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Daycare Center and Family Home Forum>Increase Rates Or Increase Vacation Time?
LittleScholars 07:28 AM 05-01-2017
I've been open now for about two years. In that time, I've put so much into my program (a really solid homemade menu, a decent curriculum I'm still developing, and we turned our basement into a pretty great daycare space). My rates aren't cheap, but they also aren't very competitive (desirable programs charge $57-$67/day and I'm nowhere near that).

I don't want to change things too drastically, especially because all of my families will be with me until next summer when most enter to kindergarten/go to camp; however, I do think it is time for a slight increase in either rates or vacation time. I'm leaning toward increasing paid vacation by a few days, because what I'm really craving is time with my family. In your experience, has this been more acceptable to families than rate increases? I think I currently take 9 major holidays and 6 paid days (although I only took one paid day last year, so I am my own worst enemy). Families also get 10 vacation days.

Also, how much notice do you give families for vacation? I've been putting my days in my contract to give parents the opportunity to plan vacation days around mine, but I feel like that locks me in. Should something come up, I want the flexibility to change vacation days.
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childcaremom 08:19 AM 05-01-2017
I think that there are tons of options to consider:
1 - raising rates enough to cover extra vacation time you want
2 - charging parents for their vacation times
3 - setting your vacation time as a minimum amount of time off and providing parents ample notice (so not setting in stone your time off)
4 - increasing your paid time off
5 - setting your rates and parents pay same amount each week, regardless of vacation, holidays, illness, etc

I'm sure that there are quite a few others, as well.

I have it that I take a minimum of 2 weeks off per year, unpaid. My families pay regardless if their child is in attendance or not (their vacation included). I charge quite a bit in tuition to accommodate for my time off. I also currently only have teachers so have built in vacation periods.
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Jupadia 08:43 AM 05-01-2017
I have not been open to long about 3 years now. I have increased rates both as kids left and I replaced them. As well as I did not drop a couple rates when kids went over 2. I did recently add into my contract a early closer and a half day one (regular pay). As well as a third week vacation (all unpaid) and use to give 2 weks to parents and now made it 1. I can only have 3 kids (+my 2 boys) so it was easy to incorporate changes

I would say do what works for you best. Also you know your patents better then anyone else you may be able to figure out what they would redponed to better.
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Unregistered 09:41 AM 05-01-2017
I've been open forever even years now. I have done both raised rate one year and added additional vacation time the next year. During this time I have also cut back on hours. I find that families that like your program will adjust to changes and those that don't will leave, but new families enroll that agree to the new changes. I now am closed on Fridays, take a few major holidays off (Thanksgiving, Labor Day, Christmas and New Year's Day, Memorial Day), one week spring, one week summer, and two weeks winter break, and 6 personal days all paid. Some of the breaks I have set days I let families know at the beginning of the school year and the rest I say are to be announced and give at least a month notice. However I do say sometimes unexpected circumstances occur (illness) and will give the night before notice so always have back up.
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Snowmom 10:25 AM 05-01-2017
Originally Posted by LittleScholars:
I've been open now for about two years. In that time, I've put so much into my program (a really solid homemade menu, a decent curriculum I'm still developing, and we turned our basement into a pretty great daycare space). My rates aren't cheap, but they also aren't very competitive (desirable programs charge $57-$67/day and I'm nowhere near that).

I don't want to change things too drastically, especially because all of my families will be with me until next summer when most enter to kindergarten/go to camp; however, I do think it is time for a slight increase in either rates or vacation time. I'm leaning toward increasing paid vacation by a few days, because what I'm really craving is time with my family. In your experience, has this been more acceptable to families than rate increases? I think I currently take 9 major holidays and 6 paid days (although I only took one paid day last year, so I am my own worst enemy). Families also get 10 vacation days.

Also, how much notice do you give families for vacation? I've been putting my days in my contract to give parents the opportunity to plan vacation days around mine, but I feel like that locks me in. Should something come up, I want the flexibility to change vacation days.
So you give your families 10 free vacation days and only take 6 paid vacation days for yourself?

My suggestions:
I'd eliminate free vacation time for families. That saves you a big chunk of money! Plus, they likely all take it at the same time (Thanksgiving-New Years) which can be a financial burden.
Holidays: It sounds like your taking the major holidays. Increase it to 2 days at Thanksgiving, 2 days at Christmas, 2 days at 4th of July, 2 Days at New Years, plus the other major holidays Memorial day, Labor day, MLK, President's Day, Good Friday or Day After Easter or both!)
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LittleScholars 10:38 AM 05-01-2017
Originally Posted by Snowmom:
So you give your families 10 free vacation days and only take 6 paid vacation days for yourself?
That's right. And I tried SO hard not to take my days... and maybe gave them extra days...

