OK, I am looking at this from the PROVIDERS point of view, as well as the parent. First, speak openly to your current provider about your thoughts and possible plans and why you are condisering the change. If the provider cannot afford to change her rate to compete with the new childcare center, then I am certain she will be quite helpful in the transition with you. Your current provider will actually appreciate the heads up and notice on you pulling your child out of her care, allowing her the time to interview other poeple to fill the spot, and she could even start explaining to your child that she is "graduating" to a new school, like a preschool or whatever it works out to be, to help the child understand the transition. Kids do not understand ecinomics, but if your child spends several hours a day with this person, it will be quite important for them to play a role in the transition if you want it to go smoothly. If your provider is not willing to help you out with this process, well, then I am happy that you are changing childcare providers! The child's needs and best interest should ALWAYS come first, and in this case if the current provider cannot change their rate, (understandable with overhead, etc), then you need to be able to change your provider in as smooth a way as possible, WITH their help. I have done this several times in the past, for many reasons, and also kept an open door policy for the kids to stop by and just have a quick visit or say hello if they felt like they were missing me. It always worked out very well. I even had a little boy who I drove to the new center for the 1st week, to help with his transition, and I was on his emergency list there and took him on days when the center was closed when my home daycare was not. There are all kinds of ways to work this out if you have a good relationship with your current provider, and I really hope that the transition goes well. Your families financial security is at the top of the list of your priorities, and any good childcare provider should understand that!! :)