Every funeral professional should do an “end of year review”.  We all know that.  In fact, you probably spend a whole lotta time just after Christmas worrying that you can’t pay for all those gifts that just went on your Amex, right?

So forget the “week after Christmas review” and start reviewing now!

Sure, that end of year bump you’ve been expecting might come in December, but a frank look at your year-to-date in the last week in November will give you an idea of how much ground you’ve got to make up over the holidays or, if you’ve had a good year, how much “gravy” can pour during the festivities.

As I’ve warned before (in the post, Call Your Accountant Early!) your financial advisors are going to be very busy come January 1st.  So start now.

Are there new products or recurring items you order every January?  Why not place an order now, with a shipping date in the beginning of January?

No matter what you do, make sure you’re spending some time reviewing your practices, how they affected your ability to serve families this year and what improvements you can make to improve the bottom line.

What things do I consider when doing a yearly review of our cot cover business?  Good question!  Here goes:

TOTAL SALES:  I like this number because regardless of the total number of covers we sold, it measures our overall financial footprint.

NET PROFIT:  Even better than a total of sales, this one tells me how effective we were at making our product profitable. 

AVERAGE ORDER AMOUNT:  Compared to our retail prices, this lets me know how well we upsell.  I even break this down by product so I can see which specific patterns encourage more sales.

ADVERTISING PERCENTAGE:  I like to keep this low (as a percentage of total sales), even though we make a fine profit and benefit from some of our advertising.  Of course, I count lots of stuff in this one, like the costs to create this blog, our convention appearances, magazine ads, website costs, etc.

MATERIAL/OVERHEAD COSTS:  I divide this cost by the total sales to figure out what percentage of the product price goes toward the cost of materials and overhead (like our workshop, equipment, etc.).

LABOR COSTS:  This is what percentage of total sales I pay the employees.  Even though I’ve hired some contract employees in the last two years (we’re up to four!) the percentage has actually gone down as sales have risen.

These are all things that I track on a monthly basis, mostly because my small company can’t afford any major unplanned shifts in our sales.  And while we’ve moved to a much wider tightrope in recent months (snowballing sales figures have helped to put us on more stable footing) I know that an unexpected move in the market can still catch unaware.

What should you track?  Now’s the time to decide what information will help you plan your business’ future.  Get started now, before the holiday rush.

I could file this under “Daily Nags” but I’ve pretty much let that category go since I can’t seem to remember to nag you every single day!  Consider the nag-free ride you’ve been getting a gift from your friend, Tim.

Still, this one’s perfect for November, because the end of year is coming fast!

Most funeral homes operate on a January to December fiscal year.  If that’s you, the end of your accounting cycle is almost here and there are lots of little things you need to accomplish.

If you’ve got an outside accountant, she’s probably got a WHOLE LOT of other clients who will also need to finish up end-of-year work, so don’t wait until the last minute to go over your situation.

 Contacting your accountant before Thanksgiving will have two important benefits:

1.  He’ll be able to advise you of any last-minute purchases you should make or any tax-saving actions you can take before December 31st.

2.  He’ll see you as an attentive client, who will be easy to deal with and, therefore, he’ll won’t regret picking up your file.  It’s always important to make sure your accountant actually wants to work on your files.  Not only to ensure accuracy, but to make sure you get the most beneficial help.  (Just remember, everyone wants to enjoy their job.  Make sure you’re the “fun” client or at least the proficient one.)

I just met with my accountant last week and found out that several of the big equipment purchases I was planning for next March might make more sense this year.  In fact, she even suggested I take out a loan (if necessary) to finance some expansion, since the debt would help offset the record gains our cot cover business has realized this year.  (You do know that we make quilted cot covers that are wowing the funeral industry, don’t you?)

But the simplest reason is also the most practical:  calling your accountant early will ensure that you can get an appointment during a very busy time of year!

One of the recent discussions here in posts and comments has been negotiating lower prices from suppliers.  It all started with a guest post, Michelle Carter on “The Funeral Director Mindset”.  Several comments were added by our readers (and we appreciate comments!), including one I reposted as Jim Bauschke on “The Funeral Director Mindset”.

We’ve also received the following comments from our reader, Paul:

Bravo.  Yes, we should be thinking more outside of the box, and challenging our suppliers. Batesville is not the only game in town, and one should constantly be looking for better pricing.  As you stated, they seem to be scared to ask, or think it might cause a problem–who is the customer??  Companies like Dell and WalMart are great at playing the suppliers against each other to get the best price.  Granted we are not in the same position, but if we took those thoughts and mindset and applied them to our FH’s then maybe we could change the game.

