Conflicting Daycare Rates

[hellothere94]

I am organizing everything to set up a daycare in California, Sacramento area.
One of my roadblocks is figuring out pricing/rates.
My family friend says that she pays 300 per week for her 4 year old daughter's in-home daycare and says this is typical, but daycares on craigslist suggest much cheaper prices per week. I am seeing an average price of 160 per week on craigslist posts that share their rates upfront.

I want to have reasonable prices, but I also want to avoid getting shafted. Sacramento is a pretty expensive place to live, so I'm not sure what to do.

How did you all determine which rates to go with? Is there a website I could check?

[Blackcat31]

I am organizing everything to set up a daycare in California, Sacramento area.
One of my roadblocks is figuring out pricing/rates.
My family friend says that she pays 300 per week for her 4 year old daughter's in-home daycare and says this is typical, but daycares on craigslist suggest much cheaper prices per week. I am seeing an average price of 160 per week on craigslist posts that share their rates upfront.

I want to have reasonable prices, but I also want to avoid getting shafted. Sacramento is a pretty expensive place to live, so I'm not sure what to do.

How did you all determine which rates to go with? Is there a website I could check?

The best way to figure out rates no matter where you live is to figure out what YOU need to make your budget and set your rates accordingly.

The difference in rates in my area is due to the type and quality of care. Some programs are licensed and some are not. Some have multiple staff, some do not. Some have teachers with degrees and some do not. Some are very structured and routine where as others are laid back and not so structured.

The reasons why rates are so different are that every program is different from the next and what one family is seeking and willing to pay for is not the same as what another family is looking for or can afford.

We do have several members on the board from CA and I am sure they will chime in and comment but even in the same state, I bet rates vary alot so my best advice (which is applicable in more areas than just setting up rates) is to do what works for YOU and what YOUR budget requires.

[Leigh]

I am organizing everything to set up a daycare in California, Sacramento area.
One of my roadblocks is figuring out pricing/rates.
My family friend says that she pays 300 per week for her 4 year old daughter's in-home daycare and says this is typical, but daycares on craigslist suggest much cheaper prices per week. I am seeing an average price of 160 per week on craigslist posts that share their rates upfront.

I want to have reasonable prices, but I also want to avoid getting shafted. Sacramento is a pretty expensive place to live, so I'm not sure what to do.

How did you all determine which rates to go with? Is there a website I could check?

I have a relative in Cupertino. She said that she paid $450 per week, per child, and had to provide food and all supplies for her kids. $160 sounds insanely cheap for the area!

[AmyKidsCo]

Check with your local Child Care Resource and Referral. Ours collects rate information every year then puts out a report with high, low, and median rates by county.

Also you can call local centers and ask for rates as long as they think you're a parent. If you tell them you're opening a center it's illegal to talk rates.

[midaycare]

I would generally avoid Craigslist rates for a reference. I would do a search on here re: craigslist and read some of the posts. They are worth a good laugh!

[Blackcat31]

I have no idea if this is actually factual or not but I found this...it might help

http://www.kidsdata.org/topic/1849/child-care-cost-age-facility/table#fmt=2358&loc=2,127,347,1763,331,348,336,171,321,345,357,332,324,369,358,362,360,337,327,364,356,217,353,328,354,323,352,320,339,334,365,343,330,367,344,355,366,368,265,349,361,4,273,59,370,326,333,322,341,338,350,342,329,325,359,351,363,340,335&tf=79&ch=984,985,222,223

[Mike]

Rates and quality of service tend to go together. Charge too low and you will get parents you wish you didn't have to deal with.

Do like Blackcat31 said and figure out what works for you, then you can see how that looks compared to others and adjust a little if needed. I haven't started yet, but already know what my rates will be. I figured out what would work for me, then compared to others similar to what I will be doing, and the figures I came up with looked like a good fit.

[sharlan]

It's about average for my county. Some providers charge more, some less. IMHO, most who advertise on Craigslist are a bit lower.

[Pestle]

Craigslist is a race to the bottom. My rates are competitive but much higher than anything else on Craigslist.

[hwichlaz]

http://www3.cde.ca.gov/rcscc/

There is the link, choose your county. Those are reimbursment ceilings for subsidized care, but they are based on a market rate survey and reflect the average rates.

