I very much agree with cfred. I believe the best way forward is if you can market yourself to the 'wealthy' families that want to avoid group care. Being the cheapest is not going to keep you full. There are too many incentives for families to use the centre based care. I feel to keep your business viable home daycare providers will be best to market themselves in a way that acknowledges the benefits of small group, home based care BUT has some of the key features of centre based care as well...enrichment, learning opportunities etc.

For those with ECE and teaching degrees this will be a selling feature, for those without that perhaps finding a niche market (organic, waldorf, Montessori, etc). Raise your rates to draw in the upper middle class families.

When I had a full house (I downsized some time ago) I easily filled my 5 spots charge $15-20 more than the providers around me. I was able to do this with my education and experience and by selling myself as providing quality low ratio care. I designed my daycare space to be similar to that of daycare centres (distinguished play spaces) with the children free to explore safely. The families I signed on were all federal government workers that did not want centre based care.

I do believe that had my fees been lower I would not have even had these families out for an interview. I can't help but feel that they were looking for something more. Obviously it was largely to do with my advertising and how I sold myself but I do believe that having that higher price clearly advertised I found the market I was looking for.

I suspect this will be the way for most to move ahead. Obviously not everyone can jack their prices up at once, and over time there could very well be less demand for home based spaces (more centres open). But, I can't help but feel that in time home daycares will be for the 'elite' that just don't want to put their kids in centre based care.

It would be nice if my thoughts (as above) don't play out and big changes don't take place...but I am doubtful :-(