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Daycare Center and Family Home Forum>Raising Rates
Unregistered 11:08 AM 02-28-2012
Hi. I am considering taking over an already existing daycare. The school is awesome!! In order to "break even" the school needs 54 students. Currently the school has 51 students and is licensed for about 100. The owner is currently in the hole every month about 3-4,000 p/mo. the school is AWESOME, but it is a hidden jewel. The owner is hardly there and has other facilities and is unable to advertise and market, etc b/c of his schedule. I am considering taking over the lease and keeping the existing staff, director, etc but am considering raising the tuition about $12 a month to make up for the loss and also do marketing and other things to get the word out. The tuition is currently priced about 200-300 dollars LESS than comparable preschools/daycares in the area. It offers Spanish, a full computer lab and so many other amenities! I am just worried about the parent's reaction to new ownership and the $48 p/mo increase. Any thoughts or suggestions??
nannyde 11:23 AM 02-28-2012
Is it really a school or do they just call themselves a school? Do they have licensed teachers or are they just regular staff assistants?
Unregistered 11:32 AM 02-28-2012
The preschool teachers are certified, etc. It's age 6 wks -4. Also has some after school children up to age 12
wdmmom 11:50 AM 02-28-2012
If they are 200-300 below the average cost, I don't see where $2.40 a day is going to make or break anyone.

It's a very small offset in comparison.

I would consider establishing a few new clients first. And, rather than $12 per week, you might want to try $10. People tend to like nice round numbers.
Unregistered 06:32 AM 02-29-2012
Thanks! As a mother myself I was thinking that it wasn't that significant of an increase, but just wanted to get some feedback!
Tags:raising rates, rate increase
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