I agree that what I call the ‘Flintstone funeral homes’ are going to blow away in the wind if they don’t see the change in the air.  I know, they will say (of course many do not even have computers, so it would be hard for them to read this) well, that new guy does not know what he is talking about.  Hmmm, I think because you are still using your business plan from 1890, might be a sign that things might not be so bright.

This is not meant to say all ‘traditional’ funeral homes are this way, but it is amazing as I talk with people like this how much they are the same.  Same small thinking, plenty of complaining and no one doing anything about it.  Why?  “Because the Wilbert guy or the Batesville guy is ‘my friend’ and have known him forever.”

–okay folks time to wake up–they really don’t care about you or your business.  Honestly, think about it–they care about their paycheck.  Well, that may not be bad, but WE should think about OUR paycheck also.

The ‘well it’s always been done that way’ thinking is what is killing them.  I say bravo to those standing up, and willing to dump their current suppliers for another.  The margins are shrinking, and FD’s need to wake up and shake the trees.

Okay off my soapbox…

I’ve been thinking about this for a few months now.  It started in earnest with an email question that I wrote about in Can You Negotiate SCI-Level Casket Discounts?

Then we had a response from Michael Manley on a Possible FBA Buying Collective.  In the post, he describes a buying collective for funeral professionals that he plans to get off the ground in the coming years.

But all of it comes back to a basic issue:  maximizing income and minimizing cost.

As a business owner, I wrestle with keeping my costs down.  I’ve sought out lower costs by buying materials in bulk, buying from traditional retail outlets during sales and using coupons and promotional codes on websites.

I’ve figured out how much it costs me to have my assistant handle bill collecting versus the fee I’d pay for accepting credit cards, which has lead me to put off having a full merchant account with a credit card processor.

We save every peice of fabric that is cut off of our wholecloth when creating one of our quilted mortuary cot covers and look for new uses.  Some scraps (big squares) have been stitched together to form the quilts I’ll give as gifts this Christmas.  (If you’re a member of my family, forget that you just read that or risk not being surprised!)

Many of the fabrics we use are wider than we need, so we cut off a strip.  Those strips (about 12″ wide) are the perfect size for our latest product (still under wraps!) that we created after looking at our materials and thinking “What can we make out of that?”

Of course, there are opportunities to save money that we don’t take.  We could get a cheaper version of the nylon lining fabric that we use in our covers (we call it the FluidBlocker) but we’d have to sacrifice some of the protective qualities, so I said “no.”

How does this affect the typical funeral professional?

You need to keep your eyes open.  There are always methods to save money, but they’re not all beneficial and some will actually negatively impact your standing in the community.

Want to be seen as a prestigious firm with community roots?  You can’t have a crappy hearse that’s ten years old.  On the other hand, a price-focused funeral home can’t be located in a large, expensive building in the swankest part of town.

How you spend money at your firm should reflect the image you want to project.  Caskets aren’t your image; they reflect the image your client family wants to protect.

And to be brutally honest, the family has no idea who makes the caskets you carry or how much you pay for them.  Casket manufacturers have done little to brand their identities with the public, so why should you worry about the name?

I see three strategies for firms trying to decide which caskets to carry:

1.  Meet with every possible casket rep. in your area.  Tell each of them that you’re picking a brand and will be taking into account the discount offered, showroom assistance provided and speed of delivery.  Pick the one who gives you the best deal and offers the most benefits.

2.  Order caskets from a lot of different makers and have them on your floor.  Or get corners or pictures from a bunch of different suppliers.  Let your families decide which caskets they want to buy.  You might find that families choose based upon color and features (”Oohh… it has butterflies embroidered in the lid!”) and not the manufacturer.  If so, find the best caskets you can at the lowest price and don’t worry about who makes it.

3.  Stick with what you’ve been doing.  What’s the most you’ll save per casket?  $50?  $100?  Don’t worry about the small percentage you might save and use your time to do some more P.R. in your community.

Having run a small firm, I can tell you that we employed each of these strategies at different times.  In fact, our “proprietary showroom”, with fancy cut corners and pictures, often played host to several inexpensive caskets from the local casket company.

