Acting as a technology overlay might work well, such as a travel or hotel startup, but in the funeral business it brings headaches of its own. In almost every state, consumers can only purchase cremation services from a licensed funeral home. That means every startup needs a brick-and-mortar store in each state where it provides services. Eirene has a small office for legal reasons, but Ms. Greene said no clients have requested to visit it yet. Mr. Crawford said Solace has small offices in Seattle, Portland and Los Angeles that his staff funeral directors “occasionally work,” but most of his team is far away.
Other states have such strict requirements that it is hard to imagine this business even possible in them. AlabamaFor example, funeral homes are required to have conference rooms, display areas with at least “eight different adult sized coffins” and viewing areas that can hold at least 100 people.
“Nearly all states have established licensing requirements without considering this type of business model,” said Tulip’s Doyle. “As we continue to grow, there are bound to be regulatory inconsistencies that are slowing the process down a bit.”
Victoria J. Haneman, a law professor at Creighton University, who learn Funeral businesses claim that “many state regulations are outdated and completely unnecessary”. While consumers benefit from federal regulation around price disclosureSome of these state-level rules protect already-existing companies and create an incentive for new operators, she said.
For example, Tulip may be in the best position to make those economic activities work. Its parent company, Foundation Partners Group, already owns more than 170 funeral homes, crematoriums and cemeteries across 22 states, and Tulip is using that infrastructure to serve its customers online. Unlike its competitors, it does not have to pour money into empty facades.
Smart Cremation, worked for more than a decadehas similar perks: Its owner is NorthStar Memorial Group, a company with more than 75 funeral home and cemetery locations.
Some old-fashioned funeral homes have offered a version of this service for decades. Barbara Kemmis, executive director of the North American Crematorium Association, recalls that when her brother died at a college in Wisconsin in the 1990s, the funeral home director delivered his cremated remains. to her parents in Texas.
https://www.nytimes.com/2022/02/03/business/cremation-startups-direct-to-consumer.html Cremation Borrow a Page from the Direct-to-Consumer Playbook