How to price dog daycare: a worked method for small daycares
Most new daycares set prices by looking at the place across town. That tells you what customers are used to paying, but not whether you make money at that price. Start from your own numbers, then check them against the market.
Step 1: your monthly costs
Add up a normal month: rent, utilities, insurance, staff wages and payroll taxes, cleaning supplies, software, card fees, repairs and your own pay. Be honest about your own pay; a daycare that only works because the owner is unpaid is a job, not a business.
Step 2: dog-days you can actually sell
A dog-day is one dog for one day. Your ceiling is your licensed or safe capacity times the days you are open. You won’t sell every spot, so use a realistic fill rate from your bookings, not your best week.
Step 3: cost per dog-day
Divide monthly costs by dog-days sold. Here is a made-up example to show the math:
| Line | Example |
|---|---|
| Monthly costs | $18,000 |
| Safe capacity | 30 dogs |
| Days open | 22 |
| Fill rate | 70% |
| Dog-days sold | 30 × 22 × 0.7 = 462 |
| Cost per dog-day | $18,000 ÷ 462 ≈ $39 |
Your full-day price has to sit comfortably above that number. Pick a margin you can live with, then see where that lands next to local rates.
Step 4: packages and passes
Punch passes (10 or 20 days) and monthly memberships trade a small discount for money up front and steadier attendance. Keep the discount smaller than your margin, and set an expiry date on passes so old balances don’t pile up.
Step 5: boarding
An overnight stay costs you more than a day: overnight staffing or checks, more cleaning, and a run that can’t be resold that night. Price boarding from the same cost-per-unit method, with nights as the unit, and decide whether daycare play is included or an add-on.
Revisit every six months
Costs drift up. Put a reminder on the calendar, rerun the numbers and change prices with a month’s notice to customers.
Knowing your real dog-days is the hard part. DogDaycareManager records every check-in, so your visit history is the count.
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