To understand how much a funeral home and its owner can make, it is essential to know how the funeral home industry works. To be a profitable funeral home, it is necessary to offer a variety of services that meet the community’s needs. The owner also needs to determine if they will hire staff or take care of the primary responsibilities themselves.
How Much Do Funeral Home Owners Make?
The amount a funeral home owner makes depends on the business’s profitability. A funeral home is a business, and like any business, it needs to generate revenue to be successful. Therefore, owners can pay themselves a flat salary or a percentage of the profits.
To get a better idea of how much funeral home owners make, we’ve compiled data from the Bureau of Labor Statistics (BLS) and other sources to create a range.
The average salary for a funeral home director is $55,160 per year. However, salaries can range from $30,000 to $100,000+, depending on the size of the funeral home, its location, and the owner’s experience.
The average funeral home generates about $250,000 in revenue each year. However, funeral homes can generate anywhere from $50,000 to over $1 million in revenue annually, depending on the services they offer and how many funerals they perform.
The owner can pay themselves a salary and a percentage of the sales. Therefore, if their business thrives, so does the owner.
Funeral Home Industry Analysis
The funeral home industry employs about 154,000 people in the United States and generated $20 billion in revenue in 2017.
The industry is expected to grow at a rate of 1.6% from 2018 to 2023.
The funeral home industry comprises two main segments: funeral homes and cemeteries.
Funeral homes
Funeral homes provide funeral services, which include transportation, embalming, and burial or cremation services.
There are two main types of funeral homes:
For-profit
These businesses are owned by individuals or corporations and operated as a business.
Non-profit
These businesses are typically owned by religious organizations or foundations and operate at little to no profit.
The amount a funeral home and its owner will make depends on the business model.
Cemeteries
Cemeteries provide burial plots and other cemetery services, such as headstone installation and maintenance.
Profitable Funeral Home Potential and Funeral Services Offered
To be a profitable funeral home, it is necessary to offer a variety of services that meet the community’s needs. The most common type of funeral service is a traditional funeral, which includes a visitation, funeral service, and burial.
Other types of funeral services that you can offer include:
- Cremation
- Direct burial
- Green burial
- Memorial service
The average cost of a traditional funeral is $7,181. This includes the price of the casket ($2,395), funeral service ($1,295), and burial plot ($1,500).
Cremation services are generally less expensive than traditional funerals. The average cost of a cremation is $6,078. This includes the cost of the cremation ($2,064) and the memorial service ($3,014).
Direct burial is the simplest and most affordable type of funeral service. The average cost of a direct burial is $2,854. This includes the cost of the casket ($1,098) and the burial plot ($1,756).
Green burials are becoming more popular as people become more environmentally conscious. However, the average cost of a green burial is $3,122. This includes the cost of the casket ($995) and the burial plot ($2,127).
Memorial services are held without the body and can be held anytime after death. The average cost of a memorial service is $5,250. This includes the cost of the funeral service ($1,295) and the memorial service itself ($3,955).
Funeral home owners who provide high-quality services at average costs can make an attractive profit and salary annually.
Costs to Run a Funeral Home Business
To run a funeral home business, you must consider several costs. These include the cost of the building, the cost of equipment, the cost of supplies, and the cost of marketing. Each cuts into the funeral home’s profits.
Consider the average cost of…
- A funeral home building — $350,000.
- Funeral home equipment— $50,000.
- Funeral home supplies — $5,000.
- Marketing a funeral home — $10,000.
Factors these into your profit and loss calculations.
Manage the Costs of a Funeral Home Business
There are several ways to manage the costs of running a funeral home business to increase profit. One way is to offer discounts for pre-planning funeral services. Another is to provide discounts for group funerals.
Streamline business operations by adopting business software. This will save time and money.
Plus, use digital marketing strategies such as social media to market your funeral home business. This is a cost-effective way to reach potential customers.
Generate Profit as a Funeral Home Owner
Funeral home owners can make a good profit by offering a variety of services at average costs. To maximize profits, funeral home owners should manage the costs of running their business and adopt efficient business practices. They should also market their funeral home business to reach potential customers.