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  1. #1
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    Rant about rates in my area

    As a provider trying to fill under 2 spots in the 'north of Toronto' area I'm SO frustrated that other providers in my area are still charging low rates, and actually noticing the rates getting lower! Why?!
    I've been trying to raise my rates slightly especially with our new restrictions but I'm just NOT getting any interest when people in my area are charging 5-10 less a day As well, my area seems to lack demand in general compared to 4-5 years ago when I used to get a lot more enquiries.

    Honestly I'm sick of competing with providers who lack business savvy, or just doing it as a hobby as they are stay at home moms who want to make a few extra bucks.

    In the last few years I worked really hard to make my daycare show well and people who visit really like my setup. They like that I take fewer kids and offer personalized care since other daycares they visited have too many kids for their liking. But it seems all in vain as I feel they go with the cheaper daycare in the end. Don't they understand that if they want low ratio they may have to pay more?

    I know eventually my spots will be filled with the right families but I'm feeling really frustrated right now. Thanks for reading

  2. #2
    Euphoric ! bright sparks's Avatar
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    Quote Originally Posted by cdngirl View Post
    As a provider trying to fill under 2 spots in the 'north of Toronto' area I'm SO frustrated that other providers in my area are still charging low rates, and actually noticing the rates getting lower! Why?!
    I've been trying to raise my rates slightly especially with our new restrictions but I'm just NOT getting any interest when people in my area are charging 5-10 less a day As well, my area seems to lack demand in general compared to 4-5 years ago when I used to get a lot more enquiries.

    Honestly I'm sick of competing with providers who lack business savvy, or just doing it as a hobby as they are stay at home moms who want to make a few extra bucks.

    In the last few years I worked really hard to make my daycare show well and people who visit really like my setup. They like that I take fewer kids and offer personalized care since other daycares they visited have too many kids for their liking. But it seems all in vain as I feel they go with the cheaper daycare in the end. Don't they understand that if they want low ratio they may have to pay more?

    I know eventually my spots will be filled with the right families but I'm feeling really frustrated right now. Thanks for reading
    I hear you. I think your struggle to fill spots for under twos is probably more to do with demand for your area though. There are those same issues with providers undercutting with low rates everywhere and it did and still does inpact many. With the new change in the under 2 law though, there would be more than enough under twos to go around as there is no where near enough spots available now. The low rates wouldn't effect this, just that they may possibly be filled first, if every parent prioritized rate over care which many dont. It does sound like supply and demand for your area is out of the norm and that there simply arent enough families to fill the spots. Best of luck to you!

  3. #3
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    Quote Originally Posted by bright sparks View Post
    I hear you. I think your struggle to fill spots for under twos is probably more to do with demand for your area though. There are those same issues with providers undercutting with low rates everywhere and it did and still does inpact many. With the new change in the under 2 law though, there would be more than enough under twos to go around as there is no where near enough spots available now. The low rates wouldn't effect this, just that they may possibly be filled first, if every parent prioritized rate over care which many dont. It does sound like supply and demand for your area is out of the norm and that there simply arent enough families to fill the spots. Best of luck to you!
    Thanks bright sparks.
    Yeah I'm just stumped as to the lack of enquiries for this age group lately, especially when I hear other providers saying they have more than they can handle. I'm hoping there aren't kid warehouses around here esp since some families I met talk about daycares with too many kids. If so I would really love to find out who they are. Most I do now is keep parents informed on what is legal in a home daycare. And that rates don't seduce them to keep hush about it!

  4. #4
    Expansive... babydom's Avatar
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    I'm the same. My area is full of stay at home moms that do it for pocket change. The going rate is 40-45. I charge 45. But I know a few that do 30/35 and even one that does 20 a day��. It's so frustrating! But I always remind myself that they only have a limit number of spots and they will be full soon and then the parents will trinkle over my way. Plus I'm a firm believer in "u get what u pay for"��

  5. #5
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    Good Luck filling your 2 spots cdngirl

    Did you fill your 2 spots yet babydom?

  6. #6
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    Thanks Van, I hope it won't take too long.

    Quote Originally Posted by babydom View Post
    I'm the same. My area is full of stay at home moms that do it for pocket change. The going rate is 40-45. I charge 45. But I know a few that do 30/35 and even one that does 20 a day��. It's so frustrating! But I always remind myself that they only have a limit number of spots and they will be full soon and then the parents will trinkle over my way. Plus I'm a firm believer in "u get what u pay for"��
    Babydom, fully agree with You get what you pay for.

    Sounds like my area is even worse than yours though. Higher end is 45 which I'm trying to go up to after being at 40 for a few years. Most are at 30/35 and I see 25 occasionally too
    I see that in some areas of Toronto that 60+ is normal. So jealous.

    It's very hard to accept a parent only willing to pay bargain rates on daycare when they probably make more than my daily rate per hour with two combined incomes!

  7. #7
    Euphoric !
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    Going rate here is $35 with all food. I am $38. Seeing people post for $20-$30 all the time, with food, with receipts, with insurance, with first aid and CPR and sometimes with ECE too. I no longer bother try compete on price. I know that race to bottom. I compete on service and level care. That all I can control.

  8. #8
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    I agree Suzie_Homemaker. I just wish more people treated it like a serious business so the rest of us who already do, can survive.

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