The significance to the consumer of wholesale casket costs lies in the use of “formula pricing,” which means in its simplest application that the price of the funeral is arrived at by marking up the wholesale casket cost anywhere from 400 to as much as 900 percent or higher. The markup is usually steepest in the lower price ranges.

Funeral directors have always been jealous guardians of the secrets of wholesale costs. The first official act of the California Undertakers and Funeral Directors Association at its founding convention in 1882 was the adoption of a resolution “that this Association earnestly request all manufacturers and wholesale dealers in undertakers’ goods… to refrain from sending out catalogues and price lists to any parties who are not undertakers or funeral directors in good standing.” Seventy years later, this concern was still uppermost; Mortuary Managementin 1952 reported, “The National Funeral Directors Association has for a number of years had a policy which states that all catalogues, catalogue sheets, and other advertisements which give wholesale prices for funeral merchandise, when mailed, should be sent in sealed envelopes as first class mail.” The same policy applies to funeral directors who mail price lists offering shipping services, embalming services, etc.

Over the years, the occasional hardy storefront casket retailer attempted to compete with the mortuaries in the sale of caskets. These efforts largely failed because the mortuaries resorted to various anticompetitive measures, among them the imposition of a “casket handling fee” when the casket was purchased from a third party. When in 1994 the FTC adopted a rule prohibiting the practice, retail casket sellers, offering substantial discounts, began to flourish. The media—fascinated by the trend—provided publicity, and consumers began to shop around.

Industry response was predictable. Gordon Fairclough in the Wall Street Journalinterviewed a funeral director in the neighborhood of one new casket emporium. The mortician reports that he met the competition by the simple expedient of lowering his casket prices while at the same time raising his service fees.

The conflict between cemetery and funeral director is of a different nature, for they are in direct competition for the dead man’s dollar. The funeral director is here in the choice position, since he ordinarily gets to the prospect first. By the time he gets through with him, there won’t be much money left over for a grave. The cemetery people come in a poor second, often finding that by the time their particular commodity is offered to the prospect, the funeral director has skimmed the cream from the top. He has not only induced the bereaved family to spend its all on the casket, but he may steer them away from direct contact with the cemetery and take it upon himself to order a cheap grave by telephone. This can all be very annoying and not at all good for grave sales.

The American Cemeteryreports a discussion on “immediate-need” selling in which suggestions were made about how the cemeteries can get around this problem. The first thing is to insist that the family make a personal visit to the cemetery and not permit the purchase of the grave to be handled through the funeral director. Mr. David E. Linge, executive vice president of Cedar Memorial Park, Cedar Rapids, Iowa, is quoted as saying: “We don’t feel a funeral director’s position is such that he can call a cemetery and say, ‘Open a thirty-five-dollar single [at least $350 today],’ any more than we would call him and say, ‘Provide the family with your hundred-dollar casket [$1,000 or more today].’ For that reason we will not take, under any circumstances, a sale over the telephone in an at-need situation.”

The funeral director should, however, be asked to supply as much information as possible about the family—“their names, relationship to the deceased, financial background, social and economic status in the community.” Once he has done so, the article continues, he can safely be dismissed while the arrangements proceed. At this time the funeral director is tactfully drawn away from the family group, since Mr. Linge feels that “as a matter of professional courtesy, he should not be present at the conference.”

The family visit also gives the cemetery personnel an opportunity “to describe its other services, such as bronze memorials, flowers, mausoleum crypts and cremation facilities.” If the family does not buy a memorial then and there, chances are they will do so in the very near future; for Cedar Memorial Park has a “carefully planned program to provide counsel and assistance for lot owners after the at-need sale has been made.” The program works like this: first a letter is sent to the family announcing that the Cedar Park memorial counselor and director of the Family Counseling Service will call upon them shortly “to secure the information necessary for the Historical Record and present you with a photographic record of the services at Cedar Memorial.” Three days later, the counselor arrives at the home and “suggests the purchase of a bronze memorial.” But that is not all; in the middle of the month following the service, the counselor is after the family again, this time to invite them to a “counseling program” at the cemetery chapel. This in turn is followed up by yet another personal visit; “Dr. Dill always visits them if a memorial has not been selected.”

Another cemetery writer describes the conflict of interest between undertaker and cemetery: “You are all familiar with the situation wherein the mortician gives a telephone order for your bare minimum, telling you to put it on his bill and not contact the family? He is trying to be a good fellow in the eyes of the family he is serving, but more than that, he is scared to death that if we see them, we’ll oversell them, and he will suffer in his sale or will have to wait for his money.” [7]

The cemeteries are not taking it lying down. They have developed their own potent counterweapon—“pre-need” sales, for which salesmen roam the neighborhoods of metropolis and suburb like thieving schoolboys in an orchard, snatching the fruit before it has fallen from the tree. They have outflanked their adversary here by getting to the prospect not hours ahead—but probably yearsahead—of the undertaker. Worse yet, they have begun to establish their own mortuaries for the “one-stop” funeral.

Robert Waltrip of SCI, Ray Loewen of the Loewen Group, and Charles Stewart of Stewart Enterprises, the head honchos of the Big Three of the corporate funeral world, have been pitted in a worldwide race to buy up cemeteries with integrated undertaking establishments. Known in the trade as combos, these have proven to be prodigious money mills.

That such combinations may be illegal in states such as Pennsylvania, Wisconsin, Michigan, and New York, which acknowledge the traditional view that cemeteries are not meant to be for-profit enterprises, has thus far not been seen by the corporate buccaneers as a deterrent.

Louisiana-based Stewart recently negotiated an agreement with the Catholic archdiocese of Los Angeles, the nation’s largest (home to nearly 4 million Catholics), to build and operate mortuaries in its six biggest cemeteries. In return for this invaluable endorsement, the Church, to the anguished distress of the independent Catholic funeral directors in the diocese, will receive a percentage of the proceeds from each funeral Stewart performs at the cemeteries.

“Sinful,” Father Henry Wasielewski (whose crusade against funeral profiteers is addressed in chapter 14, “The Nosy Clergy”) calls the deal. “Most Stewart mortuaries charge thousands more than many independents for the same funeral.” It seems unlikely that Stewart, in its new role as purveyor of Catholic funerals in southern California, will share Father Henry’s view that a funeral is a sacred ritual that belongs in church. “It should be as simple as the white pall that covers a Catholic casket, signifying man’s equality and humility in death.”