Gimmicks.....

[Monday 2 Friday Mama]

So this may seem like a strange question, but here goes....I know that this is a brutally tough industry, and this year in particular has been really tough when it comes to finding clients. That said, I've noticed a few caregivers are advertising special "deals" - sometimes it's reduced rates, sometimes it's a signing bonus - what are your thoughts on this ? I'm not sure if it's something worth trying, and if there's a way to do this without underselling myself.

[dodge__driver11]

Honestly I wouldn't do it.

I never change my fees or offer anything "special" to clients if they get it once, they will expect it again, and respect may be an issue. The only thing I do that is different from the norm is..I offer extended, or overnight hours for a fee.

[apples and bananas]

Nope, I never discount my fees.

More advertising is the answer. Hit locations that no one else does. Make a nice looking business card to catch peoples attention. Put up flyers that look professional. I often gets emails from one of my sons teachers advertising a local daycare.

But I never discount my rates as a signing bonus. And I think it attracts the wrong client.

[mimi]

No I would never discount either. It would then become a slippery slope of other concessions. Our wage is already limited, why reduce it further ourselves?

[Spixie33]

Yikes....I don't understand why people would need or want gimmicks. It is not supposed to be a 'bargain' industry when we are dealing with children and their safety. I would hope daycare families and providers would form a relationship bond based on like-minds and ideals not cheap used-car salesman tactics.

[Inspired by Reggio]

Nope ~ I do not put myself on sale and I do not want to have to work with a client who would expect me to either ... I offer a valuable service at a FAIR price in order to make a viable wage after all my expenses are paid!

I focus on the 'service' that they will get in my program as a deciding factor in going with me verses a 'cheaper' option to help clients ensure they are comparing apples to apples in regards to fees .... if all you want it a place your child can spend the day and ideally return home in one piece at the end of the day than by all means let the $$ be the deciding factor ... however there is a reason I charge what I do cause I could not afford to offer the SERVICES I do at the cheap rate others charge ... and I would not feel as passionate or proud of my program if I had to 'cut' those services to the children in order to compete with 'cheaper' childcare options.

I budget a lot for groceries so I can buy variety of fresh fruits and veggies and where possible organically grown, I cook and bake from scratch almost all our food because eating healthy is a strong value of mine ~ it builds the foundation for the brain and body and immunity and therefore enhances early learning by reducing illness and keeping children 'primed' for explorations cause they feel good inside and out and I cannot feed the children 'less' than I would be feeding my own family by cutting corners here so I can charge clients 'less' ... they either value nutrition with me and are willing to 'invest more' in fees to get it or they are free to go find a program model where feeding kids on a tighter budget is viable for them. I budget / spend about $7.50 a day per child for grocery supplies.

I budget a lot for creative art / sensory supplies because I am passionate about creative exploration art find exploring mediums relaxing and calming for the children and it passes our time 'engaged' so not dealing with stress and behaviors ... I spend on average about $2.50 a day per child on 'creative art / sensory' and it is money well spent as a lot of 'learning' is mastered through this exploration.

I invested in high quality educational materials in my program the past several years ~ and while this is getting to be 'less' needed I have been spending on average the past 5 years about $2.50 a day per child on toys and equipment for the program as I do not have kids of my own so have to stock my playroom from scratch ~ so hopefully one day this is money that can be reduced and redirected back to my 'wages' but in the meantime part of the investment of getting a strong business going!

Field trips and outings are a vital part of our program as well which comes with increased cost of vehicle, entrance fees and other expenses and I budget/spend $.50 a day per child for field trips

I budget both time and money for 'documenting' children's learning and accomplishments in the program because I find that when children can see themselves as valued learners and participants in the program because their work is celebrated and put on display both here and than at home through my parent website portal than they spend more time engaged in active learning so again this in an investment in me having calm engaged days that leave me stress free I spend about $0.50 a day per child on documentation expenses.

So right there that is $13.50 a day / child in expenses ... I still have to pay for my business insurance, advertizing, increased expense for maintenance and upkeep of the home and playroom due to the daycare, shared expenses of increases to my gas and hydro, office and administration expenses for paperwork, vehicle expenses for increased shopping and errands daycare takes up and so forth ... for the sake of arguement lets say that those costs average for me another $1.50 a day / child ... so $15 a day of what I charge clients is EXPENSE related.

So leaving out those 'additional' expenses and just going on the 'staples' of my program if I only charged $20-25 a day for my services that would leave me $5.00 - $10.00 in WAGES x 5 children if I am blessed to constantly be full so a daily wage of $25.00 $50.00 ... broken down into an hourly rate I woujld be making $2.50 or $5.00 an hour .... seriously for the amount of work this can be is that a VIABLE wage to stay passionate about home childcare and engaging children?

I charge $35.00 a day to my clients because that leaves me a income of $20 a child x 5 children if I am blessed to be FULL all the time ... so that is an after expenses income of $100 a day and an whopping hourly wage of $10/hour ... if the rest of the world deserves to make at least 'minimum wage' do we not deserve that as well considering the valuable service we provide???

[bright sparks]

...I think it attracts the wrong client.

I agree completely. You'll only regret it later on down the line.

[Serendipity]

I think the reason a parent chooses you for a porivder is just as important as the reasons you want them as clients and I for one would NOT want a client that simply chose me for the sign on bonus or the free week..know what I mean?

I want clients who share the same values, morals, philosophies and parenting styles as I have. Anything else is just asking or trouble im my opinion.

So no, I woud never put myself on sale (as another poster stated.)

[Inspired by Reggio]

Agreed Serendipity ... my heart always goes out for those providers who feel the need to do 'put themselves on sale' because to me it speaks to their OWN value in themselves or their program that they are not confident that it is able speak for itself and they lack trust in the abundance of the world to bring them what they need and deserve

IMO the belief that they have to basically 'pay' the client in some way to let them serve them ... either with a discount, a signing bonus or what not ends up with that constant worry of getting them to STAY on ... it moves from the discount to than bending over backwards and so forth for fear if someone else offers a 'better deal or discount' they might take it cause that is how the relationship started out would be in the back of your mind all the time ~ they picked me cause I offered them a deal so if I raise my rates or say something about them constantly being late or not providing what i need or I do anything to upset them they might leave the program ... it is that mind set of desperation that tends to attract the sort of clients who would 'exploit' that desperation by treating the provider like a doormat ... it is a sad slippery slope

[playfelt]

I get why desparate times call for desparate methods but all it does is show how desparate the provider is and is more likely to scare off potential clients having the opposite result to what the provider intended.

I have offered an incentive to families in care if they refer me to a friend and that friend signs on but normally that was when we would first move to an area so was also starting to establish myself again and get my name out there.