Originally Posted by Annalee:
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I disagree with this theory. There are tons of unlicensed legal and illegal offering services in my state for rock bottom prices, but this doesn't change what I charge nor how I run my business regarding anything else. I am full with a waiting list and run my program like a business. I am open less hours than most but still remain full. I charge 52 weeks per year but still remain full. I do what works for me to support my own family.
As for education, I do have an AS degree, but business sense doesn't always come from a college. Life lessons with hard knocks along with a special mentor taught me alot! 
I also charge higher fees, always have but cannot price myself completely out of the market. I have recently increased my 8-10 hour rate to roughly $12 a day more than most providers and people are still paying it. I have an education and run my daycare really well so it is high quality which some people are willing and able to pay for.