Funeral Industry: Big Corporations Shove Aside Mom And Pop
While cremation is having a profound effect on the more public aspects of funeral homes today, behind-the-scenes financial dealings are shaking the industry from its traditional foundation.
What once was a mom-and-pop industry - with local ownership handed down from generation to generation in many communities - is fast being swallowed by large international corporations.
The biggest players are Service Corp. International (SCI) of Houston, the world's largest funeral-home chain, and the Loewen Group, of Burnaby, B.C., the second-largest in North America.
Of the 212 funeral homes in Washington state, 49 percent are owned by "combination" firms - corporations that own two or more funeral establishments. SCI owns 21 funeral homes, Loewen, 31. Loewen and SCI each own seven cemeteries of the 144 in this state.
SCI owns 3,346 funeral establishments - 2,864 funeral homes, 335 cemeteries and 147 crematories. Loewen owns 1,242 funeral establishments - 937 funeral homes and 305 cemeteries.
In the past, consumers have been led to believe that consolidation and mergers in the funeral industry would result in lower costs. But that hasn't happened.
Often, when a big corporation takes over a small funeral home, the new managers may improve the facilities. But investors want to see a profit, and there's the new mortgage to pay. So although the big firm may be able to get discounts on caskets and other merchandise, customers won't necessarily see lower prices.
Prices at many funeral homes are up dramatically from what they were in 1992, when The Seattle Times did a price survey of the same establishments. (See chart on this page.)
Funerals in the United States now average $5,000 to $6,000, three times more than in England, and twice those in France or Australia, says Lisa Carlson, executive director of the Funeral and Memorial Societies Inc. of America (FAMSA), a nonprofit group that lobbies for low-cost funeral services.
The average traditional funeral - embalming, cosmetology, a casket, viewing by friends, a service and acknowledgement cards - now costs about $4,600, says the National Funeral Directors Association.
No price averages are available for cemetery costs, but that part of the transaction includes the cemetery plot, a liner or vault and a marker or headstone, and can cost several thousand dollars.
Carlson of FAMSA and other consumer advocates blame increasing prices on the Federal Trade Commission, which, since 1994, has let funeral homes fold their operating costs into a basic service fee.
SCI and Loewen have been accused of hiding local buyouts hoping to cash in on the good feelings that a locally owned funeral business has accumulated through the years. Thus, with the old name still on the building, family portraits of the founders still in the lobby and the old manager still in his post, many customers won't know they're dealing with a chain.
With cremation growing in popularity, the costs of burial and cremation may be nearly even in the next decade, said Blane C. Coffey, general manager of Green Funeral Home, now a part of the Loewen chain.
Bert Butterworth, a fifth-generation funeral director in Seattle, says his basic operating expenses per death handled are about $350, regardless of whether the family buys a full funeral service or memorial in his facility.
Funeral directors might want to consider basing some of their fees on the time families take to choose a service. That's much like the billable hours in the legal field. Several funeral directors warned, however, that such a move would be offensive to the public.
Anti-trust concerns have surfaced since it became known that SCI has been trying to take over the Loewen Group.
If SCI does take over Loewen, it's conceivable that in some cities consumers would not be able to find an independent funeral home.
One funeral-industry analyst said regulators already are looking at possible anti-trust violations by chain ownerships in 11 states.
Tina Kondo, an assistant attorney general for Washington, said state investigators are looking at what a hostile takeover here by SCI of Loewen properties would do to competition.
Several years ago when SCI acquired Uniservice, a smaller group of funeral homes, the FTC forced SCI to sell some funeral homes in Oregon because it had narrowed competition significantly.
---------------------------- The cost of funeral services ----------------------------
This chart is a sampling of the Puget Sound region for basic funeral
services. More options are available for additional fees.
=============================================================.
Bleitz (SCI)
316 Florentia St.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,180 $1,403 +55.3
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,175 $792 +48.3
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$955 $650 +46.9
Urn price range
1996 1992
$20-$1,749 $15-$650
Casket price range
(burial and cremation)
1996 1992
$375-$8,795 $85-$5,185
Outer burial containers price range (4)
1996 1992
$595-$7,000 $475-$6,750
=============================================================.
Bonney-Watson
1732 Broadway Ave.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,250 $1,895 +18.7
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,510 $1,185 +27.4
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,155 $876 +31.8
Urn price range
1996 1992
$80-$1,670 $65-$1,832
Casket price range
(burial and cremation)
1996 1992
$395-$19,270 $395-$19,270
Outer burial containers price range (4)
1996 1992
$385-$7,116 $335-$2,435
=============================================================.
Butterworth's Arthur A. Wright
520 W. Raye St.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,265 $1,924 +17.7
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,460 $796 +83.4
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,010 $772 +30.8
Urn price range
1996 1992
$85-$1,350 $62-$936
Casket price range
(burial and cremation)
1996 1992
$650-$19,500 $462-$9,442
Outer burial containers price range (4)
1996 1992
$525-$9,922 $460-$9,450
=============================================================.
Dayspring & Fitch
3714 Rainier Ave. S.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$1,795 $1,595 +12.5
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,390 $950 +46.3
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$895 $640 +39.8
Urn price range
1996 1992
$95-$2,880 $75-$950
Casket price range
(burial and cremation)
1996 1992
$595-$24,995 $385-$10,495
Outer burial containers price range (4)
1996 1992
$550-$2,720 $450-$1,595
=============================================================.
