Raising rates
 

Well poo...

Today is "dooms day". I am handing out rate increase letters to parents today for it to take effect October 1.

I really don't want to but the cost in gasoline just keeps going up which means the trips to the grocery and the bank are adding up quickly. The cost of food is the highest I've ever seen it and even with a new energy efficient furnace and A/C, our bills are $60 to $80 more each month!

I raised rates by about 4% across the board. I even broke it down for them showing that $20 per month rate increase is equivalent to $5.00 a week, $1.00 per day and as little as $.10 per hour!

I checked around my area and based on what I could find, my rates are still below average. I'm going on my 3rd year of doing daycare and I have yet to raise the rates so I think now is a good time as any.

Hopefully I don't lose any clients...

I worry about that too. I haven't raised my rates yet but I worry what will happen when I do. Good luck and I'm keeping my fingers crossed that your parents react well! :)

Good luck and hope they all give you a big smile. It is frustrating because most people would expect some type of raise in 3 years time from their job, yet with us, some how our needs seem to be different, and getting a raise is like getting a tooth pulled...OUCH!;)

I too gave my parents notice that I was changing my rates as of Sept. 1st. I am going for a flat fee for everyone. Sure enough dcd comes in that Monday morning and gave 2 weeks notice. Their fees weren't going up they just wouldn't go down when their son is fully potty trained. By the way, their son will be 4 in a few days!!! Then a couple of days later he gave me the story of how they were having money problems and that his sister was going to come watch dcb for them and would I be able to take him back in three months. I told him it all depends on how many children I have at the time but could not save his spot, knowing I would not take him back. Then the next day he came right out and asked me if I would lower my fees for him. I said no and contribute my new found back bone to this forum! I have read so many stories here and realized I can't be an easy push over which I have always been.

I dont raise my rates for current families, good luck!

Originally Posted by GrannyJ:
I too gave my parents notice that I was changing my rates as of Sept. 1st. I am going for a flat fee for everyone. Sure enough dcd comes in that Monday morning and gave 2 weeks notice. Their fees weren't going up they just wouldn't go down when their son is fully potty trained. By the way, their son will be 4 in a few days!!! Then a couple of days later he gave me the story of how they were having money problems and that his sister was going to come watch dcb for them and would I be able to take him back in three months. I told him it all depends on how many children I have at the time but could not save his spot, knowing I would not take him back. Then the next day he came right out and asked me if I would lower my fees for him. I said no and contribute my new found back bone to this forum! I have read so many stories here and realized I can't be an easy push over which I have always been.

Good for you! Look out for yourself once in a while!;)

so granny, did they stay or not?