Childcare Pricing Strategies: How to Stop Undercharging and Start Thriving

Childcare Providers' Pay

If you’ve ever stressed over what to charge for your childcare program—or lost sleep over raising your rates—you’re not alone. Many providers quietly struggle with how to price their services fairly without feeling guilty. In this post, we’re breaking down smart, practical childcare pricing strategies that can help you finally stop undercharging and start running your business with confidence. You’ll learn how to shift your mindset, set professional rates, and raise them the right way—without losing sleep or clients.

Confident Pricing for Childcare Providers: Stop Undercharging and Start Thriving


Why Are We So Scared to Charge What We’re Worth?

Most childcare providers I know (myself included once upon a time) agonize over setting their rates. And don’t even get me started on raising them. I hear it all the time on The Daycare Q&A Show
“How do I raise my rates without losing families?”
“Is it OK to charge more for infants?”
“Will parents get mad if I go up ten dollars?”

This topic comes up so often, I can pretty much recite a response in my sleep.

Let me just say this: If you’ve ever broken into a sweat just thinking about asking for a fair rate for your hard work, you’re not alone. But we need to talk about this. Because staying stuck in guilt and fear around money is quietly draining your energy, your bank account—and maybe even your passion for this work.

This post is your call to break free. It’s your guide to stop undercharging and finally price like a pro.

The Real Problem? We Think Charging More Is “Mean”

Somewhere along the way, many of us picked up the belief that childcare shouldn’t be “about the money.” That if you truly love kids, you’ll somehow survive on hugs and graham crackers.

So what happens? We:

  • Undercut our own value
  • Apologize for charging fair rates
  • Get stuck in survival mode

Sound familiar? We tell ourselves,
“Well, I don’t want to seem greedy,”
or
“These parents are struggling, too.”

Yes, money is tight for a lot of families. But let me ask you this: Are you supposed to bankrupt your household just so someone else doesn’t feel uncomfortable?

That’s not kindness. That’s self-sacrifice. And it’s not sustainable.

Related Reading:

Let’s Be Real: Undercharging Hurts Everyone

When providers undercharge, here’s what actually happens:

  1. Your business can’t grow. You can’t invest in materials, staff, or even a break for yourself.
  2. You start resenting the work. You love the kids—but you hate feeling broke and exhausted.
  3. Turnover increases. Providers leave the field because they simply can’t afford to stay.
  4. The quality suffers. Because no one does their best work when they’re running on empty.

So no, raising your rates isn’t selfish—it’s necessary. And fair pricing helps you show up better for the children in your care.

Step One: Change Your Mindset Around Money

You are not “charging parents.” You are running a business that provides a valuable service—arguably one of the most important services in your community.

Imagine if your doctor said,
“I feel bad charging you for this checkup, so I’m only going to bill your insurance $10.”
You’d think they were joking, right?

So why is it any different for childcare providers?

Flip the Script

Start telling yourself:
“I offer a high-quality, safe, and loving environment for children. That is worth being paid well.”

Say it out loud. Write it down. Put it on your bathroom mirror if you need to.

Confidence starts with believing in your value.

Step Two: Stop Guessing Your Rates

Too many providers pull rates out of thin air. They ask around, peek at Facebook groups, or just try to “be affordable.” But pricing isn’t about guessing—it’s about strategy.

childcare pricing strategies
Photo by Alexander Mils on Unsplash

Use a Real Tool

👉 Use this Childcare Rate & Fee Calculator worksheet to do the math properly.

This worksheet helps you calculate your:

  • Operating costs
  • Desired income
  • Enrollment goals
  • Break-even point

You’ll probably be shocked to find that what you should be charging is more than what you are charging.

Good. That means it’s working.

Step Three: Create a Rate-Raising Plan That Feels Good

Here’s the truth: Raising your rates doesn’t have to be scary. It just needs to be clear, consistent, and well-communicated.

3 Tips to Raise Rates Like a Pro:

  1. Give notice. At least 30 days. 60 is even better.
  2. Be transparent. Tell families why—rising costs, improved programming, etc.
  3. Stand firm. Don’t backtrack because one parent gets upset.
Bonus Tip: Add a clause in your contract that says you review rates annually. That way, no one is surprised when you do it again next year.

[FREE DOWNLOAD] Here Are The 10 Must-Have Daycare Templates

Step Four: Set Your Boundaries (and Keep Them)

Once your new rates are in place, here’s the part nobody talks about: enforcing them.

Someone will test you.
A parent will say, “Can we just pay the old rate for one more month?”
Or, “But we’ve been with you forever…”

No.
You are a business.
You are not the clearance rack at Target.

Stick to your policies. Back yourself. That’s what professionals do.

Step Five: Price for the Life You Actually Want

Let’s stop pricing just to survive. Let’s start pricing for sustainability, growth, and yes—even joy.

Ask yourself:

  • Do I want to take two weeks off each year?
  • Do I want to hire an assistant?
  • Do I want to upgrade my curriculum or classroom materials?

Then build those goals into your pricing. This is how real businesses operate. Childcare should be no different.

When You Price with Confidence, Everything Changes

You show up differently.
You feel more secure.
You stop resenting your work.

And guess what? Parents actually respect you more. They want to know their provider is running a stable, professional program—not winging it with rates that change based on guilt or guesswork.

Let’s Recap: Confident Pricing, Step-by-Step

  1. Ditch the guilt around charging for your worth
  2. Use the Childcare Rate & Fee Calculator to price smart
  3. Raise rates with confidence and consistency
  4. Set clear boundaries—and stick to them
  5. Plan rates around your actual goals, not just survival

Childcare Pricing Strategies: Your Confidence is Contagious

Here’s the truth, friend: When you get confident with your pricing, your whole business benefits. And so do the children and families you serve.

You stop second-guessing.
You stop stressing.
You start thriving.

So the next time you sit down to think about your rates, don’t ask, “What will people think?”

Ask instead: “What would a confident professional do?”

Spoiler: They’d raise their rates, unapologetically.

Now go do it. And don’t look back.

Adrienne Bradley Thriving Childcare

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Adrienne Bradley Thriving Childcare

Hey there, I'm Adrienne. I help daycare providers like you create businesses they love!

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