Anonymous
07/10/2020 11:06
Subject: Why is nanny fee so high?
Anonymous wrote:You are looking at it from the child care worker perspective, but the price and the compensation are set from the consumer perspective and the business model.
Product 1: nanny 1:1 care in your home with a developing relationship, plus some home extras. One employer, one employee, no overhead. Most expensive product, all profit to one person.
Product 2: nanny share 1:2-4 care in your home with same extra benefits to at least one of the clients. Two employers splitting the slightly less expensive per person cost; all profit to one person with no overhead.
Product 3: your child is one of many with multiple care givers in a center. Least expensive for client; lots of overhead, most profit to center who pays the employee the lowest possible rate they can get away with; highest profit model to center comes from more clients and fewer workers (which is why it is regulated).
The price is set by the product. In models 1 and 2 all the profit goes to one person with no overhead, while in model 3 it goes to a center that pays overhead and itself before the employees get a cut, which is their salary and benefits. There are more customers paying in (albeit smaller amounts), but more entities being paid from the same profit pot.
With current regulations/ratios and rent in cities like DC or San Francisco, daycare centers actually make razor thin margins. A huge chunk of their operating expenses go to rent and another huge chunk goes to insurance in most cases.
Anonymous
07/10/2020 10:57
Subject: Why is nanny fee so high?
You are looking at it from the child care worker perspective, but the price and the compensation are set from the consumer perspective and the business model.
Product 1: nanny 1:1 care in your home with a developing relationship, plus some home extras. One employer, one employee, no overhead. Most expensive product, all profit to one person.
Product 2: nanny share 1:2-4 care in your home with same extra benefits to at least one of the clients. Two employers splitting the slightly less expensive per person cost; all profit to one person with no overhead.
Product 3: your child is one of many with multiple care givers in a center. Least expensive for client; lots of overhead, most profit to center who pays the employee the lowest possible rate they can get away with; highest profit model to center comes from more clients and fewer workers (which is why it is regulated).
The price is set by the product. In models 1 and 2 all the profit goes to one person with no overhead, while in model 3 it goes to a center that pays overhead and itself before the employees get a cut, which is their salary and benefits. There are more customers paying in (albeit smaller amounts), but more entities being paid from the same profit pot.
Product 1: nanny 1:1 care in your home with a developing relationship, plus some home extras. One employer, one employee, no overhead. Most expensive product, all profit to one person.
Product 2: nanny share 1:2-4 care in your home with same extra benefits to at least one of the clients. Two employers splitting the slightly less expensive per person cost; all profit to one person with no overhead.
Product 3: your child is one of many with multiple care givers in a center. Least expensive for client; lots of overhead, most profit to center who pays the employee the lowest possible rate they can get away with; highest profit model to center comes from more clients and fewer workers (which is why it is regulated).
The price is set by the product. In models 1 and 2 all the profit goes to one person with no overhead, while in model 3 it goes to a center that pays overhead and itself before the employees get a cut, which is their salary and benefits. There are more customers paying in (albeit smaller amounts), but more entities being paid from the same profit pot.
Anonymous
07/10/2020 10:49
Subject: Re:Why is nanny fee so high?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Agree with both. The preschool teacher is underpaid. The people who think it's insulting to pay nannies less than $25-30/hr don't realize that most of the middle clasa must then feel constantly insulted every single day.
So? I do think other people, especially women, are underpaid but that doesn’t change my nanny’s rent or cost of food. All people should have a living wage.
Sure all people should have a living wage. But I didn't make more than $30/hr until i was almost 30, my husband still doesn't (even though we also have to pay for rent, food, and childcare!), and so when people act like that is the minimum wage it comes off really clueless. There are a LOT of people in this country who don't make $25-30/hr, and sure, obviously we don't hire nannies, but saying that "important work" should make at least that much is out of touch with the realities of a lot of working people. It comes off as judging people for being cheap or devaluing childcare, when maybe they just can't afford it, which is morally neutral.
I can't afford to send my kids to Phillips Exeter, that doesn't mean they're clueless for charging that tuition, it's just a thing I can't afford.
Anonymous
07/10/2020 10:47
Subject: Why is nanny fee so high?
