Opportunity cost is the chance that your child care center will derive income should a child attend the center during the course of a week. Lost opportunity cost is the event the center forgoes income due to a child not attending the center during the week. Given that, the lost opportunity cost that occurs when enrolled children do not attend can add up to a significant amount of a center’s overall income.
If your child care center simply concentrated on retention of existing families, and reached out to ensure that those families felt good about the program and attended on a weekly basis; your center would increase revenues significantly. It would require no additional recruitment on your part. This could eliminate budget deficits for those centers looking to beef up their income. It would also provision for re-investments in building, food, supplies and staff – something that a strained budget will not permit.
If you haven’t done so already, consider outlining a strategy to reach out to families who discontinued attending your center, and attempt to get them to reengaged in your program.