Originally Posted by Rockgirl:
In the $100,000/week example, sure, it eliminates the waiting list. But who did it help, besides the Bill Gates person and the daycare provider?
By increasing the prices you're helping:
1. Yourself as the business owner, as your profit margins go up. This might additionally incentivize you to expand the daycare in the future.
2. Daycare employees (if there are any) might see an increase in salary
3. Parents will have more flexibility as they know wait times for daycare are short
Originally Posted by Rockgirl:
As others have pointed out, our maximum allowed ratios do not change, no matter how high we raise our rates.
The ratios don't change, but your income per customer will increase.
Originally Posted by Rockgirl:
This whole concept of raising rates to eliminate waiting lists is just ludicrous. The parents sitting at home waiting for daycare would still be doing that even if I doubled or tripled my rates.
If you double your rates a certain percentage of parents will no longer be able to afford your daycare and would drop off the waitlist. If you triple the rates even more parents will drop off. Nobody has infinite money
Obviously this wouldn't address the problem of daycare shortage as the number of available spots won't increase, but it would address the issue of waiting lists causing issues for parents.