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Old 02-15-2013, 08:13 AM
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wahmof3 wahmof3 is offline
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Default What goes in your rate??

I am reevaluating my current program and I am curious as to how you come up with your rate.

When I started 6 years ago I just went with the going rate for my area and never put any more thought into it.

Now that I am established, licensed, and working towards my degree in early childhood I wonder if my rates are too high, low, etc.

I have never raised my rates, even as the cost of everything rises.

I also currently have the issue with the DCF that was expecting a sibling discount and I am left wondering if I am wrong for not giving one. I can't help but think how expensive child care is and feel as if they think I am ripping them off. Yet, I know how expensive child care is because I have had to pay for it and I also know that when you find someone you can trust the fee doesn't seem to matter all that much. Yet, I understand when a family cannot financially make it work.

I do not want to sell myself short. I do know that infant care is very hard to find around here and this DCF only wanted to pay me $80 for an infant for full time. I also know unless this family is trying to get family to keep their kids my rate is still going to be the lowest with a very small child ratio.

TIA
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Old 02-15-2013, 08:17 AM
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Blackcat31 Blackcat31 is offline
 
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Why do YOU feel guilty that a family had an addition to their family? Why is that something YOU have to make adjustments for or discounts for?

You didn't choose to have another baby...they did. They must have figured out from the first one that they aren't cheap so having another one would definitely add to their expenses..... if they didn't and simply assumed everyone was just going to give them discounts for having multiple kids then they are in for a rude awakening.

You can't go through McDonalds and say give me two Happy Meals but discount the second one.....


As far as rates go, I took what the state paid out for child care assistance program and added a little to it. Whenever the state raises their reimbursement rate, I raise mine too.
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Old 02-15-2013, 08:39 AM
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Quote:
Originally Posted by Blackcat31 View Post
Why do YOU feel guilty that a family had an addition to their family? Why is that something YOU have to make adjustments for or discounts for?

You didn't choose to have another baby...they did. They must have figured out from the first one that they aren't cheap so having another one would definitely add to their expenses..... if they didn't and simply assumed everyone was just going to give them discounts for having multiple kids then they are in for a rude awakening.

You can't go through McDonalds and say give me two Happy Meals but discount the second one.....


As far as rates go, I took what the state paid out for child care assistance program and added a little to it. Whenever the state raises their reimbursement rate, I raise mine too.
I know, I know but I often question myself- am I doing the right thing. I love all of my DCF and as much as I know this is NOTHING personal and that it was their choice to have another child, but it still makes me feel horrible. That said I know there is no way I can afford to do this for any less than I am charging them.

So by taking the current state rate and figuring a little more puts me right on with my rates. That makes me feel better.
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Old 02-15-2013, 08:56 AM
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I am charging in the middle of what other providers around me are charging and way lower than centers are charging, but in homes here can't compete with the rates of centers. My rates are competitive for this area and I think that charging more will deter families and doesn't make "business" sense, but charging less is an insult. I have an associates degree and years and years of experience and I won't settle for charging for any less, even if that means it will take a while to gain families. I am comfortable and can personally be happy with my rates. Fortunately though, my husband is supportive of what I'm doing and agrees with me, plus we can afford to wait for the right families to come along. I don't offer a sibling discount and only offer a full time or a daily part time rate. I have read and gotten a lot of advice from many wonderful people on here and one thing I have learned is to not settle for any less than what you believe!
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Old 02-15-2013, 09:01 AM
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I charge the highest rate in my area. I am about $10 higher per day than other home child cares. I have a Master's degree in education, and my program is excellent. When parents question my rates, which is not often, I usually reply with, "If you are looking for cheap child care, then I am not the right fit for you. I am expensive, and your child getw what you pay for." It works like a charm...I am always full with a waiting list!
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Old 02-15-2013, 10:07 AM
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Originally Posted by bunnyslippers View Post
I charge the highest rate in my area. I am about $10 higher per day than other home child cares. I have a Master's degree in education, and my program is excellent. When parents question my rates, which is not often, I usually reply with, "If you are looking for cheap child care, then I am not the right fit for you. I am expensive, and your child getw what you pay for." It works like a charm...I am always full with a waiting list!
Wow, congrats on your Master's degree! I have always wanted to go back to school and at least get a bachelor's degree, but never did. I wish I could charge a higher rate, but there are soooo many homes and centers around me-I live in the state capital. And there are many low income families that could not afford a much higher rate-competition is fierce! There are 146 (more opening daily) licensed homes just in the city! Maybe once I'm established I could charge more? But I do refuse to charge on the lower end!
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Old 02-15-2013, 11:33 AM
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Starburst Starburst is offline
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When I start mine I plan on having my AA in CD/ECE (possibly an ECE teaching permit) and have a preschool program but the town that I am currently planning on moving to (one of two or three) has a slightly higer population than the one I live in now and far less daycares but my fiance has told me that because it is a 'richer' area (mostly an agriculture community) there tend to be more SAHM/Ws in that area and I have looked at some of the prices on craigslist (in that county) and some of them do have AAs in ECE/CD with infant/toddler/preschool curriculums and the average charges between $75-$120 a week full time (according to the local FCCA website and my fiance's mother- when he was in daycare); before I looked it up I was considering starting at $70-75 but he said he should be able to make a decent enough earning to were I probably wouldn't even need to work (but I need structure and pressure to keep me from going nuts). He suggested when I start maybe low balling a bit (like $10 less then average) for the first year or two since I would be a newbie and then once I get my foot in the door I could raise my prices regularly (which I was planning on doing in the begining). I thought about it too because I do not want to start so high that no one will look into it and that I don't want to feel stuck like I can't raise my prices because it would be over the average.
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Old 02-15-2013, 11:59 AM
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You have to do what works for you and your family. I based my rates on what I would need to make income wise, divided by how many kids I could have. I am a little higher than the going rate in my area, but that's just how it is. I don't feel bad about it. If the parents can find a place for cheaper and they are happy there, fine. I don't think I've lost any potential kids over price. I have had a few that have asked for a cheaper price, but at the end of the day, I believe that if they love you and your program, they will find a way to pay the price you're asking.
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