Sunday, July 12, 2009 •••

SECTION D

MoneyWise
HE FOUND JOB STABILITY DEAL DIVA: Which is cheaper:
AS A NURSE grocery stores or Wal-Mart? 3D
Charlotte man spent his savings,
went without health insurance TAKING CARE: It’s tough to
to pursue a new career. 3D search for work if you’re sick. 4D
charlotteobserver.com/business

TODD SUMLIN – tsumlin@charlotteobserver.com

Fred Oates helped dig a grave at Oaklawn Cemetery Wednesday in Charlotte, where a survey shows the city’s average funeral costs $5,500, while cremations average $2,821.

Death and dollars

With 1 company dominating the market, Charlotte leads the nation when it comes to burial, cremation costs.

By Cameron Steele
csteele@charlotteobserver.com
When Service Corp. International, the nation’s largest
funeral-home chain, bought its biggest competitor in
2006, it took a commanding stake in the Charlotte mar-
ket and promised to provide quality services and reason-
able prices.
But three years later, a new survey shows what con-
sumer advocates at the time feared: Charlotte funeral
prices have risen, making the city the most expensive in
which to be buried or cremated. According to a June
survey by Everest Funeral, a research company that
works with consumers and life-insurance companies,
average funerals in Charlotte cost $5,500, while crema-
tions average $2,821.
The figure for funerals is $1,600 more than the South
Atlantic average and $1,500 more than the national aver-
age, according to the National Funeral Directors Associ-
ation.
Some local independent funeral directors blame the
high prices on Service Corp., a Houston-based company Service Corp.’s market share
that owns more than 1,300 funeral homes nationwide, The charts below indicate Service Corp. International’s market
including 60 percent of the homes in Charlotte. share percentage of the national and Charlotte funeral
industries. Service Corp., the nation’s largest funeral-home
“It’s called controlling the market, and I hate to say
chain, owns the majority of funeral homes in Charlotte.
that it’s working,” said Tito Truesdale, co-owner of Rosa-
dale Funeral Parlor, an independent home on Albemarle National
Road in east Charlotte that competes with Service Corp. 90% Private, family-owned funeral homes
Shawn Strickland, Service Corp.’s market manager for 7.8% Service Corp. International
the Charlotte area, says he doesn’t believe the results of 1.4% Stewart Enterprises
the survey because he thinks that funerals in big cities 0.7% Carriage Services Inc.
such as New York and Washington cost far more than in 0.1% Stonemore Partners
Charlotte. He said Service Corp. offers a wide range of
prices but that the basic price for a funeral is determined Charlotte
by the cost of that home’s overhead.
60% Service Corp. International
“It’s such a subjective question, because it really de- ( 6 funeral homes )
pends on the family and what they want to see happen,” 30% Private, family-owned funeral homes
he said. “We don’t have pricing any much different than 10% Keystone Group
anyone else does.”
Source: Everest Information Services LLC and IBISWorld Inc.
The president of the local chapter of Funeral Consum- Research: CAMERON STEELE Charts: DAVID PUCKETT
SEE DEATH, 2D

Sales of Jackson items Once they’re gone, 401(k)

show power of collectibles
His memorabilia is red-hot,
and the hobby is big in a
down economy. But be alert
to fads, experts warn.
By Pamela Yip
Dallas Morning News
One day after the death of Michael
Jackson, Heritage Auction Galleries
was besieged with calls asking what
his memorabilia is worth.
“The general consensus is that
whatever it was worth yesterday, to-
day, it’s probably worth double, if not
triple,” said Noah Fleisher, spokes-
man for Dallas-based Heritage, the
largest collectibles auctioneer in the
world.
Collecting is a big business, and it’s
become even more so as the recession
has led many consumers to rummage
through their attics and basements to
see what can be sold and turned
quickly into cash. Craigslist, for in-
stance, has seen its “For Sale/Collect-
ibles” section grow 60 percent in the
last year, a Craigslist spokeswoman
said.
But much of collecting has to do
with the emotion someone feels to-
ward a person, object or genre, and
Michael Jackson signs autographs for fans as he arrives at his civil trial in
Santa Maria Superior Court in November 2002, in Santa Maria, Calif.
experts say that’s how you should first
approach collecting.
“A true collector buys items be-
cause he or she loves to collect,” not
because they’re trying to make a buck,
said Todd Imhof, executive vice presi-
dent of Heritage and a rare coin ex-
pert.
Jackson’s unexpected death creates
BRYAN CHAN-POOL – GETTY IMAGES FILE PHOTO
a surge of interest in collectibles
linked to the pop legend. But the tar-
nish to Jackson’s image from the
strange turns his life took and the ex-
pected litigation over his affairs could
erode the collectibles’ long-term val-
ue, industry experts say.
The value of Jackson’s memorabilia
SEE COLLECTIBLES, 2D
matches might not return
Some companies look to
redirect former match
money to health care,
training, other benefits.
By David Pitt
Associated Press
As if we needed another sign that
this may be the Great Recession, it
appears some companies that sus-
pended their 401(k) match might
not restore it completely.
In past downturns, most compa-
nies that stopped matching employ-
ee contributions to 401(k) accounts
simply reinstated the match when
the economy recovered. This time
might be different. Consultants re-
port that clients are considering op-
tions including tying their 401(k)
match to profits or using some of
that money for other benefits.
Companies have more flexibility
than most people think when it
comes to their 401(k) plans.
The current average match is 50
cents on the dollar up to 6 percent McCLATCHY-TRIBUNE ILLUSTRATION
of pay. For example, a worker earn-
ing $50,000 a year contributes 6 per- $25 million a year by suspending
cent, putting $3,000 into the 401(k) their 401(k) match. When you’re
account and the company puts in talking that kind of money, it’s easy
$1,500. to see why it becomes a target in bad
Using that average figure, compa- economic times.
nies with more than 15,000 employ- But potential changes coming
ees can save in the neighborhood of SEE RETIREMENT, 2D
2D Sunday, July 12, 2009 ••• BUSINESS charlotteobserver.com • The Charlotte Observer

