How 38 Monks Took on the Funeral Cartel and Won

This isn't so much about the funeral industry in Louisiana. It's the precedence it could set for anyone else out there who wants to challenge another state regulated cartel (think of car dealerships for example).

From the article: "'defendants moved to dismiss based on the legal issue of whether protecting a discrete interest group from economic competition constitutes a sufficient legitimate government purpose.' Put more simply, it's as if they said, Our purpose here is to protect profits in the funeral industry, these regulations are a rational way to do that, and we're allowed to pick market winners and losers if we so desire -- after all, its only intrastate commerce we're talking about."

Re: How 38 Monks Took on the Funeral Cartel and Won

#6

Post by blantonl » Sat, Jul 23, 2011, 12:52 AM UTC

rorrr wrote: post #4

It's amazing that it's even an issue.

there are many businesses around today that you might only once in a lifetime come across - if even at all. Funeral homes, disaster restoration companies, etc. However, they are amazingly competitive industries and have amazingly high margins.

That means they will fight with all means they can to insure that their ability to protect those margins is in place.

Re: How 38 Monks Took on the Funeral Cartel and Won

#7

Post by cjdavis » Sat, Jul 23, 2011, 12:58 AM UTC

blantonl wrote: post #6

rorrr wrote: post #4

It's amazing that it's even an issue.

there are many businesses around today that you might only once in a lifetime come across - if even at all. Funeral homes, disaster restoration companies, etc. However, they are amazingly competitive industries and have amazingly high margins. That means they will fight with all means they can to insure that their ability to protect those margins is in place.

How can they be amazingly competitive industries AND have amazingly high margins at the same time? I thought those were mutually exclusive things.

Re: How 38 Monks Took on the Funeral Cartel and Won

#8

Post by pessimizer » Sat, Jul 23, 2011, 1:10 AM UTC

May I recommend "The American Way of Death" by Jessica Mitford (the entirely human Mitford sister)?

The basic story is that the funeral industry completely captured the regulating of the disposal of dead people a long, long time ago.

Re: How 38 Monks Took on the Funeral Cartel and Won

#9

Post by beaker » Sat, Jul 23, 2011, 1:32 AM UTC

It seems like there is a market opportunity here for anyone motivated enough to take on the old guard in this industry. It's not the most glamorous subject, but there is a lot of money sitting on the table. If someone applied to YC with something like "Funera.ly: the app that makes funeral preparations simple, fairly-priced, and dignified", well I wouldn't be surprised if they got accepted...

Re: How 38 Monks Took on the Funeral Cartel and Won

#10

Post by blantonl » Sat, Jul 23, 2011, 1:32 AM UTC

cjdavis wrote: post #7

blantonl wrote: post #6

Earlier quoted context omitted.

there are many businesses around today that you might only once in a lifetime come across - if even at all. Funeral homes, disaster restoration companies, etc. However, they are amazingly competitive industries and have amazingly high margins. That means they will fight with all means they can to insure that their ability to protect those margins is in place.

How can they be amazingly competitive industries AND have amazingly high margins at the same time? I thought those were mutually exclusive things.

the reason is because of the lack of players in the industry in any given locale.

First, in my examples above, those businesses are highly undesirable industries to be involved in as an owner and an employee, but highly profitable. Second, most of those above listed businesses are family owned with a lot of experience and background in the industry they represent.

Newcomers are viewed as strongly suspicious and since those existing entities know the ins and outs, it is an uphill climb.

This doesn't mean that good innovation cannot overcome the obstacles that these very established businesses have, but you can bet that tradition and experience in those businesses will lead to a lot of ammunition for a fierce fight when newcomers arrive on the scene.