No two child care centers are the same, but all child care centers are businesses. Not only do you need to be sure that you’re charging childcare or preschool tuition at rates that are fair to families and enough to keep the lights on, you now need to factor in the financial impact of the COVID-19 crisis on the future of your program.
Whether you’re running a childcare business, a preschool, or an aftercare program, your tuition and fees should be priced with three things in mind:
Is childcare tuition covering your expenses?
Are you charging enough to offset your costs and making enough to grow your business? By creating a budget that outlines what you expect to pay out throughout the year, you’ll be better able to calculate what you need to charge in order to stay afloat. Use this childcare pricing worksheet at the lower half of this page to make sure you’re setting rates that make your organization’s bottom line healthy and thriving.
What are other local centers charging?
If you’re charging well over the rates of other childcare, preschool and aftercare providers in your area, your program must offer something that no one else has. If you are charging well under the competition, parents may wonder if the old adage “you get what you pay for” is true. At least every other year, compare your childcare tuition rates and services to your competition, particularly those of similar size, programming, and proximity.
What can families in your area afford?
If parents and families in your area can’t afford your services, you won’t be in business long. Make sure you are charging childcare tuition and fees that make sense to the area you are serving. If the income bracket is on the lower side, you may need to factor in subsidy payments from third party agencies to make ends meet.