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Blackcat31 06:29 AM 11-08-2010
Originally Posted by VicDelmonte:
Ok, thing is, you aren't including the cost of empty spots.

If you've got all the business you can handle already, of course you don't need discounts. If you have spots that need filling, though, isn't it better to get money in hand now (even if you are discounting some) than to hold out for money from the future that may never come?

Additionally, if you are competing with others in the area that do give discounts, then you aren't going to be competitive without them.

There is a reason that many businesses give a 'bulk discount' - they make it up on volume. This is essentially the same principle.

Is it better to have one spot filled at 300/week and an empty spot, or to have 2 spots filled at an average of 275 each (one for 300, second for 250).

If you start getting so much business/interest that you think the discounted spots can be immediately filled by full-paying customers, just explain that you are discontinuing the discount.
I totally get what you mean and I do understand that 2 spots filled at a discount beats 2 empty spots but fortunately for me, I guess, I really don't know of any providers in my area (centers included) that offer discounts for siblings so there is no competition there. I've been doing this 16 years and I guess I am also lucky enough that we have never had a shortage of children needing care either so in that aspect I've never HAD to offer a discount to siblings but if I had to compete or really struggle to fill spaces, I would probably consider offering a sib discount. But for now; I do not.
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