Low advertised rates: ahhhhh...

[Spixie33]

I live in an area where there are lots of home daycares. I think that happens in smaller communities because people don't want to commute to the city.

There is a lot of competition since there are many daycares in a small area. I think every street has 2 home daycares on it. Seriously.

What I am noticing is that a lot of new daycares continue to spring up and I see some of the new ones are advertising as low as $21, $25, $28 dollars a day.

wowsa ! I really think new daycares (even if they are trying to attract initial clients) should stay in the norm. Right now the range is anywhere between $21- $41 in this area. That is a huge span. Back when I lived near Toronto the going rate was $35-$40 a day and that was 7 years ago. I have NO idea how someone expects to make a living, pay craft supplies and pays the rising grocery costs on anything less than $30 a day.

It sort of makes me nervous because I really wanted to raise my price from $33 - $35 this fall and when I see these other ads crop up I feel like I can't. I can't pretend that my bills don't keep getting bigger though (fruit prices rising, electricity and gas and water bills going up) and I really could use the extra $20-$30 a week from my daycare to cover it.

I wish that new daycare providers would really consider the long term before advertising themselves so low. I know it is hard to get started but if they would just hold out until they find a good client rather than GIVING their service away it would make for a better industry overall

okay...vent over :p:laugh:

[sunnydays]

I totally agree!!! I am a new provider and I talked to numerous providers in my area as well as chekcing the ads before I set my rate. I actually charge more than some of the established providers and I have filled all my spaces. Since I started though, some new daycares have opened in my area who are charging lower than normal rates. This is unfair and makes it hard for everyone to make a living. I charge almost the same as the agencies, so I do not feel it is unfair and neither do my parents seem to. I can't even believe anyone could charge less than $30...I know it varies by neighbourhood and area, but how can one make a living on that?

[Emilys4Guppies]

There is a new provider in our neighbourhood (also lots of providers) who is advertising at $22/day.

As a parent, I'm not enticed by that. I don't see how she can make a living, feed my child quality foods and provide stimulation crafts/activities on $22/day.

I also hear from others that have signed on with such a daycare that they charge the $22/day for the first 3 months and then raise their prices once the child is settled and bonded. Cheap and sneaky, IMO.

[HSH Daycare]

I agree. Have you looked at the CCPRN's site? They just recently updated their list of what the rates are for Caregivers from each neighborhood in Ottawa. In Barrhaven (where I work)the rates range from $30-$50. I noticed this week someone who posted for $22. Insanity!

[Emilys4Guppies]

And this is why I don't put my rates out there on the internet. I want people to call me first, so I can talk to them about their children, tell them the amazing things we do, the healthy food choices I provide, and my theories on child raising. I don't want people calling me simply because they think they're getting a good deal...those are the people who will want to not pay for stat holidays, sick days, or early pickups. I don't want to deal with people who are cheap concerning who cares for their children for 8-10 hours a day. This is not an area to skimp on.

[Sandbox Sally]

I saw someone on Kijiji the other day who is charging $20 per day, and this is in Toronto, where the going home child care rate is $45-60. This person clearly doesn't know what he or she is doing, and I think it will come back to bite her AND the daycare kids in the behind at some point.

I actually put a little blurb in my handbook about this very thing - about quality of care etc and low prices.

[Spixie33]

I actually recognized one of the providers on a website. She has a child in the same school as my child and I knew she was trying to get a new home daycare off the ground. I saw her advertised rate was UNDER $30 a day. I actually talked to her about it one day at the school and couldn't resist bringing it up. I told her that she was really selling herself short and that people may even assume she provides inferior care based on her bargain price.
She said she was so desperate to get people that she was advertising low to get started and that even at under $30 she was not getting replies.
I tried to tell her that she was worth more than that but so far I think the ad is still the same.
I wish people would advertise in the correct range and just make everything streamlined for everyone. We all have to stick together. lol

[mamaof4]

In my opinion the people who care for my kids should be well paid. I want them happy so they have positive interactions with my kids (I really believe that a lot of kids pick up on negative energy).

[Judy Trickett]

Meh, parents aren't stupid. I really do think that these types of low ball providers only attract the crappiest, of crappiest families. I really do. These types of providers constantly have problems and eventually they grow resentful of all the problems for so little pay.

One of two things happens with these providers. They either close up shop because they don't really MAKE any money after expenses or they are closed down by the ministry because their idea was to low ball rates but warehouse kids. Or, they smarten up and realize that $25 a day and then expenses means that to stay in business they need to increase fees.

VERY few providers last a long time at those fees.

[angelina]

I am in the South Keys Area of Ottawa, and I've seen ad for $25 a day. How does a person provide happy environment with the price, I cannot imagine. Even as a private babysitter, I got paid more than that plus tips.

When I officially open as a business 3 years ago, I think CCPRN listed South Keys /Greenboro area within the range of $35 to $60. But when enter my zip code to check how many daycares are near my postal code, there is like 20 daycares in the area, and 5 of them I m friends with, and I regularly see them in the park. And plus those private ones with $20-25 a day?

So, here comes the dilemma, lower than them, or price my services as a business service? And most of them have agencies marketing for them, while I decide to go private?

So, I did my number crunching, and the decision was $40 and I got two clients and I am very happy with it. These parents are professional working parents whose income does not qualify subsidy anyways.

I did have parents who offer bargain bins: $1,000 per month for two kids. That is $25 per day, $500 a month each kid. I was almost tempted as I have the space, but I said $35 is the lowest in the area. And the cost of feeding 2 snacks, and a good healthy lunch won't cut it. And these are my neighbors.

They end up getting private nanny who come to their house and watch their 2 kids. And guess where the kids come for playtime? They come to my house, the nanny was inside their home enjoying the air conditioned living room. They play in my front yard: sandbox, ride on cars and played with my daycare kids. One day, the couple came home for lunch an notice that their kids are with me, the nanny snoozing in their living room. They feel ackward after that, telling their nanny to follow their kids when playing outdoors. They know that "you get what you paid for".

Its tougher nowadays, as we lose our 4 year old's to full day kindergarten. And yes, I saw $25 ad, *sigh*

angie