Rates question

[CountryMommy]

So in another thread some of you mentioned that you charge more than the going rate in your area and yet have no issues being full or having clients complain about the prices.

I'm just re-opening my dayhome in a new province and am making up my Parent Handbook and policies right now. I'm really struggling with what to charge. Most ads for childcare I have seen charge anywhere from $20-30/day for full time. There's one that charges $35/day. Before and after school is on average $15/day.

I have a friend who does child care in the area and she charges 35/day for full time and 40/day for part time. She is working "under the table", has no CPR, ECE courses, Criminal record check, etc. She does provide good care for the children, is very caring, and does fun activities with the kids. She says her daycare kids' parents don't complain about her prices and have actually told her that they'd be willing to pay more if she asked because quality child care is so hard to find in this area (most, if not all, of her clients came from dayhomes where the kids were sat in front of the tv all day, they found the daycare provider sleeping, kids hadn't eaten all day, etc).

I will be providing a high quality dayhome. I have my business license, ECE course, Criminal record checks of any adults residing in my home, Child Welfare check, References. I have no TV in the house and will be providing the children with activities and learning centers that are up to the licensed standard. I provide organic, all home-cooked meals, including home-made infant purees and cereals. Right now my handbook states that I will charge $18/day for Before and After school care, $33/day for full time, and $38/day for part time.

My friend says I could get away with charging more because quality child care is so rare here. But then I see the ads that offer "quality child care" for $20/day and I start re-thinking my prices.

With the prices I have in my handbook right now, I charge $3/day more than the average here.

For those of you who charge a bit more than the going rate in your area, how much is the difference?

[Inspired by Reggio]

Well on my street alone there are 3 providers who work under the table for $20 a day .... and within 3km range the average is $30 .... however I charge $38 per day for children under 2 and $35 a day for children over 2 as a daily rate or $170 a week and $160 a week if they are full time and that fee includes paying me for 10 stats, 10 vacation and 10 personal/emergency days for which I am closed .... so yes a CONSIDERABLE amount more than the average for my direct neighborhood.

However I am still 'mid range' fees for my overall city which ranges between $20 - 40 a day depending on if you are living in a more 'affluent' neighborhoods are not ... those differences in income between all the housing being 'subsidized and rental' units or all the houses are between $125,000 - 200,000 or in those mid range of $225,000 - $400,000 or the really really fancy ones with houses all over $425,000 upward of $1,000,000.

I live in a neighborhood that borders all 'rental' housing and the low range starter homes cause we wanted to stay in a mortgage that if something happened to my spouses income I could cover the mortgage and vise versa. What works for ME is that my neighborhood is near the highway and most of my clientele are not FROM my city but 'bedroom communities' coming in to work in my city and driving 'past me' en route to work or back home ~ they want the level of program I am offering and are willing to pay for it because their home towns tend to be more 'under table over ratio providers' cause that is the mentality in the small more rural cities.

If you are offering MORE than your peer who is able to maintain a full viable business with less programming and less 'training' and so forth than IMO you should have no problem finding a handful of clients to pay you what you are asking .... do not worry about the $20 a day provider and WHY they are offering that option ;)

[CountryMommy]

I will be offering child care in one of the best areas in the city. And from all the ads and websites of child care in my city, there is only one other dayhome in my neighborhood and she only offers Before and After School care.

I think I'll make my rates a tad higher and see what happens. I'm thinking of charging $35/day full time, $40/day part time, $20/day Before and After school care. I'm confident that I offer much higher quality care than the vast majority of dayhomes in the area.

I suppose it'd be easier to drop my rates if no one is interested because of my rates, than it would be to raise them later on.

[3xbluemom]

Do you mind me asking where you live, CountryMommy? I am in Calgary and the going rates here are $30.00-60.00 a day, depending on your neighborhood. We live in a fairly upper middle class area - no starter homes in our community and almost everyone on our street has multiple professional degrees and works downtown, so I charge $50.00 a day/ $900.00 a month. I know that seems steep, but it's actually cheaper than some nearby neighborhoods! (and explains why I haven't gone back to work, with 3 kids who would need childcare!!) There are also not many day homes and no preschools in my neighborhood. So far, people have been willing to pay it. My sister lives in a lower middle class neighborhood and still gets away with $40.00 a day.
I'd go with what you have now and drop it if people are really questioning it. But if you get the right people, people who really want an experienced, qualified caregiver and a good program, then I don't think your rates will be a problem.

