It bugs me when people do it in my area too.

When I started - most places were at $35 a day but my area was charging between $25 - $30 a day.
I really didn't want to put myself at $30 a day considering that I had paid my own daycare provider $35 in the GTA and that was about 4-6 years before I started a daycare. It seemed crazy to do so much work for $30 a day.

So I started at $32 a day and then got three families. After my first 3 families...I put the price to $35 for any subsequent families.

I never felt comfortable raising my initial families the $3 per day. It seemed a lot to go up 9%. It would have meant an extra $15 per week which starts to seem like a lot to families.

I think it is dangerous for people to start at $28 a day and then plan to raise it to $35 in a few months. It is a bait and switch. It isn't the most ethical practice.

I have had a few weary interviews where people ask whether I will suddenly raise prices.

We work really hard for the money and I think the providers need to unite to get what we are worth. By undercutting rates we are making it difficult for others. Providers should have a similar price structure and then try and attract clients based on merit rather than price. I feel like it is disrespectful for providers to lower prices below the norm no matter how desperate they are.

I would probably talk to the provider and tell her that you noticed her price and you understand why she probably wants to attract clients but that she may have a hard time raising the prices significantly down the road or risk the clients bailing for another cheap daycare.