Children's Circle provides hot lunches and a professional lead teacher in each classroom. Program development is a big part of the lead teachers job, and the classrooms are outfitted with the latest play equipment and materials. Within two years from its inception the center was filled to capacity with more than 85 children. Glencoe's Children's Circle childcare center produces an annual profit of 15 percent of revenues. This is a very narrow profit margin.
Most businesses operate on a higher percentage.
The narrow margin doesn't leave much room for error or changes in the environment, such as recessionary times. Despite the risk of narrow margins, for Glencoe there was a real need in the community for childcare service. After a careful market study, it became clear that there would not be competition from other childcare centers. Glencoe has learned that its residents are willing to pay for quality. For any community, the program must be tailored for the residents.