Frustrated About Cheap Competition

**Breezy** · 03-12-2012, 09:46 PM

I charge $140 for full time and had the same issues. Parents want to pay $80-$100 for full time care for a qualified provider... I guess you get what you pay for...

**MommyofThree** · 03-13-2012, 04:14 AM

I am so sick of people saying you get what you pay for

I cahrge 130 for onE and for two any where from 150-200.I am fully licensed and I take darn good care of the children. Its not all true.

**SunshineMama** · 03-13-2012, 04:26 AM

Originally posted by melissathayer28

I am so sick of people saying you get what you pay for

I cahrge 130 for onE and for two any where from 150-200.I am fully licensed and I take darn good care of the children. Its not all true.

I think she means the people only charging $70.00 or so for the week. (I wouldnt consider 130 reduculously low depending on your area). No established provider can stay in business, and maintain their ratios for that price. And I guarantee you, there aren't going to be extras like field trips, arts and crafts, etc... Eventually you would get burned out and resentful of the job, working for pennies IMO.

**countrymom** · 03-13-2012, 05:08 AM

we have it here in ontario too. Its crazy, but I don't think the ones that charge really low stay long in the business.

**bunnyslippers** · 03-13-2012, 05:15 AM

I charge 275 per week, and I am always full.

**Breezy** · 03-13-2012, 05:22 AM

Originally posted by melissathayer28

I am so sick of people saying you get what you pay for

I cahrge 130 for onE and for two any where from 150-200.I am fully licensed and I take darn good care of the children. Its not all true.

I charge $140 per week so I didn't mean you get what you pay for in that sense. I meant the parents that say they can only afford $80 per week for 2 kids full time hours Monday-friday. There is no way that a provider could profit at all at that rate so the food would be cheap, the ratios would be high. Maybe not in all cases but most of the ads I see around here for $80 give me that feeling.

**cheerfuldom** · 03-13-2012, 05:51 AM

almost all of the cheap ads here are for very poor care or very new providers. they post shocking pictures (a huge empty room with a giant TV in it, or filthy kids half dressed). I dont consider the cheap ones my competition since we offer very different things but I do understand the frustration. I charge $140 and have seen as low as $80 a week

**MrsB** · 03-13-2012, 06:31 AM

It is aweful isn't it! I have been licensed in 4 states and it happens in every where I have been.

It has taken me many years to get it down, and I know it is really difficult for people to do, especially in this day and age the way the economy has been. But I have an emergency daycare fund and plan. There is a budget for when I am at capacity and a budget when I am under capacity. When I am under capacity I can dip into my emergency daycare fund, but I make sure I stick to my undercapicity budget. When I am at capacity I stick to my at capacity budget and anything over goes into my emergency fund. As with any business there are feasts and famens and although it is difficult, try and create provisions so you can ride it out. If you can ride it.

Don't undercut yourself. I see no way that these providers can do it for those prices long term. I have seen alot of them come and go. Most of the time they get burnt out and have to close because it just isn't possible or they get full enrollment and then have major rate increases.

One of my newer DCF said that their previous provider raised their rates 3 times in one year, totalling $60 in increases per week.

Here is a few things that I know have helped me.

-Revamp your CL ad, make sure your stands out from the rest, include pictures of your set up.
-I dont ever put my prices in my ads. Since I have contracted hours their rate is specialized for their needs. Plus I am a really great talker!

So, if I can get them to talk to me on the phone, the $140 seems like a fair price!
-Have a website...include lots of pictures of your outings and fun times. I also have gotten lots of compliments that I put my handbook on the website. Shows that I am an open book and I am very upfront about my expectations and confident in my program.
- Include in your ad that you have references. I have a book of letters from past and current DCFs that I share with potential families. (Its all nice and pretty with graphics, done like a scrapbook) It is a big hit! After I share that I have a list always on hand of phone numbers that they can call as references too. But the scrapbook almost always does the trick.

