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Daycare Center and Family Home Forum>I Think I Might Be Closing...Giving Up
busymomof2 12:17 PM 12-13-2011
I have been doing daycare for over a year. My first year went great. I had 5 kids and taught preschool. They all graduated and are now in Kinder except for my little guy who is 22 months. Since school started in August, I have not been able to fill ANY of the openings. Every time I turn around there is a new daycare poping up in my area and for dirt cheap. I use to charge $30 day but cut that to $25. But there are SAHM's and other daycare providers only charging $15. At first I thought they will realize what kind of care they are getting and change but the economy is so bad here parents are setting aside quality for what they can afford. I have had interview after interview and they all looked promising and excited about coming, telling me that they would get back to me after they check out other places in the area...then they never call back. I did get two families who wanted to be placed with me but they were on assistance and I can't afford the extra dc insurance so I had to send them away. I don't know what to do. I even started looking for a job but it's hard to get a job scheduled around my daughter's school schedule and trying to avoid fulltime daycare for my son. My problem now is it's Christmas time and my kids and family won't be getting the kind of Christmas they usually get. It makes me sad that I can't even buy my kids presents. Things just have to get better. I am thinking about closing down and selling my equipment & supplies to get Christmas gifts.
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Heidi 12:31 PM 12-13-2011
so sorry to hear that you are struggling.

I was a provider 10 years ago, and I always had a waiting list. In the meantime, I moved out of a big city to a small town, and the economy has changed a lot.

10 years ago, I got several calls a month. Now, I rarely get them. I only have a full group because another provider retired, and I inherited 4 children from one family from her.

Would you consider finding something seasonal/part time for a few months? Maybe in the evenings? I know that would be tough, but I do remember that people usually start calling again after the holidays.

Your children don't need big, expensive gifts this year. Remember you are doing this primarily so that you can be home with them. Give them the best gift of all-their mommy, and a little something to open on Christmas. They will be happier in the long run!
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Country Kids 12:38 PM 12-13-2011
You know just because a childcare provider is charging $15 a day doesn't make her a bad provider. Its funny how we assume that because they charge a lower amount that they must not provide quality care. With the way the economy is people are struggling to make it. I know we see them in their nice cars, clothes and all, but most of them are probably one paycheck away from disaster.

Is there anyway you can lower your prices more? You may need to look there first before closing up shop. If you really love what you do I'm sure you can find a way to stay in business.
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wdmmom 12:46 PM 12-13-2011
The beginning of the year is the best time to find prospective clients. Advertise on CL, in the local newspaper, papers on the corkboards at the local grocery store, leave business cards at local nail salons, schools, etc. and pass out flyers throughout your neighborhood.

Offer an incentive to get people in the door. No enrollment fee if you start before Feb 1, $25 off your first week. Something like that.

If you are able to get a few people in the door, offer them $25 off for any referral that starts!
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Michael 01:25 PM 12-13-2011
Originally Posted by busymomof2:
I have been doing daycare for over a year. My first year went great. I had 5 kids and taught preschool. They all graduated and are now in Kinder except for my little guy who is 22 months. Since school started in August, I have not been able to fill ANY of the openings. Every time I turn around there is a new daycare poping up in my area and for dirt cheap. I use to charge $30 day but cut that to $25. But there are SAHM's and other daycare providers only charging $15. At first I thought they will realize what kind of care they are getting and change but the economy is so bad here parents are setting aside quality for what they can afford. I have had interview after interview and they all looked promising and excited about coming, telling me that they would get back to me after they check out other places in the area...then they never call back. I did get two families who wanted to be placed with me but they were on assistance and I can't afford the extra dc insurance so I had to send them away. I don't know what to do. I even started looking for a job but it's hard to get a job scheduled around my daughter's school schedule and trying to avoid fulltime daycare for my son. My problem now is it's Christmas time and my kids and family won't be getting the kind of Christmas they usually get. It makes me sad that I can't even buy my kids presents. Things just have to get better. I am thinking about closing down and selling my equipment & supplies to get Christmas gifts.
You have over 100 posts here. You've earned a free premium listing in our daycare registry. I will PM you.
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PolkaTots 01:30 PM 12-13-2011
I can totally relate!

I lost 2 children to moves last February. I finally filled their spots in July, only to find out one was on a waiting list at a center and left after 3 months. So, I am still down 1 child, and have been for 2 months now, but this summer I will be losing 4 to kindergarten. It seems there are a lot more SAHM providers in my area looking for extra $$ (not many are registered), or need state pay, which I won't accept. If I can't fill my 1 open spot in the next couple of months, I am just going to make plans to close at the end of the summer, as it is going to be very hard to fill 5 full time spots, and I can't afford that hit in income
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AfterSchoolMom 01:58 PM 12-13-2011
Originally Posted by Country Kids:
You know just because a childcare provider is charging $15 a day doesn't make her a bad provider. Its funny how we assume that because they charge a lower amount that they must not provide quality care. With the way the economy is people are struggling to make it. I know we see them in their nice cars, clothes and all, but most of them are probably one paycheck away from disaster.

Is there anyway you can lower your prices more? You may need to look there first before closing up shop. If you really love what you do I'm sure you can find a way to stay in business.

