GEM g8 education limited

The sector over the past few days has been reeling from the...

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    The sector over the past few days has been reeling from the Goodstart announcement regarding the block fee charges they will be offering families.

    Yesterday's figures compared the costs to a family attending a centre, for 5 days for 12 hours a day against what Goodstart are offering.

    The savings to a family attending a Goodstart centre on 85% rebate for 5 days per week = $5200 pa.

    The savings for a family attending a Goodstart centre on 85% rebate for 2 days per week  = $2652 pa.

    The following is what the major providers are saying and doing to secure enrolments:-

    Affinity have released a clip on YouTube encouraging more enrolments but stating their charges will be daily.

    Think have had 5.8 million flyers printed, distributed to 729,000 households around their own and managed centres. In their own words "positioning our centres as the experts in the CCSubsidy". They have also increased their presence on social/digital media promoting their services.

    Goodstart released the statement (link below) followed up with a press release.

    www.goodstart.org.au/news-and-advice/june-2018/helping-families-to-reduce-their-outofpocket-cost

    In all probability, the other not for profits, such as KU will follow  Goodstart's block charging. This provides a huge challenge for private and corporate operators as they compete for occupancy for 2019.

    There are other enticements that for profit providers could offer, hopefully G8 are exploring all of their options.

    The expectation in the sector is that the Goodstart offerings will have a trickle effect for the remainder of 2018, but could have a serious effect on the occupancy of  centres operating close to Goodstart from the beginning of 2019.


    IMO & DYOR
 
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