In many respects, funeral service is "recession proof" in that people must take care of a funeral no matter their current economic circumstances. Nevertheless, people do have the ability to trim their spending and downsize their expectations when it comes to any sort of purchase.
The New York Times ran an article yesterday which talked about the dramatic shift in consumer spending which has started to show up in retail sales figures. Upscale items such as Coach handbags Burberry scarves saw a drop off over the holiday selling season, which many attribute to the housing slump.
Some experts have the opinion that many consumers used rising house values and home equity borrowing to help fuel their "masstige" (an amazing mash up of a word, combining "mass" as in mass-produced and the word "prestige") purchases and that those days may have come to an end for a while.
I don't think this makes a whole lot of difference for us here in the greater Fall River area in Massachusetts. We didn't have too many of those "mastige" consumers around here. However, in lots of other places where semi-upscale consumers have flocked to live over the years, even funeral homes may see a change in consumer spending and find that families become less open to service upgrades, higher scale mercandise and other "profit boosters" that some funeral home companies rely upon to make money.
New York Times Online: Thinking Twice About That $400 Handbag



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