The Co-operative reports 21% increase in funeral plan sales
No funeral director, however brilliant, can stimulate an appetite for their product – because we pass their way but once. But a funeral director can sign up tomorrow’s customers today by the ingenious means of selling them a pre-need funeral plan.
Pre-need plans look like a very good bet. They’re inflation-proof. And they are easy to sell. Just tweak people’s consciences by telling them that it’s a helpful and thoughtful thing to do for those who will be charged with disposing of you and you’ve got a win-win-win.
The Co-operative Group and Dignity, in particular, have done an incredibly good job of selling their pre-need plans. So much so that the independent sector is finding that tomorrow’s market increasingly belongs to these big conglomerates. As turf wars go, this one is looking very one-sided.
The more so with the Co-op’s proclamation on 5 March of a staggering 21 per cent growth in sales of pre-need plans in 2009. If I were an independent I’d be writing off my future.
Are pre-need plans the best way of paying for a funeral? I haven’t the financial literacy to work that out. I wonder if any reader of this blog has a view or, better still, an analysis.
What is certain is that consumer choice is under grave threat from funeral providers who, for the most part, cannot rival independents for personal service or value for money.
Read the incredibly depressing Co-op announcement here.
Labels: Co-op, funeral cost
posted by Charles Cowling at
20:21
4 Comments:
Interesting one this...
I was always brought up to understand that there's no such thing as a free meal - though careful investment may be a somewhat different ball game.
Like you Charles, I admit to restricted financial literacy, however common sense suggests that unless funeral plan providers have a direct phone line to "the Great funeral plan provider" upstairs, their being able to actually meet the costs of future funerals depend on basic factors like, loading the original cost of the plan, investing wisely (not always possible by today's shakey standards), and maintaining sales to provide the "pyramid" effect in the coffers.
Someone please tell me there's more to it then that!
Recall that one widely promoted independent plan agreement between the FD and plan provider has a clause that in the event of the funeral plan company going bust, the FD that sold the plan would accept liability to carry out the funeral at cost to himself. (i.e. without payment).
With so many financial sectors going belly-up, why does the funeral planning market think it's immune?
THE CO OPERATIVE FUNERALCARE AND DIGNITY ARE AT THE MOMENT HANDSHAKING ON DEALS WITH MANY OF THE LARGE INSURANCE COMPANIES TO ACTIVELY PROMOTE AND SELL FUNERAL PLANS AND INSURANCE POLICIES THAT WILL RESTRICT THEIR CHOICE OF FUNERAL DIRECTOR. IT WILL CERTAINLY BE A BLEAK FUTURE FOR THE INDEPENDENT FAMILY FUNERAL BUSINESS WHO IN YEARS TO COME FINDS THAT THEIR FUTURE BUSINESS HAS BEEN RAPED BY THE LARGE CONGLOMERATES. I ALSO THINK THAT MANY PEOPLE WILL BE DISAPOINTED TO FIND THAT THEIR LOCAL FUNERAL DIRECTOR WHO HAS BEEN PART OF THE LOCAL TOWN OR VILLAGE WILL EITHER BE FORCED TO SELL OUT TO THE ASDAS AND THE TESCOS OF THE FUNERAL WORLD OR TO SEE ANOTHER SMALL FAMILY BUSINESS CLOSE ITS DOORS.
MAILSHOTS ARE SENT OUT REGULARY TO PEOPLE IN MY LOCAL AREA FROM THESE BIG COMPANIES TRYING TO SOLICIT BUSINESS. I HAVE ALREADY HAD 2 FAMILIES THIS YEAR WHO THOUGHT THAT THEY COULD REDEEM THEIR FUNERAL PRE PAYMENT PLAN AT MY OFFICE.
THEY HAD TO GO 14 MILES TO THE NEAREST BRANCH OF THE FUNERAL PLAN PROVIDER TO ARRANGE THE FUNERAL.
NOT GOOD!!!
I can't read money either. But it does seem to me to be promoting tomorrow's funerals at today's (poor) standards. As you say, Anonymous: 'Not good.'
Also the fact that the big boys i.e. Dignity and the Co Op sell funeral plans under various other guises such as AGE CONCERN, (if they were really concernend wouldn't you think they'd try and get the best value for money for the people they say they represent) and when the family come to use the plan they can't use the funeral director they want to because they are all tied up.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home