Funeral home markups and upselling: Hidden camera investigation (CBC Marketplace)

CBC News

10 Mar 201722:26

EducationalLearning

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TLDRAn undercover investigation by 'Marketplace' reveals the high-pressure sales tactics and hidden costs within Canada's funeral industry, focusing on Arbor Memorial, the country's largest funeral company. The report exposes how grieving families are upsold on unnecessary services, with a lack of transparency on pricing, and the exploitation of vulnerable consumers during an emotionally challenging time. The segment urges consumers to be aware, ask questions, and shop around to avoid falling victim to these practices.

Takeaways

🕋 High Costs: Funeral homes in Canada can start at $3,000, with high-pressure sales tactics pushing costs up to $12,500.
😟 Grief Exploitation: The script reveals that funeral homes may take advantage of individuals' vulnerability during grieving, using high-pressure sales tactics.
🏦 Death Inc.: The funeral industry is a $1.6 billion business in Canada, with large companies like Arbor Memorial making the majority of profits.
👤 Trust Issues: The script raises questions about the trustworthiness of funeral home staff, with experiences suggesting they may not always act in the best interest of the bereaved.
💼 Commission-Based Sales: Funeral pre-planning directors often work on commission, which may influence them to upsell services that are not necessary.
📋 Mandatory Packages: Some funeral homes, like Arbor, may push customers into buying packages that are 98% mandatory, without clear options for à la carte selections.
🚫 Lack of Transparency: Costs and services are not always clearly communicated, with prices for items like caskets being significantly marked up from wholesale.
🚑 Unnecessary Services: The script suggests that services like embalming and viewings are sometimes pushed onto customers, even when not required or desired.
🛍️ Upselling: The industry insiders and undercover investigation show a tendency to upsell, with additional costs for services that may not be necessary for a simple funeral.
🏢 Corporate Priorities: The script implies that corporate funeral home values may be more focused on profit than providing empathetic and affordable services.
📝 Regulatory Gaps: The Bereavement Authority of Ontario, a regulatory body, lacks the resources to fully monitor and address the hard-sell tactics observed in the industry.

Q & A

What is the main concern raised in the transcript about Canada's funeral homes?
-The main concern raised is the high-pressure sales tactics and high costs associated with funeral services, including the potential for overcharging and lack of transparency in pricing.
What is the starting price for funeral services mentioned in the transcript?
-The transcript mentions that the starting price for funeral services at the top level and bottom level is $3,000.
What is the role of the Bereavement Authority of Ontario in the funeral industry?
-The Bereavement Authority of Ontario is a provincial regulator that investigates complaints and oversees the funeral industry, but it does not regulate the hard sell tactics highlighted in the transcript.
What is the profession of Shane Neufeld mentioned in the transcript?
-Shane Neufeld is a former industry insider who has worked in the funeral business for 25 years and now identifies himself as a 'death care consultant' advocating for transparency and flat fees.
What was Judy Wood's experience with Arbor Funeral Homes as depicted in the transcript?
-Judy Wood's experience was negative; she felt taken advantage of with unexpected costs and services that were not clearly communicated or wanted, leading to a feeling of being pressured into unnecessary expenses.
What is the significance of the '98% mandatory' statement mentioned by a salesperson in the transcript?
-The '98% mandatory' statement suggests that 98% of the items in a proposed package are required, which the Bereavement Authority of Ontario's registrar finds concerning as it may not align with legislation and could be misleading consumers.
What is the average cost of a casket mentioned in the transcript?
-The transcript mentions that the average cost of a casket is around $895, but the wholesale cost for the same casket was found to be only $175.
What is the distance between the funeral home and the crematorium as revealed in the transcript?
-The distance between the funeral home and the crematorium is revealed to be only 400 meters, highlighting the questionable cost of the transportation service.
What is the role of the salesperson or pre-planning director in a funeral home as described in the transcript?
-The salesperson or pre-planning director in a funeral home is responsible for selling funeral packages, often on commission, which can lead to a focus on sales over the needs and wishes of the grieving family.
What advice does the transcript offer to consumers regarding funeral planning?
-The transcript advises consumers to shop around, ask about what is not included in packages, and discuss their needs and wishes openly to avoid unexpected costs and heartache.

Outlines

00:00

🕵️‍♂️ Undercover Investigation of Funeral Homes

This paragraph introduces an undercover investigation by 'marketplace' into Canada's funeral homes, focusing on the practices of Arbor Memorial, the largest funeral company in the country. The investigation aims to uncover whether consumers can trust the services during their most vulnerable times. It highlights the high-pressure sales tactics, the mandatory charges, and the emotional toll taken on grieving families. The narrative is set against the backdrop of the closure of a beloved bargain store, Honest Ed's, symbolizing a farewell to an era and testing public reactions to loss.

05:00

💔 The Emotional and Financial Burden of Funeral Costs

The second paragraph delves into the personal story of Judy Wood, who had a distressing experience with a funeral home following her sister's death. Despite pre-paying over $4,000, Judy faced additional charges that escalated the total cost to $10,000. The funeral home's lack of transparency regarding charges and the pressure to accept unwanted services like embalming and viewing are highlighted. The emotional impact of these practices is emphasized, as they not only add financial strain but also reopen the grief of the family.

10:01

💼 The Business of Death: Profits Over Empathy

This paragraph exposes the funeral industry as a lucrative business, with companies like Arbor capitalizing on the vulnerability of the bereaved. It features Shane Neufeld, a former industry insider, who reveals the manipulative sales tactics used to inflate the cost of funerals. The emphasis is on how companies prioritize profits, employing sales-driven staff and pushing unnecessary services. The segment also uncovers the stark difference between the wholesale and retail prices of caskets, indicating the significant markups that contribute to the industry's profitability.

