How do you deal with a daycare centre in your neighborhood and how to compete

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Last July, I closed my daycare due to a new daycare in my neighborhood taking a lot of the clients. I re-opened and have my daughter-in-law looking after one child until I have more clients. Today, I learnt that one of my families have two of their children in that daycare and I am presently watching their 13 months old. I was not happy, first of all they lied to me, they told me they were at another daycare. I would love to terminate them because I know they are just waiting for availability at the daycare centre. I have watched two of their kids and apparently the daycare centre is better than being with me and having all of the siblings together. They rather What are your thoughts?