Anyone Increasing Their Rates For 2018???
Hi,
This is my first time posting, although Im not new to this forum. Im so thankful to have a community to go to for help/questions. So this is my dilemma. Ive been open for less than a year now. But now realize how low my rates are compared to other home centers that offer all that i do. I currently charge $120/week for ages 2+ for 9.5 hours. my rate includes all meals,we do daily activities, preschool curriculum,crafts, sign language, spanish, and field trips to museums etc. I want to also incorporate yoga once a week with an instructor. I am in the raleigh, NC area,and Im thinking of raising my rate to $140. I have 2 new kids that are paying this rate and the mom said this was even a low rate. My question is how would I go about increasing my older clients. they've all told me during their interviews that my rate was low. But i dont want to just hit them with an $80/month increase. any suggestions how I should go about? i know i give exceptional care, my kids cry when its time to go home. families are all happy and most of all the kids are learning and very happy. I just feel like im working so hard and barely able to make a profit with all we do.Thanks in advance to all! |
Gradual increases, say $5/week quarterly until currently enrolled families hit your going rate.
|
Originally Posted by daycarediva: |
When I found out I was charging at least $20 less a week than everybody else locally, I gave my dcfs a month's notice that rates would be increasing $5 a week every 6 months. And I'm still not up to others' rates, :rolleyes: so I like the idea of quarterly much better. All new enrollments are charged the higher rate coming in.
THEN I found out a local center, which happens to own 2 big centers in our small community, charge $200 a week. :rolleyes: That's a huge difference from what all the in-home providers are charging. I think we're getting the short end of the deal. :( |
I didn’t increase rates this year but they will go up next year. When I opened this past year, I researched rates in the area and placed myself at the top right off the bat. I went $5 week cheaper than one other person but about $20 higher a week than the average. It was risky since I was just starting out but I knew how much I would feel comfortable charging for the amount of work I was committing to. I haven’t had a single issue with parents feeling my rates are too high. I even have one DCG whose mom took a second part time job in order to afford to bring her daughter to me because she felt so good about the environment I was providing.
I plan to raise rates annually in January each year starting next year. Most likely by 3%-5%. If you want to raise your rates now, I’d do it a little at a time so that it’s gradual but make parents aware of when to expect the increases. |
I have only been open a year as well. I built into my contract a 5% tuition increase each year effective in September.
Here are three relevant blog post from Tom Copeland on increasing rates: http://tomcopelandblog.com/how-to-ta...g-your-rates-2 http://tomcopelandblog.com/easiest-way-raise-rates http://tomcopelandblog.com/how-to-raise-your-rates-2 |
I successfully restructured my hours and tuition after my first child was enrolled. First the new policies were rolled out to all new families and eventually notice was given to that initial family.
One thing to be clear on is what is the goal with the change.... my end goal was to shorten my day with the changes, it sounds like your goal is to increase income so always keep that in mind. I bring this up for two reasons 1) I always knew when I opened I wanted a short day but my policies did not match that - they maximized my income with the potential of a shorter day but did not guarantee the short day I desired and 2) because on one hand you state you want $20 more per week per spot but then you also say you want to add a yoga class with an instructor. Having the instructor would increase your overhead so you need to factor that when adjusting your prices to ensure you bring home what you need/want. A couple different options to increase rates from those already enrolled: - Add an activity fee. Sell them on new/upgraded services (preschool curric., music class, yoga, etc.). Tell them the additional fee is X per week and is due regardless of attendance. Really play up the new service(s) and get their buy in. (When I first opened I had a monthly music class fee.... it was required and not one parent questioned this.) - In my opinion in terms of increasing income the best option is to switch to contracted hours based on pick up times for all families! When I first opened I offered contracted hours based on pick up times, the first family enrolled needed my max hours so I did not get the short day I desired but I did make a lot more money for my time. With the contracted hours I made $10 more per day than the highest provider in my area for my max hours. BlackCat & DayCare both offer contracted hours based on pick up times so look at their post especially for examples. Originally Posted by Blackcat31: |
Originally Posted by Josiegirl: |
Originally Posted by HappyEverAfter: |
Originally Posted by CityGarden: |
Originally Posted by Ms.Koech: I also don't have parents complain about their rates either. If they want to save money, pick up earlier. Win-win for everyone! happyface Like my previous post said, I work less hours now but make more money. :) |
I am not sure that contracted hours would ever work in my case. Most jobs around here are 8-5 or 8-4:30 (depending on alloted lunch break) salary type jobs. There is a fairly large clinic/hospital with hospital hour like shifts that differ from the norm (6AM-3PM) but I am unwilling to open earlier than 7AM. The clinic has its own daycare where at least one parent must be employed there and their rates are based on what the parents salary is. I used to sit for a family of two doctors. They were/are paying $285 a week for their daughters spot while her medical assistants child is in the same class paying over $100 less a week. My hours are not bad now. I advertise 7:00-5:30 but I rarely work “open to close”.
