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Daycare Center and Family Home Forum>Frustrated About Cheap Competition
jenny31052 09:12 PM 03-12-2012
How much do you charge per week?

I'm having an hard time finding families that are willing to pay $140/week

I look on CL, and there are so many "providers" in my area who charge as little as $70/week for full time care!!!

I had to lower my rates to 110/week, so I can get some kids, and pay some bills. I did not wanted to do this.. but I advertised for months at my original rate of $140, and I was not getting any calls... at was to the point where I wanted to just give up on doing childcare...


It's being a year since I've started, I'm licensed, I have a quality program, and still parents are not willing to pay the extra money for qualified care...
I know that I could ask more, I could have a bigger paycheck, but if I do they will go somewhere else...

So frustrating...
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Breezy 09:46 PM 03-12-2012
I charge $140 for full time and had the same issues. Parents want to pay $80-$100 for full time care for a qualified provider... I guess you get what you pay for...
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MommyofThree 04:14 AM 03-13-2012
I am so sick of people saying you get what you pay for I cahrge 130 for onE and for two any where from 150-200.I am fully licensed and I take darn good care of the children. Its not all true.
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SunshineMama 04:26 AM 03-13-2012
Originally Posted by melissathayer28:
I am so sick of people saying you get what you pay for I cahrge 130 for onE and for two any where from 150-200.I am fully licensed and I take darn good care of the children. Its not all true.
I think she means the people only charging $70.00 or so for the week. (I wouldnt consider 130 reduculously low depending on your area). No established provider can stay in business, and maintain their ratios for that price. And I guarantee you, there aren't going to be extras like field trips, arts and crafts, etc... Eventually you would get burned out and resentful of the job, working for pennies IMO.
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countrymom 05:08 AM 03-13-2012
we have it here in ontario too. Its crazy, but I don't think the ones that charge really low stay long in the business.
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bunnyslippers 05:15 AM 03-13-2012
I charge 275 per week, and I am always full.
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Breezy 05:22 AM 03-13-2012
Originally Posted by melissathayer28:
I am so sick of people saying you get what you pay for I cahrge 130 for onE and for two any where from 150-200.I am fully licensed and I take darn good care of the children. Its not all true.
I charge $140 per week so I didn't mean you get what you pay for in that sense. I meant the parents that say they can only afford $80 per week for 2 kids full time hours Monday-friday. There is no way that a provider could profit at all at that rate so the food would be cheap, the ratios would be high. Maybe not in all cases but most of the ads I see around here for $80 give me that feeling.
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cheerfuldom 05:51 AM 03-13-2012
almost all of the cheap ads here are for very poor care or very new providers. they post shocking pictures (a huge empty room with a giant TV in it, or filthy kids half dressed). I dont consider the cheap ones my competition since we offer very different things but I do understand the frustration. I charge $140 and have seen as low as $80 a week
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MrsB 06:31 AM 03-13-2012
It is aweful isn't it! I have been licensed in 4 states and it happens in every where I have been.

It has taken me many years to get it down, and I know it is really difficult for people to do, especially in this day and age the way the economy has been. But I have an emergency daycare fund and plan. There is a budget for when I am at capacity and a budget when I am under capacity. When I am under capacity I can dip into my emergency daycare fund, but I make sure I stick to my undercapicity budget. When I am at capacity I stick to my at capacity budget and anything over goes into my emergency fund. As with any business there are feasts and famens and although it is difficult, try and create provisions so you can ride it out. If you can ride it.

Don't undercut yourself. I see no way that these providers can do it for those prices long term. I have seen alot of them come and go. Most of the time they get burnt out and have to close because it just isn't possible or they get full enrollment and then have major rate increases.

One of my newer DCF said that their previous provider raised their rates 3 times in one year, totalling $60 in increases per week.

Here is a few things that I know have helped me.

