Negotiating Daycare Costs
Daycare rates aren't always set in stone. Here's how to approach the conversation professionally and what you might be able to negotiate.
Reality check: Large chains and centers with long waitlists rarely negotiate. Your best chances are with smaller centers, home daycares, or facilities with open spots to fill.
When Negotiation Is Possible
Good Candidates
- • Small, independent daycares
- • Home daycare providers
- • Centers with open spots
- • New facilities building enrollment
- • Off-peak enrollment times
- • Rural or less competitive areas
Unlikely to Negotiate
- • Large national chains
- • Centers with waitlists
- • High-demand urban areas
- • Corporate-run facilities
- • Facilities at capacity
What You Can Negotiate
Registration/Enrollment Fees
These one-time fees ($50-$300) are often the easiest to waive or reduce, especially if you're enrolling multiple children or signing a longer contract.
Sibling Discounts
If you have multiple children, ask about sibling discounts. Even if not advertised, many daycares offer 5-15% off the second child.
Prepayment Discounts
Offer to pay quarterly, semi-annually, or annually in advance. Some daycares offer 3-5% off for prepayment since it guarantees their cash flow.
Part-Time Rates
If you only need 3-4 days instead of 5, negotiate a true part-time rate rather than paying the full weekly rate.
Rate Lock
Ask them to lock in your rate for 12-18 months without increases. This protects you from the typical 3-5% annual rate hikes.
How to Approach the Conversation
Script Ideas
"We love your program and would really like to enroll, but the cost is a bit higher than our budget. Is there any flexibility on the registration fee?"
Good for: Registration fees
"We're comparing a few options and your program is our first choice. If we commit for the full year, would you be able to offer a discount or lock in the rate?"
Good for: Rate locks and prepayment
"We have two children and were wondering if you offer a sibling discount? We'd love for them to attend together."
Good for: Multiple children
Negotiation Tips
- 1.Be respectful and professional. Daycare staff work hard for not a lot of pay. Approach the conversation as a partnership, not a demand.
- 2.Know the market rate. Research what other daycares in your area charge so you know if you're asking for something reasonable.
- 3.Have something to offer. Prepayment, referrals, flexible scheduling, or a long-term commitment can justify a discount.
- 4.Ask privately. Don't negotiate in front of other parents. Request a brief meeting or phone call.
- 5.Accept "no" gracefully. If they can't negotiate, thank them and decide if the price still works for you.
Alternative Ways to Save
If direct negotiation doesn't work, there are still ways to reduce costs:
Remember: The goal isn't to get the cheapest daycare—it's to find quality care that fits your budget. Don't sacrifice quality for a small discount, but don't be afraid to ask for what you need either.
Best Times to Negotiate
Timing can significantly impact your negotiating power. Some moments offer better opportunities than others.
During Initial Enrollment
Your strongest negotiating position is before you sign. Once you're enrolled, you have less leverage. If they want your business, now is when they'll offer concessions. Registration fee waivers and sibling discounts are most negotiable at this stage.
When They Have Openings
Empty spots cost money. Look for "Now Enrolling" signs, social media posts about availability, or direct questions during your tour. A center at 70% capacity is far more flexible than one with a waitlist. January and summer often have more openings.
At Annual Renewal Time
When it's time to re-enroll for another year, you have leverage again. They'd rather keep a known, reliable family than recruit someone new. If rates increased significantly, now is the time to ask about capping the increase or locking in for multiple years.
End of Quarter or Fiscal Year
Many daycares have enrollment goals to meet. Approaching them late in a quarter when they're trying to hit targets can work in your favor. This is especially true for corporate-owned facilities that report to regional management.
What NOT to Do When Negotiating
Negotiation mistakes can damage your relationship with the daycare or backfire entirely. Avoid these common pitfalls:
Don't Threaten
Saying "Lower the price or we'll go elsewhere" creates animosity. Even if you get the discount, you've started the relationship poorly.
Don't Lowball
Asking for 50% off comes across as disrespectful of their work. Aim for 5-15% savings or specific fee waivers.
Don't Negotiate in Public
Discussing money in front of other parents or staff is awkward for everyone. Request a private conversation.
Don't Lie About Alternatives
Claiming another center offered $X when they didn't can backfire if discovered. Be honest about your situation.
Understanding Daycare Economics
Knowing how daycares make (and spend) money helps you negotiate more effectively and understand their constraints.
Where Daycare Revenue Goes
Most daycares operate on thin margins. Understanding this helps set realistic expectations for what they can discount.
Leverage Points: What You Bring to the Table
Successful negotiation isn't just asking for discounts—it's demonstrating your value as a customer. Consider what you can offer:
Multiple Children
Enrolling two or three children represents significant guaranteed revenue. Centers will discount to secure a multi-child family over filling spots with single-child families who might leave.
Long-Term Commitment
Promising to stay through preschool (3-4 years) reduces their recruitment costs. Each family turnover costs time and money. A stable, committed family is worth a discount.
Payment Reliability
Offering to pay months in advance reduces their risk and improves cash flow. Some families pay late or require collection efforts—guaranteed on-time payment has real value.
Referral Potential
If you're well-connected in your community (parent groups, neighborhoods, workplaces), your word-of-mouth referrals could bring them new families. Make this explicit.
