For Kicks!! What Do You Charge?

[shelby]

I am an unlicensed home daycare.. and my rates are 100 a week. Daycares in our area are charging 175 a week... which for our area is the avg.

[MyAngels]

Hi MyAngels, in the blog entry you posted, Tom is talking about discussing rates at association meetings and between association members - not individuals. Not all US providers are part of an association - so your information that discussing rates between providers is illegal.
Also, even if it were illegal - pretending to be an interested parent and wasting a provider's precious time like that is by far morally worse!

What is illegal about my information?

If you just read a little further down in the article you'll see this (the bold is mine): "It's illegal for competitors to discuss rates. Federal antitrust laws are designed to encourage competition and discourage competitors from setting prices higher than they would be otherwise. To discuss rates with another child care provider or center is considered price fixing and is against the law."

The laws are obviously different in Canada, but here in the US, if you are a competitor of another provider you are not allowed to ask about rates if you identify yourself as a provider.

I do agree that contacting other providers pretending to be a parent is deceptive, even wrong, but the reason that providers do it is because it's illegal to get the information by asking straight out.

I personally have never misrepresented myself to get rates. If I need information on rates I contact my CCRRN and they can give me the low, high and average for my area.

[littlemissmuffet]

What is illegal about my information?

If you just read a little further down in the article you'll see this (the bold is mine): "It's illegal for competitors to discuss rates. Federal antitrust laws are designed to encourage competition and discourage competitors from setting prices higher than they would be otherwise. To discuss rates with another child care provider or center is considered price fixing and is against the law."

The laws are obviously different in Canada, but here in the US, if you are a competitor of another provider you are not allowed to ask about rates if you identify yourself as a provider.

I do agree that contacting other providers pretending to be a parent is deceptive, even wrong, but the reason that providers do it is because it's illegal to get the information by asking straight out.

I personally have never misrepresented myself to get rates. If I need information on rates I contact my CCRRN and they can give me the low, high and average for my area.

Sorry, that should have read "so your information that discussing rates between providers BEING illegal IS false."

I read the entire blog entry and I just don't see how it applies to individual competing providers/small businesses and I actually don't think it does. One definition of "Federal Antitrust Laws" I found was: The United States Antitrust laws were put in place by federal and state governments to regulate corporations. They keep companies from becoming too large and fixing prices, and also encourage competition so that consumers can receive quality products at reasonable prices. These laws give businesses an equal opportunity to compete for market share. Preventing monopolies ensures that consumer demand is met in a fair and balanced way. There are four sections that the laws focus on including agreements between competitors, contracts between buyers and sellers, mergers and monopolies.

[Blackcat31]

Here are some other threads about discussing rates with other providers

https://www.daycare.com/forum/showthread.php?t=17150

https://www.daycare.com/forum/showthread.php?t=39818

https://www.daycare.com/forum/showthread.php?t=14420

Tom directly addresses the issue in the last thread, post #21


Also who ever asked about Nan's rate schedule/structure, it is also found in the last link (post #7)

[Small Town Provider]

I am in Ontario Canada.

I charge $130/week for fulltime and they can pretty much use all my hours from 7:30-5:30

$90/week for 3 days a week

$35/day for less than 3 days a week

[littlemissmuffet]

Here are some other threads about discussing rates with other providers

https://www.daycare.com/forum/showthread.php?t=17150

https://www.daycare.com/forum/showthread.php?t=39818

https://www.daycare.com/forum/showthread.php?t=14420

Tom directly addresses the issue in the last thread, post #21


Also who ever asked about Nan's rate schedule/structure, it is also found in the last link (post #7)

Thanks, Blackcat!

So it looks like you are indeed correct, MyAngels! I bet there are plenty of providers out there that have no idea about this law!! I for one think it's completely ridiculous and shouldn't apply in our field... but, it is what it is.

Thanks for the info, gals!

[Country Kids]

Yes, we can discuss on here but not amongst ourselves in our own areas (towns).

[kitykids3]

I personally see how giving my rate info to non-competitors is a matter I can't discuss. I have no problem with it, especially, as others have said, each local area is different in their ranges.
I keep my prices low enough for parents to afford but high enough to pay my bills and about average for the city. Not as low as stay at home moms, and although I have a high quality program, I also don't charge the highest either.

FT - under 2 is $215, 2-3 $190 4-5 $170

PT/per hour under 2 is $5.20; 2-3 $4.75 4-5 $4.60

I only do contracted hours between 7am and 6pm. If they go over they pay more. FT is only up to 9.5 hours per day and 47.5 hours per week. If they want more, they pay hourly rate.

Compared to state aid, my full time rates are higher than the state but my hourly is lower. I am thinking next year my PT rate will go up significantly or I'll do a minimum of a half day rate to start weeding out parents that only want to drop off for 2-3 hours at a time.
I do have a 10 hour per week minimum.

