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Daycare Center and Family Home Forum>Am I Charging Too Little For My Time?
MarinaVanessa 09:37 AM 01-27-2010
Lately I have been feeling that maybe I should raise my rates. I haven't for a few years because of the way the economy has been and I've been afraid that parent's might look for care somewhere else. But I'm pretty sure that my rates are low. Not exactly sure because the only other providers that I know personally willing to talk to me about how much they charge are #1 an ex-pre-school teacher that follows a curriculum close to that of the school system, is a large (12 kids) home daycare and has her masters in child development. #2 has her bachelors in child development, a degree in special needs children and caters only to special needs kids. I charge lower than what they do #1 charges $200 a week flat no sibling discounts. #2 charges more than that but because she has special needs kids that need nurses, round the clock care, medication etc. so they are a bad comparison.

Currently I live in a middle/upper part of town, have frequent park days (with either of the two other providers I know), nature walks, field trips (museums, fire department, county fair, free crafts workshops etc) and all usually at no additional cost to the parents because most of these are free and I can write off the gas and mileage.

For full-time (35-45 hours, 5 days a week) I charge $170 (infants) and $150 for the rest weekly. For part-time (35- hours a week, up to three days) I charge $150 (infants) and $136 for the rest weekly. It is a flat fee that I charge regardless the child is brought or not. I offer drop-in care as a seperate charge (for people already in my care or not) at $5 an hour and a minimum charge of $20, any time a child stays later than my business hours(after 6pm) the rate is $5 an hour and I also offer weekend care on an ask-for basis at $5.50 an hour and a minimum charge of $30.

I make my own curriculum form online teacher websites and workbooks etc. from stores like Lakeshore, have daily craft or art activities etc. In other words I keep my DC littles active all day with educational activities. We're not hurting for money and business is good but lately the other two providers have been encouraging me to raise my rates and feel inclined to agree. Problem is, I don't know how much. Help? How much more should I charge? And at what rate should I increase my rates? I don't want to scare any parent's off and want to do it gradually. And how should I approach the parent's in a tactful way?
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gbcc 09:57 AM 01-27-2010
I think it depends on where you live and the class of families in your are.

I live in a middle class neighborhood, (houses are 120K-200k, rent is $550 for 1bdrm, $900 house) do circle time and keep kids active all day. We have wkly field trips at no cost to parents. I charge $140 for infants and $130 for others. It is hard to find people to pay that. Many in my area will charge $100-$125. I want the better class of clients so I charge more to keep the DSS clients and parents who change jobs often out of my daycare.

Now the next town over where homes are 80k - 100k charges $80 - $100 for daycare.
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laundryduchess@yahoo.com 10:03 AM 01-27-2010
I personlly dont ever raise my rates, I raise them on new clients. The parents think they are getting a deal. and noone is the wiser. =-) and I get raises once a year or so when a child ages out and a new one comes.
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MarinaVanessa 11:07 AM 01-27-2010
Originally Posted by gbcc:
I think it depends on where you live and the class of families in your area.
This is a good point, in my city houses in the bad side of town (near the projects and housing authority) houses are in the mid $200,000's. Where I live they are going for the mid to high $400,000's.

I do however accept subsidized childcare. It's hard for parents around here to live off of their pay (alot of people are in their 20's and single parent's like myself). The great thing about subsidized childcare is that they always pay. If clients are on subsidy and they are terminated I get a letter stating when and as of that day I make sure not to acccept a child unless they pay for the next week up front (I always expect payment in advance of care so that I don't worry about non-payers) except if they are on subsidy.

The thing is that I'm new at home-daycare (2 years) and I have the same clients now that I did when I first started. I have good clients that love my daycare and I don't think they are leaving. #1 is family from my daughter's side and her two boys, #2 is an ex-coworker that I worked with for three years and her daughter and #3 is a friend and her daughter which I've known since high-school. That's four slots plus mine which leaves only one open which I've intentionally leaving open for when myself and my fiancee have our own. I don't think that any of my parent's are going anywhere anytime soon so that would mean I'd have to wait a few years to raise rates
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momofboys 12:07 PM 01-27-2010
Originally Posted by MarinaVanessa:
Lately I have been feeling that maybe I should raise my rates. I haven't for a few years because of the way the economy has been and I've been afraid that parent's might look for care somewhere else. But I'm pretty sure that my rates are low. Not exactly sure because the only other providers that I know personally willing to talk to me about how much they charge are #1 an ex-pre-school teacher that follows a curriculum close to that of the school system, is a large (12 kids) home daycare and has her masters in child development. #2 has her bachelors in child development, a degree in special needs children and caters only to special needs kids. I charge lower than what they do #1 charges $200 a week flat no sibling discounts. #2 charges more than that but because she has special needs kids that need nurses, round the clock care, medication etc. so they are a bad comparison.