If a cash-strapped family wanted the simplest casket possible, we’d ask them what color they wanted and order a 20-guage, non-gasketed unit from the nearest independent casket company.  Their prices were half of York or Batesville and their quality was less, but not one of those families complained.

In fact, each family was impressed that they could get such a “pretty casket” for so little money.

Sure, we funeral professionals love a pretty casket (I saw some beauties in Vegas), but most consumers don’t even know how to close a lid properly, let alone discuss the merits of swingbar handles, urn corners or stainless steel.

So do what’s best for your company. 

Michael Manley, publisher extraordinaire and frequent Final Embrace contributor responds to the recent question Can You Negotiate SCI-Level Casket Discounts? by describing a buying collective he’s already begun brainstorming:

This was an interesting post. I found it especially interesting because it won’t be long until I will make this very concept a reality, by forming a BUYING GROUP. Having been a “sales director” in a previous career with a large manufacturer in a 150 billion dollar/yr industry, I do believe this concept will work. The industry I previous worked was comprised of about 20% corporate owned business, and 80% independent.

In that industry, the independents had very little purchasing power, but in 2001 a “cooperative” formed, a Buying Group created, and it created an “equal playing field.” Maybe not 100% equal, but it was a big step in the right direction to give the little guy something they lacked- a collective voice and strength in numbers.

You mentioned that it may not be beneficial to the manufacturer, because they have no assurance that a member of the group won’t defect and go to another supplier. Two things on that point; first, the appeal or allure for a manufacturer is not to ensure that every member uses their product, it is to ensure that they have the ability to mass market to a large group of buyers (funeral directors) at one time. Also, a true buying group actually facilitates the transaction on behalf of the manufacturer, thus providing them a savings by streamlining the entire transactions. Most buying groups solicit, market, advertise, take orders, and invoice for the vendor. This streamlining of the sales process is the allure to the manufacturer, not the assurance that like SCI that once a deal is signed, it guarantees a certain amount of business. Not all buying groups operate exactly like this, but the opportunity and the advantages are numerous.

Now, you are right, it can be a daunting task to think of beginning a buying group. After all, how do you solicit both Manufacturer’s as members, and funeral director’s alike? How do you promote the group, and ensure that everyone has an equal opportunity to participate? In fact, you mentioned (IOGR). I have actually discussed this same concept with George Darte. The disadvantage they have, like any organization, is the marketing of the group to the entire industry, both supplier and funeral homes. They have members, but they ONLY have access to their members, unless they wanted to go outside of their members and promote the group.

Well guess what? I am actually deep into the process of beginning just such an opportunity. It won’t be long until you see, for lack of a better term, the FBA Buying Group. This whole idea was born out of something I realized a long time that FBA has given me; a distribution network of 17,500 funeral homes, crematories, and vendors. Unlike IOGR or NFDA, I don’t have an allegiance to just my members. Every independent funeral home and crematory gets my publication, so I can mass market the concept better than them.

I refer to this concept as the”Starbuck’s” principle. They didn’t invent this next concept, but they have done it as well as anyone. What is this principle? Not too long ago, Starbucks realized that they have 22 million individuals walking through their doors to purchase coffee or beverages each and every day. Twenty-Two Million consumers that they could sell anything to. It didn’t take them long with that market to realize that selling coffee may not provide them with the only opportunity to exploit this group. They soon began to moonlight as a CD retailer. They began selling pictures, cups, mugs, etc. CEO Howard Schultz has now gone and is doing what McDonalds and Burger King has done successfully for years. You soon will begin to see movies promoted on sleeves of Starbucks cups and on the Wi-Fi network.

Another example; I worked 10 years with UPS, my last 5 as a National Account Manager. So I have a fairly detailed working knowledge of UPS, and most probably don’t know that UPS business plan says that by 2012, over 50% of their revenue will come from their Logistics business (they set up distribtion channels for companies, handling everything from receipt of orders, order entry, warehousing, packaging, shipping, tracking, and reconciling statements for companies). They allow companies to outsource rather than do it themselves.

