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Pricing How to Set Your Rates |
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ANNUAL INCOME GOAL
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1. AMOUNT YOU WANT/NEED To Earn a year |
30,000 |
_______ |
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2. EXPENSES If you are just starting, use 37% for expense figure. Multiply above amount by 0.37 |
11,100 |
_______ |
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3. GROSS REVENUE (income before expenses) Add line number 1 to line number 2 |
41,900
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_______ |
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4. WEEKLY REVENUE REQUIRED Line number 3 divided by 52 |
790 |
_______ |
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5. RATE PER CHILD Divide line number 4 by number of children desired |
132 |
_______ |
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(For example 6 children) This calculation does not take into account different rates for different aged children or part-time rates. For different rates use the following calculation: |
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6. (For example if you have 2 infants at 180 each a week ) subtract 360 from line number 4. |
430 |
_______ |
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7. Divide line number 6 by the remaining number of children in your care (for example 4) |
108 |
_______ |
In this example, you would either charge all 6 children $132 a week or charge 2 infants $180 a week and 4 children $108 a week.
If you are just starting out, you can expect to work 65 hours a week. (11 hours a day, 5 days a week caring for children and another 10 hours a week on cleaning, paperwork and meal preparation.)
This handout was produced by Think Small (www.thinksmall.org).
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