Negotiate tuition rate at a daycare center

[Anonymous]

My children attend a daycare center in Virginia. It’s a well known chain. I’m happy with the center and don’t want to pull them out but the tuition has gone up dramatically. There are other centers (same chain) within a 5 mile radius and I recently discovered the rates at those centers are much less. My center told me they were raising the rates to keep up with the ‘market rate’ but from what I’ve learned, my center is the most expensive in the area. My question is has anyone ever negotiated the daycare tuition, specifically with a large chain daycare? If so, what did you do/say?

[Anonymous]

How easily can you get a spot in one of those other daycares? You're not in a good position to negotiate unless you have realistic alternative options.

[Anonymous]

Good point. There is space available at the other locations.

[Anonymous]

I'd be very surprised if they would do that. If they give you a discount, other parents would expect it as well. If they can't fill their class at the higher rates, they may reconsider their rate structure overall. If they can still fill the class, there is no reason to do so.

[Anonymous]

You need to actually get a spot at another center and then give notice that you are moving and why. You might have to follow through, though, if they don’t offer to reduce tuition. There is probably something about that location like a higher rent payment that is behind the higher tuition.

[Anonymous]

Anonymous wrote:How easily can you get a spot in one of those other daycares? You're not in a good position to negotiate unless you have realistic alternative options.

That's true, but she would also only have leverage if her current daycare doesn't have a waitlist from which to fill the spot. Even if that spot might be empty for a bit, they still may have an incentive to hold the line.

[Anonymous]

Honestly, I have never heard of anyone negotiating a lower rate with a center. They have almost no incentive to cut you a break if they can fill the spot at the higher rate.

[Anonymous]

Anonymous wrote:Honestly, I have never heard of anyone negotiating a lower rate with a center. They have almost no incentive to cut you a break if they can fill the spot at the higher rate.

This.

And 5 miles in an urban area is a lot. I only live 7 miles from downtown DC but am in VA. I wouldn't expect a location in Crystal City to have the same rates as a place at 15th and K St.

[Anonymous]

You can't negotiate but you can move to a cheaper center.

[Anonymous]

I'm on the board at my kid's day care, and I can tell you that those places are run on a razor-thin margin. If they raise tuition it is because their expenses have increased. The board agonizes about raising tuition even a small amount just so the employees can get 3% raises every year.

A recent issue has been parents - many of whom are government employees - needing a break on tuition due to furlough. Very possible that your center will be less receptive to giving you a break on tuition if they have a lot of furloughed parents crying for relief.

But, generally speaking, I don't see them giving you a discount "because the rent is too damn high". They set it the same for everyone, and it is what it is.

[Anonymous]

Anonymous wrote:My children attend a daycare center in Virginia. It’s a well known chain. I’m happy with the center and don’t want to pull them out but the tuition has gone up dramatically. There are other centers (same chain) within a 5 mile radius and I recently discovered the rates at those centers are much less. My center told me they were raising the rates to keep up with the ‘market rate’ but from what I’ve learned, my center is the most expensive in the area. My question is has anyone ever negotiated the daycare tuition, specifically with a large chain daycare? If so, what did you do/say?

How much is it worth to you to stay at the "in demand" location vs go to another location?

For my family, convenience for our commute trumped everything else.

If you are indifferent to location - move your child.

[Anonymous]

Why would they negotiate with you? You can go to another center.

[Anonymous]

I would think that a center wouldn't negotiate with anybody unless it was to do work in return for a discount on the tuition. But in general, the center has to charge the same rate to everyone or it ends up a frightful mess with all parents coming in to try to negotiate their own special rate.

[Anonymous]

supply and demand

[Anonymous]

No, you cannot negotiate tuition with a large chain daycare. There are set prices for each location and they have no incentive to negotiate with an individual, there is only downside for them in doing so.

Only an in-home might negotiate, and a popular one with high demand probably wouldn't.