Know your Market
First and foremost, the financial feasibility of a columbarium needs to be supported by historical statistics, current population statistics and forward projections of how each community embraces cremation interment. Knowing the market and understanding the surrounding cemetery rates of interment need to be fully understood in order to identify that the going rate of interment meets community expectations and is also moving with the cost of inflation.
No cemetery wants to operate at a loss. In addition to the annual cemetery operations budget, the “Perpetual Fund” also needs to be considered, as cemeteries adapt to more forward financial planning. The pricing of each niche must address these financial considerations in order to effectively meet the cemetery’s future financial needs. One strategy to consider when deciding on the pricing of a columbarium niche is to divide the cost of each niche into thirds. The first third is applied towards the payment of the initial columbarium, the second third goes towards the payment of the Perpetual Fund and the third is applied towards the purchase of the next columbarium. Eventually all future columbaria purchases will be self-financed by previous niche purchases.