How to Set Rates for a Home Daycare

You're not just babysitting anymore. A home daycare is a business, one that is vital and extremely important to working parents. In order to be successful and make enough money to support yourself, you have to set the rates so that you can get and keep the business while providing for your own needs. Take a few of these tips to set the rates for your home daycare.

Difficulty: Moderate

Instructions

1. Check with the state agency when you get your license. Some states regulate daycare rates, at least for subsidized payments. Learn all the rules so that you will be in compliance.

2. Find out the going rates in your area by calling or visiting at least two or three other daycare centers. Mix it up and visit a small home daycare, a commercial center and individual nanny services to get a feel for the options.

3. Set higher rates for special services, such as transportation, drop-in and after-hours care. Infants typically require more work and should be charged more. If you are going to give anyone a deal, make sure it works in your favor, such as for regulars with multiple children.

4. Charge by the day or half-day instead of by the hour, with a minimum weekly requirement. This will allow you to set a clearer budget. Half-day rates should be higher than full-day rates.

5. Ask parent to sign a contract that clearly states the charge for no-shows and absentee rules. Include costs for extra curricular activities and outings.

6. Work out a pay schedule backwards. Figure out how much you need to stay in business, and then divide that by the number of children that you can take of. For example, if you need $1,000 a week and you can take in 10 children, you need to charge $100 a week for each child.