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  1. #1
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    How to compete with those whose rates are less?

    I've been doing my research and there seems to be a lot of long-time daycare providers in my city and in my neighbourhood who I don't think have ever increased their fees. I don't know how they can even afford to charge what they do. The problem is that it makes it hard for us "newbies" who are charging a normal, fair rate. We're competing with those who not only have more experience, but are charging much less for the same services. In one case, I actually spoke to a lady who has been doing this for 30 years and she charges $200 less per month than what I charge. When I commented that her rates were so reasonable, she said "Dear, I thought I was charging the same as everyone else. Are people charging more?" LOL. Of course, she seemed as sweet as can be and if I were looking for childcare, I'd probably send my own kids to her in an instant.

    Any suggestions for how to complete with those who charge less than you do? Or do I just wait until their spots fill and then hopefully people will come my way?

  2. #2
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    While some families need and want that lower rate there are plenty of families out there that recognize this career costs money to run and it deserving of a decent pay.

    All you can do is offer your best, present your best and sell your best. Families will come along that respect and value that.

  3. #3
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    Don't bother trying to compete with others who undercut the market price. There is a need for all prices of care. If you run a quality program, then charge accordingly. Don't undervalue yourself!
    Quite often the ones that undercut the price are running a sub-par program/not following the laws/not declaring income etc. Not always the case, but more often than not.
    If you're just starting out, you might go $1-2 dollars a day less than the norm to build your first couple of clients, and then come up to the average as you take on more clients.

  4. #4
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    Are these providers following the new ratios or are they still back in the 80's along with their rates? ..... In my opinion (and there are a few in my town also) these grandmotherly type providers can charge these low rates because A) they don't have a mortgage and are truly just doing it for a bit of income (which they aren't likely claiming) or B) they are wearhouseing kids and can afford to charge less because they have way more then allowed..... Or both !!!

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  6. #5
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    I agree with crayola kiddies. There are some who still refer to themselves as the "neighbourhood mom" or "babysitter" and they either don't know or don't care that the rules have changed. They take on more than they are allowed and still charge the low rate. I do think that some are perfectly capable of this BUT it's not legal anymore.

    Than there are some who do this for extra money and feel that childcare is expensive so they can afford to offer lower rates. I think this is great for lower income families but it does make it hard for those of us who do this to make a profitable living. I don't think they realize how it hurts the industry though and they just wanna offer affordable daycare. Hard to fault them for that.

    Some who charge lower will eventually find out that it's not profitable and will either raise fee's or quit. Others will be able to continue at lower fees due to other resources of money. There's nothing you can do except make your daycare the best that you can and get your name out there. I don't think necessarily that fees are directly related to quality of care but in some cases it is and parents will soon realize this and look for a different provider.

  7. #6
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    These same grandmotherly type that have been doing it for 30 years likely don't have a contract but they don't worry about any one leaving cause they will never find a better rate

  8. #7
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    I never really understood the concept of this or how people get away with it so if anyone can explain PLEASE do. Before I ask my questions I just wanted to inform all providers that do it illegally that the risk isn't worth it. There is a provider in our neighborhood who just got inspected by the ministry. She not only was over the 5 limit but wasn't following the 2 under 2. This women got charged $2000 per day PER child she was over limits with and then another $2000 per day per child that was not in compliance to the 2 under 2. This women now owe $48 000 to the ministry in fines!

    My question is how the CRA doesn't figure it out? I know parents who have gotten "cheaper" care "without"receipt s but went behind the providers back and claimed knowing they could but the provider never got in trouble?

    I also know of another provider who gives out those receipts from receipt booklets and never claims/parent do but never gets in trouble and don't pay a $1 in tax?

    How are these people getting away with it? As for the Kingston area, providers who are operating illegally be very careful because I have my eye on you and best believe if I see any illegal activity I will pick up the phone an sing like a canary!

  9. #8
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    Have you picked up the phone and sang like a canary ...for the person who gives receipts but never claims/parent...and doesn't pay taxes....start singing!

  10. #9
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    I did as a matter of fact But my question would be how the CRA doesn't find these people on their own if parents are claiming??

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  12. #10
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    Quote Originally Posted by bluebirdfollower View Post
    I did as a matter of fact But my question would be how the CRA doesn't find these people on their own if parents are claiming??
    Until one of the families or the daycare provider gets audited the CRA wouldn't connect the receipt to the provider. Pretty sure it all just gets plugged in but isn't connected unless someone raises a red flag and they dig in.

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