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When considering any purchase, the sticker price gets immediate attention. It provides a starting place for your purchase. But, to determine if a product is a good value, it is necessary to look further. This article with its simple formulas will walk you through the potential cost and income associated with a columbarium.
Cost = Establishment + Operation
Sticker price provides a cost for a piece of merchandise. However, it often excludes necessary or likely additional costs. Delivery and installation are common additional costs for a columbarium. Depending on the columbarium system, these can substantial. These are direct costs. Direct costs can include a subsidy, i.e. a hidden cost. For example, when a sales representative sells a columbarium, a commission is collected. This subsidy reduces the amount of money spent on the manufacture of the columbarium. Architarium freely admits that it uses profit to subsidize new research, new offerings and charity in the form of indigent burial.
Indirect costs can include time to manufacture and to install. These costs may be passed onto both your contractors and your organization. Contractors don’t like delays because delays are money and they adversely affect other clients. Your organization will also want to introduce your columbarium as soon as possible to your members: to attract buyers and to provide its intended service.
So far, we have been discussing establishment costs. There is also a cost to operate a columbarium. Depending on the columbarium system, this can involve both maintenance and repairs. Architarium manufactures bronze face plates but is quick to advise prospects that bronze has a very high maintenance requirement. Maintaining its appearance is labor intensive and engraving it can be very expensive. Repairs, as opposed to maintenance, can involve cracks, water, alignment, paint fill, theft, etc. depending on the columbarium system.
Value = Benefit – Cost
Cost is what you pay. Value is what you gain. One value can actually be the absence of cost. For example, if you have minimal maintenance costs, that is actually a value: more time to be spent on more valuable uses. Value can also include support that you get: pertaining to the columbarium planning and operation. For example, Architarium recently debuted funeral help for organizations. This provides basic answers to basic funeral-related questions. You can direct your members to this site for expertise and guidance.
Benefit = Reputation + Attention + Members + Income
While we tend to think of benefit in terms of financial gain, there are other kinds of direct benefits. Indirect benefits support the direct benefits, so let’s start with them. Organizations of all types have currency in reputation. Prospects want to know if an organization provides products or services: that are beneficial, affordable, and well executed. They want – there’s that word again – value. Good reputation leads to attention and eventually engagement. Before you know it, you have members. For existing members, a columbarium helps with retention. It is yet another service that helps members and integrates into community-based organizations. Finally, niche buyers and members bring income – beyond the niche, beyond the columbarium. In fact, members bring members.
A columbarium which brings value through versatility, security, durability, etc. can also propagate value into the future. Always think in terms of value, not cost. A columbarium is an investment as opposed to an expense.
Formulas
Cost = Establishment + Operation
Value = Benefit – Cost
Benefit = Reputation + Attention + Members + Income