Originally Posted by AmyKidsCo:
Interesting! My policies state that an automatic increase will go into effect each fall. I usually look up the cost of living increase, then figure out what the rate will be if I increase by that much, then fiddle with it until I'm happy. 
I have 3 rate schedules - 0-2, 2-5 and 5+, so it never occurred to me to keep rates the same for a family their whole time here. Now you've got me thinking... 
Unless I did the math wrong, (which might be a very real possibility since I hate math
) I make more money by not raising rates.
I tell my families that the rate they start with is the rate they leave with. No rate increase the whole time they are here. Average 5 years since I take 0-5 yrs only. The compromise to not increasing their rate is it's due 52 weeks a year regardless of absences or closures.
I close less than 15 days a year and don't give families the "standard" two weeks vacation time.
5 years at the same rate is approximately $5000 MORE of income (per family) in comparison to a $10 per year rate increase (including the 2 weeks vacation/time off) method.
So it sounds good to parents to pay the same rate for 5 years but it actually benefits me more than it does them.
It is easier for both sides to budget a flat rate too so that's a plus!