Whether you are starting your home daycare or you're a seasoned pro, the question of what rate should I charge or am I charging too much or too little arises frequently. While there's no magic formula to determine your rates due to the many variables involved, experience and trial and error can simplify the process.
Fortunately, we’re here to share insights gained over the years on setting home daycare rates! Read on for our latest blog post to consider when calculating your rates.
Most providers establish full-time, part-time, and daily rates for their home daycares. These rates depend on various factors that change over time. Therefore, even if your rates are set, they should be reassessed periodically.
Follow the sections below to start calculating your rates.
Childcare in Your Area
Research the types of childcare available in your area and their rates, including daycares, schools, nannies, babysitters, and other home daycares. Understanding these rates will help determine where your rates should fall.
Factors to Consider When Setting Your Base Rate
How long have you been operating?
What is your level of education?
How much experience do you have in childcare?
Do you offer transportation services?
Is food included (e.g., breakfast, lunch, dinner, snacks)?
Where is your location?
What is the demand for childcare in your area?
Evaluate your offerings based on the quality of your programming, the depth of services provided, and your educational background. The more comprehensive your offerings, especially in childcare-related education, the higher you can position your rates.
The best way to test your new rate is to start using it!
Additional Considerations
Early drop-off/late pick-up services
Extended hours of operation
Weekend childcare availability
Sliding scale based on child age
Referral discounts
Sibling discounts
Rate Increases
Decide whether your rates will increase annually or under specific circumstances. Clearly outline this in your parent handbook so parents know what to expect. Include when they will be notified about rate increases and the effective date.
Looking for More Structure?
Consider our Planning Workbook. Setting rates for my home daycare was always a challenge. Juggling a daily, part-time, and full-time rate seemed confusing, especially when scenarios like different weekly attendance or short care hours arose. Dividing my daily rate into an hourly rate felt inadequate.
That's why we developed a comprehensive Planning Workbook dedicated to determining your home daycare rates. It simplifies the process with a systematic approach to handle various pricing scenarios. Our workbook includes a convenient calculator to determine your rate scale and a quiz to find your fitting place on the scale. It also covers different methods for implementing rate increases.
Reduce confusion and confidently set consistent rates for your home daycare parents.
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