It's really only this generation of parents who have decided that they, on a middleclass salary, should be able to afford private in-home care, and thus it should be affordable to them. A nanny is a luxury service. It's expensive for a variety of reasons, but the biggest is that it is a luxury service, and good nannies have their choice of wealthy clients. This drives up the rates. I was a college educated, multilingual, hard-working, professional, reliable service provider, and I never had a hard time earning $25/hour. Am I overpaid if that's what my services can command? Are you overpaid just because there are people who want your services but can't afford them?
Anonymous
07/10/2020 10:41
Subject: Re:Why is nanny fee so high?
Anonymous wrote:Anonymous wrote:Agree with both. The preschool teacher is underpaid. The people who think it's insulting to pay nannies less than $25-30/hr don't realize that most of the middle clasa must then feel constantly insulted every single day.
So? I do think other people, especially women, are underpaid but that doesn’t change my nanny’s rent or cost of food. All people should have a living wage.
Sure all people should have a living wage. But I didn't make more than $30/hr until i was almost 30, my husband still doesn't (even though we also have to pay for rent, food, and childcare!), and so when people act like that is the minimum wage it comes off really clueless. There are a LOT of people in this country who don't make $25-30/hr, and sure, obviously we don't hire nannies, but saying that "important work" should make at least that much is out of touch with the realities of a lot of working people. It comes off as judging people for being cheap or devaluing childcare, when maybe they just can't afford it, which is morally neutral.
Anonymous
07/10/2020 10:40
Subject: Why is nanny fee so high?
Market decides the rate. A nanny is solely responsible for everything that caring for and educating her charges entails. When I nannied I did the shopping, prepared the meals, did theaundry, cleaned their rooms and playroom, planned activities and researched crafts, lessons, and excursions. There was no one there doing that leg work for me, and there was no one I could fall back on as having made the decision or blaming it on policy. The buck stopped with me, and I was paid well for it.
A daycare worker shows up to work and does what someone else has planned for them to do. They have additional help, and are not the sole decision maker when it comes to anything. They do not have to navigate the same kind of relationships with the parents. They do not negotiate their own contract.
It's just honestly a whole different ball game being a nanny vs. a daycare worker.
A daycare worker shows up to work and does what someone else has planned for them to do. They have additional help, and are not the sole decision maker when it comes to anything. They do not have to navigate the same kind of relationships with the parents. They do not negotiate their own contract.
It's just honestly a whole different ball game being a nanny vs. a daycare worker.
Anonymous
07/10/2020 10:34
Subject: Why is nanny fee so high?
Why is a meal from a private chef more expensive than heading to Wendy's?
Anonymous
07/10/2020 10:33
Subject: Re:Why is nanny fee so high?
Why is a nanny fee so low? They are your child’s first teacher and protects your child’s life enabling you and partner to pursue your careers happily.
Group care is available if you want it.
Group care is available if you want it.
Anonymous
07/10/2020 10:31
Subject: Re:Why is nanny fee so high?
Anonymous wrote:Agree with both. The preschool teacher is underpaid. The people who think it's insulting to pay nannies less than $25-30/hr don't realize that most of the middle clasa must then feel constantly insulted every single day.
So? I do think other people, especially women, are underpaid but that doesn’t change my nanny’s rent or cost of food. All people should have a living wage.
Anonymous
07/10/2020 10:31
Subject: Why is nanny fee so high?
In grad school I was a babysitter. I charged $25/hour. I decided that was what my labor was worth, and if the market disagreed I would have lowered my rates.
Anonymous
07/10/2020 10:29
Subject: Re:Why is nanny fee so high?
Preschool teachers are grossly underpaid. However private (as in lessons) is always more than group - and you’re getting private with a nanny.
Anonymous
07/10/2020 09:30
Subject: Re:Why is nanny fee so high?
Agree with both. The preschool teacher is underpaid. The people who think it's insulting to pay nannies less than $25-30/hr don't realize that most of the middle clasa must then feel constantly insulted every single day.
Anonymous
07/10/2020 09:21
Subject: Re:Why is nanny fee so high?
The nanny is providing exclusive care to your child. You pay more for private anything from music lessons to restaurant dining. Why would this be different?
Anonymous
07/10/2020 09:19
Subject: Why is nanny fee so high?
Both
Anonymous
07/10/2020 09:15
Subject: Why is nanny fee so high?
I pay my nanny what she wants, but why do they make TWICE as much as a preschool teacher who deals with 5 times more kids? Is the nanny overpaid or is the teacher underpaid?