Currently I live in a middle/upper part of town, have frequent park days (with either of the two other providers I know), nature walks, field trips (museums, fire department, county fair, free crafts workshops etc) and all usually at no additional cost to the parents because most of these are free and I can write off the gas and mileage.

For full-time (35-45 hours, 5 days a week) I charge $170 (infants) and $150 for the rest weekly. For part-time (35- hours a week, up to three days) I charge $150 (infants) and $136 for the rest weekly. It is a flat fee that I charge regardless the child is brought or not. I offer drop-in care as a seperate charge (for people already in my care or not) at $5 an hour and a minimum charge of $20, any time a child stays later than my business hours(after 6pm) the rate is $5 an hour and I also offer weekend care on an ask-for basis at $5.50 an hour and a minimum charge of $30.

I make my own curriculum form online teacher websites and workbooks etc. from stores like Lakeshore, have daily craft or art activities etc. In other words I keep my DC littles active all day with educational activities. We're not hurting for money and business is good but lately the other two providers have been encouraging me to raise my rates and feel inclined to agree. Problem is, I don't know how much. Help? How much more should I charge? And at what rate should I increase my rates? I don't want to scare any parent's off and want to do it gradually. And how should I approach the parent's in a tactful way?
It truly depends on where you live. Your rates are high for my area in the midwest. Most providers in my area who do in-home caycare charge anywhere from $20-30/day. I charge on the low end of that number. When I had a child/children in home daycare myself I was also charged in the same price range & that was SEVEN years ago! I have found out others' prices by calling ads that I see & pretending to be a prospective client or just calling local centers & doing the same. If you think you are deserving of a higher rate I would just do it, especially if you have clients for a while & have not risen your rates. I'd just type up a letter & say effective March 1st my rates will be. . .
If it were me & I plan to do this at the start of the new school year in the fall I will raise my infant/toddler rates $2/day ($10 week) & for everyone else (before & after school care) their rates will also go up $2/day. I have a Bachelor's degree & do lots of activities with the kids I figure I'm well worth it!
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momofboys 12:15 PM 01-27-2010
Originally Posted by laundryduchess@yahoo.com:
I personlly dont ever raise my rates, I raise them on new clients. The parents think they are getting a deal. and noone is the wiser. =-) and I get raises once a year or so when a child ages out and a new one comes.
That's great that you can do that but since I will likely only have one or two families, at most, at a time if I don't raise them at some point I will probably lose $$$$. If I could take on more families I probably wouldn't raise them.
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Carole's Daycare 12:24 PM 01-27-2010
I typically charge $10/week higher than DSS pays. I do offer second child discounts for cash pay in advance families. It does dissuade some DSS clients, but not all. They simply have to pay the difference in my rate and what the county pays in advance along with their copay. My husband being a cop and having the local county child protection worker's children in my care keeps away the real bad apples, but I have had and do have families who get laid off etc. When that happens they are pay in advance, so they pay their two weeks notice, and I give them the option to use it up, or save those 10 days for space available drop in "mental health days" or job search, interview and first days back on the job waiting for pay situations. I have kept some of the same families for 6 years, most at least 2 or 3, but I get maybe one new family per year based on moving up to school age, moving out of town etc. I haven't raised my rates in several years either due to the economy. My area, according to our local resource and referral, has twice the number of daycares and twice the number of openings as a city 3 times our size a couple hours away. Technically there is a real glut in the market, so to speak, so parents have a lot of choices. In addition we have several centers. Most of our area churches have a daycare run out of their nursery/childrens church areas during the week, as well as a few non-church centers. Of the home providers, I am one of about 40 that have anything beyond a HS education. I am also one of the very few that offer a truly exceptional preschool program and have the training to back it up. I have talked to my families about the economy, how my costs have increased and my rates have not, so they are willing to contribute craft supplies, outgrown toys, and occasionally a mom brings a gallon of milk or canned fruit that she had "extra". At this point I dont think if I raised by rates a few dollars anyone would leave that is here, although it might dissuade newcomers if I needed them. Over 30% of our county's population is classified as "working poor". I just know my families can't afford it, so instead I'm looking for ways to increase my profitability by cutting costs without compromising the quality of our program.
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momma2girls 12:46 PM 01-27-2010
It certainly depends on where you live, and what city you live in. Where I live the going rate is $125.00-$215.00 a child. The centers/preschool charge the $215.00 for an infant! I have not raised my rates in over 3 yrs. I have been thinking about it, but I haven't yet, possibly next yr. I used to have the same rate across the board for everyone, but now I went down $10.00 a week, for ones that are completely potty trained. I do still give a sibling disc. which I know of many, many daycares do not!!!
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originalkat 01:24 PM 01-27-2010
I am in the midwest and charge $125 per week. I think people are looking for $100 per week from a home daycare around here so I get a lot of people who do not call back. I just wait for the ones who are willing to pay more for education/experience/curriculum. It has been worth it to me.
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Elena's Family Childcare 01:51 PM 01-27-2010
Now I'm starting to wonder about my rate. I live in Prescott Valley, AZ. I charge my parents $22 a day. I have a sibling that is full time (one week 5 days and other week 4 days), another one that is 3 days a week, and another that is 3 maybe 4 days a week.
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Persephone 02:27 PM 01-27-2010
Around here I check out the local newspapers and call the people who are looking for children to watch and find out how much they are asking. I just say that I'm just getting prices at this time. That way I know how much others are charging and that I'm not too low or too high.

