You found the perfect childcare management software. The demo looked great, your teachers loved it, and the starting price seemed reasonable. You sign the contract, start to use the system, but then a year later, the price doubles, even though your enrollment has stayed flat. Sound familiar?
This happens at childcare centers everywhere. The pricing model a software vendor uses can mean the difference between a tool that supports your growth and one that quietly punishes you for success. Before you commit to any platform, understanding how per-child, per-location, and flat-fee pricing actually work will save you from unpleasant surprises down the road.
Why Pricing Models Matter More Than Ever
Digital tools have become standard equipment for running a modern childcare center. Digital tools have become essential for managing attendance, billing, parent communication, and compliance documentation.
But here’s what the market reports don’t emphasize: many childcare centers, especially smaller ones or those in budget-conscious areas, struggle with the upfront costs and ongoing fees associated with software adoption. The challenge becomes even more pronounced when monthly costs fluctuate based on enrollment numbers or when vendors bury essential features behind premium pricing tiers.
For directors, understanding pricing structures before signing up can prevent significant budget headaches as your program evolves.
Per-Child Pricing: Low Entry, Variable Costs
The per-child pricing model charges a set fee for each enrolled child, typically ranging from one to four dollars per student monthly. A home daycare with 20 children might pay $40 or $50 per month, while a center with 100 children pays much more. Many solutions have a minimum price that they won’t drop below regardless of how many children are in your care.
This approach appeals to providers just starting out because the low barrier to entry means access to professional software without a major financial commitment. For a new daycare owner still building enrollment, paying only for children actually in your care feels logical.
The downside emerges as your program grows. When enrollment fluctuates seasonally or increases steadily over time, your software costs become a moving target. A preschool expanding from 40 to 75 children over two years faces an additional $100 or more monthly in software fees alone. While this might seem manageable in isolation, it represents yet another expense that scales with success rather than remaining stable.
Some directors report feeling hesitant about aggressive enrollment growth because each new family brings not just additional staffing and supply costs, but also incremental software charges. This creates subtle friction against the very expansion that makes childcare businesses thrive.
Per-Classroom and Per-Location Pricing: Predictable but Front-Loaded
Some vendors charge based on the number of classrooms or physical locations rather than individual children. Under this model, you might pay around $50 per classroom monthly, regardless of how many children occupy each room. A center with three classrooms pays a predictable $150 monthly fee, whether those rooms serve 5 or 25 children.
Directors appreciate knowing exactly what their software costs each month without recalculating based on enrollment changes. This predictability simplifies budgeting, particularly for established centers with stable classroom configurations.
Per-location pricing extends this concept for multi-site operators, charging a single fee for each physical facility rather than calculating costs per child or per classroom.
The complication arises during expansion. Opening a new classroom to accommodate growing demand immediately triggers an additional monthly fee, even before that room reaches full enrollment. For centers strategically adding capacity, this front-loaded cost structure can strain budgets during growth phases when revenue hasn’t yet caught up to increased expenses.
Flat-Fee Pricing: One Price Regardless of Growth
The flat-fee model charges a single monthly subscription covering your entire operation regardless of enrollment, classrooms, or staff accounts. The price you see when signing up remains constant month after month.
This structure fundamentally changes how your software investment relates to business growth. Unlike per-child models, where expansion triggers higher costs, a flat monthly rate means your software becomes more cost-effective as enrollment increases. A center paying $100 monthly for software serving 40 children effectively spends $2.50 per child. When that same center grows to 80 children, the per-child cost drops to $1.25 without any change to the monthly bill.
Cloud-based subscription solutions now dominate the childcare software landscape precisely because they address the budgeting challenges that plague other pricing structures. When you know exactly what your software costs each month, you can make confident decisions about other investments without worrying about cascading expense increases.
The critical question for any flat-fee solution is exactly what the monthly fee includes. Some vendors advertise attractive base rates but require additional payments for features most centers consider essential, such as payment processing, parent communication apps, or detailed reporting. Before committing, request a complete list of included features and confirm in writing that no additional charges apply for capabilities you need.
What to Look For Before You Commit
Payment processing fees represent one of the most common sources of hidden expenses. Many platforms include integrated billing tools that let parents pay tuition directly through the app, but transaction fees can add up quickly. Always ask whether payment processing costs are separate from your software subscription, or whether you can pass those costs on to parents.
Setup and implementation fees catch many new customers off guard. While some providers offer self-service onboarding at no additional cost, others charge substantial fees for account configuration and training. Request a complete breakdown of all costs before your first regular monthly bill.
Long-term contracts and cancellation penalties create financial risk when the market moves quickly. The most customer-friendly providers offer month-to-month billing with no penalties for cancellation, demonstrating confidence in their product’s ability to retain customers through quality rather than contractual obligation.
Find Software That Grows With You
At Daily Connect, we believe childcare providers deserve straightforward, honest pricing that supports rather than hinders success. Pricing transparency is important to us: we don’t think you should be forced to get on a call with a sales rep just to find out how much you’d pay. That’s why we openly display our pricing on our website for everyone to see.
We don’t require long-term contracts, and we won’t surprise you with setup fees, overage charges, or cancellation penalties. The price you see is the price you pay. Our team is here when you need us, and you can cancel anytime without penalty. The best way to earn your business is by proving our value, not locking you into a contract. Learn more about our pricing philosophy and calculate your price here.
Running a childcare center demands your full attention on what matters most: providing exceptional care for the children and families who trust you. The right software should take administrative burdens off your plate, not add financial stress to your responsibilities.
Ready to experience childcare management software built around transparency? Start your free 14-day trial with every feature included and see the difference for yourself. Try Daily Connect today.
