My friend's got his life figured out.

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Zeze

Zeze

Lifer
Mar 4, 2011
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My friend & his wife own and operate a daycare. They have a director that runs the place. Wife takes care of rest (admin stuff, payroll, building maintenance, etc). This doesn't require two full-time workers.

So my friend just hangs out. He's at home. Just chillin'. They just came back from Hawaii last week. Couple months ago, they were in UK & Spain.

60 kids at $2000 median monthly tuition = 120k/mo gross revenue = $1.45M/yr.
Labor is cheap.. most staff are prob $10-15/hr. Director is $150k/yr.
Building lease/mortgage is a larger chunk. And insurance.
Rest is all gravyyyyyyyyy.
 
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Lost_in_the_HTTP

Lost_in_the_HTTP

Lifer
Nov 17, 2019
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How much are they setting aside for the lawsuits claiming child abuse of one kind or another even if they never did anything wrong?

I won't be within a 100' feet of a kid unless the parents are present.






But yeah, I got my life figured out too. I'm gonna die someday.
 
KB

KB

Diamond Member
Nov 8, 1999
5,374
372
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Wow, he sure does. My local daycare is only $1100 median/kid (120 kids) and finding daycare workers has been a huge challenge for them even though they pay about the same wage he does.
He must have found a golden spot of desperate parents and desperate workers.

I would think insurance must be huge. The moment a parent with no visitation rights comes in and takes a child, there will be hell to pay and lawyers.
 
Zeze

Zeze

Lifer
Mar 4, 2011
11,023
951
126
KB said:
He must have found a golden spot of desperate parents and desperate workers.
Click to expand...

Not sure where this 'desperate' thing comes from. I was shocked to find out daycare staff makes very little. This isn't just this daycare, same for my old daycare for my kids too (I became friends with one of the staff). Not sure why parents would be desperate - living in northern NJ, the price isn't particularly expensive vs market.

There are numerous fancy daycare (Montessori and etc) that easily fetch $3-4K/mo. Crazy, yes.
 
Lost_in_the_HTTP

Lost_in_the_HTTP

Lifer
Nov 17, 2019
10,073
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Doesn't even have to be a bad parent. A kid comes in with some peanut dust on their shirt. Another kid with a bad allergy gets sick. ByeBye planned life.
 
snoopy7548

snoopy7548

Diamond Member
Jan 1, 2005
8,014
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We should all group together and open an ATOT Daycare. We could make a lot of money.
 
nakedfrog

nakedfrog

No Lifer
Apr 3, 2001
57,458
11,319
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Helping screw over the working parents out there, definitely living the capitalist dream!

(I know he's not responsible for the market rates for child care, but he's complicit in the problem.)
 
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J

jpiniero

Lifer
Oct 1, 2010
14,178
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MrSquished said:
It's pretty shitty that people pay folks that watch over the precious cargo that is kids those kind of wages. Absolutely terrible.
Click to expand...

OP is exaggerating. The min wage in NJ is $13. I doubt they make that much more though.
 
JEDI

JEDI

Lifer
Sep 25, 2001
30,032
3,154
126
Zeze said:
My friend & his wife own and operate a daycare. They have a director that runs the place. Wife takes care of rest (admin stuff, payroll, building maintenance, etc). This doesn't require two full-time workers.

So my friend just hangs out. He's at home. Just chillin'. They just came back from Hawaii last week. Couple months ago, they were in UK & Spain.

60 kids at $2000 median monthly tuition = 120k/mo gross revenue = $1.45M/yr.
Labor is cheap.. most staff are prob $10-15/hr. Director is $150k/yr.
Building lease/mortgage is a larger chunk. And insurance.
Rest is all gravyyyyyyyyy.
Click to expand...
$15/hr?!
do the daycare babysitters have child care certifications/licensed?
 
