Cost of Daycare

[Cadillac]

I raise my rates for new clients. So if one client leave and another one comes in, that client pays more. This way there is always a steady increase in my pay.

I just increase by $2.50 per day. Two clients are leaving and two come in that makes about a $1300 difference. I've also talked to other daycares in the area. We all raise our rates at the same time to around the same fee. This way we are never undercutting each other and he choice is made based on our different personalities and the way we run you daycare.

[Artsand crafts]

For the first 4 years (after a year working for an agency) I kept my rate at $42/day (same fee agencies charge to parents). Some months ago I increased my fee to $45 after I found daycare bear and saw some providers were charging that. About 3 months ago I increased my fee to $50 for new families since one of the enrolled moms told me I was very affordable and another person inquiring told me she was willing to pay $65 if I had a license. My now $50 doesn't look to bother new families and since I posted what I charge in daycare bear I have seen some providers in this area starting to charge $50 as well. For now I am happy with what I charge since I have the shortest business hours around. Most people that contact me need care outside those hours. I still have one spot available, but I guess I'll have to wait until I found the family that needs my hours.

[5 Little Monkeys]

I too wonder why daycare fees aren't raised more often. However, if it is too much than for some families it wouldn't make sense to work because they would just be giving their paycheque to their dcp. I also feel that if hdc's charge too much more parents will just go to centre daycares or be put on the lists and then leave hdc's when a centre has an open spot.

I don't understand why some ppl(no one in particular btw) expect one parent to pay their entire hourly wage though. For me, I am allowed 4 children and I charge $30 a day and am open for 9.5 hours. (usually only work 8-9 though, yay!!) That means I make $12.63 an hour. Here minimum wage is being raised to $10.45 so my wage is not terrible......defini tely could be better but if parents are only making minimum wage themselves it's hard to expect them to pay a huge dc bill.

[playfelt]

Don't forget that part of that $30 a day is not income. Your income is based on the amount left after you deduct your daycare costs for food, crafts, supplies, toys, upkeep of daycare space, etc. But yes when we actually do look at the numbers our income really isn't bad at all because on top of what we make those with their own kids have to factor in the fact they get free childcare so if they went out to work they would have to pay that fee and take home the rest.

[5 Little Monkeys]

Yes, sorry playfelt I forgot to mention that the $12.63 is not an accurate hourly wage after you deduct your costs. However, I buy almost all my toys second-hand or have them given to me, I use coupons for groceries and only buy whats on sale(this also helps to have variety in my meals) and I buy art supplies in bulk or at the dollar stores. I also shop in the states a fair bit which saves me money. We also get to write a good chunck of stuff off that we wouldn't be able too if I didn't have a hdc. There are definitely pros and cons to me having a hdc instead of an outside job but I actually make more money now than I did when I worked in a centre daycare even after deducting costs.

[playfelt]

While it is true you can put anything you want in your contract if you are in an area where there is stiff competition for children it will be something parents use as a negative when comparing daycares. For that reason providers in some areas do have to forego some of the perks that providers in other areas can enjoy.

[daycaremom9]

I'm full but I don't know if I would be if I closed and charged for stats or personal days. I, however do charge my full-timers for stats since they get a better rate than the part-timers.

[Fearlessbaby]

I think we should increase our rates to keep up with inflation and our increasing wisdom and experience as child care providers! Good discussion!