Preneed Opportunity

[Ex Health Agent]

I know this topic has been discussed before but I wanted to ask an opinion of those who have or do preneed. I've been approached by a Homesteaders rep in my area who would like me to work for a local funeral home offering preneed. I would be handling the preneed for two seperate funeral homes that are run by the same family. The main funeral home has about 250-300 funerals per year and the second one that is run and hasn't been open too long has about 100 funerals per year. I do like the idea of having free leads and virtually no business expenses whatsoever. I've looked at the contract and for most ages the commission is roughly 6-11% depending on age ( of course ages 81 and above I'm basically doing charity work ). I have been selling FE but does this sound like a good opportunity I guess is my main question?

 

[gordon112]

Newby is the guy to ask. He has the experience in Pre need market.

~~~I think it would be a good idea to gain some experience.

 

[Ex Health Agent]

Newby is the guy to ask. He has the experience in Pre need market.

~~~I think it would be a good idea to gain some experience.

You're right I should have specifically directed this threat towards Newby. He is the resident Preneed expert.

 

[Newby]

I know this topic has been discussed before but I wanted to ask an opinion of those who have or do preneed. I've been approached by a Homesteaders rep in my area who would like me to work for a local funeral home offering preneed. I would be handling the preneed for two seperate funeral homes that are run by the same family. The main funeral home has about 250-300 funerals per year and the second one that is run and hasn't been open too long has about 100 funerals per year. I do like the idea of having free leads and virtually no business expenses whatsoever. I've looked at the contract and for most ages the commission is roughly 6-11% depending on age ( of course ages 81 and above I'm basically doing charity work ). I have been selling FE but does this sound like a good opportunity I guess is my main question?

The commissions are on the very low side but some funeral homes are like a gold mine with walk-ins and call-ins a lot. In those cases the funeral home is generating the business and deserves a lot of the commission. Also if the funeral home is constantly doing mailings and other advertisements it generates a lot of easy business for you.

If it's one that gets few walk ins or call ins and you have to generate all the business, it would be too low of a cut.

You don't know until you try it out.

 

[Northeast Agent]

How StoneMor, battered cemetery operator for Philly Archdiocese, is coping with coronavirus: 'We're solvent enough'

The nation's second largest "death care" company, based in the Philadelphia suburbs, is struggling to remake itself amid a pandemic while continuing to take a drubbing on Wall Street.

And, as the U.S. death toll from COVID-19 continues to rise, Trevose-based StoneMor Inc. says it is facing a shortage of protective gear required for its workers. The company, which operates "thousands and thousands of acres of cemeteries" across the United States, operates nearly 90 funeral homes and 320 cemeteries, including 13 belonging to the Archdiocese of Philadelphia.

Though all burial-related stocks are languishing, StoneMor's stock has fallen to a record low.

Five years ago, the stock was valued at more than $30. Since June 2019, it has languished at about $2. In recent weeks, it's become one of the worst performers on the New York Stock Exchange. On Tuesday, the stock (STON) closed at $0.60.

 

[Newby]

How StoneMor, battered cemetery operator for Philly Archdiocese, is coping with coronavirus: 'We're solvent enough'

The nation's second largest "death care" company, based in the Philadelphia suburbs, is struggling to remake itself amid a pandemic while continuing to take a drubbing on Wall Street.

And, as the U.S. death toll from COVID-19 continues to rise, Trevose-based StoneMor Inc. says it is facing a shortage of protective gear required for its workers. The company, which operates "thousands and thousands of acres of cemeteries" across the United States, operates nearly 90 funeral homes and 320 cemeteries, including 13 belonging to the Archdiocese of Philadelphia.

Though all burial-related stocks are languishing, StoneMor's stock has fallen to a record low.

Five years ago, the stock was valued at more than $30. Since June 2019, it has languished at about $2. In recent weeks, it's become one of the worst performers on the New York Stock Exchange. On Tuesday, the stock (STON) closed at $0.60.

They pitched for years that the funeral industry is completely recession proof. I leaned that it wasn't over a decade ago when I rode SCI (Dignity Memorial) stock from $78 per share all the way down to $2 per share. Ouch!

I would not invest in Funeral or cemetery companies in this day and age. Might be good for some investors. But I don't see a great future for them.