If all the listing in your direct area are $3 less than you than perhaps you are too high? Although don't take that as advice... I know very little about daily fees (my area charges monthly) and what goes into setting those. I know you said you are middle of the road for your city/town but you have to think of what is in close proximity to you.

Where I live is an older part of my city and although my neighbourhood itself is quite nice and well kept bordering me are several low income neighbourhoods. I had to take this into consideration when setting my fees because although I have seen fees in my city of $800/month or higher the average surrounding me is more like $550 - $700. So I did $650 and intend on raising my fees over time through small increases and things like paid time off.

Again as I said previously though there are parents willing to pay for quality and not have price as the main consideration so I wouldn't think of decreasing fees at this point. I live in Edmonton which is a larger city and I had ads placed for over 2 months before I signed on my first child (other than drop in care) and that was only part time. Once I got the first however I filled the rest of the spaces within the month. When it rains it pours!