Comparison shopping is a natural shopping habit for many people. Whether shopping for groceries, clothes, a car or sometimes even a home loan, checking out the prices of competitors is a smart move by consumers. But the final shopping list of someone’s life — paying for a funeral — isn’t on the radar of many shoppers.
Why? It can be that people don’t want to think that far ahead and consider their future death or a loved one dying. Shopping for a funeral can seem crass, especially at an emotional time in life when money isn’t likely to be considered an issue.
But even for consumers who shop around for a funeral, they can find it difficult to compare prices.
$11,000 difference in funeral costs
A survey by the Funeral Consumers Alliance and the Consumer Federation of America in October of 150 funeral homes throughout the U.S. found that only 25 percent of funeral homes fully disclosed prices on their websites, and 16 percent didn’t fully disclose prices both on their website and in response to an email and a phone call.
The price variations were substantial — from $2,580 to $13,800 for a full-service funeral, and from $640 to $6,800 for immediate burial. Prices of direct cremation ranged from $495 to $7,595.
Direct cremation was without a ceremony. Immediate burial was without a ceremony or casket.
A full-service funeral included the basic services of the funeral director and staff, transport of the body from place of death to funeral home, embalming, other preparation of the body, viewing or calling hours, funeral ceremony with casket present, hearse to cemetery, sedan or limousine for family, and graveside ceremony.
Lack of competition
“The huge price ranges for identical funeral services within individual areas indicate that these markets lack effective competition,” said Stephen Brobeck, CFA’s executive director, in a statement. “The lack of price competition is unfortunate given the relatively high cost of funeral services and the reluctance of many bereaved consumers to comparison shop for these services.”
Here’s how the price information was obtained for the survey:
- Found on website: 25%
- Provided after an email: 29%
- Provided after a phone call: 29%
- Provided after a personal visit or couldn’t obtain: 16%
The Federal Trade Commission’s Funeral Rule was issued in 1984 and amended in 1994. It requires funeral homes to provide only price information over the phone or a price list to those visiting the home. It does not require disclosure on the websites of funeral homes.
“The FTC needs to require funeral homes to disclose prices clearly and completely on their websites,” said Josh Slocum, FCA’s executive director, in a statement. “This disclosure will greatly increase consumer search for price information. It will also allow journalists, consumer information services, and consumer groups to much more easily research, compare, and report on prices.
FCA and CFA are submitting this research to the FTC and are urging the agency to update the Funeral Rule.
The Funeral Consumers Alliance (https://www.funerals.org/) can be a great resource. After joining our local chapter, we were able to save thousands on my father-in-law’s final arrangements. They provided us with a price comparison chart for local funeral homes as well as negotiated member rates at several of them. My father-in-law was a keen shopper and money-saver, and I know he’d be comforted that we were able to save this money for my mother-in-law’s future.
Thanks for the tip, Gary. That’s a move that not many consumers make, I suspect.