Prices::: STRESSING

[coolconfidentme]

I'm not sure what your overhead you are working with. Are you supplying wipes & diapers? If this in your home or do you have a second location? I tend to cook from scratch, it's more time consuming, but cheaper overall. I also take donations of toys/art supplies from a local FB page. I'm sure if you Google it, you will find ideas.

[littlemissmuffet]

My overhead is the household bills and insurance costs. I'm renting, and rented this location specifically with the child care in mind. Perfect location and bright open space.

I advertise on craigslist, FB, the local paper, Care.com, and through LOCATE. I also have a sign in my window and signs on my car.

I was working in a restaurant before and made decent money (more than I'm making now with my current income) but I was totally burnt out. The whole thing was to be able to be with my daughter more and still afford my bills.

How about advertising/leaving business cards/brochures with your local schools. This could bring in SAers (if interested) or siblings of SAers. You could adevrtise in preschools to get PT toddlers. Adeveritse at your local gym, restaraunts, libraries, dentist/doctor offices, corner stores, grocery stores, etc. Always have LOTS of business cards on you - everywhere I go someone inevitably asks me "Do you run a daycare?" I always say "Yes, here's my card, pass it along if you know someone who needs quality care!"

[Little Love Bugs]

Is there a way to set yourself apart from the rest? An extra service for that $40. By extra service I don't mean taking in their wash. I'm thinking of more flexibility with hours, provider holidays, vacation, etc...

I would offer more hours, I open at 5:30 some parents don't really have a choice in chosing who they go to if you are the only one open that early in the morning. I am also open on veterans day and have got several calls for it.

[Blackcat31]

Sounds like it might just be time to re-evaluate what your monthly bills are and try to do whatever you can to eliminate unnecessary spending.

I also was wondering what the high overhead costs are that you mentioned. I guess I don't spend hardly anything on running my child care so I am always curious as to what providers mean when they say high overhead costs.

Infants spots in my area are also in high demand. We are allowed to have 3 max (depending on some variables) but those three spaces ONLY have one full time rate which is much higher than what the full time rate would be for a 2+ yr old.

I don't charge anything but that one rate for infants whether they are full or part time.

That way I am making the most I can for those coveted spots and since there are far more infants than there are spaces available, no one ever complains. Most providers around here do the same.

[Brooksie]

Parents supply diapers, wipes and meals. I am not part of the food program and my daughter has food allergies (Cows milk protein and Soy) and its just too difficult to find a good variety that will please everyone.

I do have flyers that I put up but it seems like every time I put one up, someone takes it down. I always attach my business cards to the bottom so it doesn't need to be removed unless the card are gone and they always disappear the day or so after I put them up.

[Brooksie]

I guess I used the wrong term "overhead". I'm talking about ALL my bills and everything. Monthly cost.

[itlw8]

are you a single parent??? if so your rent is your overhead.

If you are married then then all the family bills are not your overhead. many people just starting out need to take a weekend or evening job to make ends meet. Or the man in the house takes a second job.

Maybe you could offer weekend or evening care. in some areas it is a need that needs to be filled.


If you are single that makes it hard at times. When times are lean I am glad we have dh income also. When times are good I make sure I bank the extra or pay off bills. I do not figure the extra in our budget.

If you are licensed I would sign up on the food program It really can help. They eat what you serve. except you need to serve them milk if over 12 months.

[littlemissmuffet]

I also was wondering what the high overhead costs are that you mentioned. I guess I don't spend hardly anything on running my child care so I am always curious as to what providers mean when they say high overhead costs.

I just wanted to add here how it works for me to give a better understanding of what some provders may consider their "overhead". All of the expenses below are worked into my fee structure in one way or another, and I am the queen of budgeting so I know exactly how many kids I need and how much I need to be charging per month each year to cover both our personal expenses and the expenses if living/operating the daycare. I coupon a fair bit, buy in bulk, request donations, shop at thrift stores, recycle, reuse, etc... but everything does add up!


Rent/mortgage - my husband and I would live in a much smaller (less expensive) home if we didn't need the space to operate a childcare.

Utilities - we would use much less (and thusly pay much less for) electricity, water, heat, etc if we didn't operate a daycare in the home. Also many of the smaller homes in our area (that wouldn't have enough space for daycare) the utilities are included in rent/mortgage. When hubby and I are not home/sleeping we turn the heat off (yes, even in the crazy -30 to -50 cold), unplugged anything not used, turn off all lights, never leave water running, hang clothes to dry in the summer, etc. We do our best to conserve resources and money.

