Sunday, March 8, 2009

Cultural Care & Au Pair in America Price Wars

Looks like the "Coke and Pepsi" rivals of the au pair industry are slugging it out again in their never-ending battle to gain market share.

Cultural Care rose to their number one spot with an aggressive marketing campaign and expansion of services into Au Pair in America's territories and left Au Pair in America in the dust 6 years ago.

Au Pair in America, the nation's first au pair agency, has been struggling ever since to regain their #1 one position in the industry. Despite the competition, Au Pair in America raised fees in 2009 (they are now the most expensive program) and they continue to struggle with the negative effects of a weak and poorly funded marketing strategy.

Au Pair in America's launch of their new family protection insurance was a clever marketing come-back to Cultural Care's announcement they were not raising fees for 2009.

Au Pair in America unrolled their new program at the heels of Cultural Care's announcement they would not raise fees in order to provide host families financial relief during the economic crisis.

In response to Au Pair in America's new family protection plan, Cultural Care just announced their family protection program - the "Peace of Mind Guarantee" ensures host families if they are forced to withdraw from the program, due to a job loss, the company will refund any unused portion of their program fees and place the current au pair with a new family so she can complete her program.

In terms of lower fees and overall costs, The "Coke and Pepsi" wars between au pair agencies continue to be a win-win for host families.

To read the full details of these programs, read the press releases at www.aupairinamerica.com and go to Current News (Press Releases).

By Edina Stone, at 03/07/2009 - 13:44 Edina

5 comments:

  1. I think you are right - it really does help consumers if agencies (or any business) compete with one and another - that is just plain, good old capitalism at work! One agency keeps prices down, and another comes up with a great program for parents that may lose their jobs and then the other does the same! It is a win-win situation. I love it! Thanks for your great articles. Very well done.

    I still haven't decided yet which agency, but I think I may try a summer program and see if I like having an au pair. My husband is not too keen on the idea of having someone live with us full-time. And for an entire year, but I think he would get used to it.

    The agencies have summer programs, right?

    Thanks!

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  2. Hi!

    Yes, competing au pair agencies - it is a GOOD THING. Coke and Pepsi have battled for market share for decades and consumers pay less for their products as a result. And they come up with new products, just to entice us.

    When au pair agencies compete in this way, consumers (host families) win everytime!

    Yes, there are agencies that have summer programs - only two out of the 12 designated au pair agencies (that are overseen by the U.S. Department of State).

    Go to www.aupairclearinghouse.com and find Summer Programs under Let's Talk Au Pair Agencies.

    NOTE: deadlines are approaching fast and you have to register and match by May 10 to receive an au pair in June. Our Summer Program article has all the details on costs and deadlines. Good Luck!

    Edina

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  3. I just posted the article for summer programs!

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  4. Coke vs. Pepsi. I love the analogy. In fact, I remember the "Pepsi Challenge" from years ago. Pepsi, of course, won all the time. I think if you did an "Au Pair Agency Challenge" you might find that one agency consistently comes out on top time and again because they offer more than the competition. We could do a random taste test if you really want to compare them, but at the end of the day, their points of differentiation are simply that differentiating.

    Why? When you compare one agency to another, there are huge differences. For starters, the State Department regulations require that all au pairs are provided with 24 hours of child development, and eight hours of child safety training. Some of the agencies have a full-blown au pair school, while some simply send a DVD in the mail. If you were a host family, would you feel more comfortable knowing that your au pair had to sit in a classroom learning and talking through this information with a certified teacher, or would it be OK if they simply watched a video of the same length on their own in their home country?

    Extra costs. The agencies all handle these differently. Some agencies require you to book your au pair's airline flight after paying the program fee. Some don't. Some agencies charge a Sevis Fee (the fee required by the State Department). Some don't. And some agencies even charge more for au pairs with so-called "extra qualifications," while some charge the same for every au pair they offer, giving the consumer the choice as to which au pair best suits their needs — all for the same price. And while most agencies offer discounts to customers who extend with the same au pair, or who repeat, some offer much more than others. Lastly, every agency has a different refund policy. Some agencies make you pay a full additional program fee after six months if you need to rematch. Some agencies don't allow you to go into transition for a certain amount of time, even if the relationship is simply not working. The agency you choose should certainly offer you a pro-rated program fee credit for unused portions of your program fee, no matter when — or if — you get a replacement au pair.

    And if that's not enough, local support varies from agency to agency. In the area I service, I can tell you that some agencies have multiple counselors or coordinators servicing the county, while others have one person. What does that mean for a host family and an au pair? An au pair meeting could be miles and miles away — and that's IF the agency you choose even decides to have them. Without good local support your au pair will feel like she is on an island, with no friends. No like-minded young women and men nearby who are going through what she is going through, and who can meet up for coffee or playdates. Your au pair's social network IS the other au pairs in the area. Would you be OK with her nearest friend being 30 miles away? Her overall experience may be impacted if your local support is lacking, and at the end of the day, it will affect the host family too. Some agencies recognize this way more than others, and have created more regionalized support to better help host families and au pairs.

    I know one agency in my area that only requires au pairs to come to meetings if there is a problem. Who is holding these au pairs and host families accountable to the State Department requirements that ALL agencies must adhere to, and helping solve any problems before it becomes too late? Au pair meetings are critical to the au pair year. If an au pair only shows up when there is a problem, instead of learning how to cope before one develops, the relationship between the host family and au pair may be more strained that it needs to be.
    So, Pepsi vs. Coke. Sure, I get it. They are both colas. They both give you a boost. Similar product, different taste. Everyone has their own preference. But I think if anyone looks at the au pair program closely, they will find that while we all offer au pairs, we each offer a very different product. I know in my mind which one wins the so-called Pepsi Challenge of Au Pair Agencies. After all, I am not just a local representative for Cultural Care Au Pair, I am a host mom too. I've done my research. When a host family or au pair goes looking, they also need to know that there is more than Pepsi vs. Coke when it comes to selecting an au pair agency. If you visit the culturalcare.com web site or talk to one of our local coordinators, you will learn how we stack up with the other agencies when it comes to au pair school, costs, local support and more.

    Tracy C.

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  5. Hi Tracy.

    Thank you for your comments and you make good points here. We agree, all host parents need to do their research and homework on the agenices and that is where we come in. We try to fill in the gaps and provide information a host parent cannot find on au pair agencies website or anywhere else.

    One agency may be better for your particular needs than other. Get the facts first, then start your search for your au pair/au pair agency!

    You commented on the training au pairs are supposed to have (U.S. Dept. Of State regulations) and I agree with you - the training methods and quality of the training does vary across agencies. There is little monitoring that takes place regarding the training.

    We just posted a Current News story on CPR Certification and au pair training yesterday at our website: www.aupairclearinghouse.com. Basically, only one company, Au Pair Care, provides CRP Core Training that results in an actual certification - all the rest of the agenices provide "some basic training" in CRP and First Aid.

    We ran the article on the heels of the terrible news on the 2-year-old girl who choked to death on a raw carrot in New York on Wed., March 16 2009.

    To all host parents:

    If your au pair is not certified in CRP - make sure you sign her up now and get her trained. It may make the difference of life or death for your child!

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