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biglou 05:23 AM 10-06-2014
Originally Posted by KatieG:
I know I should've been doing this all along, but I've never raised my rates in the 11 years I've been in business. It's definitely time, but I'm not sure what is a reasonable increase? I googled "inflation rates" and found this:

http://www.usinflationcalculator.com/

It says that the cumulative rate of inflation from 2003 to 2014 is 29.3%!!! Obviously I'm not going to hit my families with a nearly 30% increase, but I don't know what is reasonable. I've done some poking around, and other providers in my area are charging 20-25% more than I am, so I don't know that they'd be totally shocked. Advice please?
Ms. KatieG

I believe your current families will not be interested in you failing to increase in 11years and asking them to increase by 25% can be shocking. I suggest you have a backup plan to any objections from current families. If someone objects strongly and you feel they will go and you want to keep them offer a 15%increase now with a 10%increase to follow in 6 months. Any new family gets new rates of course. In future, consider raising rates every three months as new families enter your program. Sure it will be a small increase but you are always hedging against inflation this way. Existing families need rate increases at least one time per year. If you don't ask you will never get it. Don't be afraid.

Big Lou.
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