Fundamentally, it is a business that does not scale, as you need a set number of providers per n children, and low values for n are probably going to be associated as better value. There's really no way to get efficiencies or scale, as the personal interaction and attention is what parents are really paying for.

So it come down to a question of local real estate prices and prevailing wages for the area, so I'm assuming mindvirus lives in a city with a very high cost of living and real estate costs.