SCI operates 1,481 funeral homes under local names, hiding 47-72% markups
consumerconsumer0 views
Service Corporation International (SCI) owns 1,481 funeral homes and 481 cemeteries across North America, controlling roughly 16% of the market. Their business model is to acquire beloved local funeral homes and keep operating under the original family name, so consumers believe they are supporting a local business. A family choosing 'Johnson Family Funeral Home' — the place that buried their grandparents — has no idea it was acquired by a Houston-based corporation with $4B in annual revenue. The pricing impact is severe: SCI funeral homes charge a median of $7,705 for a full-service funeral vs. $5,241 at true independents (47% premium), and $2,700 for a simple cremation vs. $1,562 at independents (73% premium). Consumers cannot easily discover SCI ownership because the FTC does not require corporate parent disclosure at point of sale. The New York AG found SCI owned four of five Manhattan funeral homes serving Jewish families, creating a near-monopoly. This persists because funeral home acquisitions fall below federal antitrust review thresholds and state attorneys general rarely scrutinize death care M&A.
Evidence
Consumer Federation of America: SCI funeral homes charge 47-72% more than independents. SCI median full-service funeral: $7,705 vs. $5,241 independent. SCI median simple cremation: $2,700 vs. $1,562. NY AG settled monopoly case over SCI's dominance in Manhattan Jewish funeral market (1999). Source: https://consumerfed.org/press_release/nations-largest-funeral-home-company-charges-high-prices-refuses-disclose-prices-websites/ and https://ag.ny.gov/press-release/1999/ag-settles-nyc-funeral-home-monopoly-case