Around here most are about $80 for one child, some less, some more.
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momma2girls 02:36 PM 01-27-2010
I had one family go to another daycare that offered their daycare for $10.00 less a month. Here to find out that daycare had tons of children, and then about 3 weeks later that family called me back, and explained that the daycare had 12 children there one day at pick up. I said sorry, but I filled the spot, but I did place them on my waiting list!! I guess they are still looking 6 months later!!!! Can you believe that????
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gbcc 03:28 PM 01-27-2010
Originally Posted by Iowa daycare:
I had one family go to another daycare that offered their daycare for $10.00 less a month. Here to find out that daycare had tons of children, and then about 3 weeks later that family called me back, and explained that the daycare had 12 children there one day at pick up. I said sorry, but I filled the spot, but I did place them on my waiting list!! I guess they are still looking 6 months later!!!! Can you believe that????
Serves them right! You get what you pay for!
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momma2girls 04:04 PM 01-27-2010
Originally Posted by Elena's Family Childcare:
Now I'm starting to wonder about my rate. I live in Prescott Valley, AZ. I charge my parents $22 a day. I have a sibling that is full time (one week 5 days and other week 4 days), another one that is 3 days a week, and another that is 3 maybe 4 days a week.
I would at least go up to $25.00 per day. You could find out what other in home providers charge in your area.
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momma2girls 04:05 PM 01-27-2010
Originally Posted by gbcc:
Serves them right! You get what you pay for!
THis is so what I wanted to tell them!!!!!!!!!!!!!
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originalkat 04:15 PM 01-27-2010
For Arizona I would think you could charge $25 per day easily. I am in Wichita, Kansas and charge a flat weekly fee of $125.
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Chickenhauler 04:33 PM 01-27-2010
Originally Posted by Iowa daycare:
I had one family go to another daycare that offered their daycare for $10.00 less a month. Here to find out that daycare had tons of children, and then about 3 weeks later that family called me back, and explained that the daycare had 12 children there one day at pick up. I said sorry, but I filled the spot, but I did place them on my waiting list!! I guess they are still looking 6 months later!!!! Can you believe that????
Making a change that significant over $10 per month? WOW.

I believe the phrase is "Stepping over dollars to pick up pennies".
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momma2girls 04:49 PM 01-27-2010
Originally Posted by Chickenhauler:
Making a change that significant over $10 per month? WOW.

