How to compete with those whose rates are less?

[5 Little Monkeys]

U can make as much as u can as long as u never go over ratios and age restrictions and claim it all!?!?!?

Yes, that's exactly what I mean. There's still a max though. You can only have a set number of children throughout the day (whatever your hours and ratio are) times the fee you charge

For 24/7 daycares, it would be easier to go over ratio though since I'm sure you are never near your max dollar amount per year as I'm assuming you are never 100% full 24/7? They wouldn't know that you are running illegally at times. (Not saying you do! Haha)