Originally Posted by Myst_Seattle:
Others have already explained why my idea might not necessarily work out in practice for everyone, see the comments above. But here's how it works in theory:
1. Let's say your daycare is based in a major city, charges $100/week and has a waitlist of 2 years
2. You increase the price to $120/week and wait for a year. Now your waitlist has decreased to 1.5 years
3. You further increase the price to $150/week and wait for another year. Now your waitlist is at 6 months.
For you as a business having a 6 month waitlist should be as good as having a 2 year waitlist, as you still have enough potential clients at your door whenever you have a vacancy. And at the same time your profit margins go up as you now charge more than you did before, for the exact same amount of work. As a bonus parents can now plan for daycare much more easily, as wait times will become short and predictable.
What you didn't take into consideration is... of the people on the waitlist @ least 50% all find other care before your spot opens, as was said, you also have priced out potentials... then there is the 3 people quit, no notice, but nobody on the wait list needs you this month because they weren't expecting the spot to open sooner.
Too many factors for upping fees just to shorten the waitlist. Unless you have lived real world waitlist for home daycares don't think it will work; theory vs Real life - 2 totally different things... even the area can contribute as a factor. Blue collar neighborhoods can't afford even half of what most city folks pay