Many entrepreneurs wanting to enter the daycare business have lots of questions about how they should price their child care services. Let’s take a look at some of the factors that you may consider when formulating an approach to pricing for use in your daycare.
1) Don’t overprice your services. Unless you have an established brand or really have something unique to offer then you will miss out with this approach as parents can and do shop around.
2) Don’t price your services too low. Many new child care center operators think that a great way to get business fast when they are just starting out is to come out with pricing that is considerably lower than competitors. This approach could lead to customers perceiving the quality of your services to be poor. You may get some bargain hunters but you will barely be profitable and if you do try to raise prices later on you will have some disgruntled parents on your hands. If you do start a price war then you will damage the whole industry locally and all players will suffer as a result. Continue reading