What Are Your Going Rates and Where Do You Live?

[professionalmom]

I think the catch word would be to "conspire" to set prices. That would need to be the intent.

Exactly! I looked through the website that Tom Copeland posted. It only mentioned "agreement".

"Price fixing occurs when two or more sellers agree that they will increase prices a certain amount, or that they won't sell below a certain price."

If 2 or more providers sit down and make an "agreement" to set their prices at a certain level, then it's price fixing. However, the question that the OP posted had nothing to do with making any agreements. The OP was just inquiring so she could have a better understanding of the "going rate" or "fair market value" of this type of service. That is NOT price fixing. It's called "market research". Whenever anyone starts a business, but is unaware of the current market value for those goods or services, the owner needs to do research to find out what is considered "fair" in that area. For example, my research told me that home daycare providers in my area charge $105-$150 per week for full time care for 1 child. Since I was considering charging $130 a week, I knew that I was on the right track and was not outside the "fair market value".

I just love how people twist the law and take it out of context. So I posted my rates. Anyone want to take me to court over it? I am very confident that I would prevail.

However, I will apologize to Tom Copeland. I did make a comment that was not fair to him. Someone (not him) posted that Mr. Copeland claims that any discussion of pricing between providers is illegal. Without questioning him myself, I claimed that he didn't know what he was talking about. I think his opinion or thoughts may have been misquoted or misunderstood. Then I jumped on that. Tom, I am sorry for assuming that you were under the belief that "market research" such as this is illegal. However, if you do interpret the law as saying that this is illegal (when someone is just inquiring but not making any agreements), then I would have to respectfully disagree. Next time, I will try to make sure I do not develop an opinion of one person based on the hearsay of another.

[Michael]

Well I hope Tom visits this forum more often. He has written several books and is considered a child care business specialist. http://www.redleafpress.org/contribu...ContribID=2064

[nannyde]

I live just outside Des Moines in Altoona. This is just my most recent location in Iowa, though. I really need to stop moving.

Wonderful. We live close to each other so don't call and ask me my price cuz you KNOW I can't tell ya.

By the way... you are getting a good rate for your area. I have friends that live in Altoona that aren't pulling that off and they have many years in the business.

We are not required to be registered for another three years. After that everyone will have to be licensed.

I don't know why you aren't registered but the food program is a really nice little check every month and the work isn't too bad. It's really worth it. Our Food Program peeps are pretty cool.

[fctjc1979]

Wonderful. We live close to each other so don't call and ask me my price cuz you KNOW I can't tell ya.

By the way... you are getting a good rate for your area. I have friends that live in Altoona that aren't pulling that off and they have many years in the business.

We are not required to be registered for another three years. After that everyone will have to be licensed.

I don't know why you aren't registered but the food program is a really nice little check every month and the work isn't too bad. It's really worth it. Our Food Program peeps are pretty cool.

To be honest, it wasn't really my intention to become a daycare provider. I kind of fell into it by helping some people out and it just kind of grew from there. I kind of "woke up" one day and went, "hey, I'm a daycare provider". The last time I looked at licensing requirements (and that was a while ago), they said that you have to have at least two exits out of your home. And to be registered, you had to sign that you and your house comply with all requirements (although you won't actually be checked out until you apply to be licensed). My house only has one door. I know I could sign off to be registered but I think that would be dishonest. Anyway, right at the moment I only have three sisters on Wednesdays (since I terminated my problem family) so I'm not getting payed much, but that's ok.

[MrsCoffee]

I charge a daily rate of $25/day. It's been the same since I opened my doors about 6 years ago. I live in Michigan. I'm not sure what other Michiganders charge, but I do know that if you check Craig's List, there are people who are WAY cheaper than I am!

Where are you from in Michigan Janet?

[momma2girls]

I live just outside Des Moines in Altoona. This is just my most recent location in Iowa, though. I really need to stop moving.

Awesome we go to Adventureland at least once a yr.!! HA!!

