Funeral Home Budget Success

I had the pleasure of hosting a Johnson Consulting Conversations featuring Nelson Thulin, our Director of Business Consulting. We dived into the topic of funeral home budget success for 2025, during which Nelson provided valuable insights and strategies to help funeral providers thrive in a competitive market and plan accordingly for 2025.

Nelson emphasized the importance of analyzing historical and year-to-date data as a foundational aspect of budgeting and understanding where your funeral home’s sales trend is crucial for projecting future activity. He advised being honest and realistic when examining past data, as it forms the basis for planning and growth.

Nelson highlighted the shift from traditional burial to cremation services, with an increase in direct cremation and memorial services. Being as detailed as possible with the data is the key, and understanding there is a difference between sustaining growth and sustaining a steady call volume.

With projections, Nelson discussed the impact of external factors such as market competition and advertising efforts. Recognizing new competitors’ emergence and marketing strategies is vital for staying ahead. He mentioned that new funeral home owners strongly engage in community outreach often, influencing the local market dynamics, and that can have an impact on other area funeral homes.

Adjusting pricing can significantly affect sales projections, and Nelson stressed the importance of understanding how these changes influence average sales per call. He also addressed labor expenses, advising owners to consider salaries, overtime, training, and benefits as part of their 2024 budgeting. Nelson recommended viewing training as an investment, not an expense. And, of course, we both agreed that access to performance data from Performance Tracker X can help customize training content.

We discussed regularly reviewing and maintaining facilities. He advised being brutally honest about facility upkeep, from carpets to wall repairs. Hiring a mystery shopper to evaluate the premises during non-busy times can provide an unbiased perspective on the facility’s image.

Vehicle-related costs, including maintenance and insurance, are another significant expenditure. Nelson recommended carefully analyzing buying and leasing options. We also briefly discussed advertising and how being very intent and strategic can have a considerable impact, and funeral homes should prioritize advertising channels that yield the best return on investment.

Funeral home owners can confidently navigate financial planning with these insights, ensuring sustainable and successful operations. Watch the entire conversation above! Our next Johnson Consulting Conversation is December 11th at 2 PM EST.