DEATH so point to Charlotte’s high cremation

• from 1D
ers Alliance, a nonprofit group that
works to educate consumers about fu-
neral-service options, said Service
Corp.’s hold on the Charlotte market
easily makes the city the priciest for
funeral services.
“I hate that Charlotte is at the top of
the list, but I don’t doubt it one bit,”
said Mary Brack. The Funeral Con-
sumers Alliance doesn’t have a survey
that compares funeral pricing in dif-
ferent cities, but Brack said she’s
known for a while that Charlotte had
to be one of the most expensive.
Local Service Corp. funeral-home
owners offer a variety of explanations
for Charlotte’s top ranking. They said
cemetery costs and property taxes are
rising, and that the move toward less-
expensive cremations is forcing up
traditional-funeral prices to maintain
revenue.
Funeral pricing varies, but experts
said smaller, independent companies
tend to be less expensive than larger
chains because they have less corpo-
rate overhead and don’t have to pay
dividends to shareholders.
Price shopping
When Mamie Stowe knew she was
going lose her husband, Eugene, after
his two-year battle with cancer, she al-
most dreaded the funeral-planning
process more than his passing. Stowe
wanted to honor him with a church
service. But she was afraid of being
gouged by a funeral home that wanted
to be paid upfront and paid a lot.
After Stowe called around in June
for quotes that were “ridiculous” and
too expensive, a social worker helped
her find T.H. Robertson, owner of a
private funeral and cremation prac-
tice by the same name. Robertson is
able to cut overhead costs by meeting
customers in their houses instead of
requiring them to come to a funeral
home.
Robertson said his prices, starting
at $3,295 for funerals and $1,295 for
cremations, are lower than Service
Corp.’s.
Charlotte’s T.H. Robertson owns a private funeral and cremation practice
and meets customers in their houses instead of a funeral home to cut costs.
The average price of a Charlotte fu-
neral with Service Corp. has risen 10.5
percent to about $6,300 from about
$5,700 in 2006, another Everest sur-
vey indicates. Nationally, Service
Corp. funerals cost $5,097, which is
about $1,200 less than the company’s
Charlotte prices, according to the
company’s most recent federal earn-
ings reports.
When Service Corp. bought Alder-
woods Group Inc. in 2006, the U.S.
Federal Trade Commission forced it
to sell one of the five Charlotte funeral
homes it had acquired. The FTC’s de-
cision reduced Service Corp.’s share
of the Charlotte-Gastonia-Monroe
market to 44 percent from 62 percent
and attempted to prevent the merger
from raising funeral prices. But Serv-
ice Corp. still owns six out of 10 Char-
lotte funeral homes, and prices have
climbed in the years since the merger.
Nationally, Service Corp. controls
only 7.8 percent of the funeral indus-
try, with 1,302 funeral homes and 369
cemeteries. The company has its larg-
est presence in Charlotte, owning
Harry & Bryant Funeral Home, Forest
Lawn West Funeral and Cremation
Service, all of the McEwen Funeral
DAVIE HINSHAW – dhinshaw@charlotteobserver.com
Service locations and Wilson Funeral
and Cremation Service.
“Charlotte is unique,” said Mark
Duffey, president and chief executive
of Everest. “Usually you don’t see that
level of consolidation, which is what
makes (funerals) so expensive there.”
Everest is a national research com-
pany that helps clients to compare fu-
neral prices and create a customized
funeral service with the home of their
choice. Consumers pay $495 for un-
limited access to Everest specialists
and research data or get help from the
company as a life insurance benefit
through their employers. The survey
is based on a six-month national study
that looked at basic funeral prices of
homes in a 10-mile radius of each city.
Brandon Cook, manager of Service
