Would you ever lower your rates to accomodate a child and family you really liked?

[Inspired by Reggio]

Yup - I agree with Playfelt - I reevaluated and lowered my rates when I first started based on what the market could bare considering that in my area there are a large % of $20 a day providers who work under the table while getting spousal support or social assistance and do not want to claim their income and affect that.

So for me there was a gap between what I felt I was WORTH based on years of experience, training and program and what clients were willing to pay for care in comparison in my area of town .... I had my ad up for two months at the same fee that AGENCIES charges because I felt that I was offering the BETTER service than that so was worth it ... however I lowered them to the 'middle' range for my city which is the high end for my area within that - and than have spent the last several years adding indirect financial perks to my contract instead.

That said if there was demand and my market could bare my rates and it was just 'one client' who was concerned about the fee - NO I would not lower my fees for an individual client ... because that leads to issues down the road when you are foregoing income for someone and than you see them spending $ they claimed they did not have on things YOU feel should not be a priority over childcare ... so for example if she says she cannot afford your fee and does not know how she is going to 'balance' her budget and you lower it and than later they book a $$$$ family vacation somewhere, upgrade their car, do a renovation on their house and so forth or even those LITTLE things like going for a mani pedi or having a latte in hand every morning and so forth .... which are all 'family expenses' for sure when we budget however when they have a higher priority over CHILDCARE and you opted to go without income so now YOU cannot afford those little 'extras' .... resentment cannot help but sneak in even in the most giving person!

[michellesmunchkins]

Yup - I agree with Playfelt - I reevaluated and lowered my rates when I first started based on what the market could bare considering that in my area there are a large % of $20 a day providers who work under the table while getting spousal support or social assistance and do not want to claim their income and affect that.

So for me there was a gap between what I felt I was WORTH based on years of experience, training and program and what clients were willing to pay for care in comparison in my area of town .... I had my ad up for two months at the same fee that AGENCIES charges because I felt that I was offering the BETTER service than that so was worth it ... however I lowered them to the 'middle' range for my city which is the high end for my area within that - and than have spent the last several years adding indirect financial perks to my contract instead.

That said if there was demand and my market could bare my rates and it was just 'one client' who was concerned about the fee - NO I would not lower my fees for an individual client ... because that leads to issues down the road when you are foregoing income for someone and than you see them spending $ they claimed they did not have on things YOU feel should not be a priority over childcare ... so for example if she says she cannot afford your fee and does not know how she is going to 'balance' her budget and you lower it and than later they book a $$$$ family vacation somewhere, upgrade their car, do a renovation on their house and so forth or even those LITTLE things like going for a mani pedi or having a latte in hand every morning and so forth .... which are all 'family expenses' for sure when we budget however when they have a higher priority over CHILDCARE and you opted to go without income so now YOU cannot afford those little 'extras' .... resentment cannot help but sneak in even in the most giving person!

Agree with everything Reggio said. I too, am in an area where there are quite a few $20/day providers. Not saying they aren't just as good as I am, but not sure how they make ends meet charging that. I spend half that in food a day just for each child!

I will NEVER lower my rates as I feel that I set them for what I needed to be financially ok. I have had families ask me to accept $____ amount instead and told them no. This same family was sitting in my house all dressed out in LULU Lemon clothes, texting on their iphones with her nails and toes all done up perfectly! So, nope not a chance I'd lower since really they are just bartering. If you can afford those clothes to wear just to a daycare interview you can afford my full fees (which are pretty much standard)

I did offer a family rate ONCE. A single mom with twins. It was a huge loss of income for me and when she kept talking about her brand new house, her new furniture, her new appliances and the $70 dress she bought her daughter just for a photoshoot I knew I had been played but it was too late to increase fees at that time.

I think you should set your fees for what you need, what the market is like in your area and the clients you want to attract. If you agree to lower your fees, you set the bar to keep giving in to their other demands and things they want changed.