Are you thinking of starting a doggy daycare business? Or maybe you’ve already set up shop and are now looking to make sure your pricing is competitive? Either way, it’s important that you know how to price your doggy daycare services correctly!

We won’t lie – it can be tricky to arrive at a number that works for both your current and potential customers. But with the helps of the tips in this article, you’ll be sure to find the sweet spot for your doggy daycare business.

So, read on to learn more about how to price your doggy daycare business services!

First Thing’s First: What is Your Competition Charging?

Before you can even think about setting your own doggy daycare prices, it’s important to get a good understanding of what the average cost of doggy daycare services is in your area. Do a bit of research to find competitive rates – this will help you stay competitive while still making enough to cover your costs.

Plus, it’s also important to look at what other doggy daycare businesses are providing. After all, certain services may come with an extra cost that need to be factored in.

How to price your doggy daycare services in-post image 1

How to Price Your Doggy Daycare Services

Now that you know the average cost of doggy daycare services in your area, it’s time to start thinking about how to price your services. Here are the four steps you’ll need to take…

Step 1: Break Down the Costs of Your Doggy Daycare

Having an accurate understanding of your costs is essential when creating a pricing strategy for doggy daycare services. So, create a budget that specifically outlines all the expenses you’ll incur – like food, supplies, and wages. This will give you an idea of what it actually costs to run your doggy daycare business on a daily basis.

Lightbulb icon

Pro Tip: Haven’t yet started your dog daycare business? Our Ultimate Guide will walk you through the entire process from start to finish!

Step 2: Calculate Your Profit Margin

Now that you know the costs, it’s time to figure out your profit margin. The easiest way to explain a profit margin is to think of it as the difference between your expenses and revenue. So, for example, if it costs $10 to provide a day of doggy daycare and you decide to charge $20, then your profit margin is 50%.

To figure out what your profit margin is, ask yourself these three questions:

  • In order to cover all of your expenses, how much do you need to make?
  • How much extra would you like to make on top of that?
  • How will your rates affect future profits?

Once you’ve answered these questions, you’ll have a good idea of the profit margin you want to aim for!

Step 3: Set Your Rates

Finally, it’s time to start setting your pricing. How much will you charge per dog? How about an additional fee if the dog has special needs or requires extra attention?

Consider all of your options when it comes to pricing. The last thing you want is for customers to be turned off by your prices. So, make sure to think carefully about how each pricing option might affect future profits.

And don’t forget to factor in any extra services you might offer, like dog grooming or training!

Step 4: Monitor Your Rates

Now that you’ve figured out your rates, it’s time to keep an eye on them. Once you’ve been in business for a while, take the time to review your pricing to see if it’s still working for you. Maybe prices in your area have gone up, or maybe expenses have increased?

In any case, it’s important to occasionally check in and make sure your pricing is still competitive. That way, you can adjust as needed so that you’re still making a profit!

Dog daycare owner high-fiving Beagle in office. Doggy daycare article.

Setting Your Rates: Pricing Models to Consider

Let’s expand a bit on Step 3… How exactly do you set your rates? Well, there are a number of pricing models to consider when it comes to dog daycare services!

Pricing Model #1: Charging by the Hour

This model is best used when you offer services that don’t require a set number of hours, like bathing or grooming. Charge an hourly rate, and make sure to factor in any additional fees (like products or services) that you may offer.

Pricing Model #2: Charging by the Day

Ideal for doggy daycare services, charging by the day is when you set a flat rate per day. This pricing model makes it easy for customers to estimate the cost of their dog’s stay. Plus, it simplifies your billing process!

Pricing Model #3: Charging by the Week

This similar to the last pricing model, but could be especially attractive to long-term, reliable clients who will be using your services regularly. The weekly rate may be more cost-effective for them, too, as you can offer a discounted rate.

Similarly, you can apply this same logic and pricing structure to a monthly rate as well!

Lightbulb icon

Pro Tip: Need help finding doggy daycare clients? These 20 tried-and-true strategies will attract customers to your business in no time!

Pricing Model #4: Packages

This model is perfect for doggy daycare services that require a specific number of hours or sessions. For instance, you can offer a package that includes three days of doggy daycare, with an additional fee for any extra time needed.

This model can also be great for offering a discounted rate, which can help attract more customers to your business. Additionally, this type of pricing model can make it easier on customers AND simplify the billing process at the same time!

Pricing Model #5: Tiered Pricing

Tiered pricing basically involves offering different services at different prices, depending on the needs of the customer. For example, you can offer basic doggy daycare services at a lower rate, with more advanced or specialized care at a higher price.

This model gives customers the flexibility to choose which services they want and how much they’re willing to pay. Plus, tiered pricing can be great for generating more sales and boosting profits.

Pricing Model #6: Sliding Scale

Let’s face it: inflation is through the roof these days and everything is harder for people to afford. As a result, there are many dog owners who may need daycare services – but be unable to pay the standard cost.

That’s where a sliding scale model comes in. This model involves offering different rates based on the customer’s ability to pay, which can be determined by the customer’s income or other factors.

This type of pricing model is great for providing services to those who need it most, while still allowing you to make a profit. Plus, it can help you stand out from the competition – and attract more customers!

How to Offer Sliding Scale Rates Without Losing Money

Okay, we’re willing to be that right now, you’re probably wondering, “How can I offer sliding scale rates and still make a profit for my doggy daycare business?”

The key is to set the minimum fee for your services. This ensures that everyone pays something for the value they receive.

Of course, it’s up to you how much or how little you charge. Just make sure that your rates are reasonable and still leave you with a decent margin of profit. Also, don’t forget to factor in any extra fees, such as products or services, that you may offer.

