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How to Set Rates for a Doggy Daycare

by Contributor ; Updated September 26, 2017
Set Rates for a Doggy Daycare

How to Set Rates for a Doggy Daycare. The rates you charge for your doggy daycare determine how much you earn for yourself and your business. If you set rates too high, you may loose business. If they're too low, you may have more customers, but become burned out.

Figure out the Baseline for the Rates

Calculate your business expenses including operating expense, salaries, taxes and any additional expenses like insurance. Estimate the annual expenses for a year.

Figure out how many hours the doggy daycare makes profit. Some doggy daycares provide overnight kenneling and charge a higher rate. Be conservative in your figures and only include hours when you are busy.

Divide the annual expenses by the number of operating hours to reach a per hour rate. You can divide the rate per hour by the number of dogs you anticipate to get a baseline for your prices.

Adjust the Rates as Needed

Consider the competition in the area. If you're the only doggy daycare or offer special features, you may be able to charge higher rates.

Offer full service prices or ala cart prices depending on your services. If you offer full service prices, you must factor in a percentage to make a profit. A la cart pricing allows customers to choose options like paying for premium dog food or treats throughout the day.

Charge for priority service. People pay more for your service when you help them out of a pinch. If they need to kennel their dog and you're the only kennel not full, you can charge a higher rate.

Give discounts for multiple dogs or package deals for on-going clients. You can also trade your services for networking or marketing opportunities. Some doggy daycares make arrangements with corporations and offer the corporations' employees a discounted rate.

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