It can be tempting to set your prices based on what you think parents can afford and/or what other providers are charging, but that's not the way to sustain a successful business. You need to make sure you have a firm understanding of all the costs associated with providing quality child care, and then set your fees based on those numbers. Otherwise, you will not be able to cover expenses, make a profit, or develop a financial reserve for unexpected expenses.
First, determine your expenses. Consider the following:
- Accounting services
- Cable, Internet and telephone service
- Child supplies and materials
- Employee wages, benefits and taxes
- Furniture and equipment
- Janitorial services and cleaning supplies
- Legal services
- Loan Payments
- Mortgage or rent payments, and property taxes
- Office supplies
- Professional Development and training
- Repairs and maintenance
- Travel expenses
Once you know your total monthly expenditures, you can determine how much income you need to cover those expenses. Then, considering how many children you realistically plan to care for, you can begin to think about setting rates.
For comparison, the following documents will give you a general idea of the fees currently charged by programs and providers in Westchester County:
- Average cost of child care in Westchester County
- Cost of child care in Westchester's largest towns and cities
We're here to help!
Call the Council at (914) 761-3456 x108 for additional information about the cost of care.