Maintanance/repairs - our home and everything in it gets much more wear and tear with the daycare than it otherwise would.

Insurance - we pay additional insurace to cover the liabilities of operating a home daycare.

Groceries - I cook almost everything from scratch, healthy HEARTY meals, barely any food goes to waste in our home, but of course our bill is still much higher than it would be if we didn't have daycare kids to feed.

Office Supplies - I spend much more in office supplies than I would if we didn't operate a home business; also our larger electronics get more wear and tear as they are used regularily for daycare purposes and thusly need to be replaced more often (camera, printer, laptop, etc).

Kitchen supplies - buying/replacing sippies, cups, plates, utensils, high chairs, boosters, etc

Nap supplies - buying/replacing nap mats, PPs, bedding, pillows, etc

Cleaning supplies/trash bags - cleaning toys and surfaces, cleaning accidents, etc uses more cleaning supplies than an average home not running a childcare.

Taxes - each year I end up owing about $3000 in taxes, which I divide into 12 payments which comes out of my monthly income
- it also costs about $250 for us to get our taxes done by our bookeeper each year (both hubby and I are awful with math)

Bank Fees

Transportation - we don't drive/own a car (which saves us about $10,000 a year), but we do use public transportation to go on field trips - it's free for the kids but it's $5/adult per field trip (so $10 if hubby comes with, which adds up over the year)

Parties and decorations - I make alot of home-made decorations and reuse year after year when possible, but there is still a cost
- we often bake cookies and decorate them during holiday themed parties which comes with a cost
- I bake/decorate cupcakes for the kids having birthdays, even from scratch, this has a cost
- Gifts/goodie bags have a cost

Hygeine - the daycare kids use soap when washing hands and use toilet paper when toileting, which costs
- we all know how many tissues we go through during cold season!
- laundering bibs/sleep linens/wash cloths when needed costs


Furniture - buying/replacing furniture used for daycare

Toys/Books - buying replacing toys/books

Craft supplies - this really adds up for me, despite the fact that I buy everything from the dollar store

Sick Days/Maternity Leave - I give myself 5 paid sick/emergency days per year, however, if I go over that, I lose income so I need to save for those occasions. My mat leave will be two weeks unpaid, where I will lose half my monthly income. I do consider these daycare expenses - because if I was working out of the home I would be entitled to a full 12 month paid maternity leave and more paid sick time.

[littlemissmuffet]

are you a single parent??? if so your rent is your overhead.

If you are married then then all the family bills are not your overhead. many people just starting out need to take a weekend or evening job to make ends meet. Or the man in the house takes a second job.

Maybe you could offer weekend or evening care. in some areas it is a need that needs to be filled.


If you are single that makes it hard at times. When times are lean I am glad we have dh income also. When times are good I make sure I bank the extra or pay off bills. I do not figure the extra in our budget.

If you are licensed I would sign up on the food program It really can help. They eat what you serve. except you need to serve them milk if over 12 months.

That's not true. Where I live, I am married and a large portion of our rent and and half of our monthly bills are considered overhead and we can write them off at tax time. We would live in a smaller/less expensive home and use less utilities if we weren't operating a home business/daycare and they take that into account.

[Country Kids]

I just wanted to add here how it works for me to give a better understanding of what some provders may consider their "overhead". All of the expenses below are worked into my fee structure in one way or another, and I am the queen of budgeting so I know exactly how many kids I need and how much I need to be charging per month each year to cover both our personal expenses and the expenses if living/operating the daycare. I coupon a fair bit, buy in bulk, request donations, shop at thrift stores, recycle, reuse, etc... but everything does add up!


Rent/mortgage - my husband and I would live in a much smaller (less expensive) home if we didn't need the space to operate a childcare.

Utilities - we would use much less (and thusly pay much less for) electricity, water, heat, etc if we didn't operate a daycare in the home. Also many of the smaller homes in our area (that wouldn't have enough space for daycare) the utilities are included in rent/mortgage. When hubby and I are not home/sleeping we turn the heat off (yes, even in the crazy -30 to -50 cold), unplugged anything not used, turn off all lights, never leave water running, hang clothes to dry in the summer, etc. We do our best to conserve resources and money.

Maintanance/repairs - our home and everything in it gets much more wear and tear with the daycare than it otherwise would.

Insurance - we pay additional insurace to cover the liabilities of operating a home daycare.

Groceries - I cook almost everything from scratch, healthy HEARTY meals, barely any food goes to waste in our home, but of course our bill is still much higher than it would be if we didn't have daycare kids to feed.