Full Time weekly rates in Sacramento County for Family Child Care Homes for
0-24 months are 194.33
2-6 years 175.80
schoola aged 160.16

[Missjaime]

I am also in Sacramento. My rates are slightly higher than average, as far as I can tell. I don't know who out there is charging $300 per week - there is no way I would be able to get clients at that rate. Some centers are close to that expensive, but not many. As with anything, it depends on the area - as you know, different neighborhoods can demand different rates. I am at $40 per day, $185 per week for preschool, $50 per day and $225 for 0-24months. I started out a little higher, because when I was paying for my child care, I was paying more. However, I found that my neighborhood wouldn't support that. Hope that helps! Good luck!

[hellothere94]

I have a relative in Cupertino. She said that she paid $450 per week, per child, and had to provide food and all supplies for her kids. $160 sounds insanely cheap for the area!

$450 per week?? That's insane! Must be a top of the line daycare

Check with your local Child Care Resource and Referral. Ours collects rate information every year then puts out a report with high, low, and median rates by county.

Also you can call local centers and ask for rates as long as they think you're a parent. If you tell them you're opening a center it's illegal to talk rates.

Ohh I thought about calling around pretending i'm looking for childcare.. That feels so sneaky though I'd feel so guilty haha.

Rates and quality of service tend to go together. Charge too low and you will get parents you wish you didn't have to deal with.


Do like Blackcat31 said and figure out what works for you, then you can see how that looks compared to others and adjust a little if needed. I haven't started yet, but already know what my rates will be. I figured out what would work for me, then compared to others similar to what I will be doing, and the figures I came up with looked like a good fit.

That's a really good point, I'm going to keep that in mind. Thanks for the advice!

I am also in Sacramento. My rates are slightly higher than average, as far as I can tell. I don't know who out there is charging $300 per week - there is no way I would be able to get clients at that rate. Some centers are close to that expensive, but not many. As with anything, it depends on the area - as you know, different neighborhoods can demand different rates. I am at $40 per day, $185 per week for preschool, $50 per day and $225 for 0-24months. I started out a little higher, because when I was paying for my child care, I was paying more. However, I found that my neighborhood wouldn't support that. Hope that helps! Good luck!

Your rates sound reasonable to me, is there any reason why there is a price difference 0-24 months? thank you for your input!

I wanted to say thank you to everyone for all the replies! All your advice has been helpful happyface

[CityGarden]

The best way to figure out rates no matter where you live is to figure out what YOU need to make your budget and set your rates accordingly.

The difference in rates in my area is due to the type and quality of care. Some programs are licensed and some are not. Some have multiple staff, some do not. Some have teachers with degrees and some do not. Some are very structured and routine where as others are laid back and not so structured.

The reasons why rates are so different are that every program is different from the next and what one family is seeking and willing to pay for is not the same as what another family is looking for or can afford.

We do have several members on the board from CA and I am sure they will chime in and comment but even in the same state, I bet rates vary alot so my best advice (which is applicable in more areas than just setting up rates) is to do what works for YOU and what YOUR budget requires.

I agree with BlackCat you should look at your budget and what you need to earn and base your rates on that. I would suggest setting a budget with a cushion of at least 1-2 spots being open because this business is fluid and there may be times when spots are open. In example, if you are licensed for 6 make your budget based on 4-5 children, etc.

My rates are on the high end in my area of Southern California but with the higher rates are higher expectations and more demanding parents so my expenses are quite a bit higher.

[Mike]

I agree with BlackCat you should look at your budget and what you need to earn and base your rates on that. I would suggest setting a budget with a cushion of at least 1-2 spots being open because this business is fluid and there may be times when spots are open. In example, if you are licensed for 6 make your budget based on 4-5 children, etc.

My rates are on the high end in my area of Southern California but with the higher rates are higher expectations and more demanding parents so my expenses are quite a bit higher.

Plus, higher rates will generally bring the better clients, as long as there is the need in your area.

[CityGarden]

Plus, higher rates will generally bring the better clients, as long as there is the need in your area.

Yes that is true but it can also take longer to fill spots when opening....