business, always remembering that a well run business has more, not less, to give to the families served.
A Million More...
...deaths per year that is, over the next 15 to 20 years. Let me say that again 1 million more deaths per year in this country than we deal with right now and that's assuming for calculation purposes that the population remains about the same size over that time. The population is expected to grow (at least moderately) as well.
Going into the holiday weekend, I don't have time to start a major posting but I now have a PDF version of the American Funeral Director article I wrote for the January 2008 issue. This begins to spell out some of the issues.
Give it a read and get me some feedback. I need to write a follow-up piece which looks at the mortality changes on a more regional basis (some areas will see moderate growth, others--explosive) and I would want to address anything about this article which is unclear or incomplete.
Thanks.
Download where_are_the_boomers.pdf
March 21, 2008 in Comments | Permalink | Comments (0)
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