Corp.-owned Forest Lawn Funeral
Home said Charlotte’s high taxes and
cost of living escalate the area funeral-
home prices. But that still doesn’t ex-
plain why Charlotte ranks first on the
list of most expensive cities for funer-
als while major cities with compara-
ble or higher costs of living rank sig-
nificantly lower – Washington is 12th,
New York is 15th and Houston is 20th.
Service Corp. funeral managers al-
percentage – 30 percent of Charlotte’s
deceased are cremated – as the reason
for escalating burial costs. Crema-
tions appeal to people everywhere be-
cause they’re cheaper, said Cook, but
they are particularly popular in Char-
lotte because of its transient popula-
tion.
“If people want to be here only for a
brief amount of time, they will be able
to take their loved ones with them
when they move,” Cook said. The
shift from high-cost burials to crema-
tions threatens revenue for the funer-
al industry, which can force overhead
prices to go up. But that doesn’t ex-
plain why Charlotte outranks all other
cities for funeral expenses because
cremations have been on the rise na-
tionwide, attributing for 37 percent of
the industry.
Financially squeezed families that
are going ahead with burial plans are
opting for less formal services. That
means cutting out limousine rides,
purchasing less ornate caskets and in
some cases putting off tombstone
purchases, funeral industry experts
say.
Antitrust accusations
Service Corp. has run into antitrust
accusations before. In 2005, the Fu-
neral Consumers Alliance filed a
class-action suit against Service Corp.
and other major players in the death-
care industry. The suit alleged the
companies conspired to overcharge
customers on caskets by suppressing
competition. While not dismissed, the
case has not gone forward.
In 1999, Service Corp. faced charges
from the New York state attorney gen-
eral that the company was dominat-
ing the Jewish funeral home business
there and hurting consumers by rais-
ing funeral prices. Service Corp. set-
tled out of court, agreeing to sell three
of its Jewish funeral homes and pay
the state $1.2 million for the investiga-
tion.
Service Corp. also received civil-in-
vestigation demands in 2005 and
2006 from the Maryland attorney
general about alleged anticompetitive
practices in the funeral industry there.
Tips on choosing a
funeral home
• Ask for a list of general prices.
• Ask what is included in the
funeral service fee and what cem-
etery costs will add to that fee.
• Know that you can negotiate.
• Find out whether the home is
corporation-owned or independent
and which one offers the type of
service you need.
• Go to different homes around
your area to compare price lists.
Go to www.funerals.org for help
from nonprofit group, Funeral
Consumers Alliance.
Five most expensive
cities for funerals
Average cost
Traditional Cremation
1. Charlotte $5,500 $2,821
2. Chicago $5,046 $1,878
3. Nashville $4,983 $1,941
4. Louisville $4,963 $2,138
5. Boston $4,958 $2,311
Source: Everest Funeral survey
Barak Richman, a professor at Duke
University School of Law, said restric-
tions are put on monopolies because
they can pose harm to market compe-
tition.
“When all services in a market are
dominated by a single provider, out-
put goes down and prices go up,” he
said. “But if a monopolist charges
higher prices, that should theoretical-
ly allow other people to enter the mar-
ket and provide services at a lower
cost.”
Strickland said Service Corp. does
not have a monopoly of the Charlotte
area and has continued to meet the
needs of residents during their times
of grief.
“I don’t want to see you come in
when you’ve had a death and have to
spend a lot of money,” he said. “We
can customize the service to fit any
budget.”
— STAFF RESEARCHER MARIA DAVID CONTRIBUTED.

COLLECTIBLES What to look for RETIREMENT No more 401(k)

