I actually can.

The daycare my kid goes to is considered a cheap one. It’s $1,000 a month for my son because he’s three, and it’s even less for older children.

They have about 15 kids enrolled, including two or three babies they care for.

I’m guessing they bring in around $15,000 a month in revenue. They have four employees. Three of them are probably making around $20 an hour, and one manager is likely making a little more than that. Four employees working 40 hours a week is already consuming most of the revenue they bring in each month.

Maybe I’m missing a lot of variables here, but when you add in rent, utilities, insurance, food, supplies, licensing, maintenance, and everything else it takes to keep the business running, it doesn’t seem like there’s much left. Aside from payroll, they’re probably making very little, maybe only a couple thousand dollars a month in profit.

Businesses like daycares and nursing homes, anything that provides quasi-medical care, generally make very little profit. They’re there to fill an essential need, not necessarily to generate massive profits like you see with many internet businesses.

I’d even argue that if you doubled tuition to $2,000 a month, it wouldn’t dramatically increase how much money they actually make. Higher wages, insurance, regulatory compliance, facilities, food, equipment, and other operating costs would still consume a significant portion of that additional revenue.

They take care of kids man… It’s a hard job and they’re already getting paid bullshit for it.

Like I said in my original comment, if you want to change this, we need to change it from the fundamentals, not the business model itself.