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  1. #1
    Shy
    Join Date
    Apr 2011
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    Ontario
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    How long to hold out before lowing daycare prices?

    I've been asking myself this question for a month now and I am no closer to the answer. I was wondering your thoughts?

    I am one of the more expensive caregivers in my area at $47 a day where the average on daycare bear seems to be between $38 - 42. I have noticed that some are at $45. When I look at the CCPRN questionnaire for my area it states that last years averages for my area is $30 - 50. My rates have always been on the high end of average because I have over 20 years experience, my youngest is 15 years old, I have my ECE (I technically am RECE, but money has been a bit tight this year so I'm in suspension). I'll be renewing it in the fall. I think most caregivers have programming, so I'm really no different there. I have a basement daycare with it's own entrance, open door policy, etc;.

    I haven't had a space in over 2 years, so I'm a bit rusty with advertising and interviewing. I have had a couple of interviews and I can tell you that things are very different from even 2 years ago. I completely bombed them.

    The hardest part is, my area has been hit, for almost 3 years now, there has been more caregivers than children and it is very difficult to stay full. I've seen good daycare's close.

    I'm now hearing other caregivers say that parents have so much control that they are now telling daycare providers that they 'will provide a discount or they will find someone else' (a friend received one yesterday asking for a $10 a day reduction) or the parents are coming up with their own policies for the caregiver to follow or they go somewhere else. Frequently, I hear caregivers are lowing their rates or agreeing to no paid holidays. Which might explain why 2 years ago it seemed like everyone was at 45.

    So, right now my personal debate is, do I lower my tuition? A part of me feels like we are so underpaid as is, that I've earned being at the higher end of the average. But, my family budget needs me to be full, so I feel a little bit of desperation :

    Have you been in this situation?
    Thanks

  2. #2
    Outgoing
    Join Date
    Sep 2012
    Location
    Ontario
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    Wow. I would never ever let a parent dictate policies or prices. Just wow. You have some very brazen parents in your area. The average in my area is $37 a day, and I have had people hum and haw over my price. It seems like no matter your price, people will try to bargain.

  3. #3
    Euphoric !
    Join Date
    Mar 2011
    Location
    Ottawa
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    I agree with Littlefeet. What would your current families think if they saw that you were charging less for new families? They might want a discount too! I am pretty much the highest in my neighbourhood too, but like you, I have a fantastic basement daycare (just missing the separate entrance like you have...would love that!) with a ton of space and lots of materials and activities for the kids. I find sometimes there are lulls in interest and then I will have 4-5 families interested at once when I am advertising a spot. So far I have never had a spot go unfilled. I have had parents question why my rate is higher, but when I explain all that I put into my daycare (healthy food, materials, great space, etc) and they come to see my daycare, they are happy to pay it. Hang in there and hopefully the right family will come along soon for you!

  4. #4
    Expansive...
    Join Date
    Jun 2011
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    Hang in there quality families will come. Go over questions you want answered and questions that they will potentially ask. Have your answers prepared so you will be more confident especially if you practice a bit.

    http://childcare.about.com/od/evalua.../questions.htm

    You should also put in your ad that it's been 2 years since you last had an opening. It shows your an amazing provider.

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  6. #5
    Euphoric !
    Join Date
    Feb 2011
    Location
    Ottawa, Ontario
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    It seems every time I interview that yes the parents have changed, the expectations of kids have changed and I have to wonder what really changed and why. But for sure it makes a difference - I am finding now that like you I have over 20 years in the business and "new fangled parents" as I call them can not fathom that I could actually still do daycare since in most cases their parents have said no to watching the kids and used age, etc. as an excuse for them to go out and get care outside the family instead of just saying they didn't want to be tied down with the kids. Also the moms don't seem to feel as comfortable that I don't do things the way they do but sorry some of the new ideas are just not good for the kids. For sure find something to put in your ad or at an interview that addresses these two things in the sense of why you plan to continue doing this job and how you work with families to do what is best for the child for continuity without committing to anything if you know what I mean.

    Parents question new providers just starting out and question "well experienced - read older" caregivers but there are families out there for us too.

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