Fees Advice- Big Increase

[Guest]

Hi

Well some of you know Im in the stages of looking at taking over our committee run out of school club (pending rest of committee, parent, head approval now).

 

Have done my forecasts to get a fee structure. Current fees are 2.20 (am), 6.25 (pm), 17.00 (holiday). LEA man said we are too cheap(in fact we are one of the cheapest in the whole of the authority)and having looked at all clubs in the area the average is 4.90 (am), 8.50 (pm), 24.00 (holiday).

 

To ensure club cover costs, a wage for myself, current staff, all NI, tax, my own tax, NI on the profit and to come out with just £2k profit to put back into business after the first year the costs I have worked out are 3.50 (am), 7.75 (pm), 25.00 (holiday)

 

There is only one childminder in the village so competition is limited. At theses rates Holiday club still makes a loss in Aug. We are the cheapest in the morning when compared to surrounding 3 villages and similar prices for pm and holiday club.

 

My concern is that there is a big leap from the current prices which have not changed for 2 years. I think its going to be a shock for parents (although this is an affluent area). I think i would have to show them the table of cuurent fees that others charge and explain that we are very flexible ie bookings done monthly so parents can change their days.

 

Any advice? What do you think?

[Cait]

It's always a tricky one. As you say, a letter explaining the costings and showing the competitor rates is a good idea.

[HoneyPancakes]

Be prepared with all the information about Childcare Voucher schemes and Child Tax Credits. Increases will be offset by increases in rebates.

 

Good luck

 

Honey

[Inge]

A letter, explaining reason for increases, cost of everything you use is rising, no change for 2 years, adding that you are aware that this is difficult for everyone at the moment but perhaps a comment that without the rise proposed you would not be able to open. If able to give cost of other local groups... add in the inconvenience they may have in getting to them as well as with one less setting there may not be the place.. a bit of plain speaking never seems to hurt..

add the positives like flexible session which they will not get elsewhere...

 

try the sandwich.. good followed by bad followed by good

 

I always used to add something about not wanting to do this but it is the only way... and even if you do not take over increase the fees.. it is the only way to remain viable an annual increase even a small one so parents are ware it happens each year.. that really did help - they expected it..

[Guest]

Thanks everyone...some good advice there....like the sandwhich idea!!

 

Think the first real test will be the rest of the committee. They are all for getting rid of it but at what cost??? This will illustrate to them that it can either be myself that does it (villager with already links to the school ie known around site, in the PTA and great as bank staff!!), that we try and get another committee or someone who we dont know takes it on (which is the option Im sure they will not go for).

 

Going to speak to secretary this week(she already knows Im looking into it and so far supports me) to see if we can get the committee tog as soon as school is back....ohhhhh...

[Deb]

Some good advice already. In the interests of parent partnership, another option might be to ask the parents what they want - a price increase or to close - this might help the committee to make their decision.

 

Last year, we changed our opening hours in consultation with parents, giving them the opportunity for vote for option 1, 2 or 3, giving all the pros and cons for each option. Fortunately most parents chose the option the staff favoured.

 

I've read lots of your posts regarding the after-school club (though might have missed something) and know how committed you are to it. Good luck, hope you get the decision you want at the end of the day.