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That is absolutely true! Which is another reason why I find it strange that there's such a large shortage of daycare services, but for some reason daycare worker salaries are on the lower side of the spectrum.
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Darlin' I was a Paralegal & a Private Process server.. I also ran the courts, & met numerous Judges in Person... Not a secretary & I have a AAS degree in Criminal Law, so go jump in a lake. TN won't hire a TEACHER SUB unless they have a degree ALSO. WHY DON'T YOU COME OUT OF HIDING AND SPEAK WITH AN ACTUAL NAME LIKE THE REST OF USComment
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So the waitlist goes away because they can’t AFFORD your daycare... so you make max then people quit or go to school and now your prices are too highThe need would still be there, but you won't have to wait for it. Just like you can always buy a plane ticket for Christmas, even if it costs a lot more than on other days. Likewise it is easy to buy a house in Seattle, although you need a lot of money to afford one.
Having a long waiting list means parents who both want to work full-time are unable to do so, even if they have the funds to pay for childcare. I personally know people who are struggling with this issue. Increasing the price would increase the profitability of daycares and make access to their services easier to plan for.
It is easy to demonstrate why this is true with an exaggerated example. Let's say you increase your daycare price to $100,000 per week. At those rates only someone like Bill Gates would be able to afford it and the waitlist would be gone. Obviously you can't charge $100k per week, but there is always a price point at which the waiting list would become minimal without hurting your profitability. In economic theory this is referred to as the "supply and demand" curve.
I completely agree that overregulation is the root cause of the daycare deficit! However that doesn't explain the business practices of daycares in the existing legal environment
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I think I'm totally missing this argument. The only reason I had a wait list was because I had more people interested in spots than I had spots available. I don't see how pricing people out of my wait list would have helped me at all. Then when someone leaves, I have no one to choose from. Everyone already complains about paying for daycare and expects you to watch their kids for next to nothing. I would have no clients if I had charged higher than what I already charged...Comment
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Others have already explained why my idea might not necessarily work out in practice for everyone, see the comments above. But here's how it works in theory:
1. Let's say your daycare is based in a major city, charges $100/week and has a waitlist of 2 years
2. You increase the price to $120/week and wait for a year. Now your waitlist has decreased to 1.5 years
3. You further increase the price to $150/week and wait for another year. Now your waitlist is at 6 months.
For you as a business having a 6 month waitlist should be as good as having a 2 year waitlist, as you still have enough potential clients at your door whenever you have a vacancy. And at the same time your profit margins go up as you now charge more than you did before, for the exact same amount of work. As a bonus parents can now plan for daycare much more easily, as wait times will become short and predictable.Comment
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What you didn't take into consideration is... of the people on the waitlist @ least 50% all find other care before your spot opens, as was said, you also have priced out potentials... then there is the 3 people quit, no notice, but nobody on the wait list needs you this month because they weren't expecting the spot to open sooner.
Too many factors for upping fees just to shorten the waitlist. Unless you have lived real world waitlist for home daycares don't think it will work; theory vs Real life - 2 totally different things... even the area can contribute as a factor. Blue collar neighborhoods can't afford even half of what most city folks payComment
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As I've mentioned in a different post, an alternative strategy could involve allowing people to pay a fee (say, $5000) to skip the waitlist and be the first to get a spot whenever one is free. There are certainly parents desperate to find daycare amongst my friends who would gladly pay a reasonable amount to skip the lines.Comment
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How does any of what you suggested benefit the provider?Comment
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But why would a provider want a family who is showing them up front that they feel the rules don’t apply to them? I think you are misunderstanding that a waitlist as a guarantee that the family will get a spot. They still have to interview for it and make sure they’re a right fit.Comment
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People in business class skip the lines to security and are the first to board the plane. Does this mean "the rules don't apply to them"? Of course not, they're paying for it fair and square. Same concept could apply to daycares.
As for the interview - don't you have to do one in the current system to get on the waitlist in the first place? It could still be a part of the process.Comment
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So say you charged a 'skip the line fee' to prospective clients you've interviewed that you feel may possibly be a good fit, they agree to pay the fee but then after the 2 week trial period you realize you made a terrible mistake and their little Johnny has turned into a terrible monster? Return their fee, boot Johnny and keep on going down the line?
Some of what you say makes sense but I cannot imagine any parents around my area agreeing to paying an extra fee. And I cannot picture a dcf skipping the waiting line and remain easy to work with. Wouldn't they end up feeling very entitled because they paid that extra?
People around my state are lucky to have extra money to begin with, let alone an extra 5K to dish out.
What would be the difference between paying a huge waiting list fee and charging higher than normal weekly rates? Wouldn't that also narrow down your list?Comment
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No response from Tom yet but I assume he’s busy and will reply
As for needing more money... sure I’m sure most providers can use more money but my area can’t afford to pay any more than the going rate right now so other than price gouging, what’s in it for the provider?Comment
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I had a parent that once offered to pay me so her kid could skip past his consequence. (Playing outside without me physically present/Staying inside until I took him outside)People in business class skip the lines to security and are the first to board the plane. Does this mean "the rules don't apply to them"? Of course not, they're paying for it fair and square. Same concept could apply to daycares.
As for the interview - don't you have to do one in the current system to get on the waitlist in the first place? It could still be a part of the process.
They were termed shortly after...
that mentality isn’t the type I want for clients
Not for all the marbles.
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OP, I don’t get why you’re so adamant about this. :confused:Comment
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