-Revamp your CL ad, make sure your stands out from the rest, include pictures of your set up.
-I dont ever put my prices in my ads. Since I have contracted hours their rate is specialized for their needs. Plus I am a really great talker! So, if I can get them to talk to me on the phone, the $140 seems like a fair price!
-Have a website...include lots of pictures of your outings and fun times. I also have gotten lots of compliments that I put my handbook on the website. Shows that I am an open book and I am very upfront about my expectations and confident in my program.
- Include in your ad that you have references. I have a book of letters from past and current DCFs that I share with potential families. (Its all nice and pretty with graphics, done like a scrapbook) It is a big hit! After I share that I have a list always on hand of phone numbers that they can call as references too. But the scrapbook almost always does the trick.

If you can get them into your door for a tour, then you can prove to them why your program is so much better than those that are so cheap. So focus your efforts on how to do that.

Plus I try and remind myself, if a family is going to go with them straight away because they are so cheap without going through the proper interview process, you probably dont want them as a client anyway.

Wishing you the best of luck!
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DCBlessings27 06:41 AM 03-13-2012
Is $140/week on par with others in your area that offer quality care? Most providers in my area charge $125/week. One down the road charges 120. I charge 130, which is only $5 more than my competitors. I am full and will have to turn away a family once one of my 2 pregnant moms has her baby. I'll get 150/week for the infant, which is what others in my area charge.

We had a recent ad on CL for $15/day. That's a lot lower than the normal rates around here. In my area, it does definitely depend on the part of town.

If you can find others in your area for 140, then I would keep your prices the same and possibly start building a waiting list for your next opening.
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sharlan 07:23 AM 03-13-2012
Even other providers that I know have been in business for a very long time are having trouble filling spots. Everyone I have talked to has cut their rates from $150 - $175 down to $100 - $125.

Neighbors across the street had 8 at Christmas, now they have 3.

The economy is bad in this area and a lot of women lost or quit their jobs to do daycare. They're finding out that it's not the quick, easy money that it used to be.
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jenny31052 10:14 PM 03-13-2012
When I was advertising for $140/week, I only had 2 kids for 6+ months. Did lots of interviews but once we talked about fees you could see the change in their faces. So I got to the point where it was either quitting doing daycare or lower the prices to fill those spots.

Average in my area is 120 for family child care or 200+ at centers. There are improvised "providers" on cl advertising for as less as $70/week. There are many of these proplein my neighborhood.

I know that my program is worth more than what I'm asking. But I either try to fill these spots somehow, or just quit...
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MrsB 03:39 AM 03-14-2012
Originally Posted by jenny31052:
When I was advertising for $140/week, I only had 2 kids for 6+ months. Did lots of interviews but once we talked about fees you could see the change in their faces. So I got to the point where it was either quitting doing daycare or lower the prices to fill those spots.

Average in my area is 120 for family child care or 200+ at centers. There are improvised "providers" on cl advertising for as less as $70/week. There are many of these proplein my neighborhood.

I know that my program is worth more than what I'm asking. But I either try to fill these spots somehow, or just quit...
I am so sorry, you are feeling down about it. It can be difficult, I know. Some areas across the US were hit harder than others by the down turn in the economy. Some just still haven't recovered.

I think I get what your saying about so many providers with crazy low rates. Eventhough they may not stay in business long, there are 3 more that pop up for every one that goes out of business.

Maybe in your ad you could offer Monthly discounts? Like half price off your third week of care, if contract is signed by March 30th. or Offer a significant referral discount to one of your current families.

Hmmmmm... just playing devils advocate. Maybe you need to drop the price a little to coincide more with what the average is in your area, until you have a full crew and are a little more established. Then increase your rates for new enrollees?
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mac60 04:56 AM 03-14-2012
Rates here for home daycares average $80 to $90 per week. I charge $85 on current ft families, going up to $90 on any new ones. We are one of the lowest daycare paying areas of the country. And my rate does not reflect the type of care the children receive, it just reflects the daycare rates in our area and staying in business.
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Greenplasticwateringcans 07:26 AM 03-14-2012
Originally Posted by mac60:
Rates here for home daycares average $80 to $90 per week. I charge $85 on current ft families, going up to $90 on any new ones. We are one of the lowest daycare paying areas of the country. And my rate does not reflect the type of care the children receive, it just reflects the daycare rates in our area and staying in business.


