Cost of dying: How the death-care industry is changing in Canada

Shawn Davidson on operating a modern funeral home Shawn Davidson, owner of Carruthers & Davidson Funeral Home, discusses how the death-care industry has evolved in the time since he started.

The first time we planned on chatting with Paul Gaudio for this story, he called at the last minute and asked if we could reschedule, saying he was picking someone up for work.

A fairly innocuous statement in most industries, but for Gaudio, a licensed funeral director with Carson Funeral Homes in Orillia, Ont., "picking someone up" meant a deceased person whose arrangements he would prepare.

Whether it's the scene of a car accident, a morgue or a seniors' home, picking up a body is just one task a funeral director carries out in their line of work.

But like every industry, what worked for an older generation is antiquated in the next one, and what would suffice in the previous decade could be obsolete today.

CTVNews.ca spoke with Gaudio and fellow licensed funeral director Shawn Davidson – who together have more than 60 years of experience – to get their thoughts on the death-care industry, how they juggle between providing a service for people in mourning while still operating a business, and how they've taken the phrase "adapt or die" as serious as any.

Cost of dying

At some point, we all have to deal with death, whether it's a family member, a friend, a pet or ourselves. We can't stop what's coming. But what can trip up many Canadians is the price of a service for their loved ones.

According to Canadian Funerals Online, a digital resource that connects people with those who can help plan a service, the average price of a traditional funeral can range anywhere from $5,000 to $12,000, but even that number can rise, depending on circumstances like transferring a body between locations, embalming, time and labour for the  funeral home staff, flowers, and the casket itself.

High costs aren't limited to traditional burials. Dignity Memorial, the largest network of funeral homes, crematories and cemeteries in North America, reports the average cremation service is more than $6,700. While it may be the cheaper option in most cases, hosting a visitation or memorial service, a celebration of life or catered reception can still drive costs well into the thousands.

All things considered, dying can become one of the most expensive things we do in our lives.

Davidson owns and manages Carruthers & Davidson Funeral Home and its multiple locations in and around Wasaga Beach, Ont. After being licensed in 1993, he spent several years honing his craft in Toronto before he and his wife purchased what is now Carruthers & Davidson in 2001, which they've managed and maintained for the last 23 years.

Since graduating from Humber College's funeral director program in the early '90s, Davidson has seen the death-care industry evolve several times over, with price being no exception.

"During my years working in the (Greater Toronto Area) in the '90s, we had caskets that were $13,000, $14,000," Davidson told CTVNews.ca.

According to After Your Time, an online resource answering questions about death, funerals and dealing with grief, the average price of a casket in the United States can be as high as US$4,000, which converts to nearly $5,500 Canadian.

To put it in perspective, Davidson says the most expensive casket offered at his funeral home locations is around $4,000, and that there's no need to charge more than that for one.

Gaudio remembers early in his career, funeral homes focused on "the merchandise end of things," with items like casket inserts, engravings, jewelry, keyrings being pushed. Like Davidson, he remembers homes charging well over a 100 per cent markup on caskets, meaning a $3,500 casket would cost someone at least $7,000.

Today, Gaudio says the profit in the business comes from service charges, including renting out the space in a funeral home for a service, or having staff help with any memorials or events.

Corporate vs. independent

Having spent 32 years in the industry, Gaudio has worked under both a corporate structure, where one single entity owns several funeral homes and cemeteries, and with homes with independent owners. He says homes under a corporate structure tend to be more sales motivated, maybe offering extra services that go beyond what a person has in mind for a typical service.

"It's a given, we sell things. But my motto is: every option, every family, every time," Gaudio said. "I want to offer them all types of options, and it's never a high-pressure sales situation. I tell them, 'I'm not sure if you're interested in any of this or not, but I want to make sure you know it's available so you can say either you're interested or you're not,' and people seem to appreciate that."

Gaudio, who did his apprenticeship in Toronto and worked in Whitby, Ont., for 23 years, says people have an idea of how much they want to spend or what they need before they walk through the door, and if you try to push anything on them, it doesn't go well. He also says he's happy to work for a funeral home where there's no commission.

"I have a salary, so there's no motivation to push anything on people who come in," Gaudio said, adding that most funeral directors understand it's tough for people to spend large amounts of money for what's essentially a one-time usage.

"We're happy to provide you with whatever you need. I'd say we're more service oriented as opposed to sales oriented," he said.

Changing needs

Davidson says in his 30-plus years in the industry, the number of cremation requests has skyrocketed. What felt like maybe one in five customers asking for a cremation has gone beyond the simple majority.

His experience isn't anecdotal. According to a survey from the Statista Research Department published in 2023, the cremation rate in Canada has been increasing steadily over the last two decades. In 2000, the cremation rate was just under 48 per cent; in 2022, that number climbed to 74 per cent, a 26-point increase.

"Most people don't live in the community where they were born and raised," Davidson said. "They go away to school and they never come home, or their job takes them across the country or around the world. Cremation affords them that mobility. They don't necessarily feel they have roots in the community where they live."

Davidson says when he and his colleagues get together for coffee or at industry events, they reflect on how the business has changed from when they first entered it. He couldn't envision having to cater lunches or get his staff licensed to serve liquor at receptions. The concept of a PowerPoint presentation or having to download music for a service also never crossed their minds.

"All these things make the service more meaningful," he said. "We're not your grandfather's funeral director, where we went and got the person. We did our preparation, we put them in a casket, stood at the front door for two days, took him to the church and then to the cemetery."

It's part of an evolution for Davidson and Gaudio – one that any industry deals with – where those who are in it have to adapt to changing times.

Davidson pauses for a minute, then says that he now has to think outside of whatever traditions are ingrained in his business in order to provide a memorable experience for his clients. In the end, he says it all boils down to one thing.

"We're a service profession. We're here to serve, not sell."