I don't think they always fill up first. I would imagine it depends on the area somewhat as well. I'm well over the standard rate in my area and there are some who charge up to $10, $15 less than me....I'm full, they're not. I'm currently doing a waiting list for 2015/16. I really, really think that people who know what the rules are and are choosy about the kind of care their children get will always go for quality over price. I live in an area with a mixed income range and it's saturated with home daycares (several in my neighbourhood alone plus 2 formal daycares on my street). I've found aggressive advertising, keeping on top of what everyone else is doing and offering new 'twists' to business to be very, very helpful. Don't let people like that discourage you. They'll always be out there....but yeah, report them when you can! There are so many different kinds of families out there and we can mould our own businesses to suit any niche market we want. All we can do is continue to improve upon our own techniques and draw in those clients who recognize the differences between low budget and high quality.