Rate Increase of No Increase?
 

Has anybody done this type of thing as a rate increase?

Currently my under 2's pay $150/week, over 2's is $125. Since I have several toddlers about to hit 2 in the next few months, my pay is about to go down by $100/week (yikes!). I'm thinking, instead of a rate increase for everyone of $1/day, I should just keep everyone at what they're paying right now, and anyone new coming in would automatically be at $150/week.

The great thing is that I would be able to tell the parents that they won't be paying any MORE for this rate increase.

What do you think?

I charge the same for everyone - no matter what their ages are. I do it this way cuz it is easier for me.

Originally Posted by DBug:
Has anybody done this type of thing as a rate increase?

Currently my under 2's pay $150/week, over 2's is $125. Since I have several toddlers about to hit 2 in the next few months, my pay is about to go down by $100/week (yikes!). I'm thinking, instead of a rate increase for everyone of $1/day, I should just keep everyone at what they're paying right now, and anyone new coming in would automatically be at $150/week.

The great thing is that I would be able to tell the parents that they won't be paying any MORE for this rate increase.

What do you think?

The only problem I see with it is that the parents whose children are about to turn 2 are expecting their rate to go down. Or do they know about the rate change? If they do not know then I see no problem with it but if you previously told them at sign-up that when their child turned 2 their rate would go down I find it slightly unfair to go back on what you originally told them. It may just be better to increase your overall rates so you can honor what you said (& give them a cheaper rate). Maybe raise your weekly rate/s to $160 & $135? I guess from my standpoint if I was the parent I would be a bit upset if you told me my rate was not going to go down at all. But I totally see your point also. I would not want less money either.

Well, I suppose I would not charge my parents anything other than what they signed up for UNTIL the next session starts. (Like Summer Camp) I follow the local school's calendar, and when their summer break starts, that is the time for new contracts all around, rate increases, etc. It works for me because I have school age kids, but I'd say any program no matter what ages involved need a beginning, middle, end to their year for exactly this reason.

Originally Posted by janarae:
The only problem I see with it is that the parents whose children are about to turn 2 are expecting their rate to go down.

Yeah, I hadn't thought about it that way. I should add though, that I only have one full-timer for whom this would mean paying the $25/week more than the current scheme (she'll turn two in November). The others are part-time, so in practical terms, it would only mean $5-$10 more per week than the current scheme.

For any newcomers, I'm definitely sticking with the common rate. I didn't think about this when I set my rates, but even though the younger ones require more hands-on attention, the older ones eat more, use more craft materials, are harder on the toys, etc, so it all evens out ...

None of my clients pay the same thing. I start a family at the rate they keep the duration of care. I just raise it every year or so for new clients. Im raising it 15 dollars a week for any new clients from this point out. After that Im still 35 bucks a week cheaper than other places,.. but I try to keep my costs down to help people out. Im full so I must be doing something right. I tell people when we interview, Im a fixed not adjustable interest rate. lol