Do you know how daycare centers charge clients for their services? There are a number of aspects and factors that need to be considered in setting the service fees for childcare services. Those entrepreneurs who have the first time experience in starting a daycare business would just presume a charging price that are used by competitors. The result is your price can be very low or it can be unreasonably too high. But how exactly should someone who is thinking about starting a child daycare service would know if the price is right?
If you are thinking about starting your own childcare daycare business, your objectives would determine how much you would charge for a service. The following are the pricing orientations that you can adopt in planning for your charging scheme.
* Revenue pricing. This type of pricing is determined by maximizing the profit from the potential market. This objective may be done if you are offering unique services or programs that are offered by other childcare centers.
* Operations pricing. This pricing orientation balances the concept of supply and demand. You can set a lower pricing scheme during lull periods where demand is low and higher during the peak periods when the demand becomes higher. During vacation time when parents may not send their children to a daycare center, you may offer low prices.
* Target pricing. This type of pricing orientation depends on the needs of your potential market or target clients. If parents will send two or more children to your daycare center, you can offer discount price for your services. You can also think of offering this discount price to parents who have children with special needs.
With these pricing orientations, you can adapt your charging depending on how you would like to earn money while helping parents choose on many alternatives.
A pricing strategy on the other hand is how you would like to achieve the abovementioned objectives. You should be able to think of how you would like to meet the charging objectives of your daycare center in pondering on these strategies:
* Skimming the market. If your daycare center provide clients with outmost satisfaction, your childcare services have earned credibility through the positive comments from previous clients, you have added value in your services, your daycare center offers unique programs that many parents found to be effective in the development of their child’s well-being, you have the reason to charge your services competitively higher than other daycare providers.
Market skimming involves getting a feel on how your clients perceive or look at your business. Make sure that you offer services that are most valued by your clients so that you can also charge the highest price possible. Services such as operating 24 hours a day and unique programs like the special involvement of parents in daycare activities may give you the rationale in setting your price higher.
* Adapting of price. Charging different clients with different rates can be quite complicated. Price adaptation is adapting the pricing depending on the need of clients. Parents who enrol more than two children can be given discount. It is like when you are buying clothes on sale that says: buy one take one. This strategy can be very helpful to many parents and possibilities are you might entice more clients to bring into your daycare center more children.
* Penetrating the market. This is the strategy that you can choose to adopt when you offer services that are the same as those offered by other daycare centers. You may also choose to charge a price that is a little lower than your competitors so you can invite more clients.
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