Casket wood, imported flowers, fuel, engraving materials and labour have all moved upwards in recent years. SunLife’s latest Cost of Dying research shows the average cost of a simple funeral has risen to about £4,285, with the total cost of dying now close to £9,800.
Behind those figures sit hundreds of businesses that support funeral homes. Many are family run and simply can’t absorb rises indefinitely. What was once a question on if prices need to move is now a matter of how to introduce those changes responsibly.
From our perspective working with funeral directors and their suppliers across the UK, the most effective approaches share three themes, clarity, context and choice.
Start with the facts
Families and funeral homes are well aware that everything from flowers to fuel costs more than it did a few years ago. The picture isn’t unique to this sector.
Recent Late Payments Research from the Department for Business & Trade suggests late payments cost the economy almost £11 billion a year, with about 14,000 businesses closing annually as a result. These numbers are staggering and underline just how fragile cash flow has become for many suppliers.
In transport, the Competition and Markets Authority has reported that higher fuel retail margins added more than £1.6 billion to UK fuel costs in 2023 which filters through to vehicle hire and delivery charges.
For florists, new border checks and paperwork have created delays and extra costs on imported flowers, even as some tariffs have been temporarily suspended. Industry bodies have noted that inflation and the cost of living have also affected flower prices and demand.
As the pressures continue, suppliers are on solid ground when they explain that holding prices at older levels is no longer sustainable. The key is to move away from vague statements such as “our costs have gone up” and instead share a simple, honest picture of what’s changed.
One supplier told us they had held their prices for almost two years despite higher material and transport costs. When they eventually increased them, several long standing customers were taken by surprise and delayed payment. Clearer communication earlier on may have prevented those invoices from becoming overdue in the first instance.
Explain what’s changed, not just the new price
In our experience, tension tends to arise when a price increase appears sudden or unexplained. When suppliers set out the reasons clearly, customers are far more likely to accept the change, even if they don’t welcome it.
That explanation doesn’t need pages of detail. It can be as simple as,
- what has changed such as raw materials, fuel, compliance or labour
- what the supplier has already done to reduce the impact such as efficiency measures or product reviews
- what the new structure will be and from when it applies
From our conversations with suppliers, another useful step is to acknowledge openly that funerals are already expensive for families. Referencing independent figures such as the SunLife Cost of Dying report, reassures partners that the discussion is grounded in wider reality rather than opinion.
Give notice and options where possible
Sudden changes are harder to manage for both funeral homes and families. Where possible, suppliers who give advance notice and options see better outcomes.
Common approaches we see working well include,
- giving several weeks’ notice before new prices take effect
- honouring existing quotes or confirmed services at the old rate
- introducing tiered products at different price points, for example alternative woods or designs
- agreeing review dates so both sides know when prices will next be discussed
In a climate where many small firms already view late payment as an unavoidable part of doing business, structuring changes in this way helps reduce the risk that price conversations turn into payment problems.
Protect your cash flow without losing sensitivity
Rising costs and unchanged prices eventually show up as pressure on cash flow. When that happens, even a modest level of late payment can quickly become serious. Recent government research estimates that at any point about £26 billion is tied up in late payments, with an average of £17,000 owed to each affected business.
We see the impact of that every day. A number of suppliers approach us only after carrying overdue balances for many months because they wanted to be patient with long standing customers. By that point, the conversation is more difficult for everyone.
A more sustainable approach is to combine transparent pricing with clear payment terms, early reminders and when necessary, professional support. In our experience, when suppliers explain their costs, set expectations in writing and follow up promptly but respectfully, most customers respond positively. Those who continue not to engage can then be handled through a structured recovery process that aims to protect both income and relationships.
Handled in this way, price increases don’t have to damage trust. Being upfront helps suppliers remain financially stable and continue to support the funeral homes and families who rely on them.
We support funeral directors and supplier businesses nationwide with a sensitive, compliant approach, protecting income and reputation. Contact us to explore how we can help your business Grow Stronger.