15:02

🏢 Inside the High-Pressure Sales Tactics of Funeral Homes

The fourth paragraph continues the investigation by visiting multiple Arbor Funeral Homes locations, where the undercover team faces high-pressure sales tactics. Despite seeking a simple and cost-effective service, they are consistently upsold on packages that include unnecessary elements. The segment highlights questionable practices such as charging for a short vehicle ride to the crematorium and the rental of caskets for viewing, which are not required for cremation. The narrative stresses the difficulty of navigating these sales pressures while dealing with grief.

20:03

🛡 The Lack of Consumer Protection in the Funeral Industry

The final paragraph addresses the lack of consumer protection in the funeral industry, with a focus on the Bereavement Authority of Ontario. It points out the limitations of the regulatory body, which has few inspectors to oversee a large number of funeral homes. The segment features an interview with the registrar, Carey Smith, who expresses concern over the industry's sales practices and the need for transparency. The paragraph concludes with a call to action for consumers to be vigilant, ask questions, and discuss their wishes with their families to avoid exploitation by funeral homes.

Mindmap

Keywords

💡Funeral Homes

Funeral homes are businesses that provide services related to the final disposition of a deceased person. They often include planning and conducting funeral services, as well as cremation or burial arrangements. In the video's theme, funeral homes are portrayed as potentially taking advantage of vulnerable individuals during a time of grief, with high-pressure sales tactics and questionable practices.

💡High-Pressure Sales

High-pressure sales refer to aggressive sales techniques used to persuade customers to make a purchase quickly, often by creating a sense of urgency or obligation. The script illustrates this concept through interactions at funeral homes where salespeople push for immediate decisions and upsell services, exacerbating the emotional distress of the bereaved.

💡Prepayment

Prepayment in the context of funeral homes involves paying for funeral services in advance. The video script raises concerns about the pressure to prepay for services that may not be needed or desired, highlighting the financial burden and emotional manipulation that can occur when families are coerced into prepaying for funeral arrangements.

💡Cremation

Cremation is the process of reducing a body to ashes by burning. It is one of the options for final disposition of a body, as opposed to burial. The script mentions cremation as a desired service by the fictional Aunt Alice, but the funeral homes push for additional, often unnecessary, services that increase the cost.

💡Commission

Commission is a payment made to a salesperson for their sales achievements, usually calculated as a percentage of the sales amount. The script points out that funeral home staff are working on commission, which may incentivize them to upsell and push for more expensive packages, impacting the integrity of their advice and services.

💡Packages

In the context of the video, packages refer to bundled services offered by funeral homes, which may include embalming, viewing, and other services. The script shows that these packages can be costly and not transparent, with salespeople pushing for customers to accept the entire package, often leading to overcharging.

💡Wholesale Cost

Wholesale cost is the price at which goods are sold by a manufacturer or distributor to a retailer. The video script reveals a significant discrepancy between the wholesale cost of items like caskets and the prices charged to consumers, indicating potential overpricing and profiteering by the funeral homes.

💡Bereavement Authority of Ontario

The Bereavement Authority of Ontario is a regulatory body that oversees the funeral, burial, and cremation industry in the province of Ontario, Canada. The script mentions this authority as one of the entities that investigates complaints and monitors the industry, suggesting a need for consumer protection in the face of questionable sales practices.

💡Consumer Protection

Consumer protection refers to any activity or organization aimed at ensuring that the rights of consumers are upheld, including fair pricing and truthful advertising. The video's theme underscores the lack of consumer protection in the funeral industry, as families are pressured into expensive packages and services they may not need or want.

💡Transparency

Transparency in business refers to the practice of being open and honest about processes, costs, and policies. The script criticizes the lack of transparency in funeral home pricing and service offerings, which can lead to confusion and exploitation of grieving families.

💡Ethical Concerns

Ethical concerns relate to issues of right and wrong, particularly in terms of moral principles and professional conduct. The video raises ethical concerns about the funeral industry's practices, such as pushing for unnecessary services and exploiting vulnerable individuals during a sensitive time.

Highlights

Undercover investigation into Canada's funeral homes reveals high-pressure sales tactics and questionable practices.

Funeral costs can start at $3,000, with high-pressure sales pushing for prepaying and additional services.

The emotional vulnerability of customers is exploited during the grieving process, with sales trumping sympathy.

Preplanning directors are often on commission, leading to a push for more expensive packages.

Embalming is suggested as mandatory, despite not being legally required in many cases.

The cost of a simple funeral can escalate to $12,500 due to added services and commissions.

The story of Judy Wood, who faced unexpected costs after her sister's death, illustrates the industry's exploitative nature.

Arbor Memorial, Canada's largest funeral company, is under scrutiny for overcharging and lack of empathy.

The industry insider, Shane Neufeld, exposes the secrets of the sell and the pressure to upsell.

Wholesale cost of caskets can be significantly lower than what is charged to consumers.

Rental caskets for viewing are a common practice, despite the high cost and the fact that many will be cremated.

The Bereavement Authority of Ontario has limited oversight and resources to regulate the industry.

Arbor Memorial's job postings reveal a focus on sales mentality and meeting sales quotas.

The investigation uncovers a lack of transparency and consumer choice in funeral home services.

The push for prepaying funeral costs, with no option for à la carte services, limits consumer autonomy.

The report concludes with advice for consumers to shop around and question what's included in funeral packages.

Despite attempts for an on-camera interview, Arbor Memorial only responds with a statement.

The marketplace encourages consumers to have conversations with their families about their funeral wishes.

Transcripts

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Related Tags

Funeral Industry High-Pressure Sales Cost Investigation Consumer Awareness Prepaid Funerals Cremation Costs Economic Impact Regulatory Oversight Ethical Concerns Marketplace Report