Considering a Rate Drop to Get My Spots Filled

[beachgrl]

Hello all, my current rates are $30 day drop in (had thought about raising this to $40 but want to stay within what local rates are) $85 part time $140 full time. I was thinking of dropping my full time rates to $125 and possibly the pt rate too as an incentive to get kids started coming and to fill my spots. I would rather have my spots filled at a lower rate than not at all. I am having a hard time getting business and the two I have now are basically functioning on a pt to ft (mostly ft) basis but bc I am not full, they are doing drop in and I would rather everyone be paying a regular weekly amount if their children are coming on a regular basis if that makes sense.

Have any of you done this to fill spots, how did it work for you, and would you recommend this as a way to get started with a new family child care home?

[morgan24]

I spent the last year with just one dck. Then dcm had a baby so I thought that I would have 2 at the start of the school year and she lost her job. Before the economy took a dive I only had full time and charged a salary rate and was paid regardless of attendance. Now after no calls for almost a year I had to change the way I have always done things. I now charge hourly and take part time. I even picked up a couple of school age kids, only because I have their siblings during the day. Even though I'm a very established daycare I made the changes to get kids.

I would check what other providers are getting in your area. I know all the providers in my area and can check their rates at the resource and referral for our area. Even though we aren't suppose to talk about rates because that is price fixing we do. None of us want to under cut each other.

[mom2many]

I had raised my rates a few years ago when the economy was going strong, but then a year and half ago, I lowered it back to what it had been. There are still providers getting that higher rate, but I wanted to make myself more competitive.

I would find out what the average is in your area. I don't think it's good to price yourself too low. Hopefully things will improve for you soon!

[beachgrl]

Yah, I know one who charges 180, and others $130 but there are a few in the $125 range. I don't want to be the cheapest, but I don't want people not to use me because they feel it's too much, especially since I am in a rural area. I will think on it because I have an interview for a part timer next week and I should have a full timer starting the last week of sept so I can probably make the others have to choose a ft or pt spot with getting other kids in so they won't have to worry about not having the space when needed as they both used me 2-4 days a week most of the time its 3-4.

[mom2many]

It's always tricky finding the right rate during these tough economic times. I have never lowered mine until recently...but when the economy took a turn and my area was inundated with providers, I wanted to make sure I was able to fill my spots.

Best of Luck to you!