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What Influences Your Decision on How Much to Charge?

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  • What Influences Your Decision on How Much to Charge?

    Hi there! Long time lurker, first time poster here. I’m trying to decide on whether or not I should up my rates this year.

    Do you:

    A - seek out how much other equivalent providers in your town charge.

    B - base your rates off subsidy/market rate surveys.

    C - other, explain.

    In my county, as of 7/1/22, subsidy payment average is $2.70/hr for the the age groups that I provide care for. Other state registered providers in my city, of what I can find online, charge somewhere between $100-$135/week. I myself charge $120/week currently for all ages. I am allowed 12 children and am open 50 hours per week.

    In my handbook, I do have a policy that rates are subject to increase yearly on the first Friday in September. I originally was going to up my rates to $130/week to match the average county subsidy rate, but since that has now gone up and the majority of the providers similar to me are charging less than my current rate, I’m not quite sure where to land. Thoughts? I appreciate any and all help!

  • #2

    I base my rate on what I have to offer vs what other home providers/facilities have to offer. There are two providers in my town and they charge $85/week and $100/week. When I opened, I charged $125. My rate is now $135.

    The $85/week facility only enrolls kids once/year and they accept potty trained kids from ages 2-12 with before/after school care and summer programs. Therefore, this facility has the resources to enroll 100 kids if they wanted to. They’re the best facility in our small town!! But since I am a small business, I enroll anytime throughout the year and I accept kids that aren’t potty trained, I feel I can justify why I charge significantly more.

    The $100/week facility enrolls at 6 weeks to 5YO. They’re a registered (not licensed) home daycare with several employees. Since my DD2.5 was once enrolled at this facility, I know first hand what I offer vs what they offer families.
    Last edited by GirlMomma; 07-07-2022, 12:26 PM.


    • #3
      I am at $210 for preschoolers and $275 for infants. I raise a little each year. Some of my fellow providers with the same rating (via Colorado Shines) charge closer to 300 per week for preschoolers. I don't offer a formal preschool program, so I don't charge as much.


      • #4
        I go off what my other inhomes are doing mainly. Makes it easier. I did do things differently based off parent requests (raised rates but gave more freebie days) but ultimately that just isn’t a good idea. Better to have rates that compete for my area and charge those days like everyone else. I do charge more for 10 hour days and I tell families that. I don’t want 10 hour days but if I have to, I’m charging more. I charge more for part time too if I were to do it. So far have only done one part time and not generally looking to do part time unless I have to.


        • #5
          C. My monthly bills + $500.00 month for Roth Ira + pre-planned curriculum + diapers/formula/topicals + cleaning supplies = Tuition ($150)

          My toys, furniture and fence are already paid off, so I did not have to raise rates for quite a while. My power bill has gone up $166 per month in two years, so I will have to go up a little next year. Food is written off. I don't have a car, no need. I cut my own hair and do my own nails. My phone bill is only $35 per month. I live below my means.

          If they raised my ratio back up to 12 kids I could charge $75 per week, just like I did twenty years ago, and be more useful to my community
          Last edited by Cat Herder; 07-08-2022, 06:43 AM.


          • Cat Herder
            Cat Herder commented
            Editing a comment
            If they raised my ratio back up to 12 kids I could charge $75 per week, just like I did twenty years ago, and be more useful to my community.

        • #6
          I pay attention to other child care facilities to be competitive; I charge less than some daycares and more than some daycares. I do also figure in my cost based on my own bills and what is needed for child care itself to operate. I have increased more the last two years, at one time, than at any other years within my 30 years of child care. The time is right and I need to take care of my own family. The emotion is gone and I'm a business owner. Wish I had learned this sooner! I realize now that I am NOT being mean if I think of ME/MINE. I HAVE to take care of my own while offering a quality/dependable service for clients. and might I add, there has also been some Federal help for families and child care facilities that have alleviated some costly burdens many faced. Essential workers received 20 months of free child care....that has ended but now subsidy paid families have no co-pay; the state pays it all plus the state implemented a significant subsidy increase rate. Stabilization grants,, I think child care now feels ESSENTIAL and APPRECIATED!!!!
          Last edited by Annalee; 07-08-2022, 11:44 AM.