[Holiday Park]

I didn't know it was illegal to even discuss rates with another provider. I have a aquantance (alomst like a friend but we dont go out r do stuff together) who I've known 8 years . We both have offered to be each others back up if the need has ever arise , she used to use me as her substitute/assistant , and we occasionally call one another to ask question about daycare related stuff ( including rates) and even just talk or vent like everyone does here on the forum. Can you imagine how nice it is to have a IRL person to discuss things with like some of the topics on the forum? I guess we just both know how to keep friendship&business seperate while being able to talk about both. She's not threatend by me and I'm not threatend by her business.
She's been licensed over 20 yrs and I used her sorta like a mentor and I am license exempt and only keep 2 on most days. I am very strict and have all these rules&policies, and she has never done rules/contracts, and is extremely relaxed about stuff . So much that I've had to (kindly) let her know how I think she should be more strict so parents aren't taking advantage of her. She always has a waiting list and most of her clients work together or know one another personally . I am cery picky about who I take on as a client/dck and it takes me up to 6 months to find the right one when Im looking to fill a spot . We also have sifferent views about some caregiving methods but we have some things in common too . Anyway , what do you all think about the situation where you know some one personally like that? And can discuss things with out any problems.

[Crystal]

I didn't know it was illegal to even discuss rates with another provider. I have a aquantance (alomst like a friend but we dont go out r do stuff together) who I've known 8 years . We both have offered to be each others back up if the need has ever arise , she used to use me as her substitute/assistant , and we occasionally call one another to ask question about daycare related stuff ( including rates) and even just talk or vent like everyone does here on the forum. Can you imagine how nice it is to have a IRL person to discuss things with like some of the topics on the forum? I guess we just both know how to keep friendship&business seperate while being able to talk about both. She's not threatend by me and I'm not threatend by her business.
She's been licensed over 20 yrs and I used her sorta like a mentor and I am license exempt and only keep 2 on most days. I am very strict and have all these rules&policies, and she has never done rules/contracts, and is extremely relaxed about stuff . So much that I've had to (kindly) let her know how I think she should be more strict so parents aren't taking advantage of her. She always has a waiting list and most of her clients work together or know one another personally . I am cery picky about who I take on as a client/dck and it takes me up to 6 months to find the right one when Im looking to fill a spot . We also have sifferent views about some caregiving methods but we have some things in common too . Anyway , what do you all think about the situation where you know some one personally like that? And can discuss things with out any problems.

I have a friend just like that. We have been friends for about 5 years and even go to school together....so we even help each other with homework!!! We will graduate together in May 2013!!! We can talk and be TOTALLY honest about everything and not worry about the other one stabbing the other in the back. We HELP each other with our businesses, even though we have two differing philosphies of ECE and different ways of running our businesses.

So, to answer your question, I think it is AWESOME to have a friend like that.

[tamarab71]

I've called around also and felt uncomfortable doing so. Did get some info. though. As for why providers don't post their rates-In Tom Copeland's books he enourages providers NOT to post their rates but to promote the benefits of their program first. However, as a parent, I want to know rates to see if they fit into my budget. I realize people are willing to pay for high quality but sometimes, especially in this economy, they are forced to settle due to their income. So, I guess it's really up to each provider whether or not to post. When I worked for a large center, we posted rates near the phone to give to callers but we didn't print it in any marketing materials.

[Fruitloops1]

This is straight from my website...


Enrollment Options:

6 weeks – 2 years old
5 Days a week $325
3 day $250
2 days $170

2 years old and up
5 days a week $250
3 days a week $200
2 days a week $150

Before and after school care (includes afternoon snack)
$30 per day

[LK5kids]

I am just starting out again in FCC. I've been out of it for 14 yrs. I used to have a good idea what people were charging. I'm a bit lower than I thought I'd have to be. Rates will go up after a year for present families. If I have openings, say in six months and have a better idea what people pay or other FCC charge it may be higher.
I have had a hard time finding out what people charge too.

Right now my rates are $115.00/wk $125.00/wk up yo one year. I live in a rural lower income area.

[LK5kids]

Not a problem. I filled up in no time, but this my be becausei started at the end of Summer which is a time when parents are very busy looking for daycare right before school starts. I don't think I would ever do it any other way. I am not sure how infants would fit into our group. I enjoy doing circle time, arts and crafts, science experiements, going on nature walks etc. I think our group is too fast moving to have to include infants. I may be wrong. If I took in infants, I would probably only watch infants exclusively so that I can focus on baby stuff like baby signs etc.

I wish I could do this as I LOVE the teaching aspect too. Our public school,provides 1/2 day pre- k 5 days a week and now has begun offering free child care for the remaining part of the day....ouch- takes all kids out of the loop who are that age.

[originalkat]

I charge $525 per month for ages 2-5. I do not take younger children.