After school fees affecting your business?

[TT38]

So I've got a parent who I've had on and off for years. Her son was 6m when she started with me and he's now 5. Due to jobs and money issues he's been back and forth over the years.
There is an after school club started at the school I use and she's decided to put him in it. I'm really upset. She says it's purely money which I totally understand but can't afford to lose anymore children so have agreed to match their fees which she's happy with as doesn't want to move him. Doing up her invoice I've realised just how cheap they are and I feel really fed up.
Has this happened to any of you and what do you do? Wish I could afford to just wait for someone else but I can't.

It's a hard one but I wouldn't try and compete with the asc - as you've discovered you will down value your business. As you've agreed to it, i think you really need to at least see out the term but then explain just as they can't afford to pay more unfortunately you can't to charge so little.

I would maybe use this as an opportunity to assess your whole business and maybe tighten up on some of your t&cs as losing 1 school child being make or break doesn't sound like you're earning much as for most of us it's the eyfs that are the man earners and schoolies the extras!
Things to consider: Do you have all your eyfs spaces full and maximised ie minimum 8+hours a day, are u being paid during nursery hours, charge a retainer during school hols or a higher termly fee etc
Do you have (child mentioned in op aside) minimum charge for school wraparound? Can you charge extra for food?

Sorry meant to add that I lost a couple of children when our asc opened a few years ago and was really worried about the long-term impact but thankfully the others stayed, one came back after a month as she found it too much and I filled the other space with a child wanting longer hours. 2 years down the line there's still a need for childminders at our school. Generally speaking those just needing short hours, ad hoc care, shift workers or looking for cheapest option go to the asc and us childminders cater to the rest - we are more expensive (£1/hr more plus minimum fees, year round etc) but there is still a market for us.

I agree with the pp. I don't compete with the after school clubs with price. I am actually very slightly cheaper during term time, but far more expensive in the holidays, but they keep coming during the holidays (I was hoping they would want to go to the sports clubs in the holidays, so priced myself higher and they all want to keep coming to me means holidays are manic with everyone here!)
It's hard to get the right balance. We need to make a profit and a living but if they are going to the competition you need to look at the reasons why (and not just the one child who is leaving now) are you open to short a day? Too many holidays? Term time only? one cm round here can't understand her lack of business but her dh smokes and the house stinks so I think it probably puts people off. Do you have a dog? Boisterous dc of your own? No garden? Don't provide food? Obviously I don't know you just giving you reasons people don't use some of the cms round here.

Thanks for the replies
Agreed not to compete but I live on my own and can't afford to not have him at the moment. I earn a good amount but unfortunately my outgoings are high. I've had massive problems with my car which has eaten all my saving s and know a couple of my good payers are leaving as they go secondary school soon.
My house is ideal..playroom, garden, near a bus route, park near etc etc..unfortunately I live in a small village with said small school attached and most of the parents are well off so don't need care.
As soon as I can fill the space I will but felt I had no choice.

If you are trying to compete with the asc, make sure you are offering exactly the same type of service, eg, if they only provide a snack, then you provide one instead of an evening meal, your hours are no longer than those provided by the asc.

If you offer anything more, then you could charge extra for it.

I've had parents decide to use me because they'd have to provide a packed tea for the asc (as opposed to a cooked evening meal), it closed at 5.30, and there are many more children there so it can get a bit dog-eat-dog.

Sometimes you have to offer something more or different to after school clubs. Do they support homework? Are the children in larger stressful groups that can be hard to handle? will you take to after school activities like swimming or birthday parties? Cooked dinners? flexible hours if the parent is stuck? What about school holidays and closures? I don't compete with school prices I don't have their ratios or a subsidised hall and staff. But if the little ones are upset need a cuddle or a last minute project for homework we do it. They all treat my house like a second home.

I would prefer my children to go to a childminder over the asc. I don't like the one run at our school at all. The children are always crying and look fed-up.

As a parent I would love a childminder for before or after school, we don't have any unfortunately.

From my perspective it's because they spend all day in a school environment. Mine has gone to nursery 3-4 days a week for ten houses since 6 months. But once they start formal education, my personal opinion is that it's too hard on them to be in that environment for such long hours. I hate to be in my office for that amount if time!

How much is your price difference? Are you marketing your self correctly?

There is an after school club now near our school before getting a cm was a nightmare as v little after school provision yes its cheaper than our cm but my nrly 7yr old is happy with cm and its £2.50 cheaper for after school and I know that adds up but hey that's a good bottle wine a week (we do 3 days) and I would rather give up a luxury than decent childcare also an after school club setting they are one of v v many at cm he is collected plays at park with friends, max she has is 6 and they go home and have cooked meal, she on!y has pre & after school no little ones.

Tanith just read your reply and totally echo that I just waffle 😁