What Will YOUR Daycare Rates Be?

Your home child care business is just that- A Business- and your daycare rates need to reflect that. Parents need us to care for their children and one of the first things they will ask is “What do you charge” or “What will my average cost of daycare be?”

How do you determine what you will charge???

First of all you must decide on how much income you need and want to earn. Then you need to determine how many children you can personally handle and are able to care for according to your state’s regulations. May I suggest working out a pay schedule backwards? Figure out how much money you want to make then divide that by the number of children you will care for. For example; if you need $1,000 a week and you can take in 6 children, you need to charge $166.00 per week for each child.

It is very important that you understand and set your Child Care Prices to your local area.

So you need to find out what the average cost of daycare is in your community. If you set your rates too high, you may find that you will not attract business.

More ways to figure out the rates in your area:

• I would ask your local Child Care Resource and Referral or your state licensing agency what the going rates are. Some states could possibly regulate rates- usually this is for subsidized payments. Be sure that you are familiar with their regulations so that you will be in compliance.

• Get a listing of local child care providers in your area and call them and ask them what they charge. And I wouldn’t stop with just home providers. I would also call local daycare centers and get their rates too. (You do not need to tell them why you are calling as you are their competition!) ;)

These suggestions should help you figure out your own rates as well as the average cost of daycare in your area.

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