Service Pricing
A recent National Funeral Directors Association (NFDA) press release indicated that although the inflation rate over the past two years has been just above 13%, the median funeral service pricing has only increased 5.8%, from about $7,800 to $8,300. The cost of a funeral with cremation has risen by about 8%, from about $5,800 to about $6,200. In this economy, it makes sense to evaluate your current pricing structure and those of your competitors.
Is It Time To Refinance?
Today, we are covering funeral service pricing and refinance, SBA rule changes on loans and a UCC filing scam to watch out for.
What do the SBA loan changes mean for me?
Recently, the SBA modified rules to allow for several items:
- SBA refinances are now allowable. It might be time to consider a refinance. Call us if you’d like to discuss the pros and cons and what a structure might look like for you. We want to ensure adequate savings and that you don’t get locked into high rates. It could be an excellent opportunity to pay off a seller note or fund an expansion as well.
- Partial partner buyouts are now available. If you would like to buy into a business without buying the entire company, it’s now an option. Let us know if it is something that you are interested in, and we can walk you through the process.
- The seller note standby for the life of the loan is (thankfully!) gone. Seller notes that count towards your down payment are now on standby for only 24 months. This can be extremely helpful if you are a first-time buyer who needs help with a down payment. If you are an existing owner, we can often do transactions with no money down!
Be Aware Of Scams Affecting Funeral Homes
Once you complete a transaction, some details become part of the public record, and scammers can take advantage of it. Among clients across the U.S., I have seen two different scams.
The first is a postcard that looks like it comes directly from your county. It will have your business’s and the bank’s names, which seems legitimate. It can say that a fee was omitted during your closing, and you owe the county a small sum, $120, for example. They suggest you pay online or over the phone. These scammers have combed the public records for recent transactions and then inserted the available public info into their forms to mail out. People often pay because the amount is relatively small. Please don’t fall for it & don’t let your staff fall for it. You can always contact us to help determine if something is accurate.
The second scam is an email or mailer indicating they can send you a copy of UCC filings against your business for $90. Some look like they come from the Secretary of State’s office. Firstly, many states will allow you to do this online for free; secondly, you do not want your information in these scammers’ hands. Instead of just being out $90, you could risk identity theft. Similar scams include copies of certificates of good standing, annual reports, and EIN letters. If you need or would like any of this type of info, it’s always best to go directly to the source, which is often the Secretary of State or the IRS.