What to charge?

[smuloin]

Hi there! I'm new to this site and have to say it is fantastic!

I am starting a new RLNR family daycare this summer and am wondering what I should be charging. I would like to offer parents different price options for me providing everything except lunches as well as lunches included. I know of another daycare in New Westminster that charges $40 per day/ per child as she does drop in (the children must bring their own lunches). I was thinking of charging $900 per child not including lunches or $1000 including lunches. I will not be providing transportation. If we do any activities, I will be paying for them and will not ask for additional funds from parents. I will also not be charging for the occasional late pick up or early drop off.

Thanks so much for any help you have to offer!

[Play and Learn]

What I had done before I came up with a price was call the other daycare providers, and ask them how much they charge per day, what they do during the day, ie: structure, routines in their daycare. It led me to the price I'm charging now. Get to know what families need in the area where you will be opening up your family daycare.

Good Luck!

[fruitloop]

I agree with pp. You need to call around and see what the going rate is and what they're offering for that rate. Make your decision based on the average.

[Tot-Time]

Also when I was determining my price and programming, I did up a chart with information pertaining to what I needed from daycare (income wise), my projected operational costs, and that helped me in setting my price. I then set my price $3 per day than my goal to get children in the door a bit faster and then increased my prices yearly or as a new family came in.

A neighbour and I started daycare at the exact same time and I was full 5 months before she was, and she charged the $3 more per day. I attribute to me being full earlier because of the lower fees. Now 3 1/2 yrs later I charge $2 more per day than her.

[playfelt]

Just to get an idea of your area go to the main page for daycare bear and type in your email address. Take a look at all of the sites in your area that come up. You will be able to compare hours, fees, locations, and from the description get an idea of what they do and do not offer.

[gcj]

Just one word of advice, if I may: if you don't charge for early drop-offs and late pick-ups, you will be SOOO taken advantage of! It's sad to say, but unfortunately the best way to ensure that parents don't take advantage of you and actually come pick their kids up on time, is to make it a financial burden to leave them there before/after hours. Where I am, anyways.:(

[Kinguk]

First, contact the Tricities/New West Childcare Resource and Referral as they be able to give you a range of the rates in your area. Then research where others with similar experience/training etc, in your area fall. Also, when you go to register as an LNR, the CCRR will help you with deciding a rate.

[sallin]

I have a daycare in the southend of Ottawa. Just wondering what people charge if there are two children? Do you give a discount?

[Play and Learn]

No discounts as this is your income. For me, I charge $35/day. So if I were to have siblings come in, they pay $35/day per child.

[playfelt]

I'm near you in Orleans. I don't give a sibling discount just because of the five spaces only rule. They are taking two spaces and you also have to consider that if the parent leaves then both kids will go so you will have two openings and twice as much lost income than with only one child so it works to help you bank extra for the inevitable. If a parent tries to bully me to some extent to get a two kid rate I just come back with something like ok well then are you going to be ok if I treat them not really like two children so when I make grilled cheese for lunch they have to share or when we colour on paper I make them share the paper. They are two entities and will each require individual care and supplies and consumables and as such you need to pay for each one to be in my care.

Any time I have offered a sibling rate it was taking the two rates and adding them together and then subtracting $5 which is a dollar a day for the second child. But it reflects that if I print a newsletter or make cookies for a families they are only getting one set and not duplicates.

[Play and Learn]

If a parent tries to bully me to some extent to get a two kid rate I just come back with something like ok well then are you going to be ok if I treat them not really like two children so when I make grilled cheese for lunch they have to share or when we colour on paper I make them share the paper. They are two entities and will each require individual care and supplies and consumables and as such you need to pay for each one to be in my care.

hahahaha well said Playfelt!

[playfelt]

I get the fact that parents are suddenly in a bind when they realize the reality of childcare. Their income doesn't go up because they have two kids to pay for so yes it is a major expense for them. But at the same time they have to realize that my expenses don't go down because the kids are siblings.

[sallin]

Thank you both for the feedback, I completely agree with you both :)

[Play and Learn]

I get the fact that parents are suddenly in a bind when they realize the reality of childcare. Their income doesn't go up because they have two kids to pay for so yes it is a major expense for them. But at the same time they have to realize that my expenses don't go down because the kids are siblings.
But it was their decision to have kids in the first place! Just my opinion!

[sunnydays]

I would also add that once you establish the range of rates in your area, don't try to price yourself lower in order to be competative. You will likely end up regretting it and wanting to raise the rates, which you cannot suddenly do once your daycare is full. Go with an average rate and take into account what you offer when pricing. Do your research and you will not regret things after!