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Myst_Seattle 11:20 AM 08-26-2019
Originally Posted by Indoorvoice:
I think I'm totally missing this argument. The only reason I had a wait list was because I had more people interested in spots than I had spots available. I don't see how pricing people out of my wait list would have helped me at all. Then when someone leaves, I have no one to choose from. Everyone already complains about paying for daycare and expects you to watch their kids for next to nothing. I would have no clients if I had charged higher than what I already charged...
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.