Is charging $50 per day too much for a licensed home daycare in Manitoba?

Hi,

I am just starting out, and beginning the process of becoming licensed. I would like to charge $40 or $50 per day. I want to charge this amount as I feel that I would be offering an excellent service, and I only want to have 4 or 5 kids. Asking this price will allow me to make a living wage. I realize that not everyone will be able to afford this price, and it seems that the going rate is $30 in Winnipeg.

Does anyone know of licensed home daycares operating with this rate?

Thanks for your help!

Kali

Well to my knowledge licensed in mb is allowed 5 preschoolers with no more than 3 under 2 and your other 3 spots are for school aged children, so regardless of fee, you will only have up to 5 paying that anyways wouldn't you? The school aged children usually pay a lot less IME.

$50 a day is too much IMO and you will likely have an extremely hard time filling spaces. I'm in Brandon and charge $32 but it ranges from $20-$35 here. I think you could try $35 but any higher and you will price yourself out of parents options.

I don't know, it seems high. On the other hand, Winnipeg is pretty big. You might be able to find 4 or 5 families that would pay it. It might take a while, if it happens at all. And then if they ever leave, you might be waiting a long time again to replace them. I charged $35 when I was private, but I doubt I could have charged even a dollar more.

Hi, Thanks for your feedback. I appreciate it very much. As a single caregiver in a home environment, for myself, having more than 5 kids seems like a lot! But, at $30 per child, it's really not enough money, I don't feel. I am not doing this for the money, as I love kids and have lots of experience, but I was wanting to make a decent living. I do feel that daycare is very important work (as I know we all do!), and valuable.

Thanks again for your responses!

I have never heard of anyone charging that much in Winnipeg for home daycare. Perhaps you could charge $30 or $35 and not provide food?

I'm licensed, but went the funded route so I have to go by the government set rates (which is definitely not even remotely close to $40 or $50).

I am in Ottawa and can charge 45, BUT....... I only serve lactose free, gluten free, am kosher friendly, and organic. I also run a pre - school program.
I also started out at 35 a day five years ago. Imho, you will never get you first client at that price. In this business, when you start out it is best to start low, and build your prices up.

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Originally Posted by Kali Fireweed

Hi, Thanks for your feedback. I appreciate it very much. As a single caregiver in a home environment, for myself, having more than 5 kids seems like a lot! But, at $30 per child, it's really not enough money, I don't feel. I am not doing this for the money, as I love kids and have lots of experience, but I was wanting to make a decent living. I do feel that daycare is very important work (as I know we all do!), and valuable.

Thanks again for your responses!

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Well let's say you're open for 10 hours...5 kids at $30 would mean you make $15/hr. Now of course you have expenses out of this but you also have things you can claim being a business so it sort of works out to the same as someone who works out of home and has gas expenses, parking pass, union dues, benefit expenses, vehicle insurance (If you can, put yours on leisure instead), gas expense and more wear and tear etc etc. If you decide to take on the 3 school aged spots that will also be more money. I'd be inclined to save this money for income tax time

I think it could be possible ( I don't know your financial situation) but there might be some things you need to change. The longer I do this, the more ways I find to save money. I make my own laundry soap, sugar scrubs and sometimes hand soap. I use coupons and only shop sale prices. I put my car on leisure insurance etc etc. I bake and cook from scratch most of the time ( for dc, for us it's a different story lol) If you have tv, maybe cut back on the channels. For me, it's do these things and get to keep my business which I LOVE or I would have to go back to working out if the home for more money. I'm very lucky to be in a position where I can afford to do this job though and I only have 4 children. ( well 5 but 2 share a ft spot)

I truly think this is a fantastic job and if it's something you really want to do than I think you should give it a try! I think you could likely charge $32-35 in Winnipeg and if it's something you are okay with, don't supply the food. Or maybe just supply the snacks and have parents supply lunch? I've been thinking what I would do if I get pregnant (and therefore loose a paying spot) and I think I'd charge $35 but only supply snacks.

Good luck!!!

Why don't you try putting your postal code in the home page of this site and see what the daycares closest to you are charging ...that way you will be able to see what the community can bear.

Thank you again for all your help!

I have heard of daycare centres charging $50 and up in Winnipeg, and I also personally know of someone who pays a daycare centre $40 per day. Are parents more willing to pay more money for daycare centres? As a parent, I think I would prefer to have my child in a home environment, with less kids and more one-on-one care, and would think parent's would be wanting to pay for it.

I know that there is a shortage of daycare spots in Winnipeg. With the spots in demand, I would think daycare providers could charge more, as their services are so needed. If daycare providers can't charge more and still get clients, then is there really a need for more home daycares?

I have checked my area for average daycare prices, and it seems that most people charge $30 per day.

Thanks again for your feedback!

I don't understand centre's charging more? I thought all centre's in Manitoba were licensed and funded.

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Originally Posted by superfun

I don't understand centre's charging more? I thought all centre's in Manitoba were licensed and funded.

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The regular daycare centres are funded and parents don't pay high fees, it is the private centres (like Montessori ones) that are licensed but not funded so parents pay a more premium rate. But the Montessori centre near my house always seems to have vacancies, where as the funded daycarw centres always are full with wait lists.

Thanks! I wasn't even thinking of of Montessori, etc. As far as I know, there isn't anything like that in Brandon. It's all regular centre's with long waiting lists.

Also in Manitoba here. I personally think you need to charge similar to those around you. You have to remain competitive pricewise no matter what you are offering as perks.

You could also start advertising at that price and see if you get any interest. The problem is though that you might scare people away and even if you lower your price eventually you might miss out on some great families.

There are tons of things that can be written off come income tax time so in the end it all works out IMO.

I'd like to charge $150 a day, based on my degree, my proven track record as a day care provider, my experience, my references. However, unless I charge something in line with my competition, I won't have any income. LOL

Not being rude and I do understand the person who created this thread might have a wealth of education in child care and lots of experience but this is something I'm noticing around here too.

New Moms with no more than one or two children, who understandably are wanting to find a means to stay home. Seen three recently, who have their own child aged around 10 months who open a day care and charge WAY over the market rate. They think their babysitting of 10 years ago and their parenting experience of 10 months, is equal to an ECE because they also happen to have a decree in engineering. They set rates to reflect their own income needs and don't understand why the have no clients because the are operating out of a new build and all their child's toys which are being used for day care are new because the baby is.

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Originally Posted by superfun

I don't understand centre's charging more? I thought all centre's in Manitoba were licensed and funded.

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I find that group daycares tend to charge more, one in particular charges $60 for P/T in my area and they seem to have no problem filling the spots! I recently had an interview with parents who ended up registering with a group daycare. They were looking for care for when their son turned 12 months. The father commented that children would be exposed to more in a group daycare.
These type of daycares market themselves well but I don't think they're as great as they tend to portray.