Point is, Funeral Business Advisor affords me very much the same opportunity. We have a captive audience of virtually every independent funeral home and crematory in the United States. We have relationships with over 100 vendors through the magazine. So with the distribution network in place, the next step is to organize my “cooperative.” It will be as simple as providing 2 very inexpensive products. One for the vendor, and one for the funeral director. Then for a very nominal fee ($99 per month for Vendor, and $19 per month for funeral director), we will do what we do best. Bring BUYERS and SELLERS together. The vendor package will include FBA advertising the Buying Group in each issue, forming the website with individual vendor pages that we will build and maintain for the vendor, being included in a twice annual “buying group” catalog, market them to over 17,500 readers, and numerous other benefits I can’t mention yet, all for less that $1200 per year. That is the cost of a 1/2 page color ad (1X) in most industry publications. The funeral home will receive a simple, but yet, important benefit. A minimum discount that each vendor will agree to offer the group. The will get a free annual subscription to Funeral Business Advisor, a free “buying group” catalog twice a year, private access to the website, full access to participating vendors, and a simple one-stop shopping mechanism for all of their purchasing needs. All for less that $120 per year, or amount they would save if they bought just one casket from our vendors.

Now, I agree this may not be on par to what SCI can bring to the table when they negotiate with Batesville, but interesting enough, I have a very good relationship with Joe Weigel, communications director with Batesville. And I have discussed this concept, and although he didn’t do back flips, he did say it was interesting concept and feels if done properly, would have a strong appeal.

Anyway, I am not an expert on buying groups, and i would be interested in your thoughts. Even though there may be challenges, I can’t help but believe our distribution network is our biggest asset. I value your advice, and we have always managed to have good conversation and exchanging of ideas. Waiting for feedback…

Last week started with a call from a panicked funeral director.

He’d worked hard convincing a client that his services were the best in town.  He’d used his hearse for the removal, made sure he and his staff were impeccably dressed, triple-checked his facility before they arrived for the arrangement conference, had coffee, soda, water and snacks available for the family and much more.

He carefully walked them through the funeral arrangements.  He told them that typical burial services, with a casket, ranged from $5,000 to 8,000, depending upon the casket and services selected. 

He was delighted when they chose a stainless steel casket.  He was even more excited that they liked the most expensive register book package he offers.  They chose two nights of viewing and settled on three limousines.

This was going to be the most profitable service of the month for his small funeral home.

Until he handed the family the contract, that is.  That’s when they got saw their “ideal service” would cost over $12,000.

The funeral director spent a few tense minutes going over the bill, highlighting the price of each item and service.

In the end, the family chose to remove many of the extra services.  They downgraded to an 18-gauge casket.  Mr. Frugal, the son who had deferred to his mother’s decisions during the initial conference, suggested that they drive themselves to the service, so the limousines fell off the bill.

The final bill:  $6,598.

“What went wrong?”  He asked me.

First, by selling himself and the great services of his funeral home, he created a level of trust with his client family.  Then he told them that most funerals cost between $5,000 and $8,000, a fact which they trusted.

Then he sprung a $12,000 bill on them.  “WHOA!” they thought, “We trusted you and you lied!”

Of course he didn’t lie, but he created an expectation that the service he helped them plan would fit inside the quote he offered.

Not to suggest you follow this lead, but consider, for a moment, the process that car salesman use when negotiating a sale:  the monthly payment game.

Rather than discuss a final price for the vehicle, the salesman might ask “how much are you willing to pay a month?”  This confuses the buyer, but also gives the salesman a baseline from which to start.  Then, he goes to “talk to the sales manager to see what can be done.”

No salesperson I’ve ever met brings back a lower amount.  In most cases, the offer is much higher than the amount you thought was your ceiling.

But now he’s got a comparison.  So he can suggest a higher amount from you, which his sales manager will, of course, reluctantly accept after 20 minutes of discussion, because, as the salesperson claims, they “want to see you in that car.”

 (Photo Courtesy of Ernie’s Auto Sales of North Adams, MA) 

Why, then, do so many people drive out in a new car, excited by a monthly payment that was 20% more than they were originally willing to pay?

Because the salesperson created an expectation.  He told them that the payment might be as much as twice what they were willing to pay, but immediately followed with a promise to find a lower alternative.  Conveniently, that lower alternative was still higher than the customer’s original goal.

In the end, I suggested to the funeral director he start overestimating and making sure the final bill always comes in below the high-end.

Why?  Because any quote creates expectations for his clients.  By bringing back a lower total, he maintains the trust he’s built and looks like someone who can be trusted.

And, as I pointed out to him, some families do choose $12,000 funerals, like his clients did initially.  So he should AT LEAST quote $12,000 as a high figure.

So now I’ll qualify my earlier statement about yellow page ads being bad for all funeral homes, because it all depends upon which market you’re targeting.

Be warned:  You can’t target every one of these four categories, so don’t think this works for everyone.

