What the Internet means for the funeral industry and for consumers

Guest editor: Stephen Lamb

Not so long ago, consumers did not shop around when making funeral plans. When the time came, they went to the funeral director their families had always used. Shopping for a better (or fairer) price was not done. Without the pressure of meaningful competition, prices were not kept in check.

Most consumers still do not shop around when making, or contemplating, funeral plans. But, two developments have given families greater control over the funeral planning process. First, the federal government ruled that funeral homes must allow consumers to use caskets they had purchased outside of the funeral home. The traditional funeral home monopoly on caskets was weakened significantly by this change. Second, the Internet arose as an easy means of comparing funeral homes, caskets, and cremation urns, and of making merchandise purchases from the best possible provider.

Although funeral homes have had to make their general price lists available to the public for some time, the growth of the Internet as a shopping tool has placed increased pressure on funeral homes to release detailed pricing and service information. Many are uncomfortable with the degree of transparency many consumers have come to expect. Shopping search engines such as Froogle allow users to compare prices from dozens of sites with a single search. Opinion and feedback sites give consumers the chance to post details about their experiences with funeral service providers.

These new tools give consumers unprecedented power in the funeral planning relationship, but adoption has been slow. Consumers are willing to spend hours finding better wireless plans, but they are often less selective in choosing caskets and urns. Once consumers become aware of these tools in a funeral planning context, the traditional funeral homes, many of which are now owned by global corporations, will feel the pressure to change. Expect fairer pricing and more funeral planning options, which is exactly what small, family-owned funeral service providers have been giving consumers all along.