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These services and products are normally sold on a pre-need or at-need basis. With a pre-need arrangement, customers pay in advance for the services and products. Under an at-need basis, payment is received at the time of death. The revenues in this industry are relatively predictable because:
? Death rates are driven by demographic factors
? Lack of price competition due to difficult new entry into the business
? Prices are not negotiated by the grieving family
As a result, the failure rate in this industry is extremely low. In fact, it is one-tenth the rate of all U.S. businesses. Currently, the four major firms are Service Corporation, Loewen, Stewart Enterprises and Carriage Services...
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