If you ask most people how do cemeteries make money they will tell you that you can find a great deal of cash buried in the plots. While this is true, it will not be the only factor that determines whether or not a site will become a money maker. There are many other factors that play into cemetery business such as management and marketing. While plots are popular and easy to locate, there are other items needed before a site can open for business. This is what we will discuss in this article.
The first thing that you have to decide when considering how do cemeteries make money is how big your plot will be. It must be large enough to hold the body that you plan on burying. Other items that are considered are the land that surrounds the plot and any fencing or walls that are needed. You can also expect to pay fees for access to and maintenance of the land.
Once you have decided on the scope of your cemetery plot you will have to purchase the materials that will be used in the construction of the plot. These include the headstones, the gravestones, marble or granite veneers and more. Once you have these materials in place then you are ready to bid on any plots that come your way. You will need to keep in mind that these plots are usually on a first come first serve basis and that there may be some limits as to how many you can purchase.
How do cemeteries make money? One of the main things that keeps these cemeteries open is the perpetual care fund. This is basically a special tax that is in place for the maintenance and upkeep of the cemeteries. Perpetual care funds are maintained primarily because many people want to be buried at a local cemetery that is operated by a religious organization. In return for this money the funeral home gets paid and the land owner keeps the graves clean and safe.
There are two ways that these cemeteries can make money. First they can sell the plots to people who want to make a burial ground at their local cemetery. The other method is that they can rent the plots out to people who want to visit their local cemetery during an active burial. This allows them to build up the Cemetery plot over time. In either case the profits from these plots far exceed the costs of maintaining them.
A common question that people have is, “How much does it cost to maintain each burial plot?” Each state in the united states has a minimum price that each plot can be sold for but the real cost is dependent upon the county and the building that is being used. In some states like Georgia the cost per acre is capped at fifty dollars. This price is placed there so that local cemeteries can have an economic advantage over large national chains that have high prices on plots but do not have the same costs associated with upkeep and maintenance.
How do cemeteries keep up with demand? Not all burial plots are bought equally. The cemeteries that have consistent clients are able to maintain their plots at less expensive prices due to economies of scale. In larger cemeteries, however, because there are so many plots that need to be maintained at once it becomes very expensive. If the cemeteries were allowed to go without an economic advantage then the problem could get out of hand.