Introduction
The median cost of a funeral is $7,360. The number of funeral homes in the United States has been dropping since 2004. Now there are over 19,000. A funeral home must have facilities and staff for services, planning and coordinating. The main revenue is from services and products for families. Profitability varies by location, competition and services. The average margin is 20-25 percent. Careful planning and attention to detail is still required.
Is owning a mortuary profitable?
The average profit for a funeral home is between 6 and 7 percent. The median cost of a funeral is $7,360. As of 2018, there were over 19,000 funeral homes in the United States. The number has been dropping since 2004.
A funeral home must have staff and facilities. It also must carry caskets and urns. Revenue is from services and products for families. Profitability varies by location, competition and services. The average margin is 20-25 percent. Careful planning is still required.
Conclusion
Factors affecting profitability include management style and business structure. Since the population is aging, demand is increasing. With good business practices, owning a funeral home can be profitable. You need an appropriate location, quality service and efficiency. Startup costs range from $150,000 to $300,000. Ongoing success requires empathy, listening skills and creativity from staff.