In today’s economic climate, every dollar counts for families and services alike. With rent, insurance, and wage costs rising faster than government contributions, private revenue from fees has never been more essential. Yet many centres still rely on outdated fee structures that no longer reflect the true cost of delivering quality education and care. The result? Hidden financial pressures, reduced sustainability, and missed opportunities to build trust with families.
If your service has no fees the decision to introduce them should not be taken lightly. Basic economic principles dictate that price increases have a negative impact on demand.
The risks of relying on outdated structures
A fee schedule set two or three years ago won’t align with today’s financial realities. Without regular reviews small shortfalls can quietly snowball, preventing you from investing in centre upgrades, attracting and retaining skilled staff or simply keeping up with the cost of inflation.
Fee structures shape your daily operations
Fee schedules influence how your centre operates every day. The options you offer to families directly impact staffing requirements, ratios and other resource allocation. An outdated fee schedule likely won’t meet the demands of your families and may also complicate staffing and resource allocations. This is important when you make decisions to offer longer hours and better ratios.
Complex fee structures with multiple session options can make rostering difficult and increase administrative burden. If some sessions consistently have low uptake, simplifying your fee schedule can free up staff time, reduce confusion, and improve routines for both teachers and families.
Streamlined options also make your centre more appealing to new families, who often prefer clear and consistent pricing over an overwhelming list of choices.
Communicating Government Subsidies
A common mistake centres make is not explaining how government subsidies like 20 Hours ECE, FamilyBoost or the Childcare Subsidy can apply to their fees. In our recent webinar poll, 20 Hours ECE was the most frequently queried part of centres’ fee schedules, suggesting communication challenges still exist. Without a clear understanding of how subsidies support them (and your service) to meet costs, they may assume your centre is unaffordable or not see the value in the subsidy.
Centres need to be proactive and include clear subsidy explanations on your website and within the fee schedule to help families make informed decisions and build trust. Clear communication and explanation of the subsidies can significantly ease financial concerns and improve conversion rates for new enquiries.
What to consider in your next fee schedule review
A successful fee review takes into account more than just your own costs. It should also consider:
Parent demand and willingness to pay: Gather feedback from current and prospective families. Do they prioritise flexibility, extended hours or other offerings like meals or excursions/experiences?
Competitor analysis: Compare your fees with nearby centres with similar offerings. Competitiveness considers the value and service receive, not just the cost. Do your research. Services are required to make fee information publicly available to parents.
Communication strategy: Plan how you’ll communicate changes. Be clear about your reasoning, provide ample notice, and link any adjustments to service improvements and quality outcomes.
Clear communication builds trust, and families are far more understanding when they see fee reviews as part of a broader commitment to quality and fairness.
Turn insight into action
The hidden costs of outdated fee schedules can add up fast – undermining the quality of service you provide, your financial sustainability as well as your staff wellbeing. Regularly reviewing your fees is an important investment in your centre’s future.
If you’re unsure where to start, ECC’s recent webinar series with Todd Painter (Advance ECE) shares practical tools and strategies for developing a fee schedule that works for your centre, staff and families. This series also covers how to stay compliant with Ministry of Education funding conditions, including optional charges and changes to the enrolment agreement.
Learn how to evaluate your options, communicate changes effectively, and make confident, data driven decisions that support long term success.