PRICE FUNERAL HOMES should advertise in the yellow pages, but only with an ad large enough to impress upon the world that they’re low-priced.  Like this:

Other information, like location, packages offered or reputation in the community is superfluous for your real purpose:  convincing price shoppers that you’re the lowest price in town.

Price shoppers are the most un-trusting consumers out there so you’ve got a mandate to make your message crystal clear.  A yellow page ad directed at price shoppers should focus on getting them to make one of their ten phone calls (they’ll investigate more than any other shoppers) to you.

CONVENIENCE FUNERAL HOMES need to convince prospective clients that it will be easy to make arrangements with them.  Convenience shoppers, by nature, want the easiest solution, meaning a convenient location and services when they want them.Once again, you need a small ad (much smaller than what your salesperson will try to talk you into) with a clear and concise message:

EXPERIENCE FUNERAL HOMES need to convey their ability to create memorable and unique experiences.  They must show that they are different than the competition and focus fully on making the experience “truly personal.”  Location is not necessarily as important as the name of the business.  Also, avoid using traditional funeral words like “mortuary” or “undertaker.”  Here’s a good example of a basic ad:

REPUTATION FUNERAL HOMES don’t need an ad in the yellow pages.  If you’ve built a name in the community, your prospective clients will already know your name and be looking in the yellow pages for your name.  Because of that, it’s important to make sure your name is bolded in the line listings.

If you insist on placing an ad, you should only include your recognizable logo, your name and a phone number.  No one becomes a reputation shopper while looking through the yellow pages, so you’re only trying to give them an easy way to find your phone number.

It’d almost be cheaper to print refridgerator magnets to give to your community.

(By the way - I made all these ads myself in Microsoft Paint.  Pretty was not the point, content was.)

I’m preparing to be stalked sternly admonished by the vast army of pushy a few yellow page salespersons.

 But my opinion (born out in actual real-world experience) is that most yellow page advertising is a crock.

At least for funeral service. 

The yellow pages work great if you sell a product that people choose at the last minute.  For customers looking for a dog groomer or a garage door repair company, the yellow pages are great.  They can see the entire marketplace and make a choice at their leisure.  If they can’t afford any of them, they can make do without the product or service.

But people shopping for funerals employ different tactics.  If you’ve read my analysis of the four types of customers, you’ll know these in more depth, but here’s a quick review.

PRICE SHOPPERS care about how much you charge, not what you offer.  Because they’ve already decided that all funeral homes give the same basic service.

CONVENIENCE SHOPPERS care where you’re located and if you can accommodate their request for a stock type of service at the time of their choosing.

EXPERIENCE SHOPPERS want a unique service offered by caring people.  They don’t want simple, don’t care much about how convenient your chapel is (they’ll drive if they have to, as long as they like your facility) and aren’t so concerned with price.

REPUTATION SHOPPERS aspire to use a particular funeral home because of the reputation in the community.  They want the reputation of your firm to “rub off” on them.  These people are offended by “LOW PRICE!” jargon and will not choose a funeral home that’s located in a “bad” part of town.

Now take a look at your current yellow page advertising.  In all likelihood, it probably targets all of them.  It might even look like this:

But does this appeal to a PRICE SHOPPER?

Of course not.  He (most price shoppers are men) won’t even call you.  He sees your claim to have competitive prices.  To a price shopper, competitive only means that you’re not the MOST expensive.  And you can’t possibly have the lowest prices if you pay maintenance on that huge building in Downtown.  And everyone knows that personalized services always cost more.

So scratch the PRICE SHOPPER, because he’s not even going to call you.

How about a CONVENIENCE SHOPPER?

It’s not quite as obvious, but no.  It doesn’t appeal. 

But why?

Because your location isn’t convenient enough.  Who wants to go downtown in this traffic?  You personalize services?  Great, but the convenience shopper doesn’t want to make a bunch of decisions.  He/she wants a simple process.  Pick a package and leave, letting you make the other decisions.  And as for every life being “unique”?  That’s great, but grandma was a simple woman and just wanted a basic funeral.  Don’t make them decide on a bunch of special things.

Ouch.  Maybe EXPERIENCE SHOPPERS will be excited by this ad.

Not likely.  An experience shopper wants to specialize this service and make it unlike any other service that’s ever been done.  They want to release doves and have a multimedia slide show while bikers ride Harleys in the procession.  How can a funeral home that’s been around since 1890 and is on the fourth generation of funeral directors figure out how to make their funeral experience different?  And they were really hoping for a quieter setting for the service, since they don’t want to use a church, and your downtown location just won’t cut it.