[dodge__driver11]

We both live in the same province...I've pmed you before it appears we face simllar problems :(

For FT infant 10-30 months I charge $650.00
For Full time toddler 31 months-5 years I charge $550.00
For PT toddler or infant I charge $400.00 3 full days)
** all rates are/month

I used to charge more but now I charge a tad less

For two days per week I charge $40.00/day.

And I am currently full

[dodge__driver11]

AND YES COUNTRY MOMMY THAT IS EXACTLY IT HERE....how can you provide quality care @ $20.00/day???

[CountryMommy]

I moved from Alberta to Regina, Saskatchewan. I need to update my profile. :o

Dodge, your rates seem to be the average for my area. If I charge what my friend says I would be able to charge my rates would look like this:
Full Time - $758/month
Part Time - $520/month
B/A School - $433/month

Compare that to the average and I'd be charging $100/dollars a month more than others in my area! I just really don't know if anyone's even going to be interested at that price, even if quality child care IS rare here.

[dodge__driver11]

I had to lower my rates no one was biting.


but there are two things I will not bend on:

My deposit amounts and I will not provide care until the contract is signed.

My deposits are $400.00 for ft (any age)
Pt is 250.00
2 days a week or less is paid for upfront at each drop off

[fruitloop]

Can I ask a question...why do you guys charge a different price for different ages (not school age but under 5)? I'm just curious... :)

I don't, a space is a space and each requires the same amount of work...just in a different way. While babies need a bit more supervision and you have to change their diapers, the older ones use more supplies and eat more food.

[CountryMommy]

I've wondered the same thing. I am not going to offer different rates for different ages.

I am assuming that dayhomes started charging more for infants because centers do. Centers charge more for infants because of the higher number of staff required for infants.

[dodge__driver11]

Ive considered changing that for my next contract year.

[dodge__driver11]

Ive worked in centre care and its what I was used to but I very well may change it...its something I am pondering.

[Inspired by Reggio]

I am assuming that dayhomes started charging more for infants because centers do. Centers charge more for infants because of the higher number of staff required for infants.

Yup ~ in 'regulated care' not just centre care but even in home childcare's care who are with licensed agencies when caring for infants and toddlers under TWO the age group is RESTRICTED on how many children you can care for of this age group and combine that with that this is in the highest demand providers can be sitting with 'empty spots' because they have met their allotment of children 2 and under ~ aka it COSTS MORE to care for this age group so they charge extra for this age group to make up for that restriction on their income!

I also charge more for this age group for similar reasons even though I am 'private' now I still choose to follow this rule and therefore I charge a 'premium' for that lower infant ratio so clients know that their wee babe is the 'only' babe in care and than I have the next oldest child being over 18 months.

[fruitloop]

Yup ~ in 'regulated care' not just centre care but even in home childcare's care who are with licensed agencies when caring for infants and toddlers under TWO the age group is RESTRICTED on how many children you can care for of this age group and combine that with that this is in the highest demand providers can be sitting with 'empty spots' because they have met their allotment of children 2 and under ~ aka it COSTS MORE to care for this age group so they charge extra for this age group to make up for that restriction on their income!

I also charge more for this age group for similar reasons even though I am 'private' now I still choose to follow this rule and therefore I charge a 'premium' for that lower infant ratio so clients know that their wee babe is the 'only' babe in care and than I have the next oldest child being over 18 months.

Ah, ok...gotcha! Just another reason why I'm glad I'm private :)

[Momof4]

I don't understand why people think it is more expensive to take care of a baby. For me it is less expensive because the parents send all the food and bottles and milk until the children learn to eat table food just before their first birthday usually. But still, their portions are so small that I'm still saving money. I charge the same amount for all ages.