I believe the phrase is "Stepping over dollars to pick up pennies".
OOPS sorry $10.00 per week.
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momma2girls 04:51 PM 01-27-2010
This family actually even knew my husbands family thru his family and where he grew up, can you believe would choose another daycare and not knowing them at all, instead of coming to someone he knew for $10.00 less a week!!! I couldn't believe it!!!
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gbcc 05:13 PM 01-27-2010
About a month ago I told a family that I could no longer do part time care and that I had a waiting list with full time clients. I explained the economy is rough and I need to make my most earning potential. They had first choice to be full time. They said no, they wouldn't pay if they didn't need it. I gave them 2 weeks to find another sitter but warned them many providers did not allow part time care. She only wanted to pay for days she was here, even if the child was scheduled and was sick or she could go on a play date she didn't want to pay. So 2 wks came and my new family started. Their last day was a wk and half ago. Today she called me to tell me she would take the full time spot. I told her I filled it as soon as she said she would be pulling her child and finding a provider who does part time. I also put them on my waiting list!!
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momma2girls 05:15 PM 01-27-2010
Originally Posted by gbcc:
About a month ago I told a family that I could no longer do part time care and that I had a waiting list with full time clients. I explained the economy is rough and I need to make my most earning potential. They had first choice to be full time. They said no, they wouldn't pay if they didn't need it. I gave them 2 weeks to find another sitter but warned them many providers did not allow part time care. She only wanted to pay for days she was here, even if the child was scheduled and was sick or she could go on a play date she didn't want to pay. So 2 wks came and my new family started. Their last day was a wk and half ago. Today she called me to tell me she would take the full time spot. I told her I filled it as soon as she said she would be pulling her child and finding a provider who does part time. I also put them on my waiting list!!
That is way too funny!!!!
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gbcc 05:18 PM 01-27-2010
I thought so! I shouldn't laugh at their expense but parents are so quick to screw us that I do love a little justice!!
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Persephone 06:10 PM 01-27-2010
Originally Posted by gbcc:
About a month ago I told a family that I could no longer do part time care and that I had a waiting list with full time clients. I explained the economy is rough and I need to make my most earning potential. They had first choice to be full time. They said no, they wouldn't pay if they didn't need it. I gave them 2 weeks to find another sitter but warned them many providers did not allow part time care. She only wanted to pay for days she was here, even if the child was scheduled and was sick or she could go on a play date she didn't want to pay. So 2 wks came and my new family started. Their last day was a wk and half ago. Today she called me to tell me she would take the full time spot. I told her I filled it as soon as she said she would be pulling her child and finding a provider who does part time. I also put them on my waiting list!!
Sucks to be them! I can't believe that after you said you had a waiting list that she would come back to ask for the spot.
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MarinaVanessa 08:29 PM 01-27-2010
Originally Posted by janarae:
I have found out others' prices by calling ads that I see & pretending to be a prospective client or just calling local centers & doing the same.
I don't know why I never thought of this. This is a great idea! I'm telling you, sometimes I don't think of the obvious. I'll call around and just see what the rates are for people in my area.
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Chickenhauler 11:50 PM 01-27-2010
Originally Posted by gbcc:
I thought so! I shouldn't laugh at their expense but parents are so quick to screw us that I do love a little justice!!
I wouldn't say they wanted to "screw you"....they didn't want to pay for 5 days care when they only needed two.

Would you be happy paying for 500 cell minutes per month when month after month, you only use 200?
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Lucy 10:45 PM 01-28-2010
As the others said, it depends on the prevailing rate for your area. Look through the classifieds and call a few of the providers as if you were looking for care for your children. That way you can find out what others are charging. Sneaky, I know, but you need to know what others are charging.

