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We recently got our license and it took longer than expected. We are now in a tight spot and have a lot of bills going out at the beginning of the month. We are a 24/7 facility and are licensed for 60. I have TWO kids. My prices are 135/70 for infant & toddler care, 125/60 for preschool, and 110/50 for school age I am wanting to lower this to 105/60 for infant,toddlers, and twos and 100/50 for pre school and school age. I have to get people in the door. I am just uncertain on what to post about our price drop... I was thinking something along the lines of Due to the economical decline in our society our board has decided to lower the prices of our weekly tuition. The prices are as follows etc. IDK I just don't want to sound desperate... even though we are. Help Please! Any advise would be appreciated.
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How long have you been open? What are the average prices in your area? Are there a lot of home daycares/centers? -
We have not been open for longer than a week, there is only one other daycare in our town and it is small and charges the same rates as us. There are no home daycare, quite a few people that illegally take care of children though. We offer 24.7 care, nutritious meals, good curriculum etc. I just need something to draw them and I think a price drop may be it.Comment
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Some times a price drop has exactly the opposite effect as possible clients think that you don't value what you do. If I were looking for daycare and saw one place charged significantly less than most I would be inclined to think there was something wrong with the place.
You may also find that you're limiting yourself doing 24/7 care. People tend to believe providers that do this are desperate and will be quickly overworked by this job. I'm not saying its true just that its perception. I once did 24/7 and actually made more once I switched to just 1st shift because a lot of 2nd shift clients arrive between noon and two thus taking a 1st shift slot.
This also tends to be the slow time of year for enrollment as people are busy and it runs through the holidays. The best times here (and if I remember right from a post on here a while back) are the end of the scho year and the end of summer.
It usually takes a home provider months even a year to fill their 6-8 spots so having 2 spots filled in a week actually puts you ahead of the norm.
Obviously things may be different in your area and some of this may not apply because you're a center. Maybe there are others with centers that care to chime in. You will probably get more responses tomorrow as weekends tend to be slow on here.Comment
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You can try something like......join before (enter date) and receive a (%) discount. This way you can raise your prices back up when needed. You can also extend this special if needed. It creates a sense of urgency to sign with you also.Comment
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Our town has about 70 % of its employment in factories that have shift work, which is why we decided to do 24/7 care. I thought it was going to be something needed since we are a huge factory town. I already tried something along the lines of this date through this date for the first fifteen kids we would offer a special rate and only got a call for three kids age preschool all siblings and part time. But that's it. I thought maybe it was my rates because I recieve between three and six phone calls or messages asking rates a day and then I tell them and dont hear anything else from them. I think a lot of people are struggling.Comment
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How are you advertising? Have you tried an open house or an event to try and draw parents to come check you out? You will basically be doing an interview of sorts on the spot.
There is nothing wrong with dropping rates and getting some people started.Comment
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I agree that dropping the price might do the opposite of what you want.
You want to draw people in with better advertising. Sell yourself! There will always be parents out there who will pay for good childcare. You just need to show them that you offer it.
Do you have a website or a facebook page? If you'd like any feedback on those, send me a message. I used to do some website design and content writing in a previous job. I would definitely be glad to give you some advice and feedback.
Also--did you turn down the part-time clients? Maybe you could reconsider taking part-time kids. In a poor economy, a lot of people aren't working full-time so they don't need FT care. Or, if they are working FT, they are saving money on childcare by having a friend or family member help out.Comment
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I would present it as a grand opening special since you are just opening. I think it's a great way to get people excited about signing up and feeling like they need to do it now while the price is "on sale".
You could either "grandfather" the new clients in at that rate and leave it at that rate for them or just give them X number of weeks at that rate.
You could also offer referral discounts (to both the referal and person who referred - if you want) for a set period of time. I think people are more likely to want to join if they know someone else that speaks highly of your program.
How about your advertising? I would beef that up before I think about permanently dropping prices.
Good luck! I hope you get flooded with potiental clients and then you have the opportunity to turn down business.
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I agree with pp's, I would not drop the price, but maybe do some kind of special or something. I was also going to say that I think that this time of year is a time of slow enrollment. There are quite a few of us on here that are struggling to fill spots. I have had an opening for 2 1/2 months now. The best time of year that I had to fill spots was in March. I opened my fcc in Jan and only had one child in Feb. and then by the end of March I was full with what I wanted.
You just opened, give it some time and like others said, sell yourself when you advertise!Comment
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What about doing one week free (to be given on the third week of attendance?)Comment
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I am a business coach for daycares. We deal with this often in smaller towns and with brand new centers. We advise clients to:
Advertise for every free site available online, local community flyer and local schools.
Host open houses to get people in.
Offer a discounted rate on the first month of care (if the budget and cash flow projection allow).
A discount for every referral parents bring in.
Start a FB page and update it often.
Be sure you have a website and work to get it on the first page of Google.
Put decals on your vehicle.
Hand out business cards to every parent you see with a child, no matter where you are.
Capitalize on something you may offer that the other child care places don't. If you can't think of anything, create something unique to your program that isn't costly.Comment
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Thank you all for the good advise. We have decided to not lower our prices but offer a special for the first 15 children who enroll between now and November 1st. I hope all goes well and yes we are taking in the part time children, we cant afford to turn any business away. I hope all goes well I will keep everyone update.
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Pass out business cards at Halloween! I also have business cards in any local 5K runner's bag. If you see a local race, ask how you can add to their bag. Send letters with business cards to the HR dept with business cards. Tell them in a round about way you can help with shift employees with attendance problems.Thank you all for the good advise. We have decided to not lower our prices but offer a special for the first 15 children who enroll between now and November 1st. I hope all goes well and yes we are taking in the part time children, we cant afford to turn any business away. I hope all goes well I will keep everyone update.Comment
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