Pay Rates

[awestbrook713]

Okay so I have just started my daycare this year and after reading posts about pay rates I feel I may be to put it nicely screwing myself. My rates are as follows and please don't laugh I live in a small town and have been on the other side paying the daycare prices.
Full days- 4hrs-8hrs $20 for one child an additional $10 is added for each additional child.
Half days-Anything less than 4hrs $10 for one child an additional $5 is added for each additional child.
Overtime rate- any thing over 8 hrs- $2.50 for partial or full hour.
I also have one parent who wanted to work out special payment for her daughter due to her not being here that long most of the time so she pays me hourly a rate of $3 which works to my favor most of the time.

If or when I raise rates how do I figure out what is fair to me and not to much. I am not a very brave outspoken person and cheat myself when it comes to the money part but this is my income and I have to grow a backbone.

The mom that worked out the special rate with me is having a baby this month and said she would work out a pay rate with me when the baby was born, for an infant what is a fair rate since they need constant care I was thinking $4 an hour or am I yet again cheating myself?

Please help me.

[cheerfuldom]

you need to find a way to research your local childcare rates. figure out how what you are offering factors into what the pay range in your area. Things like a really great set up, education, experience, licensing, good reputation, good references, ratios, programs, curriculum, etc. all add up to you being able to charge on the higher end of the scale. Do you know what other people in your area charge?

[Abigail]

Are you licensed? How many kids can you have? How many kids are enrolled now?

I think if you charge $3 an hour for her already, you might want to go to $3.50 an hour for the newborn and have her provide everything. Have you called around to check the rates? I think your daily rates don't sound too bad, but if you don't have a lot of sibling families I would get rid of the discount. I would simply say 4 or more hours is $20 limited to a 9 or 9.5 hour day total. This breaks down to $2.10-$2.22 an hour so if they need you more than the 9 or 9.5 hours a day charge $3 an hour at least. That makes for a LONG day for you and the child!

I think if anyone attends less than 4 hours a day they pay $15 for up 4 hours. You're doing daycare, not babysitting. You should at least get $15 per child in your care whether they just need to go to an appointment or need to go shopping for a few hours you shouldn't take just hourly pay for that short amount of time. Here I get paid minimum wage for just 1-2 children no matter how many hours for babysitting so don't sell yourself short. I'm not in a small town, no, but you are not an in-experienced 10 year old either....they also will get $3 an hour. Think about it, call around acting like you want a babysitting I'm sure they all ask for $4-$6 an hour in your small town.

[awestbrook713]

I am registered, and according to the paper I received during my registration the daily rates as of 2009 were as follows Under 1-1/2 $30 1-1/2 to 2 $30 3-5 $30 and 6-12 $30 but thats per child. I am only charging $30 a day for 2 kids. So I feel like I am cheating myself. I don't know what the rates are now and I believe I may be the cheapest in my area. There are only 2 registered daycare providers in my county and I am one of them.

[awestbrook713]

I can have up to 8 kids, my two school aged kids don't count but my 7 month old does, and I'm only allowed two under 2. I have 2 sets of siblings soon to be 3 when the new born comes. I currently have 7 kids enrolled 8 once the baby is born. I am losing alot of my kids to school and am looking for 2-3 afterschool kids for the school year only and was thinking $10 a day would be ok since I am open to 5pm and kids get done with school at 2:30 and would get here just before 3.
Also I am cpr first aid certified, participate in the food program, and since I am so new am still perfecting my curriculum but want to be able to teach the kids something while they are here, arts and crafts, reading, counting, etc.

[Abigail]

Can you tell me if you have a contract? Do you have open-close hours or contracted hours per family? So it seems that you have 3 families total because two of them have two kids each and the third family will have their third enrolled soon and then your infant equals 8.

When did these families all enroll? When did you open? If it's been over 6 months I would increase your rates asap to catch up a little. I would only go up a little now because if you lose ONE family you lose a lot of income to replace. You really should search for single child families if you do have openings due to your increased rates. I would send out a letter and give all parents notice that effective Monday October 3 (4 weeks) rates will be dah, dah dah.

I would make your daily rate for full time up to $25 and have your sibling discount for the second and third, etc children be $10 per child. This is a slight jump for your two child families because they go from paying $30 a day to $35 a day which is a 16% increase. If they all stay then that is just that much income for you. I would recommend this at minimum. You should slowly bring the second child discount up to $20 per day, but I'm afraid if you charge $25 then $20 that families paying $30 for two kids will end up in a sticky situation needing to pay $45 a day. Think about all your options. Do any of your families pay through the state or other payments for them?

[mac60]

Whether you are registered/licensed, or not, should not have any bearing on what your rates are. I live in a state where we do not have to be licensed, and I know that most are not. For the providers that are licensed in our county, the ones I know, offer care for state paid, and I do not want to be involved in that in any way. They have trouble keeping their spots filled also.

Your rates are very close to what the rates are in my area. I have a friend who does daycare in a suburb of a city 55 miles away, and she gets double pay compared to me. Location location determines the rates. Varies greatly.

I call our local centers 1 to 2 times per year and inquire what their rates are. I tend to keep my rates below the centers, and have always been full.

I have a weekly 5 day rate, 4 day rate and 3 day rate. I do not go less than 3 days per week. I do not do 1/2 days.

Unfortunately around here sibling discounts are expected, as much as I hate to give them, I give them too.

[Cat Herder]

Your rates are comparable to mine...BUT I am in a very rural area (outside of a major city) in the Deep South. :confused:

I know when I vacationed in NY costs were almost doubled for everything, to include groceries.

Are you able to meet your monthly bills?

[awestbrook713]

the kids I have are two sisters/ and there brother from fathers other marriage, a brother and sister, and soon to be sister/ baby brother, and 1 more child. I do have a contract with the payrates on there and that I can change anything with a 2 week notice. I was thinking since I am such a new daycare I could up my rates at the beginning of the new year, then I would be just under the 6 month mark of being in business. My problem with my rates now is I am taking a big pay cut since half of the siblings are in full time school, the other half are in half days and only one of my kids I watch will still be paying me the same. I didn't think ahead when I enrolled these children as to how little time some of them will be spending here due to school and an afterschool program most of them are going to. This is why I want to bring on 2-3 afterschool care kids needing me at least 4 days a week for $10 a day that would give me between $80-$150 income to make up for what I am losing. Does that make sense. I would make it clear I am only available for those kids during the school year, during school days, not holidays or school vacations b/c then I would be getting my normal kids that are enrolled already. And if any of my normal kids end of leaving I would give the afterschool kids first dibs on the open spot. Will ppl be ok with this or am I shooting myself in the foot?