ceridwen [CC BY-SA 2.0] via Wikimedia Commons
This morning, shares in Dignity, a funeral services provider, plunged after the group said that it would reduce prices.
The management of Dignity said that the change in pricing would mean that results for this year fall short of market expectations.
In morning trading, shares in the company were down by 53 percent to 900p.
From today, standard funerals will be 25 percent cheaper at £1,995 in Wales and England, while the other packages will be subjected to a price freeze.
According to the statement, the board took the said decision “with a view to protecting market share and repositioning the Group for future growth.
“Customers are increasingly price-conscious and in an over-supplied industry, are shopping around more. This continues to have an increasing impact on the Group’s market share, with a significant reduction in the average number of funerals per location noted since 2015.”
While the group has pledged to be the “best-quality service provider in the marketplace,” it has also said that it will need to run funerals “more efficiently and effectively.”
Digital marketing will also be a focus, with the business aiming to become a leader in the funeral market in this field. The group has said that it will spend around £2m on promotional activities in 2018.
The shares of Dignity fell near the end of 2017 after following the price cuts of its competitors, and the group has been warning against “aggressive” competition since August.