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Daycare Center and Family Home Forum>When Daycare Rates Drop In Your Area..
daycare 10:52 AM 09-29-2011
So due to the economy, the daycare rates in my area have gone down. So as every other business in town, I have had to lower my rates.

I am running an Ad online on CL and have advertised my price. One of my current DCF emailed me telling me that they came across my CL ad and that they wanted to know if I could drop their rate down to the price that I advertsied on CL.

I have not responded and not sure what I should do. This is a family that every month asks for discounts and what not.

WWYD? Should I lower everyones rate? Should I lower only this families rate, or do I stand firm and do nothing to this families rate??
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Cat Herder 10:55 AM 09-29-2011
You could, but be sure to drop your most dreaded "service" for that price reduction.

Maybe make them provide monthly supplies, etc?

Each family must bring a gallon of milk (or gluesticks/construction paper/graham crackers/juice/circle time books etc. (those are my most expensive items) on their assigned week.
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cheerfuldom 11:21 AM 09-29-2011
Tell these current parents that this is a introductory rate and only valid for new families. They don't need to know how long you keep the "introductory rate" going. If they are constantly harassing you for discounts, I would say no just to prove a point. Once you say yes, they are going to keep pushing for more discounts. The rates in our area have lowered quite a bit but I have actually raised mine a tiny bit. I know this is a risk as it takes longer to fill one spot but I would rather wait for a family that wants quality care and are willing to pay a bit more than take the first family that comes a long and resent my meager wages even more.
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daycare 11:28 AM 09-29-2011
love the ideas ladies.... Especially telling them that it is only an intro rate..

Oh and for the family that grubs all the discounts, I have already planned on telling them NO. The DCF actually returned an invoice because it was over charged by $.50............No joke...
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MommyMuffin 11:37 AM 09-29-2011
If they found your ad on craigslist that only leads me to assume that they were looking for another daycare.

Your in a tough spot. I dont have any advice. Good luck, keep us updated on what you do and what happens.
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daycare 11:39 AM 09-29-2011
Originally Posted by MommyMuffin:
If they found your ad on craigslist that only leads me to assume that they were looking for another daycare.

Your in a tough spot. I dont have any advice. Good luck, keep us updated on what you do and what happens.
I thought the same thing... I sent an email back and that was my first question to her... In a joking manner, I said, so are you looking for another DC becuase your rate is too high?
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mom2many 11:42 AM 09-29-2011
Originally Posted by cheerfuldom:
Tell these current parents that this is a introductory rate and only valid for new families. They don't need to know how long you keep the "introductory rate" going.
Great idea!
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Christian Mother 03:03 PM 09-29-2011
Daycare I feel awful for you!!

This family is unbelievable!! It would make me feel so awful to have a parent continue to work me down til there was nothing left. To continue asking for discounts is just awful. I understand that times are really hard. We are all trying to get by. I would just be honest with her and sit her down and tell her that No you will not be offering her a discount as she already has one and for new prospective families coming into care this is a intro. rate. You can leave it like that and not go into it further. It is none of her business what other people are paying you. If she feels your rate is to high you should show her on paper what she is paying and how much your really making. Then hand her a separate piece of paper with neighboring daycare and facilities with there rates and ask her if she feels like she is still paying to high. Good for you for calling her out on looking for cheaper daycare. I wonder if she will have a good excuse for why she was looking on the Daycare forum on CL.
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cherryhill 03:32 PM 09-29-2011
Maybe give them the rate, but discontinue all the other discounts. Is a norm to put your prices on CL? Can you do the ad without your pricing? I do like the idea of having them bring supplies, but they may stop after awhile unless you remind them.
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daycare 03:35 PM 09-29-2011
Adding my rate cut out a lot of the phone calls asking how much do you charge.
So I'd rather they know up front if they can afford me or not.

I have asked families to bring supplies before and it worked ok, just a lot of work on my end sending home weekly reminders and text reminders the night before. Often I was brought cheapy stuff I didn't like so I just raised rates instead. Lol
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Heidi 04:17 PM 09-29-2011
I have an idea...why not turn it on the parents with something like this

"I can't offer you a lower rate, but here is what I CAN do. If you refer a family to me, and they sign a contract, I will give you a discount of $50 for one week".

Maybe instead of a lower weekly rate, you can change your ad to something like $50 off your first week with a signed contract and deposit" ???

Just a thought, unless your getting a ton of calls on the ad you already placed...
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daycare 05:24 PM 09-29-2011
Originally Posted by bbo:
I have an idea...why not turn it on the parents with something like this

"I can't offer you a lower rate, but here is what I CAN do. If you refer a family to me, and they sign a contract, I will give you a discount of $50 for one week".

Maybe instead of a lower weekly rate, you can change your ad to something like $50 off your first week with a signed contract and deposit" ???

Just a thought, unless your getting a ton of calls on the ad you already placed...
Ha I once offers $300 off daycare fees for each enrollment that signed and stayed at Least 90 days. No one did a thing.
But thanks for the idea...
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