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Old 08-22-2019, 01:44 PM
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LostMyMarbles LostMyMarbles is offline
LostMyMarbles
 
Join Date: Jul 2016
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Quote:
Originally Posted by Myst_Seattle View Post
I fully agree that it won't let you increase your capacity, but in theory it should increase your profit margin. Let's say you are currently charging $100 per week and have a 3 year waitlist. If you increase it to $110 (for new clients) the waitlist might drop to 2 years. If you further increase it to $120 it might go down to 1 year. Therefore your revenue would increase by 20% without having to take up any extra work.

It would price out some parents out of the daycare market, but at the same time it would help parents who have recently moved into the neighborhood and haven't had a chance to sign up for the waitlist three years ago. That's an issue faced by many of my parent colleagues who are new to Seattle.
Why do you assume that the waitlist would drop due to a rate increase? The need for childcare will still be there regardless of a rate increase.
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