Am I charging too much?

Question

I recently started providing childcare. I live in a very small town outside of a small city in Indiana. I am charging $2 an hour for toddlers and school kids, and $3 for babies. Is that reasonable. I am trying to be competitive so I don't want to charge too much. I feel bad though that some people are having to pay $240 a week.

Answer 1

I think its reasonable, but if you're unsure, why not offer a discount to parents with multiple kids? Almost all the daycare centers in my town do.

Answer 2

I babysat for a very close family the other night and made about 30 dollars for the evening. They had 3 kids, a four year old, a 6 year old, and a 9 year old. Usually I make about 5-10 dollars per hour when I babysit... but that may be different for childcare. It really does depend on the economic level of not only the town but of the people you serve. The family I babysat for the other night is very wealthy, so I didn't feel bad about collecting 10 dollars plus food an hour for their kids. Sometimes when I babysit I'll have several kids for a few hours and only make 10 dollars. But 2-3 dollars sounds completely reasonable to me. I heard a lady talking and she said the cheapest she found in the area was 150 a week for her baby girl. You have to make a living too, you know?

Answer 3

defiantly not!

if anything, your being underpaid.

i know of people of people paying 10 to 15 an hour.

Answer 4

no thats reasonable..sometimes for child care the prices can raise to 300-400 dollars a week. Its true..I wish i had you in my state

Answer 5

I used to make 2.00 an hour babysitting in 1989. If people have to pay 240 a week, that's a bargain in my opinion. You are doing a very difficult job, you deserve to earn a decent wage.

Answer 6

I agree with the people who said one weekly rate for full time.  I live in WI, in a not very big town, so I understand your dilemma.  Where my nephew goes to daycare (in home daycare) they charge on full time weekly rate, but then it's $3.00 an hour once they go over 40 hours.  If you are going to change your prices, be sure to write out a new childcare agreement, and have you and the parents sign it.

Answer 7

Ah, will you move here to AZ?  Those are great prices for here and most of the US.  How small is the town and what is the economic average?  What are the daycare centers in your area charging?  You can call and ask for estimates.  Good luck with your business.

Answer 8

I think those are very reasonable prices. I have a 3 year old and a 4 month old, and I pay $80 a day for both of them. If you feel bad that some people pay so much though, here's a good idea. Charge the amount you charge per hour, but also charge a flat rate for full time children. A good average is $25-28 per day, that way it is still low enough to compete with other day cares. These are not unreasonable prices though, remember people's kids are their most valuable asset, and they are willing to pay for the best care they can possibly get!

Answer 9

You definately aren't charging too much, but I like the idea of charging a flat rate for full time parents