Selling Caskets at Cost and Making More Money | Tom Anderson (Anderson Funeral Home & Crematory) #68
Few in death care can match the experience and perspective of Thomas J. Anderson—fourth-generation funeral director, community leader, University of Minnesota Regent, and the voice behind the widely read Funeral Director Daily blog. In this episode of The Direct Cremation Podcast, host Tyler Yamasaki, CEO of Parting Pro, dives into Anderson’s story of legacy, innovation, and gratitude.
From stepping up at 19 to keep the family business alive, to modernizing operations and navigating a successful sale, Anderson’s journey is a playbook for today’s funeral home owners facing an evolving market.
The Accidental Heir Who Said “Yes”
When Anderson’s father passed unexpectedly, he was a freshman in college, unsure of his direction. His mother faced a difficult choice: sell the funeral home or trust her teenage son to take it over. Without hesitation, his hand went up.
“It really wasn’t me making the decision,” Anderson recalled. “It was probably the good Lord knowing what was best for me.”
What began as a sense of duty to preserve his mother’s livelihood became a lifelong mission to serve his community with compassion and professionalism.
Small Town Roots, Big Business Vision
Returning to Alexandria, Minnesota, Anderson focused first on stability. “I just wanted to keep our market share and take care of families,” he said. But soon his business instincts kicked in.
He pioneered initiatives that were ahead of their time—launching pre-need programs, hiring aftercare coordinators, and starting an insurance agency when state laws finally allowed funeral directors to sell pre-need insurance.
Those moves increased margins, built long-term relationships, and laid the foundation for sustainable growth. Anderson said:
“If you can add meaningful value for families while managing costs with intention, you’ll have a better funeral home management system than any software could build.”
Transparent Pricing Before It Was Trendy
Long before funeral price transparency became a national debate, Anderson tested something radical: selling caskets at cost.
“I didn’t think it was right that our margins depended on 15 minutes in the casket room,” he explained.
“We make our money by serving families, not by what they buy.”
Instead of losing revenue, Anderson doubled his service fees to reflect the true cost of care. The change paid off. Families felt respected and trusted the firm more. “Nobody ever complained,” he said. “They just said, ‘Wow, you didn’t pressure us.’”
That pricing philosophy—charging for service, not products—became a cornerstone of his success and still guides how many operators think about fair pricing and funeral arrangement software transparency today.
A Thoughtful Sale, Not an Exit
After decades of running Anderson Funeral Home and Crematory, Anderson made the decision to sell a majority stake to a regional operator, ensuring stability for his staff and community.
His priorities were clear: the buyer had to share his values, keep his team employed, and maintain the family name’s integrity.
“I didn’t want to see my funeral home flipped. The people in our community are still being cared for by the same faces they know.”
It was a strategic move, not a surrender. Anderson remains a believer in consolidation when done right, saying larger groups can bring better HR, operations, and financial expertise — as long as they preserve the funeral home software systems and local relationships that make each firm unique.
The Birth of Funeral Director Daily
Four years after selling, Anderson wasn’t done serving the profession. He launched Funeral Director Daily, a daily blog that blends industry news, data, and analysis for funeral professionals, cremation providers, and investors alike.
“I started with four readers,” he laughed. “Now, about 3,500 people read it every day.”
His blog covers everything from cremation software trends to pricing strategies, consolidation insights, and new technologies shaping the industry. It’s become a must-read for anyone tracking funeral service software advancements or exploring innovative funeral home ideas.
But more than just analysis, Anderson’s writing reflects his values. He often closes with a reminder: “A servant’s attitude guided by Christ leads to a significant life.”
Gratitude and Perspective
Beyond his business success, Anderson’s life is rooted in gratitude. At five years old, he underwent one of the first open-heart surgeries performed at the University of Minnesota. His community donated the blood that kept him alive—a list of those donors still sits on his desk today. In his words:
“I’m the most grateful person on earth. That list reminds me that whatever you achieve, you don’t do it alone.”
That spirit carried into every part of his career, from mentoring new directors to advocating for rural students and children’s healthcare as a University of Minnesota Regent.
Lessons for the Next Generation
For funeral home owners, Anderson’s story offers a roadmap:
- Lead with service. Compassion and transparency never go out of style.
- Adapt to change. From pre-need to online cremation services, innovation is survival.
- Price for value, not fear. Families appreciate honesty and fairness.
- Protect your people. Whether selling, scaling, or starting out, success is shared.
As the funeral profession moves toward digital tools like funeral planning software, online funeral arrangements, and best online cremation software, Anderson’s journey reminds us that technology enhances great service—it doesn’t replace it.
Watch the full interview with Thomas Anderson here 🎧