While I agree that lower rates don't necessarily mean lower quality, I don't think that it's right for people to come in undercutting established providers. People are struggling to make it BECAUSE this is happening, and it's happening everywhere.


Could you lower your rates, but have them pack lunches? Is there any other way that you could lower your expenses?

I'm sorry. I'm right there with you, and it sucks.
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Nellie 03:50 PM 12-13-2011
Originally Posted by AfterSchoolMom:
While I agree that lower rates don't necessarily mean lower quality, I don't think that it's right for people to come in undercutting established providers. People are struggling to make it BECAUSE this is happening, and it's happening everywhere.


Could you lower your rates, but have them pack lunches? Is there any other way that you could lower your expenses?

I'm sorry. I'm right there with you, and it sucks.
It sucks all around, but I can hardly fault any one working there butts off for little just to survive. I remember when $200 a month for our family was either making it or not.

I don't know if your family will be getting a tax return or not, but if you are perhaps investing in the extra daycare insurance to be able to take state aid will be worth it to keep you up and running until things turn around. Perhaps offer your current family some kind of referral bonus for any new families they refer to you that sign up and stay with you for at least 2 months. I pray every thing works out for you and your family.
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busymomof2 08:23 AM 12-14-2011
Thanks everybody for your advice. What I have tried and changed:
* I already offer a referral bonus. Told my friends and family about it too.
* Re-did my ad and post at least twice a week on Craigs List.
*I bought an ad in the phone book but won't start till next year.
* I got a website
* redesigned my playroom and painted some murals to make more inviting.
* I changed the ages I accept to include infants and school aged.
* I now offer half day preschool and transportation
* I cut my rate by $5 a day. I really can't go any lower than that because it would not cover my expenses. I will reevaluate my expenses in Jan and prob cut out the activities, crafts and trips.
* I already tried getting a job but not many here to get and a part-time job would just cover daycare for my son.
I would much rather stay at home with my son and be here when my daughter get's home from kinder. Plus I'm good at what I do and I really enjoy it! I just wish I had kids. I will see what happens the begining of the year. For now I am blessed that my husband has a great job that pays our basic bills. On the side we also rent bounce houses and I sell hair accessories and tutus at my on-line store. Just getting started so it hasn't paied off yet. I wish everybody a better year next year!!!!!
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wdmmom 08:36 AM 12-14-2011
Originally Posted by busymomof2:
Thanks everybody for your advice. What I have tried and changed:
* I already offer a referral bonus. Told my friends and family about it too.
* Re-did my ad and post at least twice a week on Craigs List.
*I bought an ad in the phone book but won't start till next year.
* I got a website
* redesigned my playroom and painted some murals to make more inviting.
* I changed the ages I accept to include infants and school aged.
* I now offer half day preschool and transportation
* I cut my rate by $5 a day. I really can't go any lower than that because it would not cover my expenses. I will reevaluate my expenses in Jan and prob cut out the activities, crafts and trips.
* I already tried getting a job but not many here to get and a part-time job would just cover daycare for my son.
I would much rather stay at home with my son and be here when my daughter get's home from kinder. Plus I'm good at what I do and I really enjoy it! I just wish I had kids. I will see what happens the begining of the year. For now I am blessed that my husband has a great job that pays our basic bills. On the side we also rent bounce houses and I sell hair accessories and tutus at my on-line store. Just getting started so it hasn't paied off yet. I wish everybody a better year next year!!!!!
Sounds like you are doing everything right!

I quit offering transportation over a year ago. With gas prices being high, it's not advantageous for me to pay the premium insurance on my vehicles, have the higher liability and the time to load and unload several children just isn't worth it to me.
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sharlan 08:42 AM 12-14-2011
I understand.

I'm giving it until June. If I don't have 2 full-timers by then, I will not renew my license.
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kendallina 09:47 AM 12-14-2011
I would also send an email to everyone who used to be in your program and let them know you have openings and would appreciate any referrals they can give you. Maybe offer an incentive to your current family (like, $50 off next month) if they send you someone who enrolls and stays for at least a month. I've found the best way (for me, at least) to advertise is word of mouth. Put the word out there that you're looking for kids. Talk to everyone, let them know you run a preschool program as well. Maybe take your current kiddos to the library story time or something to get to know more people.

Good luck, I hope it turns around for you!
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countrymom 10:28 AM 12-14-2011
I have a sign on my front yard and its the best advertising ever. Also, it takes about 3 yrs to make it in a business, the first few years are going to be the hardest. I know you hear many of us are full but we've been at it for a long time, we've all struggled with low clients.
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boysx5 11:49 AM 12-14-2011
yes give it time it takes time to build your business nobody starts off full right away. It took me three years to get to six kids and I still have two spots open but it comes with time hang in there
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busymomof2 11:54 AM 12-14-2011
I got kids YES (insert me jumping with joy here)! I don't know what happened but I just got a couple of calls from parents that I had interviewed before and they both want to start first week of Jan. I am so happy and feel so blessed. Thank you all for the the encouragement. Maybe everybodies phones will start ringing for the new year.
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Tags:bad economy, losing money, losing spots
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