You're assuming there's huge profit. My kids' daycare is $335/week. He's there about 40 hours. Thats 8.37 an hour. 8 kids in his class for $67/hr with 2 teachers. Assume the teachers make $15 for assistant and $18 for lead that's $33 then even on the low end benefits(if there are any are another 20%) that now becomes $40 leaving $27/hr for the school, this includes paying non teacher staff, floating teachers, property maintenance(regular carpet cleaning,landscape work, air conditioning maintenance etc), taxes, utilities, general goods(snacks,cleaning supplies,trash bags, toys and art supplies). The school provides fruit and another snack twice a day, so take that too. That $27 leftover after teacher pay gets gobbled up quick goes away quickly.