I charge $35/day which is the going rate in my area for quality care. If some one was charging $20/day I would say "you get what you pay for" which would absolutely be a low quality program/care for this area. I have no idea what it would be for other areas so I tend not to comment on prices.
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Blackcat31 07:32 AM 03-14-2012
Originally Posted by Greenplasticwateringcans:
I charge $35/day which is the going rate in my area for quality care. If some one was charging $20/day I would say "you get what you pay for" which would absolutely be a low quality program/care for this area. I have no idea what it would be for other areas so I tend not to comment on prices.
I charge a rate that is on the higher end of what is average around here. I know a SAHM/provider who only takes 3 or 4 kids in her daycare and she charges half of what I do.

I would NEVER say "you get what you pay for".

She is EXCELLENT at what she does and provides a high quality program.

She just doesn't need to bring in as much financially as others so she charges what she needs to and what she feels comfortable with.

I think that saying is waaaay off base as far as daycare goes.
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MamaBear 07:38 AM 03-14-2012
Thats a problem in my area too. I charged $160 a week flat rate. The norm here is like $150-200 on the high end. There are people charging $100 and less a week for full time. But when you look at their pictures of their home they are usually pretty yuck. You kinda get what you pay for I think.

I had a lady call a couple months back that said "I have 2 children, ages 8 months and 2 years old. My current daycare is awful so I'm looking for a new one. What would you charge for my 2 for full time?" I said "$300 a week for 2"... which is a little discount. I didnt really want a sibling situation so I wasn't trying to deal with her. Her response was "Wow, thats really expensive. My current daycare only charges me $150 total for both of them full time! Cant you match that deal?" I said "Sorry I don't negotiate and try to outbid other daycares with their rates. You kinda get what you pay for... and you said your daycare is 'awful' ~ thats probably whey they are so cheap! So if your interested, you are welcome to check out my daycare". HaHa She didn't like that I guess ~ I never heard form her again.

Its unbelievable how cheap people will be when it comes to quality care for their own children.
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Sugar Magnolia 11:06 AM 03-14-2012
I charge $175-195 power week, slightly higher than the going rate for other quality centers in my area.
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momma2girls 11:28 AM 03-14-2012
I charge $140.00 per week, and I am actually thinking on going up!! The price of gas, groceries, supplies, etc. etc..... are going up sky high!!! This is pretty average in my area. The centers are about $200.00 or above here.
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Heidi 11:44 AM 03-14-2012
Originally Posted by MamaBear:
Thats a problem in my area too. I charged $160 a week flat rate. The norm here is like $150-200 on the high end. There are people charging $100 and less a week for full time. But when you look at their pictures of their home they are usually pretty yuck. You kinda get what you pay for I think.

I had a lady call a couple months back that said "I have 2 children, ages 8 months and 2 years old. My current daycare is awful so I'm looking for a new one. What would you charge for my 2 for full time?" I said "$300 a week for 2"... which is a little discount. I didnt really want a sibling situation so I wasn't trying to deal with her. Her response was "Wow, thats really expensive. My current daycare only charges me $150 total for both of them full time! Cant you match that deal?" I said "Sorry I don't negotiate and try to outbid other daycares with their rates. You kinda get what you pay for... and you said your daycare is 'awful' ~ thats probably whey they are so cheap! So if your interested, you are welcome to check out my daycare". HaHa She didn't like that I guess ~ I never heard form her again.

