Thanks everyone for your input!

They decided I was too expensive. Even with the discount I was giving them, and even considering I am subsidy approved.

So I wished them good luck and am moving on.

And I have decided not to personalize my prices anymore. I charge what I charge; if they don't like it, they can go somewhere else. I am charging very reasonable rates and offer high quality child care, so I won't feel guilty for charging what I charge anymore.