So this is What I Am Fighting

[Thriftylady]

I had a Facebook contact for care for the summer and for mornings before school to put kiddos on bus.

They need care from 6 AM until the bus picks up here at 8:30. 3 School age kids. So I quoted $40 per week. I didn't think that was to crazy for three kids.

So this summer they need care from 6 AM to 2 PM for the same three SA kids. I quoted $175 a week for that (after a discount because I really need kids).

I got this response:

"Sorry to pricey for my budget thanks".

This is a day after mind you DCM of a 13 month old was scheduled from 1PM to 7 PM left over my rate of $70 a week and found someone who would do it for $30 a week. Granted she didn't always need until 7PM, but it could be that late so I contracted for those hours.

So am I really charging to much????? Should I be lowering my rates dramatically?

[Thriftylady]

Oh and her PM to me said "one of them is a handful he has ADHD, but is really sweet".

[Unregistered]

175 for 3 kids for 8 hours is too much? the daycares in your area must be really cheap. In my area she would pay atlas $125 a week per child

[Thriftylady]

175 for 3 kids for 8 hours is too much? the daycares in your area must be really cheap. In my area she would pay atlas $125 a week per child

See I know a lot of providers in the area are charging $20 per day (one child). So I think I have my rates set to low, but I am trying so hard to get families. But I keep having people tell me I charge to much. Oh and the 6 AM-2PM was five days a week.

[daycare]

it sounds like it might be time to do some leg work. I would start getting some prices from your county to see what the going rate is.

I would also maybe consider a new family promo

Also, I would do an online search for care cost in your area to see what others are charging..

Stinks when you have to lower your rates...

[nothingwithoutjoy]

!!!!!! That's insane!

[Thriftylady]

it sounds like it might be time to do some leg work. I would start getting some prices from your county to see what the going rate is.

I would also maybe consider a new family promo

Also, I would do an online search for care cost in your area to see what others are charging..

Stinks when you have to lower your rates...

Well like I said above many providers are charging $20 a day, so $100 a week per child here, I have asked around of some. I am trying to find again the state tier. But I don't know if I can lower them much more and still provide the quality of care and nutrition I am trying to offer. I mean my one girl, full time I am not willing to go down to $30 a week for a full time kiddo I can't afford to. And this mom with the three kids, what I offered her was less than $60 a week. I am not sure it is even possible to go any lower and still offer a quality program. I mean I can park them in front of the TV each day, and feed them ramen noodles, but that isn't really child care. I am not sure I want to do child care if I have to lower my standards that much. Off to see if I can find out what the state pays.

[Thriftylady]

So in my county, it looks like the state will pay $61 a week for school age summer care (I was a little below that with this offer). And would have paid $70 for the one I was charging that for. Of course that is a lower rate than private rates, as the state pays a lower rater here it seems. I dunno. I am just not sure I can do it for any less and do it right KWIM?

I guess the thing that gets me, is that these are people's kids, why don't people want quality care?

[AuntTami]

So in my county, it looks like the state will pay $61 a week for school age summer care (I was a little below that with this offer). And would have paid $70 for the one I was charging that for. Of course that is a lower rate than private rates, as the state pays a lower rater here it seems. I dunno. I am just not sure I can do it for any less and do it right KWIM?

I guess the thing that gets me, is that these are people's kids, why don't people want quality care?

Believe it or not, when my rate was $120/week per kid, I had SUCH a hard time finding kids and I kept hearing "it's too expensive".... On a hunch I upped my rate to $135 a week and now I'm beating parents away with sticks AND raising my rate as of June 1st to $140 per week and no more "credits" if their kiddos don't attend. They're paying full week price regardless.

I think once I upped my rate, I attracted the parents that DO care where their children spend their days, but I wasn't TOO overly priced. Typical for my area is $145-$160 for home care and $210-240 at a center, so I was in the right ball park, especially for being unlicensed.

I also offered "one free week" if they signed up by xxx day. That free week was staggered so I didn't lose all my income at once, and it was after AT LEAST 4 full weeks of care/payment.

I also do a $25 credit for referrals but I've never had to give one .

Maybe it's something to look into. Right now you might be scraping the bottom of the barrel as far as potential clients. You're attracting those that don't give a crap if you sit them in front of the TV and feed them ramen and you're priced low enough that the good families that DO care are assuming that your a TV/ramen type program and they don't want their kids in that type of program. Run an ad on Craigslist with a higher rate. What can it hurt if no one responds? But if someone does; you not only have a potential client, but you have one at a HIGHER rate than you originally were charging!

[itlw8]

people that want quality care do not even bother contacting programs with rick bottom prices. Why because either the provider will quit with burn out or they think their child will not get the best care and environment. raise your prices and attract better clients

[Sunchimes]

Wow, I didn't know there was any place cheaper than where I live! I thought we were rock bottom on prices.

I was just going to say what AuntTami said above. I was charging $85 a week for 45 hours, not charging for days off, etc. I had great kids, but the parents were a nightmare. After a year of starving, I raised rates to $100 (center care was $112.) I made a handbook and a contract and rules and expected to lose everyone. I lost one kid, but it turned out the timing was a coincidence. Her mom was having a difficult pregnancy and had to quit her job. I would have lost her anyway.

Last year, I started all new kids at $110. I haven't lost a single family and have a waiting list. I also have an absolutely amazing group of parents. For the first year, I want to make great Mother's Day presents!! I still have one family grandfathered at $100, but at least once a month, when Mom pays me, I count it later and find an extra $20 or $30. I used to try to give it back the next day, thinking it was a mistake, but she says she wants to do it, and if she could do it every week, she would.

Being the highest priced in an area is a gamble, but it paid off for me. If you can back up your price with a high quality program, it can work, in my experience.

[Movingforward]

people that want quality care do not even bother contacting programs with rick bottom prices. Why because either the provider will quit with burn out or they think their child will not get the best care and environment. raise your prices and attract better clients

[childcaremom]

people that want quality care do not even bother contacting programs with rick bottom prices. Why because either the provider will quit with burn out or they think their child will not get the best care and environment. raise your prices and attract better clients

I did this, too, with similar results. It took me a while to feel confident enough to but I raised my rates to 35/40 (ft/pt) and filled within a month with awesome families. The average here was 30/32.

I have just reopened, and while my rates are on the low side initially (32/35) I am slowly raising them and am now back at 35/40. I am also considering raising them again as I noticed other providers are charging fairly close to me and don't offer near what I do. I am thinking 38/43. And one thing I have noticed, the families enrolled with a higher rate are better matches.

Another thing that helped was focussing on 3 things that I felt really passionate about and think make my program stand out. For me it was healthy food, lots of outdoor time and creative fun. Since I switched my 'marketing', I am attracting families who value and appreciate these things, and therefore are willing to pay extra for them. They are also families that really gel with me b/c these are things that I value with my own family.

[Sugar Magnolia]

Don't lower your price! There is nothing wrong with your price, there IS something wrong with anyone who thinks your rate is "pricey".

Tell her if she wants to move to the Gulf Coast of Florida, she can expect to pay $585 a week for 3 kids for 8 hours a day. Sheesh.

[Thriftylady]

I am trying to figure out how to do some kind of promotion for new families.