Economic aspects of cremation business

To carry out a crematorium means to provide services for the population, but also to bring the profits to the owners. In our conditions we have different types of funeral homes.

We can divide them into:

• big crematoriums with great efficiency, built in large agglomerations, that carry out thousands of incinerations each year, established exclusively for the cremation business;

• large crematoriums that carry out 1000-3000 incinerations each year, installed in big agglomerations, run by big funeral homes;

• medium crematoriums that carry out up to two thousand incinerations annually, usually installed in medium agglomerations;

• small crematoriums that carry out up to 1000 incinerations each year, installed in the cities with less than 350 000 inhabitants.

There are a lot of big crematoriums in this part of Europe and there is no place for the new ones (because of the economical reasons) – unless the old ones are closed.

Two new big crematoriums will open soon in the regions where there are no such facilities.

But the market of small and medium crematories develops dynamically. There is a permanent growth because of the need to situate them close to the places where the funerals are carried out.

New crematorium means that the number of incinerations in the region grows. Big funeral homes invest in their own furnaces to increase the incomes and to strengthen their position in the market. The experience has shown that crematoriums that have a complex offer for the clients have taken over the majority of the market.

To be sure that the investment brings the expected benefits, we have to choose the proper furnace and technological partner. We should think of the number of cremations and work cycle. Oversized crematorium means worse operating parameters and late return on investment. That is why it is really important to make a good business plan with detailed analysis of needs and opportunities. Our company is the one that prepares the complex business plans.