Citrin Cooperman & Company, LLPs Annual Funeral Directors Survey Prompts Visceral Response from Metro Area - Hollywood's Portrayal of Funeral Home Business Misses the Mark

Annual survey of more than 200 funeral directors in New York, New Jersey, and Pennsylvania reveals that shows like HBO's "Six Feet Under" and "Family Plots" don't do justice to the profession. The survey also reveals that funeral directors are concerned about the rise in cremations, that the majority are family-owned businesses, and that many earn more than $1 million per year.

New York, NY October 15, 2004 -- Citrin Cooperman, one of the nations top 40 accounting and business consulting firms, continues its research into the concerns of Funeral Directors by releasing its 2004 Annual Funeral Directors survey findings.

The unique survey of over 200 funeral directors focuses on pricing, salaries and selected costs, and also reveals that funeral directors in the tri-state area arent exactly thrilled with the Hollywood treatment their profession is getting from reality shows like Family Plots and the Emmy-award winning HBO series, Six Feet Under.

Nearly all of the funeral directors were aware of the two shows, and a good percentage are regular viewers, but most say they find Hollywoods portrayal incorrect -- giving the public a false perception of what they do. When asked to point out the most glaring error or misconception you see portrayed on either show, many of the responses were grave.

The funeral profession is a true ministry in my life, but watching these shows, I sure cant see a ministry atmosphere depicted by either one, said one respondent.

If the home depicted in Six Feet Under was my funeral home, I would quit the business, added another. They are all so screwed up; there is no way you could work there!

One male funeral director was amazed that Family Plots depicts a woman embalmer. Where did they find this? he asked. We have very few practicing women embalmers in the profession.

The survey also revealed that funeral directors are apparently spending more time caring for the families they serve than working on the profitability of their business.

Given the value of the service that they provide, Ive seen comparatively small changes in funeral directors pricing over the last year," said Citrin Cooperman partner Edward Horton, director of the firms funeral industry group. We advise our clients that because of the unique service they provide and the quality of that service, they really need to focus on charging for their services and not be as concerned about getting profit margins on the merchandise that they sell like caskets.

Cash flow and profitability are also a growing concern, Horton added. This is being fueled in part by what the survey discovered was the directors greatest overall concern the rise in cremations, which generally cost much less than traditional burials.

The Cremation Association of North America predicts that by 2010, the percentage of people who choose cremation over burial will increase from 27.8 percent in 2002 to 35 percent. And by 2025, they expect that percentage to climb to 42.9 percent.

Citrin Cooperman client, Gus Antonopoulos, who owns two funeral homes in Astoria, N.Y., Antonopoulos Funeral Home and Joseph Farenga & Sons, acknowledged that the funeral industry is changing. Families today want more personalization, better service and more of a choice. Thirty years ago, there wasn't much choice with funerals. You picked a casket and that was it. Nowadays, people expect more than my parents and grandparents did.

The survey mostly focuses on the day-to-day aspects of running a funeral home. Key findings from the survey include:

Funeral directors identified profitability/cash flow as the most pressing financial issue facing their business (48 percent), collections and regulatory concerns coming in second (18 percent), pricing (11 percent) and compensation (8 percent) round off the list. But their greatest overall concern is the rise in the number of cremations.

More than two-thirds of the respondents (78 percent) are small operations, with less than five employees including themselves.

Seventy-eight percent reported conducting more than 100 funerals per year, with some conducting as many as 300. With the average funeral in the tri-state area costing about $7,000 - $10,000, many homes earn $1 million or more a year.

The survey also discovered that the profession is truly a family business, with 46 percent of the funeral directors living in their homes, and 71 percent employing at least one other family member. Its also male-dominated more than 94 percent of owners are men.

Although the Electronic Death Registry System goes into effect in less than nine months in New Jersey, only 76 percent of funeral directors surveyed have even heard of the new law, and only 68 percent are equipped to comply.

Most small- to mid-sized funeral homes are fairly low tech. 50 percent of the funeral homes surveyed had one or no computer at all. One-third used no accounting software and 61 percent do not have a Web site.

Funeral directors are really struggling to keep up with technology, Horton noted. They really need help to bring them to the point where they can utilize technology to manage and to grow their business.

Citrin Cooperman, one of the nations top 40 accounting and business consulting firms, provides tax, accounting and consulting advice to a variety of entrepreneurs in New York, New Jersey, Pennsylvania and Connecticut, with a special emphasis on real estate, entertainment, funeral services, food services, staffing, and professional services firms. The firm, founded in 1979, has offices in midtown Manhattan, White Plains, N.Y., and Springfield, N.J.

For a copy of the complete survey findings, as well as regional breakdowns, contact Tracey Segarra at e-mail protected from spam bots, or 212-697-1000, ext. 215 or visit www.citrincooperman.com

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