If you can get them into your door for a tour, then you can prove to them why your program is so much better than those that are so cheap. So focus your efforts on how to do that.

Plus I try and remind myself, if a family is going to go with them straight away because they are so cheap without going through the proper interview process, you probably dont want them as a client anyway.

Wishing you the best of luck!happyfacehappyface

**DCBlessings27** · 03-13-2012, 06:41 AM

Is $140/week on par with others in your area that offer quality care? Most providers in my area charge $125/week. One down the road charges 120. I charge 130, which is only $5 more than my competitors. I am full and will have to turn away a family once one of my 2 pregnant moms has her baby. I'll get 150/week for the infant, which is what others in my area charge.

We had a recent ad on CL for $15/day. That's a lot lower than the normal rates around here. In my area, it does definitely depend on the part of town.

If you can find others in your area for 140, then I would keep your prices the same and possibly start building a waiting list for your next opening.

**sharlan** · 03-13-2012, 07:23 AM

Even other providers that I know have been in business for a very long time are having trouble filling spots. Everyone I have talked to has cut their rates from $150 - $175 down to $100 - $125.

Neighbors across the street had 8 at Christmas, now they have 3.

The economy is bad in this area and a lot of women lost or quit their jobs to do daycare. They're finding out that it's not the quick, easy money that it used to be.

**jenny31052** · 03-13-2012, 10:14 PM

When I was advertising for $140/week, I only had 2 kids for 6+ months. Did lots of interviews but once we talked about fees you could see the change in their faces. So I got to the point where it was either quitting doing daycare or lower the prices to fill those spots.

Average in my area is 120 for family child care or 200+ at centers. There are improvised "providers" on cl advertising for as less as $70/week. There are many of these proplein my neighborhood.

I know that my program is worth more than what I'm asking. But I either try to fill these spots somehow, or just quit...

**MrsB** · 03-14-2012, 03:39 AM

Originally posted by jenny31052

When I was advertising for $140/week, I only had 2 kids for 6+ months. Did lots of interviews but once we talked about fees you could see the change in their faces. So I got to the point where it was either quitting doing daycare or lower the prices to fill those spots.

Average in my area is 120 for family child care or 200+ at centers. There are improvised "providers" on cl advertising for as less as $70/week. There are many of these proplein my neighborhood.

I know that my program is worth more than what I'm asking. But I either try to fill these spots somehow, or just quit...

I am so sorry, you are feeling down about it. It can be difficult, I know. Some areas across the US were hit harder than others by the down turn in the economy.

Some just still haven't recovered.

I think I get what your saying about so many providers with crazy low rates. Eventhough they may not stay in business long, there are 3 more that pop up for every one that goes out of business.

Maybe in your ad you could offer Monthly discounts? Like half price off your third week of care, if contract is signed by March 30th. or Offer a significant referral discount to one of your current families.

Hmmmmm... just playing devils advocate. Maybe you need to drop the price a little to coincide more with what the average is in your area, until you have a full crew and are a little more established. Then increase your rates for new enrollees?

**mac60** · 03-14-2012, 04:56 AM

Rates here for home daycares average $80 to $90 per week. I charge $85 on current ft families, going up to $90 on any new ones. We are one of the lowest daycare paying areas of the country. And my rate does not reflect the type of care the children receive, it just reflects the daycare rates in our area and staying in business.

**Greenplasticwateringcans** · 03-14-2012, 07:26 AM

Originally posted by mac60

Rates here for home daycares average $80 to $90 per week. I charge $85 on current ft families, going up to $90 on any new ones. We are one of the lowest daycare paying areas of the country. And my rate does not reflect the type of care the children receive, it just reflects the daycare rates in our area and staying in business.

I charge $35/day which is the going rate in my area for quality care. If some one was charging $20/day I would say "you get what you pay for" which would absolutely be a low quality program/care for this area. I have no idea what it would be for other areas so I tend not to comment on prices.

Frustrated About Cheap Competition

Frustrated About Cheap Competition

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