Article Link: http://exchangepress.com/article/ways-to-optimize-and-manage-fee-structures/5024556/
Is your child care center charging the optimal amount for your services?
When it comes to pricing, there are many factors to consider, such as fees charged by competitors, staffing costs and the current status of your enrollment and finances. Fortunately, there are some good practices to help you develop or revise your fee structure to achieve your financial and enrollment goals.
Pricing can be a touchy topic when looking for tips from other child care providers. Instead of trying to get the scoop around town, check out these five best practices to help you ensure the price is right at your center. If you are evaluating your child care center’s fee structure, consider the following.
Set Prices with Staff-to-Child Ratio in Mind
The single largest cost for any child care program is staff, typically 45 to 55 percent of revenue. For almost all centers, the primary driver of staffing needs is the age of the children and the necessary staff-to-child ratio for a particular age range. For instance, some states require one staff member for every three infants in a center at a time.
Staff-to-child ratios vary by state (http://childcareaware.org/providers/planning-for-success/staffing-needs/). A good exercise is to ...