Would you lower your rate?

Ladies,

I'm sad today, just beat down, worn out. I love daycare so much, because I love being my own boss, and controlling my work environment etc. But I hate the slump I am in.

I have had interview after interview lately, and parents only seem to care about price.

That and a big yard. I can't change the yard part, but I have been thinking about lowering my rates to get families.

The thing is though, I am on par with every other reputable daycare in the area..and, they are having trouble filing too. For a while my part time/casual shtick was working for me, now EVERYONE is doing it.

Thoughts?

How much lower are you thinking?

I would be weary of lowering my price if I was on par with everyone else BUT if it is what needs to be done to fill spots and not be empty then you do come out ahead. I think it comes down to how badly you need/want those spots filled. Do you want them filled sooner than later, for less?

If that is the variable in demand that you have control over than it might be worthwhile. Just note that once you sign a contract at that price you are locked in at that price so to speak. Perhaps make sure your contract notes there will be annual price increases so you have a means to get them back up over time.

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Originally Posted by Lee-Bee

How much lower are you thinking?

I would be weary of lowering my price if I was on par with everyone else BUT if it is what needs to be done to fill spots and not be empty then you do come out ahead. I think it comes down to how badly you need/want those spots filled. Do you want them filled sooner than later, for less?

If that is the variable in demand that you have control over than it might be worthwhile. Just note that once you sign a contract at that price you are locked in at that price so to speak. Perhaps make sure your contract notes there will be annual price increases so you have a means to get them back up over time.

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I dunno. That's the hard part.

I am huge of fresh fruit, veggies, and homecooking. It costs a lot.

I think, you could try first; if it is only the rate factor that is affecting the decision of parents. You've also mentioned you do not have a big back yard; but there are beautiful parks to compensate that. As far as you take the children out everyday. And people sees also that, if you do outings such as visiting a library or playgroup etc. When parents see you out is what sells most. I do not advertise I meet mostly new parents in my outings. I go out everyday, during the mornings (weather conditions permiting).

I see some of my friends in the same situation empty spots and especially when September comes our older children start school and we need to fill those spots.

Lately I see, more and more caregivers looking to fill their spots, luckily we have not gonne lowering prices yet.

Tell your prospective clients that if they're interested you might negotiate your rate. And see if they take the spot or get back to you.

Also my other suggestion is to take pictures of your group on your outings so, parents can see you do things disregards a back yard or not.

I hope it helps.

If lowering your price is a determinant factor in the desicion making process then it might benefit you, if not then it is the combination of non back yard and higher cost and the opening of more spots in the licensed sector.

Quote:

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Originally Posted by Peacefulbird

I think, you could try first; if it is only the rate factor that is affecting the decision of parents. You've also mentioned you do not have a big back yard; but there are beautiful parks to compensate that. As far as you take the children out everyday. And people sees also that, if you do outings such as visiting a library or playgroup etc. When parents see you out is what sells most. I do not advertise I meet mostly new parents in my outings. I go out everyday, during the mornings (weather conditions permiting).

I see some of my friends in the same situation empty spots and especially when September comes our older children start school and we need to fill those spots.

Lately I see, more and more caregivers looking to fill their spots, luckily we have not gonne lowering prices yet.

Tell your prospective clients that if they're interested you might negotiate your rate. And see if they take the spot or get back to you.

Also my other suggestion is to take pictures of your group on your outings so, parents can see you do things disregards a back yard or not.

I hope it helps.

If lowering your price is a determinant factor in the desicion making process then it might benefit you, if not then it is the combination of non back yard and higher cost and the opening of more spots in the licensed sector.

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I do have pictures posted, but I guess some want the out door space to be right there. The park is kitty corner to me. It's frustrating.

I would not drop price for same service but maybe you could offer two rate - one with meals included and one where parent supplies food. If most of your cost tied into the food cost, then if someone bring own food, then maybe you could reduce rate in that instance.

I not negotiate on rate or hours but I know cost of providing the service I do. Only way for me to lower price is to eliminate some of cost. Since can't lower insurance, heat, power, then food would be somewhere I could save cost if I not providing food.

I would be clear it all of nothing. Client not able to pick and choose to bring food one week and me provide some weeks. Client not able to pick and choose and have me give snack and them bring lunch. Either they provider ALL food or I provide ALL food. If they bringing food from home, then they need understand that if they forget it will need to go home and get it. I would not be shopping have having just in case back ups, that need to be clear not option.

I wouldn't drop my rate if I felt my program was great. I live in an area where daycare providers are in abundance, so the competition is fierce. When I had a slump for "over 2 years" clients, I actually gradually raised my rates, as well as revamped my program. I reorganized the playroom/bought some new larger toys/took new pics for the website/took a few extra professional development courses and posted them on website/revamped the menu etc. I know some providers in this area that create a niche market by teaching french to the kids or music, if you have any of those skills, or by taking the kids to different outings/classes, or by having a music teacher or gymnastics lesson come into your home. You have to become creative to think of ways to make your program stand out from the others. Sometimes it will require a financial commitment or time commitment on your part, but it worked for me.

I was recently the same as you. Had 2 spots open at once, lots of interviews, said the wanted the spot, then found someone "closer" to home. I think they found cheaper. I lowered my rates by $20/wk and filled both spots that week. I'm $5/wk more than many of the closest providers but I have 2 school-agers, so I have a lower ratio during the day. My references are awesome too.