|
Originally Posted by storybookending: I had a family that used services from open to close. Parents struggled with listing a back up person for alternate care if needed... said they literally knew no one in town and had no family or other relatives near by. I changed my rate structure. The new rate scale made it so they would be paying an additional $50 per week. Suddenly mom had neighbors and friends coming out of the woodwork wanting to help out and pick up the child earlier than mom or dad were able. I don't spend a single second worrying about job hours, availability of family, friends or neighbors when I set my rates. I worry only about being compensated for the later pick ups and it's truly enlightening to see that family's that couldn't manage previously manage great now! Add money into the situation and parents suddenly "think" differently. :lol: |
Originally Posted by Blackcat31: |
Originally Posted by Blackcat31: |
Originally Posted by Blackcat31: |
Originally Posted by storybookending: I did away with contracted hours but that is only because I switched to a part-day program only. For those full day I don't see what you lose by offering a contracted payment structure based on pick up times from a provider standpoint - well maybe billing, different families would have different tuition amounts vs. everyone having the same rate. Originally Posted by Blackcat31: Originally Posted by Annalee: |
Originally Posted by Farmerswife: I don't allow schedule changes after they are submitted unless it's an unusual circumstance or something that simply couldn't be helped but I never allow parents to decide day by day if they are or aren't attending. I don't have one now but I would have a drop off cut off time so that it isn't disruptive when accommodating an unscheduled drop off or one that isn't routine. That eliminates the disruption for others. I charge 52 weeks a year regardless of absences, closures or time used/not used. |
i'm in California and the weekly rates in here is $250 and up for 2-5 yrs old and i increase rate every July depending on child care rates from the gov't that i get every year too
|
I'm in California too. We're the size of a small European country, so prices vary widely as does the cost of living.
I chare $180 per week for infants, and $165 for everyone else. I raised my rates at the new school year in September. When I raise my rates I usually just make my infant rate my new preschooler rate, and then raise the infant rate. I don't raise on current families....but they don't get to step down when their child ages up either...so it all works out. |
Originally Posted by cpajarillio: |
I do increases in September, every two years. I increase to the daily rate in the new Market Rate Survey. :) So I keep my rates very average.
|
Results of Californias 2017 Market Rate Survey by facility type and county.
http://www3.cde.ca.gov/rcscc/index.aspx |
i like the idea about the 5% increase written into their policies, i may do that. I was also low and only increased for new parents coming in, if i still got the "wow your low" then id increase it again, i may have had one family around 120 another around 135 and another around 150 but it evened out for me and when the older tuition kids aged out i still had my bigger rate for new incoming families
|
Thank you for posting that hwichlaz! I haven’t opened yet, won’t be for awhile, and seeing the reimbursement rates is very useful in helping me set mine.
|
Originally Posted by TooManyKitties: |
I raise prices yearly, but only for incoming clients. I offer "same price for life" as people sign up. As long as they pay on time and follow rules etc...their payment will never go up[ (I charge a flat rate) Miss one payment...be a pain....payment goes up to current rate on the next pay day.
Works for me. Keeps them on their toes about paying on time and following policies. They also know that shopping around for cheaper may work for now, but they'll end up paying more before long as fees go up in most places. |
All times are GMT -7. The time now is 07:06 PM. |