Research the area where you are opening your daycare to see what the competition charges. Be careful not to fall into the trap of being the cheapest option. It is best to calculate your costs and then charge according. The U.S. Department of Health and Human Services considers 10 percent of a family’s income-affordable child care, but parents are ultimately spending much more, on average. Parents should be expected to pay between 16-26% of the household income toward care for their children. Do your research and calculations to put yourself in the best financial position from day one.
How to Calculate Your Childcare Center's Price
The average charge for childcare at a center across the United States is $212 per week. Keep in mind this charge can vary widely from State to State. At a whopping $688 per week, Washington D.C. is one of the highest charges for childcare. Among the lowest average charges for a State is Mississippi at $153 per week.
Childcare expenses can be a major concern for parents across the United States. According to recent data, the average charge for childcare at a center is $212 per week. However, it's important to note that this average can vary significantly depending on the location.
One of the most expensive places for childcare is Washington, D.C., where parents may find themselves paying a staggering $688 per week. This high cost is partly due to the high demand for childcare services in the area. In addition, the cost of living in the city is generally higher than the national average, which also contributes to the elevated childcare charges. The high price tag of childcare in Washington, D.C., can put a significant financial strain on parents, making it crucial for them to plan and budget accordingly.
On the other end of the spectrum, Mississippi boasts one of the lowest average charges for childcare at just $153 per week. This low cost can be attributed to several factors, including the lower cost of living in the state and the availability of more affordable childcare options. While Mississippi may offer more affordable childcare, it's important to consider other factors, such as the quality of care and the resources available to children in these settings.
Overall, the average charge for childcare across the United States is $212 per week, but parents must research and understand the specific costs in their state or area. These costs can have a significant impact on a family's budget and financial planning, so it's essential to consider the expense of childcare when making decisions about work, childcare options, and financial investments.
Research the area where you are opening your daycare to see what the competition charges. Be careful not to fall into the trap of being the cheapest option. It is best to calculate your costs and then charge according. The U.S. Department of Health and Human Services considers 10 percent of a family’s income-affordable childcare, but parents are ultimately spending much more, on average. Parents should be expected to pay between 16-26% of the household income toward care for their children. Do your research and calculations to put yourself in the best financial position from day one.
Do I charge per day, week, or month?
How you set up your childcare center 's pricing structure largely depends on the clientele you are targeting and the local job market. If your new childcare business is located near a large employer with set shifts, then it may be to your advantage to match those weekly work hours and charge accordingly. In Las Vegas, where we opened our first 24/7 childcare facility, we found it best to charge per day to accommodate the ever-changing shifts of casino workers. Doctors, Nurses, First Responders, and employees at large 24/7 department stores need this flexibility also.
When setting up the pricing structure for your childcare center , it is crucial to consider the demographics and needs of your target clientele. One crucial factor to consider is the local job market, as this will determine the scheduling needs of the parents seeking your services. For instance, if your childcare business is located near a large employer with set shifts, it is advantageous to align your pricing structure with those weekly work hours.
For example, let's consider Las Vegas, a city known for its vibrant entertainment industry. In this bustling city, the casino workers' schedules are ever-changing due to the nature of their jobs. To cater to their needs, opening a 24/7 childcare facility was optimal. In this scenario, it would be more practical to charge parents for each day their children attend the center, as this allows them the flexibility to use the service whenever required without being tied to a fixed weekly schedule.
Additionally, other professions, such as doctors, nurses, first responders, and employees at large, 24/7 department stores, also require flexible childcare options due to their irregular working hours. By offering a pricing structure that accommodates their varying schedules, you can attract and retain these valuable clients who greatly benefit from your center's flexibility.
In conclusion, your childcare center 's pricing structure should be tailored to the needs and demands of your target clientele. Understanding the local job market and the scheduling challenges faced by specific professions will help you determine the most suitable pricing model, be it hourly, daily, or even weekly rates. By doing so, you can ensure that your childcare center caters to the unique needs of your clients while maintaining a profitable business model.
You'll need to have clear credit policies for cancelations when charging for a week or month in advance. Provide this information upfront on the registration paperwork to avoid confrontations. Clearly spell out how far in advance a parent needs to cancel their scheduled care to receive an account credit. I would avoid offering actual refunds to simplify your bookkeeping.