What Are Your Going Rates and Where Do You Live?

[TomCopeland]

Price fixing?

First, if anyone tells you that something is legal or illegal, always ask them to show you the law regarding that. Second, Mr. Copeland is full of it on this issue, especially in Michigan. I live in Michigan, too. I called DHS to inquire about the rates in my area to ensure that I was charging a fair rate. They sent me a list of the daycares in my zip code and what their rates were. The rates were even broken down by age group, PT/FT, etc. So, I know it is NOT illegal in MI to inquire about the rates of other daycares.

Plus, if it's price fixing, what about gas stations posting their prices on those great big signs? What about stores like Wal-Mart that scope out the prices of other stores to try to offer the most competetive prices? It's part of doing business in any industry. It's only price fixing if all the providers in your area got together and said, "hey, we want to charge $200 a week for all full-time kids, so let's all raise our rates together. Then the parents won't have a choice."

I charge $130 for FT (35-50 hours) and $3.50 an hour for part time. But I am rethinking this to account for longer days, second shifts, etc.

I don't think I'm full of it! It's legal to get rate information from a public source (DHS). They aren't a competitor. It's also legal to post your own rates publicly. Just like gas stations do. Price fixing is when competitors share information privately with each other. So, it is illegal for providers to get into a room and discuss their rates. It's also illegal for one provider to talk to one other provider privately about their rates. Sharing rates with the public - ok. Collecting rates that is publicly available - ok.