Its unbelievable how cheap people will be when it comes to quality care for their own children.
In the parent's defense, there are a lot of people who are struggling, but don't "quite" qualify for subsidy. I have a dc family who had 2 children, and then had twins (on birth control). She was fine with dc for 2 children, but 4? Mom would be a great SAHM, but she is the one who has a professional position and makes more $, has benefits. Dad is not SAHD material. Nice man, but the house would fall apart and so would the family. They are $58 over the monthly income limit for subsidy.

For example, for a family of 4, the monthly income cap is $3552 gross, which is $888 per week (a very likely wage for 2 adults in this county). Take 25% off for taxes, and it leaves $660. If that family has 2 kids in daycare at $110 per week, leaves $430 per week, or roughly $1800 per month for rent (av.$600 for a 2 bdr), health insurance (if they're lucky, we pay $600/mo for our employer subsidized insurance), food, gas, heat, electricity, car insurance, a car payment (if not 2), clothes, uncovered medical stuff (eye doctor, dentist, co-pays), and entertainment.

So who picks up the slack? On the other hand, is it really the state's job? I don't know if that's right, either! We could say don't have kids if you can't afford them, but A-they already had them, and B-we'd be out of jobs.

I think what frustrates all of us about the Star Program is that it is a TON of money-10 million dollars, that could have been spent on making sure that the existing daycares are checked more often for safety (not stupid paperwork stuff), that more parents could get some subsidy money, and that the illegal providers are shut down. Send us some grant money for equipment that I can't afford on $400/week!
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TBird 11:56 AM 03-14-2012
Same problem here but to their credit......the SAHM's in this area do provide clean, quality childcare. I just wish they would charge a little more so MY clean, quality childcare didn't look so astronomical.

I am VERYaffordable for what I provide (designated space, quality meals, preschool program, outings, fenced in play area, etc.). BUT when the SAHM's undercut the price so much, no one realizes that it COSTS to provide all of these extras AND do the trainings AND be accountable to state regulations.
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Greenplasticwateringcans 12:21 PM 03-14-2012
Originally Posted by Blackcat31:
I charge a rate that is on the higher end of what is average around here. I know a SAHM/provider who only takes 3 or 4 kids in her daycare and she charges half of what I do.

I would NEVER say "you get what you pay for".

She is EXCELLENT at what she does and provides a high quality program.

She just doesn't need to bring in as much financially as others so she charges what she needs to and what she feels comfortable with.

I think that saying is waaaay off base as far as daycare goes.

I said "in my area" it would be a low quality program for that cheap. I also said I don't comment on other areas.

In MY area, that saying is VERY true.

Notice again I'm NOT mentioning anything about other areas.
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Blackcat31 12:23 PM 03-14-2012
Originally Posted by Greenplasticwateringcans:
I said "in my area" it would be a low quality program for that cheap. I also said I don't comment on other areas.

In MY area, that saying is VERY true.

Notice again I'm NOT mentioning anything about other areas.
I'm sorry, I didn't read it as you meaning ONLY your area but funny how I go back and re-read and that IS exactly what it says.

My apologies (open mouth-insert foot)
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Mommy2One 12:45 PM 03-14-2012
In my area, the nice centers run $145-$185/wk (for my 2.5yo, infants are more). On average, at home care runs $100-$125/wk but I've seen it as low as $60-$75/week.

In my experience only, and as a generalization of what I've seen in my area, the $60-$75/wk emphasize their low price as their main selling point. There tends to be a desperate quality about their ads. I've emailed a couple of them and they tend to define "educational" as Nick Jr. and "nutritious" as a fruit or vegetable now and then to go alongside the mac&cheese, hot dogs, vanilla wafers and Rice Krispy treats.

If you really have a quality program with a great play space, comfy looking sleeping space, healthy meals, etc., my guess is that there are parents willing to pay your rates but it's hard to match up providers and parents. Craigslist kind of works but not everybody advertises on it and not everybody looks there for care. I searched high and low for a high quality, professional family center in my area and still haven't found one. (But I found this forum in the process, a great SAHM/semi-professional provider and finally a fantastic SAHM, whose care, so far I'm thrilled with).
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