Cost of Daycare

[Trace of Angels]

Hi All,

So I have been doing daycare for a bit now. When I speak to other providers in the area and Daycare friends that I have, I don't understand this one thing that seems to be the norm.........rates. Why does no one ever increase their rates???
One friend hasn't increased in 6 years, another in 9 years and yet another in 10 years...........not one of them.

Yet everyone else on the planet gets a raise, heck my husband is making a whopping 55% more than he was just 9 years ago.......I mean YEAH me, but am I expected to never get a raise............and why do I feel so bad about even asking for one. In every other job I have had I have received a raise almost every year........inflatio n happens, cost of housing has gone up, cost of gas, cost of groceries but I may have to stay at this salary for NINE YEARS???????

What is it about daycare that no one wants to raise their rates? Why are there so many home daycares charging less to attract clients?

Do you raise your rates? How much, how often?

Sometimes I wish we had a UNION............... .

[playfelt]

Unfortunately daycare goes by supply and demand and as long as we are competing with others for parents then we have to do what attracts them and well money talks for sure.

Having said that I raise my rates when new families start care provided I am still in line with others in my area and to a certain extent we all seem to do the same thing. I start kids as babies and keep them till school so 2 -3 years. I keep rates for families in care the same but start new families at a new rate. They then stay at that rate as long as they are with me but new ones after them would pay more. Often it is only a dollar a day more I raise the rates but $5 a week does pretty much cover expenses because so much of my stuff is repeated or reused from year to year - toys/equipment/etc.

[buzygirl]

If you don't mind me asking,What is your daily rate currently?

[Trace of Angels]

I am $42.00/day in Ottawa ON. I've seen as low as $35 and as high as $70 at some centres

[playfelt]

If you look at the CCPRN rates survey you can clearly see that the rates vary across the city and to some extent reflect socio-economic status, proximity to specific landmarks, number of daycare homes in the area etc.

I am $40 a day here in Orleans but yes around me it ranges from $35 - $42. I keep a watch on daycarebear to see what the norms are for those closest to me and use that to some extent as a guideline. In reality parents are not impressed enough with fancy programs to pay more for it. For babies and toddlers they are quite content with a cheaper price and more freeplay.

[Momof4]

One year I didn't raise my rates but I added days off, Easter Monday & Christmas Eve Day. I figured I was giving myself a raise without raising the rates. Last year I went up $2/day for full time and $5/day for part-time because I felt it was time to pull myself in line with the competition once I had established myself with a good reputation. This year I'm not increasing rates but I will most likely raise them $1/day next year.

I think you have to be careful to look at the type of people you attract, doctors and lawyers or office and blue collar workers and think about their incomes. My clients are the downtown office workers and they don't make a fortune. I know. I used to be one of them.

As Playfelt said, my crafting supplies expenses were higher a few years ago than they were last year because I have a buildup in my craft drawers and you streamline with each passing year in so many ways to save money and time.

[Island29]

Daycare is expensive already, so that could be a reason why those providers don't increase their rates. It's also competitive, so providers would want to makes sure that they're in line with what others are charging.

"One friend hasn't increased in 6 years, another in 9 years and yet another in 10 years...........not one of them." This seems to bother you. If they're content with what they're charging, why do you care?

"Yet everyone else on the planet gets a raise, heck my husband is making a whopping 55% more than he was just 9 years ago.......I mean YEAH me, but am I expected to never get a raise............and why do I feel so bad about even asking for one. In every other job I have had I have received a raise almost every year........inflatio n happens, cost of housing has gone up, cost of gas, cost of groceries but I may have to stay at this salary for NINE YEARS???????" So if you feel you should be charging more, then charge more. Why are you complaining and whining about it. It's YOUR business, charge whatever the hell you want. When parents choose other providers over you, don't complain either.

"Sometimes I wish we had a UNION." Then go get a unionized job. You're self-employed, therefore you set your own rates. Obviously ppl in the workforce working for companies will get raises, you own your own business, nobody is going to just pay you more, use your discretion and charge accordingly.

[Judy Trickett]

Daycare is expensive already, so that could be a reason why those providers don't increase their rates.

Daycare isn't expensive - KIDS ARE! Why should a provider live on less than minimum wage because she cares for someone ELSE'S kids?

Daycare is one of those expenses parents need to think about BEFORE they have kids and worked their budget accordingly.

[sandylynn]

If I gave myself Easter Monday and Christmas Eve day....parents wouldn't pay for it....it's not a stat holiday....so the "raise" would be where?????

[jodaycare]

If I gave myself Easter Monday and Christmas Eve day....parents wouldn't pay for it....it's not a stat holiday....so the "raise" would be where?????

I added Easter Monday and Christmas Eve as paid days last year and no one complained. Remember it is your business, if it is in your contract and parents don`t like it, then they don`t have to sign on. I also have 5 paid personal days in my contract.