Office Supplies - I spend much more in office supplies than I would if we didn't operate a home business; also our larger electronics get more wear and tear as they are used regularily for daycare purposes and thusly need to be replaced more often (camera, printer, laptop, etc).

Kitchen supplies - buying/replacing sippies, cups, plates, utensils, high chairs, boosters, etc

Nap supplies - buying/replacing nap mats, PPs, bedding, pillows, etc

Cleaning supplies/trash bags - cleaning toys and surfaces, cleaning accidents, etc uses more cleaning supplies than an average home not running a childcare.

Taxes - each year I end up owing about $3000 in taxes, which I divide into 12 payments which comes out of my monthly income
- it also costs about $250 for us to get our taxes done by our bookeeper each year (both hubby and I are awful with math)

Bank Fees

Transportation - we don't drive/own a car (which saves us about $10,000 a year), but we do use public transportation to go on field trips - it's free for the kids but it's $5/adult per field trip (so $10 if hubby comes with, which adds up over the year)

Parties and decorations - I make alot of home-made decorations and reuse year after year when possible, but there is still a cost
- we often bake cookies and decorate them during holiday themed parties which comes with a cost
- I bake/decorate cupcakes for the kids having birthdays, even from scratch, this has a cost
- Gifts/goodie bags have a cost

Hygeine - the daycare kids use soap when washing hands and use toilet paper when toileting, which costs
- we all know how many tissues we go through during cold season!
- laundering bibs/sleep linens/wash cloths when needed costs


Furniture - buying/replacing furniture used for daycare

Toys/Books - buying replacing toys/books

Craft supplies - this really adds up for me, despite the fact that I buy everything from the dollar store

Sick Days/Maternity Leave - I give myself 5 paid sick/emergency days per year, however, if I go over that, I lose income so I need to save for those occasions. My mat leave will be two weeks unpaid, where I will lose half my monthly income. I do consider these daycare expenses - because if I was working out of the home I would be entitled to a full 12 month paid maternity leave and more paid sick time.

Crafts, copying (from home), paper, are one of my biggest expenses for childcare.

I have found bargins at the Dollar Tree but then others aren't such a deal. I'm going to really start making lists and see what I can get from the Dollar Tree, Michaels, and Wal-Mart for a good price.

[Blackcat31]

I just wanted to add here how it works for me to give a better understanding of what some provders may consider their "overhead". All of the expenses below are worked into my fee structure in one way or another, and I am the queen of budgeting so I know exactly how many kids I need and how much I need to be charging per month each year to cover both our personal expenses and the expenses if living/operating the daycare. I coupon a fair bit, buy in bulk, request donations, shop at thrift stores, recycle, reuse, etc... but everything does add up!


Rent/mortgage - I have a separate house payment from my own home but it is tax deductible so that I think it evens itself out.

Utilities - separate costs for me here too but it is tax deductible and my light bill is never more than $50 per month. My heat is natural gas and fairly inexpensive as well...especially considering that we live in the frozen north.

Maintanance/repairs - our home and everything in it gets much more wear and tear with the daycare than it otherwise would. I'm sure mine does too but I haven't had to repair or fix anything for a while now so that isn't a monthly or yearly cost to me...unless I am forgetting something.

Insurance - we pay additional insurace to cover the liabilities of operating a home daycare. As do I, but again, it isn't really high ($550 per yr)

Groceries - I cook almost everything from scratch, healthy HEARTY meals, barely any food goes to waste in our home, but of course our bill is still much higher than it would be if we didn't have daycare kids to feed.
Our food bill is really inexpensive because I shop in bulk, take advantage of sales and we also cook super healthy as my DH is a diabetic so we know and understand the benefits of eating healthy. I am also on the food program.

Office Supplies - I spend much more in office supplies than I would if we didn't operate a home business; also our larger electronics get more wear and tear as they are used regularily for daycare purposes and thusly need to be replaced more often (camera, printer, laptop, etc).
I use NO electronics for child care other than my lap top (and camera) but that was purchased for my schooling. My camera has been in use for several years now and my printer is used VERY rarely. I do everything via e-mail.

As for office supplies, I don't really buy those very often and when I do, I don't have to replace much as there isn't anything that gets used so much that it is a financial burden.

Kitchen supplies - buying/replacing sippies, cups, plates, utensils, high chairs, boosters, etc I don't use sippy cups but use paper instead and we recycle EVERYTHING. I have the same high chair I did when I opened.

