Can You Talk to Other Providers About Your Rates?
It’s a common practice: you call another provider on the phone and ask, “What do you charge?” Or you attend a training workshop and talk to another provider at the break and discuss your rates.Unfortunately, these activities are against the law.Federal anti-trust law says that it's illegal for competitors to discuss rates. It’s called price fixing. The reason is that it is likely to lead to higher prices. You don’t have to promise to raise rates or convince the other person to raise her rates; simply a discussion about rates is a probable violation of the law.How can you collect rate information legally?
Contact your local child care resource and referral agency and ask them for whatever rate information they have (they'll be able to give you average rates)
You can contact other providers and ask about rates as long as the other provider doesn't know that you are a provider. If the other person doesn’t know you are a competitor then it’s not illegal to discuss rates.
You can visit local child care centers and ask about rates without identifying who you are
You can look at online/newspaper ads of other providers
You can ask parents what they paid their past provider or what their friends pay for child care
You can share your rates and ask about other provider rates on the Internet as long as it’s clear that the other providers don’t live in your area and thus are not your competitor.
Many years ago a family child care association in Minnesota got in trouble when they discussed rates at an orientation for new providers. Someone complained to the state attorney general’s office and after the investigation was over the association officers signed a letter promising never to do it again or face a $10,000 fine.
How do you gather rate information?
Tom Copeland - www.tomcopelandblog.comImage credit: https://www.maxpixel.net/Black-Young-Woman-Phone-Female-African-Lady-1889403
For more information about rates, see my book Family Child Care Marketing.
