Funeral and probate juggernaut, The Co-op, have initiated a clear price war with its competitors in the sector. In a further attempt to dominate, the Co-op are looking at the ways they can cut costs to encourage a wider use of funeral and after care services.
In a move that is both positive for the consumer and will squeeze their competition, The Co-op have promised its price guarantee is now available on all their funeral plans, probate fees and after life products.
Having reduced the price of their funeral service by £100 in September, a major competitor, Dignity, lost 5% share value as anxious investors could see a potential price war that the company would not win.
Both companies share the market majority in the probate and funeral sector, The Co-op enjoying 16% and Dignity 14%. The Co-op’s strangle hold and aggressive pricing strategy is possibly proving too much for other companies, including other market leaders, to deal with.
The brands dominance has been nothing short as meteoric with the business securing market dominance with the acquisition of Simplify Probate amongst others this year.
Robert Maclachlan, Managing Director of Co-op Funerals, Care and Life Planning, said: “Every year, thousands of families are having to find significant sums to arrange the funerals of their loved ones and are seeing any inheritance left, reduced by probate fees.
“By introducing these new measures, we hope that more people will plan ahead with confidence and families who are left to deal with probate can trust that they’re getting the best price.”
With over 70,000 consumers taking out funeral plans alone with the Co-op this year, in addition to their bold pricing strategy, the company are set to solidify their dominance and put pressure on the competition.
Will the actions and pricing strategy of the Co-op encourage more people to use after life services? Are these actions going to have a potentially devastating impact on other firms in the probate and funeral sector?
