Lloyd Mandel Funeral Direction Case Analysis
Mandel’s positioning in the market
Lloyd Mandel positioned itself in the market just like any other small startup business. Some parallels could be drawn between Mandel’s funeral business and other industries like construction industries. A floor covering business called Collier Floor Covering will be used as a comparison.
For example: Mandel's modest establishment is in the strip mall, next door to a hearing-aid center not in a Gothic mansion with cream-colored crepe in the windows. This move helped Mandel reduce his fix monthly coasts. In contrast, Collier Floor Covering is using a residential address as a business location; this fact is eliminating the need for expensive store front location or an office space. Also, 25% of household expenses like mortgage, electricity, cable, internet, cellphone and land phone line can be used as business expenses.
His positioning and the future
Since 1989 Lloyd Mandel Funeral business grew on average by 12% a year; this is not a significant growth rate, nonetheless is a consistent growth year after year without having to increase his fix costs. Collier Floor Covering had a similar growth rate; it grew from one person crew to four man crew and some time (depending on the size of project) six or seven. A large numbers of small businesses owners, consider their business as a job. That is the case for Collier Floor Covering. If Mandel considers his business as a job, then this trend will continue for many years to come; without major changes, just small adjustments along the way.
The current approach can be considered as job security for Mandel and Collier Floor Covering owner. However, if Mandel’s aspirations are to grow his business, as Mister Hodges (benefactor of Hodges University) did with his funeral business, a more risky/aggressive approach might be more appropriate.
Price elasticity of a funeral
• He's cheap
• Specializing in gravesite...