[kidlove]

But dont you think that babies kind of run the show. older kids you can schedule quite easy. meals, play, snacks, naps. but babies, eat sleep and poop on their own time. that can get in the way of the rest of the days plans, therefor, making babies "more work" = more money. :)

[kidlove]

dont you think your time is worth something too? babies require much more of your time than an older child who can rely on other children.

[Momof4]

No kidlove, maybe it's just me, but I feel exactly the opposite. You don't have to craft with babies and take them places and entertain them. I call it 'assembly line daycare' when I have all 5 children under age 2. Feed them, change them, let them play, let them sleep and that's all done in 2 rooms so not much work. I find it kind of boring, but I like to take children in as babies so they learn my daycare rules and routines as they grow. They learn etiquette at the table and naptime routines and what I expect in their behaviour.

Last year I had my favourite group, all ages 3 & 4 and we had so much fun in my home and wherever we went. I'll admit that. I find 2 and up to be much harder work. I do find it more interesting, but harder work. I teach them and let them craft and create and take them lots of places which I LOVE, but so many times I'm cooking or cleaning up after the meal and they are standing in the doorway looking at me instead of playing. I'm not here to entertain them all the time, you know? All children have different personalities and as the groups change this problem changes of course. But crafting and travelling costs money too.

So I still think I make more profit with babies, but it would most likely depend on how you run your daycare.

[playfelt]

I think babies are less work too and especially when they nap morning and afternoon and some do right up to 18 months old. Their play needs are minimal and stuff around the house works. They eat very little even if I provide - as in last nights dab of left overs is enough to feed three babies so food that might have gone to waste now doesn't - like eating for free. No craft or outing expenses. The extra fees charged go towards the equipment like playpens and high chairs, exersaucers etc. But over time you have many babies using them before they need replaced.

It is also one of those things where since centres and licensed agencies do it and parents accept that we can charge a premium too without it being questioned. I used to charge extra when we got kids into care at 4-6 months old and then they went to the toddler rate once they were at least a year old, feeding themselves (finger or spoon) and walking unaided. When we went to the one year mat leave it just seemed silly to keep it in for a couple months so went to a straight rate across the board.

[Inspired by Reggio]

.... I call it 'assembly line daycare' when I have all 5 children under age 2....

But this is why you can set your budget to pay for the space regardless of age and not charge 'extra' because you are able and willing to have ALL your kids be this age group and fill an open space with any age child that comes along and you are not 'feeding' that age group and so forth. I agree that I would not charge 'different' fees if this was the case in my program either cause I would not have an 'argument' for it when discussing fees with clients in this model.

Premium space aside ~ my program I do not 'save' money serving infants because I feed them still cause I do not want to deal with parents sending 'jarred foods' well past when I think solids are acceptable and so forth and they often eat as much or more than preschoolers cause 'pureed' food tends to take more to get a 'serving' ~ takes me 3 apples to get 2 servings of pureed applesauce but not many preschoolers eat 1 and a 1/2 apples each at a snack and 5 oz chicken purees down into 1 serving meat but most 'preschoolers' you'd be lucky to get in 2 oz of solid chicken cause they are too busy to chew that long ... another reason why I like to make my own food because I can get them quickly OFF pureed food and onto solids verses dealing with 'jarred foods' being sent at 18 months!

Also my infants still get to do creative explorations, sensory and all the things that cost $$ that older kids do so I am not saving money on the 'program' expenses here the budget is the same for program supplies regardless of age plus maintaining their strollers, highchairs, pack n plays and so forth are major expenses where as a kid over 2 can eat at the table, can walk, they can rest on a mat on the floor or a couch if need be their only equipment expense is the 'some toys' which cost way less than highchairs / strollers / cribs and so forth cause my older crew seems to have the most fun with recycling verses 'toys'?

Ultimately like anything in your fees setting it is what you feel you can 'justify' to your client set ~ just like some people charge more for their service over all because they serve an all organic menu or they charge more because they choose to never have more than 3 kids in care regardless of their 'age' and so forth .... we all have varied reasons for why we charge what we charge and it is the clients job to 'research' and find out what they are 'getting' or 'not getting' depending on your point of view for the fee being asked.