• from 1D
will spike for about a year or two and
then most likely will settle back, Fleisher
said.
“Autographs and items from Michael’s
prime will prove to be the most valued
and cherished by fans looking to collect
anything related to the legendary singer,”
said Doug Norwine, director of music
and entertainment auctions at Heritage,
which will feature Michael Jackson ma-
terials in its September auction.
Norwine said collectors should keep
in mind that a flood of Michael Jackson
collectibles in the market could lessen
their value.
“Rare, authenticated pieces, Thriller-
era autographs, video-worn costumes
and personal mementos will always be
prized,” he said.
No matter what you’re collecting,
there are some overall rules of thumb to
follow.
Perhaps most important: Educate
yourself about the collectible.
“In the 20-plus years I have been work-
ing with collectors, I’ve observed that al-
most without exception, the most suc-
cessful people are those who truly im-
mersed themselves into their chosen
field,” said Imhof, who collects fine
wines and Olympics memorabilia.
“They read everything they can about
their area of interest, attend trade shows,
develop business and social relation-
ships with experts and dealers and es-
sentially become world-class experts in
their own right.”
Realize that every collectible item will
have distinctive characteristics, and your
criteria for judging its value will have to
Here are some questions to ask
yourself when evaluating whether
items could be collectibles:
SPORTS ITEMS
• Was there limited production of the
item, such as baseball cards?
• Has the player made it into the
sport’s Hall of Fame?
• Is it the player’s rookie card?
• Has an autograph or sports item
been authenticated?
POP CULTURE
• How popular was the person?
• How often did he or she sign au-
tographs?
• Are these items associated with
the person’s peak of his or her fame?
Have they been authenticated?
TOYS
• Are they in pristine condition, in
their original sealed boxes?
• How deeply do they evoke long-
held childhood memories?
Source: Dallas Morning News
take that into account.
For example, David Widener, a collec-
tor in Waco, said that with sports cards,
“I recommend buying vintage cards over
the modern and current products” un-
less there is a limited supply of the cur-
rent product.”
In other words, the scarcity of an item
is a key component of value. But make
sure that scarcity comes with demand,
because the two don’t always go hand in
hand.
• from 1D
from Washington have some
companies in limbo. Many com-
panies might not restore the
401(k) match until they find out
how much health care will cost
them, said Mark Ritter, an execu-
tive director at business consul-
tant Grant Thornton LLP.
“Right now there’s a lot of fear
about what the rules will be and
what’s the cost,” he said. “The
thought is, we may have to rob Pe-
ter to pay Paul and, depending on
how the health care initiative im-
pacts our company, we might
have to get the money from the
401(k) match.”
For companies thinking about
tying the match to profitability,
simply committing to contribut-
ing more to the match in good
years and less in bad years is the
most flexible option. Another is to
promise a certain level of match if
the company hits specified profit
targets.
That’s what cell phone compa-
ny Sprint Nextel has chosen to do.
The Overland Park, Kan.-based
company suspended its 401(k)
match as of March in a broader
cost-savings plan.
Spokesman James Fisher said
the company will make future
contributions on a profit-sharing
basis.
“If our performance is above ‘X’
level, a specified amount of mon-
ey from the extra performance
will go into the 401(k) match,” he
match? Try these tips
Human resources consul-
tant Hewitt Associates sug-
gests:
1. Save more. The average
employee can bridge the
savings gap a company 401(k)
match suspension creates by
boosting his or her contribu-
tion by just 3 percentage
points a year.
2. Diversify assets. Make
sure you diversify your port-
folio by regularly rebalancing
your asset allocation.
3. Don’t cash out. Research
shows nearly half of workers
cash out their 401(k) plans
when they leave a job. You will
forfeit 20 percent or more of
the account value in federal
taxes and you may be subject
to 10 percent in early with-
drawal penalties. — ASSOCIATED
PRESS
said. “If we don’t meet that level,
there won’t be any contributions
for this year.”
Sprint Nextel had been match-
ing dollar-for-dollar an employ-
ee’s contribution up to 4 percent
of pay.
Depending on what your com-
pany decides, you might see a
smaller match. In exchange, the
company might put some of the
money into a health savings ac-
count, workplace improvements,
or education and development
programs.
The Pension Rights Center, a
Washington-based consumer ad-
vocacy group, said it’s tracking
more than 280 companies with
suspended or reduced retirement
plan company matches. A string
of companies began announcing
suspensions or reductions in June
2008, and the trend continues.
The list of companies includes
widely recognized names such as
Sears Holding Corp., Starbucks
Corp. and General Motors Corp.,
as well as nonprofits such as Pub-
lic Broadcasting Service, the Port-
land Art Museum and the Ameri-
can Red Cross chapter in New
York.
The Pension Rights Center is
concerned that retirement bene-
fits may become a casualty of the
recession as companies look to
permanently reduce costs.
“Unfortunately, we’ve seen this
trend over the past 20 years where
companies are increasingly get-
ting out of contributing to their
employees’ long-term well-being
plan, whether it’s a pension or re-
tirement income or health bene-
fits,” said Nancy Hwa, the center’s
spokeswoman.
So, why are companies chang-
ing directions now? They’ve
reaped the savings, why not re-
store the match once profitability
returns? It appears one lasting ef-
fect of this deep recession is that
it’s changed the mindset of many
business executives, said Ritter.
“People realize that the floor
can fall out from under them now
and they want to stay loose,” he
said.