Evergreen-Washelli
11111 Aurora Ave. N.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$1,895 $1,395 +35.8
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,398 $1,070 +30.6
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$975 $785 +24.2
Urn price range
1996 1992
$20-$2,100 $55-$3,500
Casket price range
(burial and cremation)
1996 1992
$523-$8,000 $450-$3,900
Outer burial containers price range (4)
1996 1992
$475-$6,930 $425-$2,095
=============================================================.
Faull-Stokes (SCI)
300 S. Third St.
Renton
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,660 $1,950 +36.4
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$2,303 $850 +170
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,490 $895 +66.4)
Urn price range
1996 1992
$98-$2,425 $40-$1,700
Casket price range
(burial and cremation)
1996 1992
$998-$8,795 $389-$7,450
Outer burial containers price range (4)
1996 1992
$670-$3,689 $460-$9,450
=============================================================.
Flintoft's
540 E. Sunset Way
Issaquah
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,280 $1,875 +21.6
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,410 $950 +48.4
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$975 $940 +3.7
Urn price range
1996 1992
$2-$1,600 $50-$795
Casket price range
(burial and cremation)
1996 1992
$270-$7,500 $325-$6,097
Outer burial containers price range (4)
1996 1992
$200-$2,295 $350-$6,225
=============================================================.
Green (Loewen Group)
1215 145th Pl. S.E.
Bellevue
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$3,195 $2,046 +56.1
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$2,040 $952 +114
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,970 $1,045 +88.5
Urn price range
1996 1992
$70-$1,987 $25-$2,125
Casket price range
(burial and cremation)
1996 1992
$595-$24,995 $347-$8,432
Outer burial containers price range (4)
1996 1992
$398-$7,087 $398-$7,087
=============================================================.
Price-Helton (Loewen Group)
114 N. Division St.
Auburn
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,995 $2,495 +20
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$2,090 $1,045 +100
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,635 $1,266 +29.1
Urn price range
1996 1992
$24-$1,695 $20-$1,695
Casket price range
(burial and cremation)
1996 1992
$295-$8,050 $175-$5,995
Outer burial containers price range (4)
1996 1992
$325-$8,950 $175-$5,995
=============================================================.
Purdy & Walters at Floral Hills (SCI)
409 Filbert Rd.
Lynnwood
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,665 $1,618 +64.7
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$2,180 $1,000 +118
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,410 $850 +65.8
Urn price range
1996 1992
$95-$2,000 $15-$750
Casket price range
(burial and cremation)
1996 1992
$475-$8,795 $85-$6,975
Outer burial containers price range (4)
1996 1992
$595-$14,895 $225-$6,750
=============================================================.
Southwest Mortuary
9021 Rainier Ave. S.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,455 $1,595 +53.9
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$950 $1,000 -.05
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$780 $670 +16.4
Urn price range
1996 1992
$90-$2,800 $175-$1,095
Casket price range
(burial and cremation)
1996 1992
$395-$8,100 $395-$7,000
Outer burial containers price range (4)
1996 1992
$465-$7,000 not available
=============================================================.
Yahn & Son
55 W. Valley Highway
Auburn
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$2,210 $1,988 +11.1
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$1,324 $1,144 +15.7
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$1,109 $985 +12.5
Urn price range
1996 1992
$15-$900 $15-$590
Casket price range
(burial and cremation)
1996 1992
$390-$4,000 $299-$4,579
Outer burial containers price range (4)
1996 1992
$350-$5,725 $450-$6,142
=============================================================.
Memorial Society (5)
People's Memorial Association
2366 Eastlake Ave. E.
Seattle
Traditional funeral service with visitation
(excluding casket and grave liner) (1)
1996 1992 % change
$769 $690 +11.4
Immediate burial with minimum casket
(excluding grave liner) (2)
1996 1992 % change
$629 $565 +11.3
Direct cremation
(includes minimum container) (3)
1996 1992 % change
$497 $447 +11.1
Urn price range
1996 1992
retail price at Bleitz applies
Casket price range
(burial and cremation)
1996 1992
$295-$4,850 not available
Outer burial containers price range (4)
1996 1992
retail price at Bleitz applies
=============================================================.
(1) Generally includes transfer of body, embalming, dressing,
cosmetology, staff services, paperwork and use of facilities for
viewing and a funeral service. Automotive services at some funeral
homes are limited to a hearse; others may include the hearse, a
vehicle to transport flowers and a limousine for the family. Does
not include a casket, except for People's Memorial Association.
(2) Includes transfer of body, minimum casket and some funeral
director/staff services. There is no embalming or viewing or funeral
service.
(3) Includes transfer of body, immediate cremation, minimum
container and some funeral director/staff services. There is no
embalming or viewing or funeral service.
(4) Most cemeteries require an outer burial container that goes
into the grave. These can range from a concrete liner that costs
several hundred dollars to vaults costing several thousand dollars.
(5) A one-time $10 membership fee in People's Memorial Society
entitles members to discounted prices at Bleitz Funeral Home, with
which PMA contacts.