I have said it before, but let me say it again: daycare is a business; NOT a hobby. As a business owner, you are going to charge your clients for watching their children. Unfortunately, many daycare providers have a hard time knowing how much to charge for their services. They ask things like:

“What’s the right price?”
“Am I charging too much?”
“Am I too cheap?”
“Will people want to pay me?”
“How much is my competition charging?”

The struggle is real, friends. If you have ever asked these questions, you are not alone. I have been there too. However, pricing your daycare business does not have to be complicated. We can feel good about what we charge. 

Let’s talk about 5 components that will determine the right price for YOUR daycare.


Your price will be affected by where your daycare is located. Parents often look for a daycare that is convenient for them. They are more open to pay a higher price if you are located near their work place or somewhere on the way to their work place. Also, neighborhoods with low crime rate are highly sought after. Families are willing to pay above average for safety of their children.


Another factor to consider while figuring out pricing is the quality your daycare business offers. This will depend on your years of experience, education, skills, talents, gifts, set up and style you bring to the work you do. You want to serve your clients well and provide the highest quality possible by continually learning, improving and investing in your business. The higher quality you provide, the higher price you can charge.


Calculating your time is complicated because it involves so much more than merely watching children during your hours of operation. Your pricing also needs to include anything having to do with your daycare business like: cleaning up, preparing, talking on the phone, emailing, meetings, shopping for daycare items, paper work etc. Your time is valuable and your price should reflect it.


Your expenses are the total of what it costs you to run your daycare business. This includes: groceries, toilet paper, paper towels, paper plates, art supplies, books, toys, office supplies, ink, printing paper, light bulbs, phone bill, electric bill, cleaning supplies, and so on. After you covered all your expenses, whatever is left becomes your “real paycheck”. Make sure you pay yourself for the hard work by setting the right price that makes profit.


It is always a good idea to research daycare rates in your town and find out what other providers are charging. This information will give you insight into what’s working in your area and will help you set a proper price for your daycare service. If you are just starting out, you may want to lower your price to get some initial clients. But as you grow and your business is more established, your price should increase. 

When you apply these simple things into your daycare business, you will come up with a price that is right for YOU and you will make money. Don’t feel guilty for charging what you’re worth!

For more on Money and Daycare, check out my FABULOUS PROVIDER GUIDE!