Holy crap... what a difference 10 min in distance can make! That's almost twice what I charge on a monthly basis!! But if the market will uphold it; more power to ya! (Sort of makes me wonder if I can look at raising my rates a little more though, LoL)
I would say that since you are just implementing the new rates.... go with your gut on this one. I think you can tell if she is genuinely concerned about paying two sets of fees or if she is going to be a nickel-and-dimer.
Heck - what a difference 5 doorsteps can make - there are 4 providers on 20 house crescent and we range from $20 - $35 a day ;)Quote:
Originally Posted by mom-in-alberta
This is the challenge with setting FEES and determining what the market can bare .... there are MANY factors that determine who will excel in this field and who will not ... because while the market can bare $35 a day for ME it would not bare it for the two ladies on my exact same street - so we drawing on the same market of clientele, living in basically the same layout homes with access to the same community resources as far as schools near by and so forth - however the reality is that their 'service' is not necessarily comparable to mine and that TOO is key in determining fees!
Otherwise if all that counted in fee setting was the same service industry McDonald's could charge the same for a Big Mac as the Keg does for a Filet Mignon cause they are both in the food service offering a 'dine in option' and in both places you are eating MEAT ;)
There are two ladies on my street who provide home childcare and have been for 20 years and were shocked when I opened that I was and still am able to be full with basically full time permanent clients cause they tend to have only flex care and temporary care options and on top of that I charge $10-15 more a day than they do ... they constantly ask for 'advice' on what to do different.
And as wonderful and nice and loving as they are the truth be told they do not operate as a 'business or program' that many clients are willing to 'invest' more money ... and they do not WANT to either which means they need to 'accept' the lower fee and clients they attract in their model of service ... they do not operate with a contract so clients do not know what to 'expect' and can therefore be put off by that and they therefore tend to attract those clients who 'no contract' appeals to - those who want to be able to walk away with no notice or financial commitment, they prefer to work under the table and not claim their income - which again is a red flag to many and attracts those who might be more inclined to 'take advantage' of the fact you cannot complain if they stiff you cause you might draw attention to your unclaimed income, they prefer to let parents send the food than to have to shop or cook with too many kids under foot - and well that is a PITA for many parents to have to brown bag it, they do not have a 'playroom' that is set up in any manner with materials but rather a 'toy bin' of a few toys of their own grand kids and a few books and so forth within their 'personal living space' which is primarily an adult space that children have to 'fit into' and so forth ... so it is vastly 'different' level of service and therefore we are not really 'competition' so to speak so they really should not be able to charge the SAME fee as someone else just based on the area they live in.
I am not knocking what they are offering - it is like spending the day at grandma's so to speak and heck I loved spending the day with my nana as a kid ... safe and loving ... and there are some clients are perfectly happy with this type of relaxed flexible arrangement!
However IMO I am full and able to charge more because A) I run a business similar to a 'daycare centre' so I attract people who want that sort of experience but want the smaller ratio and flexibility of a home care setting and because my business model appeals to more people I can afford to be choosy and not offer flex care or temporary clients cause I would rather 'wait' on the perfect client than settle cause it creates a cycle of 'settling' IME and B) children are getting daily access to creative art, field trips and outings to expand natural learning, I do developmental portfolios, I provide FOOD so parents do not have to worry about packing a brown bag - parents are willing to invest in those 'extra' for their kids cause it is everything they would get in a 'centre' but it is still LESS and they are getting a better ratio!
I gave my favorite parents a big break in fees when they first came to me as they were letting me know how hard it was to make ends meet. They let me know they were working on getting a car so dad could get to work etc. A couple of months later their son asked them in front of me if they brought the BMW. Turns out they bought a brand new BMW that was just recently introduced to the market so it wasn't even a cheaper model.
I had had a few things like that happen before that, but never to the extent of this family. I never gave a discount again.
Yup - I still maintain that for the 'average' family with 'two incomes in the house' the inability to pay childcare fees is a about 'priorities in the budget' not the actually lack of access to FUNDS.
Everyone complains about the cost of mortgage, electricity, gas and VEHICLE GAS but they all still manage to BUDGET for those things without going to the company and demanding a 'discount' because those companies could care LESS that you cannot 'afford' their huge fees cause they know they got you by the nutsack cause they are relatively 'essential services' ... and seriously look at the PROFIT margins of those businesses there are people at the top of those earning MILLIONS a year in profits in top of the 'wages' that everyone draws :rolleyes:
Yet childcare providers who lets face it after expenses we earn MINIMUM WAGE for the hard work we do day in and day out and yet we are not only ASKED but EXPECTED to take a further hit in income offering discounts and sibling rates and so forth or not only ASKED but EXPECTED to work over 10 hours a day for the SAME FEE .... so that clients do not have to give up their family vacation to Disney or the big screen TV that hubby wants or yes the BMW vehicle which was likely a SECOND vehicle in that home anyway!
I would totally lower... having kids and parents you like make a huge difference. If you dont like a kid, it doesnt matter what they pay. and having a parent that you get along with is huge too as it makes it easier to approach them if needed.