Price Drops in Your Area

[Lyss]

Do you stick to the market or charge what you feel is fair (within reason obviously).

I've been full for nearly 3 years but I'm going to be down a family next month and was stunned to find that the average price for home DC (according to what's typical on CL anyway) in my area has dropped significantly. Like by $15/day! Everyone is advertising $20/day or 350-380/mo but we live in an affluent area and last time I was interviewing (3yrs ago) 35 to $40/day was typical. I'd have to pick up one full timer and and at least another part timer. It's odd because centers and preschools around here are charging more than ever before ($600-700/mo for preschooler, more for infants) but home DC apparently dropped.

Would you try to get your normal rate or drop some?

[Unregistered]

Do you stick to the market or charge what you feel is fair (within reason obviously).

I've been full for nearly 3 years but I'm going to be down a family next month and was stunned to find that the average price for home DC (according to what's typical on CL anyway) in my area has dropped significantly. Like by $15/day! Everyone is advertising $20/day or 350-380/mo but we live in an affluent area and last time I was interviewing (3yrs ago) 35 to $40/day was typical. I'd have to pick up one full timer and and at least another part timer. It's odd because centers and preschools around here are charging more than ever before ($600-700/mo for preschooler, more for infants) but home DC apparently dropped.

Would you try to get your normal rate or drop some?

I try hard not to ever lower my rates. I stick to what I feel I need to survive financially and with what I feel my program is worth. I am a veteran provider in my area that has rarely had to enroll new kids but when I do, they come from word of mouth and not necessarily "off the streets" so to speak so I don't have many issues with having to be comparable to other programs in my area.
If I were in your shoes, I would try first to fill your spaces at your current rate and if it becomes apparent that you are not getting clients to sign on due to your rate, then I would maybe consider lowering it but I would only lower my rate as a last resort.

[Lyss]

I try hard not to ever lower my rates. I stick to what I feel I need to survive financially and with what I feel my program is worth. I am a veteran provider in my area that has rarely had to enroll new kids but when I do, they come from word of mouth and not necessarily "off the streets" so to speak so I don't have many issues with having to be comparable to other programs in my area.
If I were in your shoes, I would try first to fill your spaces at your current rate and if it becomes apparent that you are not getting clients to sign on due to your rate, then I would maybe consider lowering it but I would only lower my rate as a last resort.

This is what I think I'm going to do. I'm usually word of mouth but surprisingly the referrals wanted hours I don't do or cheaper rates which is what got me looking online. It's just shocking to see that drop and caught me off guard!

I'll just stick to my usual rates and go from there based on interest. Thanks!

[mommiebookworm]

Are the CL prices for licensed daycare?
I recently found out about a new provider (licensed) who is at least $12 a day cheaper than everyone else.
She said she did that to try to get full enrollment.

[finsup]

You know, I noticed that here too! Now it seems like the average in home (liscesned or legally unliscesned) is charging 20/day when that used to be what all the babysitters were charging. Now babysitters are charging 10-15/day and 25/day for in home is the higher end. Yet centers are increasing their rates. I think here part of it is due to a good amount of places that have been around for a while are closing and new ones are popping up all over the place. The new places seem to be opening in clusters (like 3 within 5 minutes of each other) and all seem to be fighting for enrollments. I haven't lowered my rates though, they are on the high side but I have more education/experience then most of the providers in this area. Plus I offer small group sizes and take infants that is a hue demand right now. Unlike when I started and everyone was looking for larger center type homes and older kids. Kind of interesting how things have changed over a few years!

[Lyss]

Are the CL prices for licensed daycare?
I recently found out about a new provider (licensed) who is at least $12 a day cheaper than everyone else.
She said she did that to try to get full enrollment.

It seems to be a mix of both licensed and unlicensed. At first I thought it was just unlicensed/SAHM types but it seems to be both. Some unlicensed are even cheaper.

You know, I noticed that here too! Now it seems like the average in home (liscesned or legally unliscesned) is charging 20/day when that used to be what all the babysitters were charging. Now babysitters are charging 10-15/day and 25/day for in home is the higher end. Yet centers are increasing their rates. I think here part of it is due to a good amount of places that have been around for a while are closing and new ones are popping up all over the place. The new places seem to be opening in clusters (like 3 within 5 minutes of each other) and all seem to be fighting for enrollments. I haven't lowered my rates though, they are on the high side but I have more education/experience then most of the providers in this area. Plus I offer small group sizes and take infants that is a hue demand right now. Unlike when I started and everyone was looking for larger center type homes and older kids. Kind of interesting how things have changed over a few years!

I did noticed that there seems to be an influx of ads over the last few months that I looked through. It's probably double (if not triple) from when I advertised last. I was starting to wonder if it's like a back to school push kind of thing, providers trying to reel in parents looking for care before school starts, but it may be like your area. I know at least 6 really great long term providers (from my local providers association) that have closed in the last few years and on our end of town we're down to 2 centers (well and one with a horrible reputation) so maybe it's a surge of new FCC providers as a result.

I probably won't lower mine, even if it takes awhile to fill, because like you I have education/experience and a niche that I'm not seeing in many of these ads.

[DaveA]

I've noticed it in my area as well. A lot of 2 income families have become 1 income families (not by choice), the job market isn't great here, and people are looking for a way to bring in some money. My prices are higher than theirs, and I can explain to parents why I'm worth it. But I've also got experience, education, and a full enrollment, so I can be a bit more stubborn. A lot of providers feel they need to be competitive with the bottom prices, so it drives down the cost for other home daycares.


I would set your prices at the level you think you're worth and the area market will bear. If others are cheaper, you market why you are a better "value".