Taking a note from the McDonald’s business; Ray Crock is not master chief or posses the best burgers, his business is real estate… considering so please read the following passages and leave a note about how you feel about the business venture below… The business venture is not to be the funeral business but in the selling of plots to funeral business… Our business is not to cremate, not to dig not to be funeral directors but to supply a home for peoples loved ones when they leave this earth. a.k.a. not the burger but the property is our business.
Most people know being alive is expensive but many don’t think about the dying process and the burial process being as expensive in many cases. The cost for a funeral has risen compared to 1950’s, 1980’s and present. Considering a a funeral back in 1950’s would have been under $1,000 which would have been enough to take care of the final arrangements, 1980’s was around $2,000 and currently the cost is $7,000 to $14,000 on average. The cost of a plot of land compared to the cost of a plot is ridiculously un-proportioned the cost of land often times depending on the location is cheap compared to the division of the property that the amount of plots can be placed in it. It is simple to be able to summaries that if you were to purchase a property that is in a good zone, respecting the laws of the land and having the ability to construct grounds for ceremonial purposes that the venture seems to be more likely to win compared to not. Lets say the 2 acres land cost for about $25,000, with construction with no building structure but having cement, fence and dressings up the place for $20,000-80,000 meaning the investment up front is $45,000-105,000 and the monthly up keep will be minimum. The lay out for each plot will have to be made, lets say that there is 600 rooms available per acre considering the average plot is 4 by 12 and in acre their is 43,560 square feet meaning there is 907 spaces but taking out a few for cement road ways and small structures leaving again about 600 rooms open… with 2 acres their is 1200 rooms total if you were to sell the spaces for the minimum going rate of $3,000 it looks like the land owner will receive about 1200*$3,000= $3,600,000 just supplying land for the burials. This is $3.6m-($45,000-105,000+$250,000) up keep/extra= $3,245,000 amount of potential profit from this venture in the lifespan of the cemetery having open spaces.
use these numbers on 1 acre of land, Land+improvements=$45,000 up front cost Profitability based on 600 rooms for lowest price $3,000… $1.6m gross – $295,000 (investment($45,000)+maintenance ($250,000))=$1,305,000 profitability.
Factors to consider
What is the average cost for a funeral and the amount of money/man-power actually spent to complete the services
Cost of a plot
the size of each plot generally is