Nap supplies - buying/replacing nap mats, PPs, bedding, pillows, etc
I purchased nap mats years ago and they are still in use. All my blankets have been donations from daycare parents.

Cleaning supplies/trash bags - cleaning toys and surfaces, cleaning accidents, etc uses more cleaning supplies than an average home not running a childcare.
Again, I buy in bulk, and don't buy anythng excessively other than regualr soap and maybe bleach.

Taxes - each year I end up owing about $3000 in taxes, which I divide into 12 payments which comes out of my monthly income
- it also costs about $250 for us to get our taxes done by our bookeeper each year (both hubby and I are awful with math)

This is about the same as us.

Bank Fees I have no bank fees.

Transportation - we don't drive/own a car (which saves us about $10,000 a year), but we do use public transportation to go on field trips - it's free for the kids but it's $5/adult per field trip (so $10 if hubby comes with, which adds up over the year)

We both drive but own our vehicles outright so we have no paymts there. Insurance is cheap as we DON'T transport daycare kids, and are both in an age catergory where we have cheap insurance as well as clean driving records.

Parties and decorations - I make alot of home-made decorations and reuse year after year when possible, but there is still a cost
- we often bake cookies and decorate them during holiday themed parties which comes with a cost
- I bake/decorate cupcakes for the kids having birthdays, even from scratch, this has a cost
- Gifts/goodie bags have a cost

I do NONE of this.

Hygeine - the daycare kids use soap when washing hands and use toilet paper when toileting, which costs
- we all know how many tissues we go through during cold season!
- laundering bibs/sleep linens/wash cloths when needed costs

My DCF's all supply tissue and wet wipes. The rest is minimal for me.

Furniture - buying/replacing furniture used for daycare
I have no furniture in my child care. Just kid size chairs and they have been used since the day I opened. They are high quality and built to last. I have book shelves and toy storage units but again, built to last and high quality.

Toys/Books - buying replacing toys/books

I have actually been down sizing and getting rid of toys. I also get my books for free.

Craft supplies - this really adds up for me, despite the fact that I buy everything from the dollar store

Again, I buy in bulk, my parents donate and we use odd or easily found materials that we already have. Old magazines, books, empty paper towel tubes etc...

Sick Days/Maternity Leave - I give myself 5 paid sick/emergency days per year, however, if I go over that, I lose income so I need to save for those occasions. My mat leave will be two weeks unpaid, where I will lose half my monthly income. I do consider these daycare expenses - because if I was working out of the home I would be entitled to a full 12 month paid maternity leave and more paid sick time.

I have taken one sick day in 17 years. I close for 15 days per year (all paid) and am well beyond the baby making years so maternity leave isn't something I need to worry about or account for.

I added comments in red above. I have a separate home so my overhead should technically be more than most providers I would think.

I am not saying people are doing anything wrong, I am just wondering what it is that OP has that is costing so much.

I get told each year by my accountant that I should spend more on my business but I just can't justify spending more when I can do it efficiently now as it is.

[SquirrellyMama]

What would you suggest?

I would extend your hours if possible. Let people know that you won't raise their rates since you are on the high side anyway. Don't take any paid holidays. Give families a week or two where they don't have to pay if they are on vacation, sick days, appt days, etc...

K

[littlemissmuffet]

Thanks for sharing Blackcat... and yes, I agree, it should technically be much more expensive for you to own two homes (with two sets of bills) than any of us! ::

[Brooksie]

I am a single parent, so it really adds to the stress. And my ex is NOT consistent with his Child Support. I would say I've gotten a check maybe 3 times. I'm going to lower my prices and meet in the middle. Probably going to look for a part time job in the evenings. At this rate my daughter isn't going to have a birthday or Christmas. So I need to do something like, now. Thanks for every ones input. Its nice to know I can get some kind of support on this site

[itlw8]

being a single parent does make a difference.

and my comment stating all the bills are not her overhead if married was not that they are not part of what you deduct at tax time just that if married the mans income pays for a big chunk of that also.


have you applied for any and all assistance you may qualify for ? If your income is low that is an even bigger reason to sign up on the food program. They will reimburse for your childrens food when other children are in care. Also if you have low income you are on the higher paying teir 1

the good thing is little ones just like to open things they do not need expensive gifts. I remeber the year we found a trike at goodwill I stuck a bow on it and it was his favorite gift.

Getting a job in the evening will be hard if you need to pay for childcare so instead offer evening care. How about people you worked with do they need off hours care?