The last few days have seen G8 advertising heavily for enrolments. We are now about to enter the last quarter of the year, new enrolments will be sparse, better to not advertise vacancies for 2018 and concentrate on strengthening the client base for next year.
IMO providers placed too much faith on the introduction of the CCS as a solution for improving enrolments. A director of another ASX provider has been quite outspoken, in the press, about the tactics used by some other organisations in securing enrolments around the time of the introduction of the CCS. Some private centres have been spruiking that they are already full for next year, I would exercise caution with that, parents always centre shop, placing their names at several centres. It is also possible, that those parents who have been encouraged to increase their days of attendance at centres this year, after the introduction of the CCS, will not have secured extra work and with the additional expenses families incur over the holiday period, reduce their enrolment back to what it was pre CCS.
I do think that G8 are improving on their delivery of service at a centre level. The biggest issue I now see is their communication and connectedness with potential customers. They have a marketing team of around 13, marketing is not communicating, that mode of delivery was favoured by those no longer walking the halls in Varsity Lakes and has no success in securing and improving enrolments.
This may be of interest to those long time investors or those sitting on the sidelines researching
www.cis.org.au/commentary/articles/new-cis-research-why-childcare-isnt-affordable/
IMO & DYOR
(20min delay)