By Thomas A. Parmalee
It almost sounds too good to be true.
FT North America is introducing a new option that will allow clients to finance new equipment on a pay-per-cremation basis.
“We think this innovative new approach will help many current operators finally make the move to replace aging equipment and encourage those thinking about adding a new crematory to their existing operations to call us,” said Mike Miller, chief operating officer of FT North America, who noted the program is called FT Partner Pay.
With FT’s 12-year, long-term maintenance agreement that includes preventative maintenance (hearth replacements and rebuilds as necessary, and FT Assist, its phone assistance line), the company can show a potential client their total cost of ownership and how it can be rolled up into one convenient quarterly payment amount based on their case volume.
We recently caught up with Miller to find out how the program works and why it’s a game changer for funeral homes.
What is the typical price range for someone to upgrade equipment, and what does that entail?
Every operation is unique. We estimate approximately 40% of the crematories operating today are more than 25 years old. In many cases, it could be as easy as removing one machine and replacing it with a new FT, however some of the other installations may be more complex and require alterations to an existing building.
Many operators tell us their dream is to modernize the whole operation for a better customer experience. As more and more families are opting to witness or participate in the cremation service, yesterday’s facilities often just don’t provide the optimal space for this to occur as they’d like.
Whatever your situation, we can help, and we believe FT Partner Pay will help them make their vision a reality.
The program also applies to firms looking to add a crematory to their existing funeral home or cemetery. What are the main considerations someone should think through before deciding whether the time is right to add capacity?
Sometimes the decision to add a crematory can be as simple as having the peace of mind you get from knowing the trust of the families you serve will never be violated by cases leaving your care. Realizing that owning your own crematory can add to your bottom line each year can also play a big part in the decision. Our account executives can go through your specific numbers and show you what you are leaving on the table by not owning your own crematory. Best of all with FT, our Total Cremation Solution guarantees all the details are taken care of, so you can focus on serving families while we handle all the details of permitting and installation.
How much does someone need to put down after deciding to make an upgrade or add a cremator?
We’re asking for a minimum 10% downpayment, but operators can choose to put down as much as they’d like to lower the payment per case. Of course, buyers can still elect to pay in full and take advantage of any cash discount promotions that may be available at that time.
This allows operators to pay off an upgrade or a new cremator over four years. What was your previous policy?
We’ve always had some great financing partners that we’ve referred potential clients to, and they all have had different programs and payment options. Those options will still be available; however, we feel this gives us the ability to commit to a real partnership with our customer to get the FT cremation equipment they’ve always wanted.
Are only certain customers/funeral homes eligible to participate in this program? How do you determine eligibility?
Anyone with a FICO score over 650, with three years of verified operating data can qualify for Partner Pay with a personal guarantee. Factors such as down payment, number of years in business and amount financed are taken into consideration as well.
What about interest? How much does someone pay over the four years?
Partner Pay fees can vary based on the total number of cremations performed annually and can vary depending on the downpayment. The best way to understand what your individual costs are is to meet with one of our account executives who can build you a complete profile of costs and savings based on your unique circumstances.
How does adjusting the amount paid based on volume help a crematory operator that may have a few slow months? Does it eliminate stress?
By paying per cremation, it allows costs to track much closer with the business – and that certainly alleviates some stress during slower months.
Our account executives can show potential clients how much they can save by owning their own FT over outsourcing, or how much they can save by upgrading outdated equipment.
Do you expect this program to meaningfully move the needle in terms of FT’s market share?
Partner Pay is a key objective that we see as a great way to move the market share needle, but more importantly, we see it as a way for operators to finally purchase the FT they’ve always wanted.
What has been the reaction from customers?
The idea actually came from talking with customers. So many potential clients were frustrated with the SBA loan process and seeking alternatives. We simply had to get to work on a solution.
As we were looking for the best way to use our available capital, investing it in these partnerships with operators made a lot of sense. Growing the brand, ensuring safety for crematory personnel and providing the highest quality experience for the cremation consumer is what we are all about. Why not put our money where our mouth is?
How is FT able to offer this … and what hurdles did you have to overcome to make this program a reality?
We see huge opportunities in North America for the FT brand. The large high-volume operators have known for years that nothing beats an FT. Our technology has always been second to none, and it was time to leverage that in a way that made it possible for more low and mid-volume operators to get the FT they’ve always wanted.
As for hurdles … keeping up with demand comes to mind, but the team that builds these machines in Medina, Ohio is ready for the challenge.
Do you have any final thoughts?
To start a conversation or ask questions about how FT Partner Pay can help you upgrade or add new cremation equipment, visit FTNorthAmerica.com and fill out a contact form.
We’ll also be showing off our new booth at the ICCFA Experience at Booth 1266 — and our account executives will be more than happy to talk more about Partner Pay at that time.
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