Flexibility
Willing to start mid-month instead of waiting? Flexible on which specific days? Can use a spot they're having trouble filling? Flexibility is valuable to centers managing complex schedules.
Real Negotiation Success Stories
Here are examples of successful negotiations from parents who asked:
"I asked about sibling discount when enrolling my second child. They initially offered 5%, but when I mentioned we planned to stay through kindergarten for both kids, they raised it to 15%. That's $200/month in savings."
"The registration fee was $300 per child. I asked if it could be waived since we were enrolling twins. They reduced it to one $150 fee total. Simple ask, immediate savings."
"I offered to pay 6 months in advance. They gave me a 5% discount on those months. Not huge, but I was going to pay anyway—might as well save $150/month."
"When our rate was about to increase 7%, I asked if we could lock in the current rate for two years. They agreed to a 3% cap on annual increases. With typical 5-7% increases, that's real savings."
Negotiating at Different Types of Daycares
Home Daycares
The owner makes all decisions, so negotiation is straightforward. They may have more flexibility since they don't answer to corporate. Build a personal relationship first—home providers often give breaks to families they like.
Best approach: Emphasize your reliability and flexibility. Offer prepayment or referrals.
Independent Centers
Directors often have authority to make pricing decisions or can quickly consult with owners. Less bureaucracy than chains. If they have spots to fill, they're motivated to make deals.
Best approach: Ask to speak with the director or owner directly. Frame requests around mutual benefit.
Regional Chains
Some flexibility exists, but center directors may need regional approval. Standard discounts (sibling, prepayment) are more common than custom deals. Their published rates might not be final.
Best approach: Ask about existing discount programs first. Mention specific competitors if their rates are lower.
National Chains (Bright Horizons, KinderCare)
Standardized pricing with little local flexibility. However, many offer employer partnerships—check if your company has a relationship that unlocks discounts. Corporate discounts can be significant.
Best approach: Focus on employer benefits, referral programs, and any promoted discounts rather than custom negotiations.
Getting It in Writing
Verbal agreements can be forgotten, especially when staff changes. Protect yourself:
Frequently Asked Questions
Is it rude to negotiate daycare prices?
Not at all. Business negotiation is normal and expected. Daycare directors regularly receive pricing questions and won't be offended by a polite inquiry. The key is approaching it professionally—expressing genuine interest in the program while honestly discussing budget constraints. Most providers appreciate straightforward communication.
What if they say no to everything I ask?
Accept it gracefully and decide whether the program is still right for your family at the stated price. Sometimes "no" today becomes "yes" later—if spots open up or circumstances change. Thank them for their time and ask to be notified of any future promotions or discounts that might become available.
Should I mention competitors' prices?
Yes, but tactfully. Saying "Center X charges $200 less—can you match?" is reasonable if true. Avoid using this as a threat or bluff. If you're genuinely considering multiple options, mentioning that is fair. Many centers will at least explain why their pricing differs (better ratios, included extras, etc.).
Can I negotiate after we've already enrolled?
It's harder but possible, especially at contract renewal. If your circumstances have changed (job loss, new baby), explain the situation honestly. Centers would often rather give a temporary discount than lose a good family. Annual rate increase announcements are another opportunity to negotiate.
How much can I realistically save?
Typical savings range from $500-3,000 per year depending on what you negotiate. Registration fee waivers ($100-300), sibling discounts (5-15% of tuition), rate locks (avoiding 5-7% annual increases), and prepayment discounts (3-5%) can add up significantly over multiple years of enrollment.
What if I need financial assistance, not just a discount?
If your situation requires more than a small discount, ask about scholarship programs or sliding-scale tuition. Many centers, especially nonprofits, have funds to help families in need. Also explore state childcare subsidies, Head Start programs, and employer childcare assistance before assuming you can't afford care.
Should I negotiate in person, by email, or by phone?
In-person or phone conversations are generally more effective—they're harder to ignore and allow real-time discussion. Email can feel impersonal and is easier to decline. However, follow up any verbal agreement in writing via email to document what was agreed.
Will negotiating affect how they treat my child?
It shouldn't, and at any professional daycare, it won't. Teachers and caregivers don't see billing details. If you're worried about this, it's a red flag about the center itself. Quality providers treat all children equally regardless of what their families pay.
What's the single most negotiable item?
Registration and enrollment fees. These are one-time costs that don't affect ongoing revenue, so centers have the most flexibility here. Many will waive them entirely for the right family or during promotional periods. If you only ask for one thing, make it this.
How do I know what's a fair price to negotiate toward?
Research 5-10 comparable daycares in your area to understand the market. Use our daycare cost calculator for regional averages. If a center is significantly above average, there's more room to negotiate. If they're already below average, they may have little flexibility.
The Bottom Line
Daycare costs are often negotiable—you just have to ask. The families who save the most are simply the ones who approach the conversation thoughtfully and professionally. Key takeaways:
- •Registration fees are the easiest win—always ask
- •Sibling discounts, rate locks, and prepayment discounts are commonly available
- •Independent centers and home daycares have more flexibility than chains
- •Timing matters—negotiate before enrollment or when they have openings
- •Offer something in return: prepayment, referrals, or long-term commitment
- •Get all agreements in writing before signing contracts
A five-minute conversation could save your family hundreds or thousands of dollars. The worst that happens is they say no—and you're no worse off than before you asked.