Daycare price increase

[Anonymous]

We have a baby due soon and paid a deposit to a home daycare for a start date in a couple of months. They just emailed that they are increasing their prices by about $300/month and that they expect the difference to be paid in the deposit now as well. Is this a usual thing to happen? A 20% price increase is unexpected, especially since it was not mentioned in the many conversations with the provider recently.

[Anonymous]

That seems like a very big increase to make suddenly for any daycare. Are you getting more for the money? Lower ratios? Adding back in hot meals after the pandemic?

[Anonymous]

That is approximately a $75 a week increase. Yes that is a drastic change. I wonder if they were severely underpriced prior and realized how little they were charging.

What was the prior weekly rate and what is the new rate?

[Anonymous]

300 a month is a very big change. Did they provide justification?

[Anonymous]

Mine went from $260 a week to $350 a week when I started my 2nd child. (This was about two years ago). It was a big jump for my expectations, but I think I had been getting a big discount with my 1st child and looking around at a few surrounding ones it was on par. Plus I knew she was awesome!

[Anonymous]

Sounds like a big jump... but if you are getting full care, that's less than $2 per hour increase for the people who take care of your child.

You can look for a new place that fits your budget

[Anonymous]

Did you pay a deposit, or are you paying to hold a spot?

$300 a month is a lot either way, but if you’re paying to hold a spot (i.e. the spot is open now but you’re not ready to send your kid in for a few more months) then paying the new rate is reasonable.

[Anonymous]

It’s going from 360 to 430. It was high to midrange for in-home daycare for our area. The centers are about 450 around here and they offer longer hours. The problem is they all have waitlists.

[Anonymous]

Anonymous wrote:It’s going from 360 to 430. It was high to midrange for in-home daycare for our area. The centers are about 450 around here and they offer longer hours. The problem is they all have waitlists.

That’s steep.

[Anonymous]

Anonymous wrote:It’s going from 360 to 430. It was high to midrange for in-home daycare for our area. The centers are about 450 around here and they offer longer hours. The problem is they all have waitlists.

That’s lot for a home daycare in this area. Mine has an annual increase of $10/ week.

[Anonymous]

My daycare center charge a lot, and I am paying $500 a week for 5 years old with 2:24 kids ratio without lunch. So every year when we sign contract, I think they increase by $25/week .

[Anonymous]

Anonymous wrote:Did you pay a deposit, or are you paying to hold a spot?

$300 a month is a lot either way, but if you’re paying to hold a spot (i.e. the spot is open now but you’re not ready to send your kid in for a few more months) then paying the new rate is reasonable.

The spot isn’t available until we’re ready to start. The dates happened to align.

[Anonymous]

That’s a lot, but our center just increased quite a bit too (but not that much). It’s been a rough year.

[Anonymous]

What area is this in? Arlington? $360 is even a lot for an in-home in our area but we are further out.

[Anonymous]

I think we’ll see a increase in daycare costs everywhere right now. Lost revenue due to COVID + increased costs from COVID compliance and inflation + the usual daycare supply/demand issues around here = They can raise costs.