Rates - Finding the Right Amount to Charge
I opened on June 2nd. I have two part time children. I need to get some full time kids in.
I was charging $38 per day or $190 a week for full time. Potential clients ask the price but then I would never hear from them. This week I lowered it to $32 per day or $160 a week - I live in a very diverse area income wise. (Second largest city in Illinois) There is section 8 housing within 1 mile of my home, but half million dollar homes a block away. So the income levels are all over the place. I'd kept my rate higher so I wouldn't have to raise it on my parents. But I'm realizing I must be over priced. I am in a great location. I do know some people charged $150 a week but they were not licensed. I will be licensed in August. Any thoughts? Did any one else have to raise or lower prices? |
When I first started I had very low rates to be able to fill the spots and get going. After I was full and fine tuning the group I advertised at a little higher rate for new kids. Once I had a good group and a small wait list I raised the rates for the parents who had started under the lower rates. It was about a six month process but it let me fill up and worked out well for my parents too. There was very little fuss.
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Originally Posted by bklsmum: Thank you! |
Contact your local child care resource and referral association, you probably can link off of your State licensing website. They will be able to give you a median price for your area as well as many resources to tap into.
I am in the middle of one of the wealthiest counties in Michigan with all big three automotive companies based here and in 2004 charged $160, raise to $175 in 2008 just before the bottom fell out. Last year I lowered my rates back to $160 and still can't find kids. Two weeks ago one of three centers within 1 mile of me closed. Three years ago there were 17 home family day cares in my zipcode now there are 9. The unlicensed SAHM's are charging 1/2 of what is charged in homes and 1/3 of what is charged in centers. If you want to be competitive you might check craigslists going rates. |
I like to think that you can get kids if you have a niche. Sure, many people only care about getting child care at the lowest rate but you don't want them. If you are going to charge more that put a great reason behind it. Serve healthy or organic food, offer a certain preschool curriculum or special hours.
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I offer Monday-Saturday 6 am til midnight, high scope and Gee Whiz curriculum, State subsidy and all supplies. The only people that answer my ads ask what I charge and go to the SAHM that offers 1/2 my rate. They don't ask or care about what I offer. Hasn't always been like this and hopefully your area is in better condition than mine is right now
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Originally Posted by Childminder: I priced out what I thought was reasonable - $25 per day - but I was told I was low. So I didn't have too much trouble filling up, although I just had 2 siblings leave, and 1 I had to term. Luckily I'm filling up again after a few very boring weeks. I think the low price helped me to fill up, and now I'm getting referrals from the parents here because they tell everyone what a great program I have. Since word of mouth is spreading, I am raising rates in September, but not for current clients. Good luck; I know it's frustrating! |
Originally Posted by bklsmum: |
Originally Posted by midaycare: |
When I first opened I advertised what rates I wanted to charge, but said there was a special if you signed up at the full-time schedule by X date, then you'd get a $15/week discount. I've heard in business it's always good to show what you're "normal" rate is, then apply the discount on top of that, so the customer can see what a value they're getting, and in the future if you raise rates you say the promotion has ended. I got enough families enrolled to get going, and then a couple months later raised my rates for filling up the rest of the spots. Then the next year I raised the rate for the families who had the discounted rate to my current rate.
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Originally Posted by : Yay me! :mad: Going to have to figure out something soon. |
My area is so saturated with other SAHMs doing the same thing that it's near impossible to stand out. From ex-nurses and teachers to mothers of like 5. It seems to be the go-to for making extra income in my area & they have no problem undercutting whatever ad you post. Mind you, there are only about 3-4 actual centers around here. Most kids are watched by (unwilling) grandparents. So I'm often left scratching my head.
{Sorry I have no advise, but I feel you!!} |
Originally Posted by MsLisa: Sometimes I get caught off guard, but usually I will say I don't discuss rates over the phone we can talk about that more when I meet with you and find out what your needs are etc... if they keep poking I say when would you like to meet up with me, I could do a 5:30 on tuesday. I try to direct the conversation- this really weeds out clients that will not respect me and are daycare hopping for best deals. I look for steady reliable income and respect. It has taken me a long time to get to this but the more I do it the better I get at it. Hope this helps you- set your rates at a fair price that makes it worth while to you- don't undercut yourself. I also agree find a niche and sell your program. This is what I offer..........this is what I am about...... and save some of that for the interview or double time it with more ooomph. Good luck in your new adventure. You found the right place to find a wealth of knowledge, helps, and inspiration here on the boards in the forum- |
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