Lowering Rates? Should I?

[mysonsmom1]

I have been in business for almost a year as a licensed daycare home. I have had 3 families that remained with me since I started providing care.

I’ve been considering lower my rates because there are so many unlisted, un licensed individuals providing care in their homes for $85 a week. A local daycare center now has a rate of $85 per week. I’ve lost two potential clients because of my weekly rate of $140.00. They found other providers. I had one parent tell me that "she would never pay a home provider that much."

Even though most of the centers in the area are charging $180 to $190 per toddler and $212 - $225 per infant. Parents still want what they consider a barging. There is an un licensed unlisted provider who markets in the same areas that I do with almost the same name of my daycare and she is really cheap.

Ive considered lowering my rate to $125 per week which I can live with. Yet, I will not be able to hire an assistant unless I recruit ten children. With an assistant 10 children is too many for me. I limit my number to 7. Ive been running a special for toddlers at $100 per week for 6 months then up to $125. Im afraid that once I lower my rates, its going to be hard to get back to $140.

I am a single mom I know what income I need to bring in to keep the household/buisiness running.

[Willow]

I wouldn't compare your rates to other unlicensed home's or centers.

Do you have an idea what other licensed homes are charging?

If you do, from there you can evaluate how you compare based on what you have to offer.


I don't think there is anything wrong with lowering your rates to be competitive and boost your business, as long as you're being competitive with your actual market.

[Nickel]

I actually lowered my rates because I couldn't get families. And some income was better than no income. One family I feel resentful because I lowered my rates TOO much (along with some perks). I am making a decent income finally, but I sort of wish for that extra income (I lowered my rate by $25/week per child). That accounts for almost $100/week for me that I could use to buy food and supplies for the daycare. I am thinking of upping my rates in January, but haven't decided yet. I feel like I haven't made any income yet though as each "paycheck" goes back into the daycare for supplies, food, etc... You could put an ad out on craigslist with the new rate but not your personal information and see if you get any bites. That's what I did and I got a better response at the lower rate, so I stuck with it. I wouldn't lower too much though. jmo

[mysonsmom1]

I wouldn't compare your rates to other unlicensed home's or centers.

Do you have an idea what other licensed homes are charging?

If you do, from there you can evaluate how you compare based on what you have to offer.


I don't think there is anything wrong with lowering your rates to be competitive and boost your business, as long as you're being competitive with your actual market.

Ive priced other licensed homes in the area and the lowest was $125 the highest was $190 both regardless of age. Some were hard to find because they either dont have a web site or post their prices on their site

[mysonsmom1]

Thanks for the input.. I know exactly where youre coming from.. It was a slow summer so it was nice getting my parents back from vacations. It was so gradual that I appreciated when the income started coming in again.