How to price your doggy daycare services in-post image 3

Pricing Your Doggy Daycare Services: Other Factors to Consider

Who Your Target Market Is

When deciding on the cost of your doggy daycare services, make sure to consider who your target market is. For instance, if you’re targeting high-end customers, then you’ll likely need to charge higher rates in order to remain competitive.

On the other hand, if you’re targeting low-income dog owners, then you may want to consider offering a sliding scale or tiered pricing model.

Location Matters

The location of your doggy daycare business also plays a role in determining the cost of your services.

If you’re located in an area with high rent or overhead costs, then you may need to increase your rates in order to cover those expenses. Alternately, if you’re located in an area with lower costs, then you may be able to charge more competitive rates.

Your Level of Experience

The reality of the situation is that a brand-new doggy daycare owner is not going to be able to charge the same rate as a veteran owner. Yes, while you can (and likely will) be able to match those prices with time, for now, you should consider offering lower rates in order to stay competitive.

If you do decide to price your services in the same way as your more experienced competitors, we recommend offering incentives and/or discounts in order to attract customers. For example, you could offer discounted rates for referrals or loyalty programs.

This way, you’ll still be able to maintain a competitive edge – and attract more clients in the process – even if you have less real-world experience!

Your Professional Qualifications

Let’s say you’ve taken the time to complete a professional course – such as the self-paced, online Dog Daycare Course offered by QC Pet Studies – and have a certification in doggy daycare. This qualification can give you a major edge in the marketplace!

Remember: many customers are willing to pay more for services that come with the guarantee of being provided by a qualified professional. When you take the time to invest in your professional development, you can command higher rates – and attract more customers than other doggy daycares in your area!

Lightbulb icon

Pro Tip: Check out the full syllabus for our self-paced, online Dog Daycare Course to learn more!

The Average Income Where You Live

Knowing what the average person makes where you live can also help you set a price point that is both affordable and profitable. For example, if the average household income in your area is $50,000 a year, then you may want to adjust your rates accordingly.

While making a profit is obviously one of your top goals, you also want to make sure that you’re pricing your services in a way that your client base can actually afford. Otherwise, you may find yourself dealing with fewer customers than expected – and that’s not a good thing!

Additional Business Expenses

When pricing your doggy daycare services, don’t forget to factor in all of the additional expenses that come with running a successful business. These include things like:

  • Business insurance;
  • Advertising and marketing;
  • Taxes;
  • Doggy daycare supplies;
  • Grooming supplies, if applicable;
  • Dog training supplies, if applicable;
  • And other overhead costs.

These expenses can add up quickly – and if you don’t plan for them, then you may not be able to stay profitable.

Furthermore, you’ll also want to figure out if your business will have any administrative charges that clients will need to pay whenever a given situation arises. For example, this could look like:

  • Late pick-up fees;
  • Pick-up and/or delivery fees;
  • An application fee for first-time customers;
  • Cancellation fees;
  • Emergency vet fees;
  • Deposits, etc.

By factoring in these additional costs as well, you’ll be able to ensure that your doggy daycare is both competitive and profitable!

Dog engaged in physical exercise in fenced outdoor space at daycare facility. Doggy daycare article.

FAQs

Finally, here are some common questions that aspiring and working doggy daycare owners often ask when it comes to pricing and costs…

Q: How much does the average doggy daycare cost per day?

A: Depending on the location, size, and other factors, doggy daycare costs can vary widely. However, most dog owners will typically pay an average of $25-50 per day for doggy daycare services.

Q: What is the typical doggy daycare weekly cost?

A: The typical weekly cost for doggy daycare services will depend on the same factors as daily rates. However, many owners opt to pay a discounted weekly rate, which can be anywhere from $100-300 per week.

Q: What is the average doggy daycare monthly cost?

A: Again, this will depend on the same factors mentioned above. However, most owners will pay an average of $400-800 per month for doggy daycare services.

Q: What is the average cost of doggy daycare per year?

A: The average cost of doggy daycare per year will depend on how often the dog is dropped off, as well as other factors. However, if the dog is dropped off once a week, then the average cost of doggy daycare per year would be around $1,200-$2,400 for that client.

Q: How much is doggy daycare overnight?

A: Doggy daycare overnight may cost anywhere from $20-50 per night, depending on the location and other factors.

Q: How much does it cost to run a doggy daycare?

A: The cost of running a doggy daycare will depend on the size, location, and other factors. However, most owners can expect to pay anywhere from $2,000-$7,500 in startup costs and then upwards of $1,500 per month for ongoing expenses.

Q: How often should I review my doggy daycare prices?

A: In order to stay competitive and profitable, you should review your doggy daycare prices at least once a year. This will also give you an opportunity to adjust your rates as needed and ensure that you’re staying up-to-date with industry standards.

Q: My current pricing model isn’t working. Will my doggy daycare business look unprofessional if I completely revise my pricing strategy?

A: Not at all! In fact, revising your pricing strategy is a great way to show potential clients that you’re willing to be flexible and that you’re always looking for ways to improve your services. Just make sure that whatever pricing model you choose is fair, competitive, and profitable in the long run.

How to price your doggy daycare services in-post image 5

Final Thoughts

Pricing your doggy daycare services correctly doesn’t have to be overwhelming. By following the advice above and factoring in all of the related costs, you’ll be able to develop a pricing strategy that works for both you and your clients! With this in mind, don’t be afraid to adjust your rates as needed – after all, your business should always strive to stay competitive and profitable.

Good luck and thanks for reading!

Become an International Dog Care Professional™ (IDCP™) in as little as 3-6 months by training online with QC Pet Studies. Start your journey today!

Leave a Reply