Why does everything cost so much these days? Would you want a million dollars cash or one penny doubled every day for 30 days?

Written by Dan Moran. Posted in Featured, Pennies Saved & Pennies Earned, Senior Living

Published on July 04, 2015 with No Comments

At face value, most people would take a million bucks and run.  But, since the question is asked the way it is, most of us would feel it is a trick question and would want to run the math before walking away with the $1,000,000 offer.  For some, they would grab a calculator and put in .01 and keep hitting X 2.  By the time they would repeat the multiplier 15 times, they would be at a lousy $163.84 and go no further.  They’d take the cool ‘mil’ and scoot.

Too soon! After the 23rd day, they would have had $41,943.04 and then the magic of compounding takes over and a week later the wise person would have $5,368,709.12…over five times the now “lousy” million offered on the first day.  Their 30 day patience that allowed compounding to do its thing would give them 53-plus savings account bank books (remember those) with $100,000 in each one!

So, what does this have to do with how much things cost?  In most businesses, at least non-governmental ones where profit is important, a business takes their cost and marks it up two times which becomes their selling price.  So, for every penny of cost, the price climbs many times as more and more middlemen are necessary to bring a product to the market place.  A penny becomes 64 cents with just seven middlemen mark-ups involved.

Is that fair?  If something cost them 64 cents, how dare they sell it for $1.28!  Each middleman has additional costs such as payroll, taxes, insurance, office or warehouse space, gas and electric bills, phone bills, computer hardware and software and the list goes on and on…all so they can bring you a convenient quart of milk when you need it.  You could go buy a cow, and a pasture, and a bucket to collect the milk in, and a person to do the milking and equipment to make sure the milk is good to drink, and refrigeration and so on and so on.  And if the cow gets sick or dies, no more milk…either temporarily or permanently, at least from that four legged docile beast.

The point of this story is my trying to explain to a friend why it costs so much to die and be buried.  There are so many factors involved in bringing a product or service to market that it boggles the mind.  I suppose a person could still bury a loved one in their backyard for the price of a shovel and a day of hard labor, although it would be pretty tough to sell a house with me buried in the backyard of my house.  I would bet there are a bunch of local codes and laws and variances and special grants for such a thing to occur, but like going to the grocery store and buying a quart of milk, it is easier and ultimately less expensive and less aggravating to go to a funeral home and to a cemetery and have everything taken care of in a meaningful and caring way.  This is especially important when it comes to caring for the dead as there is a lifetime of grieving attached to the loss of someone we care about and we do not want to have to bother with a million and one details compounded so we can save a buck.

It is not the intent of this author to minimize the idea of death, the death care industry, or even a farmer milking a cow for profit.  It is important to realize that it is expensive to have a funeral and it is a pretty good idea to leave things up to the professionals.  The concept of preplanning helps to halt the spiraling costs of caring for our loved ones upon their death.  The middlemen will always be there, and time is the real enemy of saving money.  Every 8-10 years, the cost to bury a person, along with the funeral service, tends to double in price.  The best way to save money and get exactly what you want is to stop in and talk with one of our Family Service Counselors.  It costs nothing to look and if you ever feel high pressured, call Daniel Moran, G.M. at 218-769-8803 and report your experience.

You may take care of a little at a time or a complete arrangement, freeze the price, get the best choice of location, spare your family the challenge of choosing for you and figuring out how they will pay for your funeral. And please note, payment plans do not exist at the time of need.  At Calumet Park, you can prearrange with zero percent finance charge for up to 60 months with no credit checks or credit turn-downs.

Call now or stop in and let us answer your questions on preplanning a funeral and cemetery arrangements.

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