[MrsCoffee]

Rates

I am in South East Michigan

I charge
$150.00 week for infant up to 18 months
$125.00 week for 18 months and up
$100.00 week for 1/2 day after school care
$50.00 week for after school care 3:00-5:45pm

$30.00 part time drop ins

The other daycare's in my area range 2 and up $100.00 - $150.00
For infants its outrageous $125.00 - $250.00
Weekly

[MrsCoffee]

Its crazy that licensed daycare's would charge less then that Janet! I did see that on there but I tell my families to check around and remember you will get what you pay for!! Haven't had any complaints. I have three families I care for that came from centers and love the care the children get here in comparisson. They also tell me I am very cheep compared to a center. I just figured thats a given.

I think the only way I am under is with infants. They do require a lot more attention and limit our activities since its just me, 2 infants and 2 toddlers make going on a walk a bit challenging. I also have a kindergartner 1/2 and my dd who is 4.

[nannyde]

Awesome we go to Adventureland at least once a yr.!! HA!!

The people that own Adventureland were my very first nanny family. AWESOME family. Loved them SO much. Hardest workers and the best parents a kid could ever ask for.

Amazing experience.

[TomCopeland]

I had a book by Tom Copeland that actually says to call daycare's and say that you are looking for daycare to get their rates ::. It was pretty old so maybe it was an old printing, I wish I still had that book so I could scan it and post it. This isn't the first time that I've heard of him saying this.

But when I did my orientation for licensing and when I took a workshop "The Business of Daycare" and the question was asked about what we should charge both licensing and the speakers (one was from licensing and the other was a tax consultant that specializes in daycares and centers) they both recommended calling daycare's in the area and asking what their rates were.

I want to know because I don't want to charge too little or too much for my service when compared to others of the similar kind.

My book Family Child Care Marketing Guide is still in print (www.nafcc.org). It's illegal for competitors to discuss rates, but sharing rates on this forum is okay because you don't compete with someone from another state.

[TomCopeland]

If that's the case, then it's fine here, right? After all, this forum is public, and none of us are from the same areas, so we're not competitors.

True. Share your rates to your heart's content here.

[TomCopeland]

Whew! Good thing there aren't just two of us sitting down in a "private room" then!::

Whatever....

Every week I can look at the grocery flyers and see that THREE different stores all have Pillsbury Crescent Rolls on sale for one dollar. But, oh, no, they're not price fixing. They must just have strong mental telepathy skills to know what the competition is selling rolls for that week.

I would like to see them try to enforce that law with daycare providers.

Don't you just LOVE government?

Whether you discuss rates in a private room or at a training meeting, it's still illegal . Grocery stores, like many other businesses, constantly send their people to their competitor's stores to see what they are charging. Since the posting of prices in a store is public information, anyone can see it, and therefore it's okay to do. We did have a case here in Minnesota many years ago where the state attorney general's office investigated a complaint made by someone who attended a family child care association meeting where rates were discussed. The lawyer told the association they must sign a letter saying they would not do this again or there would be a fine of $10,000. I've not heard of price fixing violations being enforced other than this one case. In general, I think providers should be most careful about violating price fixing rules when they are at association meetings or other public conferences, etc..

[TomCopeland]

Tom Copeland here - Federal anti-trust laws (for more info: www.justice.gov/atr/public/div_stats/1638.htm) say that it's illegal for competitors to discuss rates
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Inquiring about rates is not the same comptetitors discussing rates. If someone who wants to start a childcare business, that never had children in childcare how is that person supposed to know what is a "fair" price? My children were never in childcare and I had no idea what people were charging. I called other providers, acting like a parent needing childcare and asked their rates. I've had people call me "acting" as a parent to find out my rates. I don't see anything wrong with it.

You are correct. It's price fixing only when both parties know they are competitors. So, if you call another provider and ask what her rates are, and the other provider doesn't know that you are a provider, then it's not price fixing.

[TomCopeland]

I think the catch word would be to "conspire" to set prices. That would need to be the intent.

Nope, there doesn't have to be intent. Any discussion of rates by competitors who know that each other are competitors is price fixing.

[melskids]

tom...

i still want to now how you found out someone mentioned your name on here...