Stupid Green Book 3 Flashcards
predecessor to modern day funeral director was
a cabinet maker or livery/stable owner
early funerals were carried out by
family member
cabinet maker provided
casket
stable owner provided
horses and hearse
pricing method used until the early 1900s
itemized pricing
The pricing method that followed itemized pricing is
unit pricing
during post world war years brought on
consumerism
consumerism means
public was getting more dollar conscious.
after consumerism and people were more price conscious ___________became popular again
itemization
the business of buying and selling
merchandising
The purchasing, pricing, displaying and sale of not only caskets, but outside enclosures, burial garments, possibly monuments and other accessories.
Merchandising Includes:
the casket represents how much of the entire cost to the family
20-40%
- experience
- sound planning
- accurate cumulative records
- basic knowledge of salesmanship
A Solid Merchandising Program is Based on:
- overhead (average overhead per adult services)
- cost of merchandise
- mark up on merchandise
- human need
- competition
- area pricing
- business ethics
Price of the Funeral’s Seven General Criteria
one of the first steps to developing a merchandising program is to
formulate a budget
- itemization
- unit pricing- simplest method
- bi-unit pricing- one price casket, one price services
- functional pricing- casket, service, facilities, and automobiles.
Four Basic Pricing Procedures and Main Examples of Formula Pricing
how to get selling price:
overhead + wholesale casket cost + markup = selling price
caskets are divided into quartiles. the most expensive units are
first quartile
first quartile usually is
10 percent of the units and then the second quartile, around 20, third around 30 and fourth around 40. sometimes the third is 40 etc. first quartile is almost always 10 percent. (pg 72 green book)
the difference in casket prices should be of enough range so as to provide the family with the opportunity of comparing caskets
price progression
an aid to both the budget and the pricing system. A charge on which all sales are charted showing the number of sales, average sale, median sale, yearly gorss income, from both fornula and non formula sales, total units sold, income in each quartile, percent displayed in each sale.
sales frequency charge
medium sale serves as a
barometer
funeral homes should limit the purchasing of caskets to approximately how many manufacturers?
four or fewer
to assure maintenance of a balanced selection of caskets and to further prevent overstocking, the funearl home should maintain
inventory control