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I just found out that I am WAY over priced for my area. I mean, by like $40 a week. Biggest problem is, if I drop my prices I won't even be able to pay my bills, let alone cost of living. My overhead is just way too high. Now I'm totally devastated. What am I going to do?!
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What would you suggest?Comment
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Reevaluate your overhead & look for cost saving measures. You can also have some of you food expenses reimbursed if you follow/sign up for the Child & Adult Food Care Program. Here's the link: http://www.fns.usda.gov/cnd/care/Homes.htmComment
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Do you have clients in care? If so, they are willing to pay your rate for the service. Are they threatening to leave?Comment
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Are you full?
Does it really matter that you charge more than average?
I used to charge the same as everyone else. Then over the years I kept increasing, and now I'm quite a bit more than the average for my area. I am always full to capacity and have a very large waiting list.
If you are having trouble filling up, then I would consider lowring your prices... because $40 less a week is better than nothing. Can you take another kid (even PT) to make up the difference?
If not, I would start reworking my budget and cutting out anything that wasn't a necessity (it's suprising how much money people don't even realize they spend each month).Comment
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Unless you are having trouble gettng clients and have openings then I wouldn't worry about it.Comment
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I'm not even close to full. I have a waiting list for infants but have only had one call for kids over 2. The head of the child care association said that its really hard to get kids over 2 in this area, and your best bet it to wait until they outgrow the infant spot or are referred by current clients. I currently only have 2 PT infants and then my daughter who will be 2 in Dec and will open up another spot. Right now I'm not even able to pay my bills. I've spent a year and a ton of money opening this day care and now I don't even know if I'll be able to swing it. I'm so distraught.Comment
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It's not just your area - most daycares in my area have endless inquiries for infants (and limited spaces) and not many inquiries for toddlers. Because people are still willing to pay your fee (those on the waiting list) I don't necessarily think that lowering your prices will help you get kiddos who are older - but if you have no other options you can try it out and see (keep current clients at the current prices though) and see if it helps. It might just be that there is a little demand for childcare in your area for the age group you need.
What methods of advertising are you using?Comment
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overhead do you mean what you spend on the childcare or your household bills.
Did you have a job with a big salary before you decided to do childcare. And did you buy an expensive house because you could afford it then?
Starting out if you can make what you were making before MINUS what you paid in childcare and transportation you will break even where you were before.
Are you buying lots of toys and do you really need themIt:
: will waitComment
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Are you advertising? You can advertise on craigslist, donate some books with your daycare info on them to doctors/dentist offices, put your info on bulletin boards. Offer a one time discount to your current families if they refer a family who starts care, mention on your facebook that you have openings, make a facebook daycare page and post lots of photos.Comment
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I hate to say this, but maybe you should lower your rate just to get kids in the door.
$40 less a week per spot is still more then an empty spot.Comment
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I see a few mistakes you made.
1. never spend a ton of money to get started. It is not needed. But you did it so you have to move on.
2. never take infants p/t they are the one opening there is tons of demand for AND they are limited openings.
So you only take f/t infants and they pay a higher rate than your 2 yr olds and up ( or toilet trained and up)
P/t children also pay a higher rate per day and they pay even if they do not come.
When you do take a p/t make them have set days and a minumum 3 days. The only way you do 2 day a week is when they fill in a different 3 day a week p/t child.. AND if the 3 days child leaves they have to pick up a third day or lose their spot to a new child when you get a call.It:: will waitComment
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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.Comment
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I just posted a similar thread this past week and I am pretty much in the same boat. When I used to be full all the time, now I have 2 openings for 2 and up and when I shopped my competitors last week I realized that there are suddenly a TON of large and small daycares in my area and several large professional centers - everyone seems to be competing for the same pool of kids so prices have apparently gone down by $30 a week. (I too easily fill my infant spots) I am only licensed for 8, and can't make it at those prices either because I support a family of six on my daycare income. It is a quandry! So here's what I've come up with so far -
a) Specialize in something or offer something that no one else (or few) do ... i.e. - bilingual curriculum, extended or off hours, extra services, etc.
b) Expand your license (if you are able) to accommodate more kids. You may not be fully enrolled right now, but this business is cyclical. There are certain times of the year when I am literally turning people away and putting them on my waiting list and others when I can't get one call. At some point, you can take more kids at a lower rate and still make what you need.
c) Pick a price point that is not the lowest, nor the highest for your area and make do your best to make it worth what parents will pay for your specific services.
d) Make cuts in your expenses where possible.
e) Look for new places and ways to reach a different group of potential clients.
I really understand what you are going through and I have empathy for you and your situation. If I come up with anything else, I will post!
Hang in there and remember that everything is temporary - including dry spells!
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