That said, at $30/day, you are higher than what providers in my area are getting. I'm in a town of 15,000 that is a mix of urban & rural and is south of Portland, Oregon. We're about $25/day.
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Elena's Family Childcare 07:57 AM 01-29-2010
How would I go about telling my parents that I am going to raise my daycare price? And how many weeks in advance give them? Also how would I go about doing siblings?
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gbcc 08:03 AM 01-29-2010
Originally Posted by Elena's Family Childcare:
How would I go about telling my parents that I am going to raise my daycare price? And how many weeks in advance give them? Also how would I go about doing siblings?
My contracts say that I will provide 30 day notice. To be professional you really should give at least 2 weeks notice. This way if parents don't like your increase they have the time to look elsewhere. You always have to be prepared for this. I raised mine recently for school agers. They were a lot more work then I was getting paid for! I did have a family call around, other daycare providers told me, but I was still cheaper so they stayed. I only raise rates or change my contracts in September when I have parents update contracts and releases. Some providers do it for January.
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momma2girls 08:06 AM 01-29-2010
Originally Posted by Elena's Family Childcare:
How would I go about telling my parents that I am going to raise my daycare price? And how many weeks in advance give them? Also how would I go about doing siblings?
If I was going to raise my rates at all, I haven't done this for many yrs. though, although, I have actually thought about it- If I was going to raise them, I would do it at the start of the yr. and new contract for the upcoming yr. to come.
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Persephone 08:06 AM 01-29-2010
I know when I had my son at a sitter she raised her rates (shortly after she just started doing child care) and she just sent home a note and also just told the parents that she needed to raise her rates and as of *** this date it would go into effect. Our rate was not raised because we were at a part time rate already.
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momma2girls 08:08 AM 01-29-2010
Originally Posted by gbcc:
My contracts say that I will provide 30 day notice. To be professional you really should give at least 2 weeks notice. This way if parents don't like your increase they have the time to look elsewhere. You always have to be prepared for this. I raised mine recently for school agers. They were a lot more work then I was getting paid for! I did have a family call around, other daycare providers told me, but I was still cheaper so they stayed. I only raise rates or change my contracts in September when I have parents update contracts and releases. Some providers do it for January.
Can i ask what you charge for school aged children, are you talking before and after school? I charge $50.00 for before and after school care. I know that is very reasonable in my area, there are many that do $60-$75.00 to make it worth your while!!
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momofboys 09:57 AM 01-29-2010
Originally Posted by MarinaVanessa:
I don't know why I never thought of this. This is a great idea! I'm telling you, sometimes I don't think of the obvious. I'll call around and just see what the rates are for people in my area.
You have to be careful these days though with caller id etc. I live in a small town too. I just say I am considering a job & need to find out pricing & then I price my child (he's 2) & adk about before & after care for my older boys. So it isn't a lie really b/c who knows when I could get the "perfect" job!
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Persephone 09:58 AM 01-29-2010
Originally Posted by janarae:
You have to be careful these days though with caller id etc. I live in a small town too. I just say I am considering a job & need to find out pricing & then I price my child (he's 2) & adk about before & after care for my older boys. So it isn't a lie really b/c who knows when I could get the "perfect" job!
I use my cell phone, because that normally doesn't show a name. Sometimes there's a code you can type on your land line to block the caller ID.
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gbcc 12:47 PM 01-29-2010
Originally Posted by Iowa daycare:
Can i ask what you charge for school aged children, are you talking before and after school? I charge $50.00 for before and after school care. I know that is very reasonable in my area, there are many that do $60-$75.00 to make it worth your while!!
I charge $75 per week for before/after school. I don't give the option to pro rate for just before/after and tell them they pay for the spot which includes before and after.

I also offer an average. From September thru August they pay an average of the school year. So instead of paying $130 on wks off or extra on days off they pay me the same rate every week which this year the average was $95. They can not start that in the summer though. They have to pay full rate and wait until the following September to start the average payment. All my parents love this option!
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originalkat 01:58 PM 01-29-2010
Interesting Idea gbcc. I like that averaging idea. If I did school-age care I might consider that as well.
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momma2girls 02:34 PM 01-29-2010
Originally Posted by gbcc:
I charge $75 per week for before/after school. I don't give the option to pro rate for just before/after and tell them they pay for the spot which includes before and after.

I also offer an average. From September thru August they pay an average of the school year. So instead of paying $130 on wks off or extra on days off they pay me the same rate every week which this year the average was $95. They can not start that in the summer though. They have to pay full rate and wait until the following September to start the average payment. All my parents love this option!
Can I also ask what your going rate is in your area for Parttime and fulltime, siblings, etc....
Thanks!!! Have a great weekend!!!
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gbcc 07:35 PM 01-29-2010
Originally Posted by Iowa daycare:
Can I also ask what your going rate is in your area for Parttime and fulltime, siblings, etc....
Thanks!!! Have a great weekend!!!
In my area most providers don't do part time unless they are not registered or lisenced. If they do part time though they charge $20-$30 per day. I don't know of anyone that does a minumum number of days or anything like that. For full time the prices are really varied $100-$175 depending on age. Usually the ones that charge $100 are not registered or don't have the space or curriculumn to back up a higher fee. I don't know anyone around me that offers a discount for siblings. I offer 20% but I am thinking of not offering this any longer. For before/after school it is really different. Some charge $2-$3 per hour, some charge $50 per wk, some are $10 on $10 off. I tell my parents that it is $75 no matter the hours for before/after. They are paying for the SPOT not the quantity or quality of care.
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