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@Smurfette:
I guess my point was just that, just like any business, sometimes prices have to be raised for a variety of reasons. If a customer is concerned about it, a good director should be happy to explain the increase, just like any good business manager would be able to explain a price increase to a consumer. Consumers who don't feel the increase is justified, which is a totally valid opinion, can find someone/somewhere else to meet their need instead. It sounds like you got an answer from the director... most childcare centers aren't operating as non-profits, so yes a small amount of the money probably does go to the owner as profit. As it would with any business.
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@catlady: wow, that is steep! BH is possibly the center with the highest rates in our area too. We are sending LO to Bright Horizons for 2 mornings a week...but there is no way we could afford full time if I was teaching. The rate for two kids is about 1/3 more than what I would bring home in salary. We would have to choose somewhere else. I am curious how that rate compares to the median household income of the same area though...our Bright Horizons rates are less than half that here in NC.
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@Mrs. Lion: I get that. But when you don't get a raise it just sucks. I mean $1643 a month is ridiculous but we pay it for a quality school. I will be glad when it goes down in August since she will be in the pre-school program.
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@Mrs. Lion: I think the fact that basically everyone on this thread has said they have had annual tuition increases over the last couple years despite inflation being basically flat proves that the consumers probably don't have a choice to find a provider who is more cost effective.
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@Smurfette: I totally get it. It is really hard to pay the rising rates when your own pay is flat. My entire teaching career our pay rate was frozen. I had teacher friends who had their kids in expensive centers like this, and I think they literally just worked for the retirement and because they loved it. They couldn't have been bringing home anything at all. It makes it really hard to be a teacher here... daycare costs are high because the median income is MUCH higher than the average teaching salary.
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@Truth Bombs: Not necessarily. One of the previous posters mentioned that many people at that center pull their kids out in favor of a nanny. Many have also mentioned that they keep their kids there because of convenience, or because paying for the better quality school is worth it to them. I thought we were talking about schools at the high end of the cost range, but I might have misunderstood. I was assuming that less expensive options would be available (though all childcare is still pretty expensive).
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@oliviaoblivia: it's crazy how much the cost varies in the GTA! i pay under $1000/month for preschool where I am now. And the most i ever paid for daycare in my old neighbourhood was $55/day (roughly $1200/month). Literally half the cost of a nanny.
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Ours went up a LOT recently, too, but they've been very upfront about why. Basically, the lease was up and the new rent is WAY more than it used to be -- they will be moving at some point but this location is so good and the permitting process/build out for a new space is so bound up in red tape, they're trying to make it work for as long as possible. At the same time, a subsidy they used to get expired and was no longer available to renew. There was always a price increase in the fall for the new school year, but this one *really* hurt. The center we use is part of a nonprofit consortium so there are no big profits, and even at the increased rate it's one of the cheapest in this area, but still...it's so, so hard on the budget. But the only way they could make it cheaper is to cut teacher salaries and I definitely don't want that. The director even said (in a nutshell) "The teacher pay isn't great but it's better than any of our competitors, and we offer benefits, too. We want to minimize turnover and have happy employees caring for your kids. We know this is hard on everyone, but that's how we do business, and if you disagree, we understand you going elsewhere." I respect that so we're sucking it up -- not that there are really any better options even if we wanted to go elsewhere.
ETA @Truth Bombs: if the center has a long-term lease, it's likely there are rent increases structured into it. So even if the consumer price index and overall inflation are low/flat, the center is likely paying more in rent per the terms of the lease. If the center offers health benefits to its employees, that's another cost that increases each year. I'm sure most for-profit centers have profit margins built in, but they're probably not pocketing the whole increase. I agree that it's hard-to-impossible to really shop around for a good daycare in most places, though.
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Our daycare went up over $100 per month per child this year. According to the director, the extra money went entirely to teachers' salaries.
I think our current costs are ~$2500 a month now, for one infant (3 days a week 8:30-3:30) and one toddler (5 days a week 8:30-3:30). We are professors, so we can make it work to send our kids part-time (although it means working a lot in the evenings and weekends); otherwise, we couldn't afford it.
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@Mrs. Lion: And even worse when your pay is flat and benefits are getting cut. That makes it really hard!
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@T.H.O.U.: gah! Yes! That makes it so much worse
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@Ms maths: I am a doctoral student but I also work full time. I was looking into the child care at school it won't work (if at al all) until I am at the dissertation stage because my classes are at night. It would also require commuting with the LO into the city which isn't my idea of sustainable.
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