Crematorium businesses can offer significant profitability with an average cremation price of $2,000 and profit margins around 30%. At the early stage of operation with two cremations per week, an owner might see an annual revenue of $208,000, translating to $62,000 in profit. Once the business expands to four cremations weekly, the revenue may double, yielding a $125,000 profit from $416,000 in revenue.
The industry is sizable, with estimated values between $3 and $5 billion, and it is on the rise. Crematorium executives typically make an average salary of $60,000.
Additional Services and Revenue
Offering complementary services such as memorial ceremonies or ash scattering can provide a more comprehensive experience for families while adding to the business’s revenue streams. The average annual revenue for a crematorium ranges from $250,000 to $500,000.
In most cases, the business is operated from a commercial office or storefront, not a residence. Work in this industry can involve physical tasks and may require 24/7 availability, bearing high liability.
Starting a crematorium can also fulfill a growing need by assisting grieving families. For those interested, it’s important to follow the proper steps to comply with laws and regulations and pave the way to successful business ownership.
Cremation vs. Burial Costs
Cremation is often viewed as a less expensive alternative to burial. A significant portion of burial costs is associated with cemetery fees, including the location within the cemetery and any monuments or headstones. Services such as stonemasonry for granite headstones and reopening graves add further costs.
The costs of cremation versus traditional funeral services reveal a stark contrast: the average cremation totals around $2,000, while a funeral with burial can reach an average of $6,500, with caskets alone costing upwards of $2,000. In 2019, the median burial cost was $7,640 compared to cremation, which ranged between $2,200 and $5,150.
Prices for cremations can differ based on whether they are conducted through a funeral home or directly at a crematory and can vary by state. Optional services, viewings, and ceremonies will alter the final costs, not to mention the price of urns and miscellaneous expenses like obituaries.
While upscale cremation options can sometimes surpass the costs of basic burials, the average cremation typically costs between $500 and $2,500, including transportation and the cremation process itself. Opting for minimal services can lower expenses, with direct cremation available under $1,000 at many funeral homes.
Although cremation is less costly, it is essential to consider the choice’s emotional aspects and respect for the deceased. People may have differing opinions on the handling and processing of remains, potentially leading to conflicts. In comparison, traditional funerals involve a broader range of services and therefore, come with higher costs. For those with tight budgets, it is advisable to compare funeral homes and limit services where possible.