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  1. #1
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    Rates with Child Care and Early Years Act - Ontario

    Hi everyone,

    I'm new to the forum! I will be opening a home daycare in Ontario upon completion of my maternity leave in January 2016. I'm having a little difficulty setting my rates. The standard daily rate in my area is $35-$40 for a full day and around $25 for a half day. With the new Child Care and Early Years Act, I believe a lot of providers will be raising their rates because of the new rules. I have no idea what they will be raising them to though! I don't want to overcharge and have difficulty finding clients and I don't want to undercharge and rip myself off! I also worry that many providers aren't up to date with the new act and won't be raising their prices because they just don't know about the new rules so it will look like I'm overpriced compared to them. I have two children of my own under the age of 6 so they will both count in my numbers. Therefore, the act does have quite an impact on me as I will only be allowed to take in another 3 children when the old rules under the DNA would have allowed me to take in 5 additional children. That's quite a drastic change in income so I want to make sure I charge appropriately. The new rule of having only 2 children under the age of 2 will most likely make it difficult to start out as well as I can only take on one other child under 2 (because one of my own is under 2). I worry it will be difficult to find children over 2 years of age because most families are looking for care for their one year olds after a maternity leave. Because of this, I also need to make sure I have enough income to survive! Will anyone be raising their rates and what to? How much do you think I should charge? I am not an ECE. Having 2 little ones of my own is my experience. I do however, plan to operate a fun and educational program. I will be providing breakfast, lunch and afternoon snack in my rate. Any help would be greatly appreciated! Thank you.

  2. #2
    Euphoric !
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    A lot of providers are planning to charge a larger rate for the under age 2 group only based on how few spaces there will be parents will have no choice but to pay the fee so you might want to consider that option. Then keep the over age 2 rate competitive to attract the older child. Also many only raise their rates as new families start care so charging higher rates is something that will happen over the course of the year. Even if you take on a child in January and then it is April when the next starts you can charge that child whatever amount you want so maybe keep the fee lower to get in a couple kids and then raise it for you other space if it doesn't happen right away. A providers stop keeping a space open for a maternity leave there will eventually be families with a one year old and an older sibling when mom returns to work so it will start to balance out a couple years from now. In the meantime though don't raise the rates to totally offset the loss of income or you will price yourself out of the market.

  3. #3
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    Thank you! Great advice. I was planning on charging $38 per day including breakfast, lunch and afternoon snack. This would be for all ages. Does this rate seem appropriate considering the new rules and the fact that I'm just starting out? I will consider maybe charging $40 for the under 2 spot and $35 for the over 2 spots.

  4. #4
    Euphoric !
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    Rates where I live range from $40 - $50 so your best method is to put your postal code into the search box on the daycarebear homepage and check out the daycares closest to your home to get a feel for what they are charging. If you are booking for January then plan on charging the higher of the fee range assuming those on the lower end will raise their rates to the same level.

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