Prompt Cast
The Rising Cost of Caskets and the Disruption of the Funeral Industry
TLDR The price of caskets has skyrocketed by 250% in the past 30 years due to material scarcity and craftsmanship, leading to high markups by funeral homes. However, online casket retailers are challenging the industry by offering cheaper options directly to customers, prompting government intervention.
Timestamped Summary
00:00
The casket industry has seen a significant increase in prices over the last 30 years, making up a large portion of the overall cost of a funeral.
01:56
Caskets have seen a 250% increase in price over the years due to the rarity of materials used, such as wood and metal, as well as the craftsmanship involved.
03:32
The two main casket manufacturers in the US have a significant share of the distribution and sell directly to funeral homes, allowing them to mark up the prices significantly.
06:16
Funeral directors can mark up the prices of caskets and funeral services because most people do not shop around for a funeral home and are likely to use the same one repeatedly due to being in a state of grief.
07:46
Online casket retailers are challenging the traditional funeral industry by offering cheaper caskets that can be purchased directly by the customer, saving them hundreds or even thousands of dollars, and prompting the federal government to intervene.
09:36
The funeral rule requires funeral directors to accept third party caskets, but the majority of caskets are still purchased through main manufacturers because many people are unaware of the rule and other options available.
11:12
The cremation rate in America is projected to be 58% in 2021 and is expected to reach 75% by 2030, but this is not expected to have a significant impact on the need for caskets.
Categories:
Society & Culture
