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Old 06-08-2011, 09:50 AM
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Default Average Rates in our County Went Up a Lot. WWYD?

Each year about this time we receive our local average rates for both in home daycare and center care. Every year my rates are a little below average however this year my rates are well below the average. I usually post these to parents so they can see how great of a deal they are getting. LOL! When I talk to nearby providers they are right at or a little below what I charge. So, would you raise rates to match the local area average (small area, average listed by county)? Seems like it would be hard to actually get parents to pay that but some people nearby must have no issues doing so or how else would the average be listed so high.

BTW, the average is calculated by a free, annoy survey put out to all providers and by the child care assistance rates currently being charged by county providers.
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Old 06-08-2011, 11:46 AM
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I have thought the exact same thing. My new rates averages are not out yet.

My thinking was to keep the current clients at their rates but give them an updated rates schedule. For ex: I have an infant in care and when he becomes 18 months he is in a different rate bracket, which I have increased.

Therefore they will still pay less when he turns 18 months but not at the rate originally quoted. That way they really dont ever pay MORE than they are paying now. YKWIM?
Did I explain that right?
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Old 06-08-2011, 12:18 PM
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I would be careful if the providers in your area are charging what you are then it will be hard to fill the spots if you are the only one charging that higher rate. Our averages came out to and I too saw the rates are more than I charge but there is someone that is near by that is charging almost double what most of us do and she only has 2 kids in her care but she drove the average way up. Just make sure if you do change your rates that they are not way over most of the providers in the area.
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Old 06-08-2011, 12:31 PM
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Originally Posted by lil angels View Post
I would be careful if the providers in your area are charging what you are then it will be hard to fill the spots if you are the only one charging that higher rate. Our averages came out to and I too saw the rates are more than I charge but there is someone that is near by that is charging almost double what most of us do and she only has 2 kids in her care but she drove the average way up. Just make sure if you do change your rates that they are not way over most of the providers in the area.
I disagree. I charge two times what my neighbor two houses over charges. She opened 3 years before me. I have three kids on a waiting list. She has been advertising since September 2010 to fill her 4 open spaces.

I base my rates off of what I feel works for me. I pay no attention to what other area providers charge. I understand that it is a competitive business but I like to attract clients who search for child care based on quality not cost.
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Old 06-08-2011, 12:33 PM
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Black cat ....Nice
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Old 06-08-2011, 01:24 PM
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I base my rates off of my expenses and product and then go from there. I dont charge so that I compete with others. i dont offer the same things they do and vice versa. Its like comparing apples to oranges....

If you have a better quality product and sell it that way, then thats what you do. If you don't offer a better quality prodcut than your competition, then it's not fair to charge what they are charging.

Base it off of what you offer, what your expenses will be. Take into consideration the cost of living too....

this is how I do it.
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Old 06-08-2011, 04:32 PM
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I base my rates off of my expenses and product and then go from there. I dont charge so that I compete with others. i dont offer the same things they do and vice versa. Its like comparing apples to oranges....

If you have a better quality product and sell it that way, then thats what you do. If you don't offer a better quality prodcut than your competition, then it's not fair to charge what they are charging.

Base it off of what you offer, what your expenses will be. Take into consideration the cost of living too....

this is how I do it.
My cost of living is by far higher compared to the other side of town. I base my rate where I'm comfortable. Usually right between what centers are charging and what the typical sahm is charging.

My FT rate 3 years ago was $125 a week, today it's $165. I have built up a clientele, I have furthered my education, I have expanded and implemented many more activities and toys so I feel my rate is where it should be.

I have another provider a block away (unregistered and runs a ton of kids) that charges $185 and a center right behind me that charges to the tune of $225 a week! WOWZA!
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Old 06-08-2011, 05:13 PM
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Quote:
Originally Posted by wdmmom View Post
My cost of living is by far higher compared to the other side of town. I base my rate where I'm comfortable. Usually right between what centers are charging and what the typical sahm is charging.

My FT rate 3 years ago was $125 a week, today it's $165. I have built up a clientele, I have furthered my education, I have expanded and implemented many more activities and toys so I feel my rate is where it should be.

I have another provider a block away (unregistered and runs a ton of kids) that charges $185 and a center right behind me that charges to the tune of $225 a week! WOWZA!
These rates are pretty similar here in Iowa as well.
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Old 06-08-2011, 05:16 PM
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Quote:
Originally Posted by wdmmom View Post
My cost of living is by far higher compared to the other side of town. I base my rate where I'm comfortable. Usually right between what centers are charging and what the typical sahm is charging.

My FT rate 3 years ago was $125 a week, today it's $165. I have built up a clientele, I have furthered my education, I have expanded and implemented many more activities and toys so I feel my rate is where it should be.

I have another provider a block away (unregistered and runs a ton of kids) that charges $185 and a center right behind me that charges to the tune of $225 a week! WOWZA!
It's how you sell your program too. like the lady that has no LIC and charges 185 she sounds like a good sales person.

Here in CA SF area I charge 250 a week. Centers are about 350-400 weekly depending what part of the bay area and where you send them. Private vs public.
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Old 06-09-2011, 10:57 AM
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Umm, I think I would keep the people I have at the same rate until next school year and then give notice of the change. And anyone you interview or take on from now on should be at the new higher price.
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Old 06-09-2011, 01:34 PM
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I disagree. I charge two times what my neighbor two houses over charges. She opened 3 years before me. I have three kids on a waiting list. She has been advertising since September 2010 to fill her 4 open spaces.

I base my rates off of what I feel works for me. I pay no attention to what other area providers charge. I understand that it is a competitive business but I like to attract clients who search for child care based on quality not cost.
I do the same here. I try not to worry about what others are charging. I am full and have a waiting list as well. I charge a little higher than average.
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