Okay, but those REPUTATION SHOPPERS are still a lock, right?

The problem with selling on reputation is that these shoppers will be offended if your funeral home serves the “undesirable” element or is in a bad location.  And while downtown might have been a bustling place in 1890, chances are it’s no longer the center of “high society.”  And “competitive prices”?  That’s just another way of saying you serve people who can’t afford a luxury funeral home.  So what does that say about your reputation and the status you can confer on the clients who use you?

Congratulations!  You’re running an expensive yellow page ad that reaches out to all types of shoppers and attracts few of them. 

Sounds like a waste of important advertising dollars to me.

Next time, we’ll show you the types of ads that DO appeal to each of these shoppers.

A disturbing article by a non-funeral industry writer is archived here.

The disturbing part?  Ms. Janes cites several quotes from the executive director of the Funeral Consumers’ Alliance and others from families whose experience was far from normal. 

The article, entitled “10 Things Your Funeral Director Won’t Tell You,” presents an alarmingly one-sided argument against funeral directors.  It was published in 2005 by www.SmartMoney.com.

It further proves my little pet peeve:  Funeral directors don’t do enough to educate the public about their business and services.

A few months ago we featured an explanation of Good, Better, Best.

But did you know that the principle MUST apply to your cremation urns, as well?

Most funeral directors stock their urn selection with a basic container (ugly, uncompassionate cardboard), a simple scattering urn and a huge selection of expensive high-end urns.

Now, when I say high-end, I mean $300 - 600 options. 

“But I have a plain wood urn for $190,” you say. 

That’s nice, but it’s not a real alternative to your families.  And a $190 urn doesn’t qualify as a “better” selection if you offer “good” selections at $50 or 60.

My suggestion:  Get rid of the basic cardboard box.  You wouldn’t want to receive your loved one’s remains in such a box, and it does little to help your reputation in the community when someone walks out your door carrying their brother in a shipping container.

Offer a REAL option for the basic (read: GOOD) urn you offer.  This doesn’t mean you have to sell bronze or cherry boxes for cost.  It means that you have to search our some inexpensive good urns.  Even better, the GOOD urn(s) you offer don’t have to be as permanent as a marble or bronze urn.  A simple wood or composite material will suffice.

Your BETTER urn had better (bad pun, I know) offer more durability or permanence and be more attractive. 

Your BEST urn should be great.  Someone buying your best urn will want to show it off, either in a glass-fronted niche or at a memorial service. 

I think pricing really depends upon your market.  In the Central Florida market, we got away with selling good urns between $85 - 150, BETTER urns from $200 - 400 and BEST urns from $600 - $2500.  Your market will let you know (by what people select) what you can charge.

If you’re flush with cash this year, you might be hearing an earful of advice from your accountant.

Our accountant suggested a few big purchases to offset our rather surprising profits this year.  (If you haven’t seen the quilted cot covers we make, shame on you!  They’re beautiful, more functional than a regular cover and inexpensively priced!)

If your accountant is also urging you to make a few end-of-year buys, consider the following tips:

1.  Make sure the company you’re ordering from knows that you intend to pay with 2006 money.  They might be willing to ship before 1/1/07 or at least date the invoice for 12/31/06.
2.  Have the company give you an exact amount that will be due so you can write a check before the new year.
3.  Consider ordering items that you KNOW you’ll use in the coming months.  This way, you’re moving your expenses to 2006 (to help cut down your tax burden) and will still be sure to use them.
4.  Consider purchasing items to replace worn out products your currently using.  A new quilted cot cover (shamelessly plugging our product - sorry!) will make a big impact on your clients, especially considering the age and appearance of your current one.  New drapes for the lobby or a new watercooler will also be immediately noticed.
5.  Use a new purchase to add great services to your funeral home.  If you’re not already providing coffee, soda or cookies for viewings, now’s a good time to buy the stuff you’ll need.  And if you do serve coffee, but only provide styrofoam cups - STOP IT!  Provide ceramic logo cups.  At least for the families who are meeting you to make arrangements.  (Good rule to use:  treat families exactly as you would visitors to your personal home.)
6.  Make sure your accountant knows what you plan to purchase.  Some items might not qualify for tax deductions or might be better 2007 purchases.