Zeze

Zeze

Lifer
Mar 4, 2011
11,023
951
126
JEDI said:
$15/hr?!
do the daycare babysitters have child care certifications/licensed?
Click to expand...
Nope. In my experience, the head teacher may have credentials. But your workhorse staff (usually 2-3 additional per room) are paid very little with no benefits.

It's effin BS, because I see some staff walking home to take the bus (no car). And this is one of those fancier curriculum-driven preschools in Northern New Jersey.

At a different daycare (Bright Horizons - national chain), I also saw another staff member who's a young mom with a toddler. The toddler is in Guatemala and she's sending her family money home. They are video chatting daily.

I mean, she misses her child daily during the precious toddler years. Yea it's freakin' awful.
 
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Lost_in_the_HTTP

Lost_in_the_HTTP

Lifer
Nov 17, 2019
10,073
5,975
136
^^ Yeah, I was just thinking the friend may be a big part of the problem.

Too many suits are raiding the company kitty for personal perks instead of paying staff.
 
Dr. Detroit

Dr. Detroit

Diamond Member
Sep 25, 2004
8,062
557
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Your ability to simplify this business is comedic.

Daycares operate from 7am-6pm 11/hrs per day:
Utilities
Food
Janitorial Services
Utilities
Supplies
Ratio of children to employees vary by age:
Age 0-2 - 4 kids per staff
Age 2-5 - 12 kids per staff (a good ratio is 8)

60-kids is your estimate.
Lets assume 33% are under the age of 2. 20 kids = 5 staff
Lets assume the remainder are in 2-5 category and they use a moderate ratio = 4-staff

9-staff, well more like 11-staff as you have to have overlap for staff lunches, opening hours and closing hours.
So 11*40hrs = 440hrs/week
$6,000 week at $13/hr.
Sick time, vacations, Employment taxes, health insurance, workers comp, payroll services, and various other overhead like training/education/certifications. Overhead rate at 75% of wages?
$6,000/wk * 1.75 = $10,500/wk

52wks * 10,500 = $546,000 in staff compensation and we haven't even added in the Manager at $150,000 + the overhead rate.

$546,000 + $150,000 + 112,500 (overhead) = $808,500 Employee Cost
$8,000/month for rent - you will need an indoor and outdoor space, parking lot for parents + staff. Triple Net lease?

$808,500 - Staff
$96,000 Rent
$12,000 Utilities
$24,000 Food/Snacks/Drinks
$6,000 Supplies Arts/crafts/books/toys
$18,000 Janitorial
$964,500

$24,000 Business & Liability Insurance

So we are at $1 million per year while paying our staff minimum wage and charging an exorbitant $2,000/kid while paying below market rent. Sure, sure...

This is just stupid money, I wonder why everyone doesn't open one of these snot nosed kid sitting places!
 
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Zeze

Zeze

Lifer
Mar 4, 2011
11,023
951
126
Dr. Detroit said:
I run a Finance/Accounting team at a public company - this analysis is infantile.

Mad, nope! Just educating dumbasses.
Click to expand...

This is quite adorable.

You took my silly ass post and replied with what you think is an insightful analysis. Any fool can bother to roll their eyes and do the same. Then you started insulting folks and flex being a corporate drone. I mean, I didn't know it required Finance/Accounting 'public company experience' to work-up a... daycare. Good job on the 15 rows on excel.

It's okay. I'm just a corporate drone too. I'm a principal & client manager of an IT consulting company working with fortune 20 clients. 16 people report under my domain. This kind of crap doesn't go to my head though, because it isn't a big deal.

That friend of mine is doing quite well for himself as I could observe. I'm just surprised to you act so high and mighty for being so average while insulting others and barking out "Just educating dumbasses."

You must have felt so satisfied typing that out while being completely tone-deaf in this nef thread. Very much cringe, my good friend.

This isn't the forum in 1998. We're all older geezers just having fun. It looks like you never grew out of basement-dwelling behavior.

obamam-lol-y-u-mad-tho.jpg
 
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