When I started, I felt guilty for closing or for charging when I was closed. Now, I feel like I provide a really solid service and it is really important I have some breaks so I don't burnout. I do like the idea of increasing these scheduled breaks, because it will force me to take the time off.
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LittleScholars 10:40 AM 05-01-2017
Originally Posted by childcaremom:
I have it that I take a minimum of 2 weeks off per year, unpaid. My families pay regardless if their child is in attendance or not (their vacation included). I charge quite a bit in tuition to accommodate for my time off. I also currently only have teachers so have built in vacation periods.
My wait list is filled primarily with teachers, and I wonder if I make some small changes now, and do this when my group turns over next summer. Can I PM you to pick your brain a bit more?
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Ariana 11:03 AM 05-01-2017
I also do not charge for MY vacations as a way to take more vacation. In my 7 years of doing this not one family has taken a vacation outside of mine. So basically if they are paying their kids are here. I thought it would be a great way to get some more time off where I was being paid and time off where I wasn't. I don't mind not being paid but these parents are soooo cheap they will not take any time off!

Definitely thinking about taking that out of my contract. I also have in my contract that I give 6 weeks of notice but no one reads my contract so I will take vacay whenever I want at this point.
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Blackcat31 11:42 AM 05-01-2017
I've done it many different ways.

When I first opened, I didn't charge for any closed days but gave DCF's 2 weeks of time off without having to pay.

Then I changed to giving only full time families 2 weeks and giving part time families 1 week. Still not charging for my days off.

Then I moved to only full time gets time off without paying and I charged for 5-7 holiday days I was closed.

Then I decided to stop giving any unpaid time to families and started charging for all my days off (with a max # of days per year).

Now I am contemplating allowing full time families to accrue a time off but just haven't worked the numbers or made the jump yet but that is my next plan.......
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LovetheSun 01:09 PM 05-01-2017
We do not offer vacation days to the families,it would be too stressful and a lof of money missing on some month.

I have realized this year that families respond better to an increased in price rather than paid vacation. So right now I changed things for 2018.

-8 Paid Holidays
-4 week of provider vacation
-BUT an increase of almost $10/day
-Sick or in vacation you must pay during your child absent
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LittleScholars 11:05 AM 05-04-2017
Originally Posted by Ariana:
I also do not charge for MY vacations as a way to take more vacation. In my 7 years of doing this not one family has taken a vacation outside of mine. So basically if they are paying their kids are here. I thought it would be a great way to get some more time off where I was being paid and time off where I wasn't. I don't mind not being paid but these parents are soooo cheap they will not take any time off!

Definitely thinking about taking that out of my contract. I also have in my contract that I give 6 weeks of notice but no one reads my contract so I will take vacay whenever I want at this point.
Oh, interesting! I bet my families would align their vacations to mine (if I actually took any). Do you take paid holidays?
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LittleScholars 11:06 AM 05-04-2017
Originally Posted by LovetheSun:
We do not offer vacation days to the families,it would be too stressful and a lof of money missing on some month.

I have realized this year that families respond better to an increased in price rather than paid vacation. So right now I changed things for 2018.

-8 Paid Holidays
-4 week of provider vacation
-BUT an increase of almost $10/day
-Sick or in vacation you must pay during your child absent
This is so helpful!
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LittleScholars 11:08 AM 05-04-2017
"Then I decided to stop giving any unpaid time to families and started charging for all my days off (with a max # of days per year)."


I look forward to getting to this place once I'm more established! I think I *could* do it now, but nobody would be particularly happy with me!
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daycarediva 11:33 AM 05-04-2017
I raised rates as clients left.
For existing clients, I raised rates gradually.
My rates are $50/week more than they were 5 years ago. Parents now get NO unpaid time off, added into my contract, same rate weekly-regardless of attendance.
I never set a day off/allowance in my handbook for myself.


I say do a SMALL rate increase, and then do gradual rate increases every 3-6 months.(eg. $1/day) Not a single parent batted an eye when I did small increases like that.

In January, I gave my PTO for the year, and included more days around holidays, and ONE FRIDAY a month off, paid. I have two, three day weekends this month.

IF I reopen after the move- I will actively seek,advertise to, and enroll ONLY teacher families. Charge a big chunk more, but NOTHING on holidays/summer (except a deposit for Sept)
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CityGarden 11:41 AM 05-04-2017
I am just starting but I have a good amount of time off that is paid. Initially I said:

"Our program runs from September to June with an optional summer program offered in July and August. We closely follow the X School District Calendar for all holidays."

This meant:
Since my dd is not in our local school district (spring breaks are different) and because I have decided to start my preschool year in September vs August when the school district starts I have since changed my wording and just give a calendar of closures. Tuition is charged monthly so I feel the weeks off balance out a bit with the months there are 5 weeks vs 4 weeks of care. I do get more paid time off than there are 5 week months but I just tell parents it is an annual fee broken up into monthly payments and that the holidays are averaged into the rates.
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AmyKidsCo 11:45 AM 05-04-2017
Why not both?

I raise my rates a little and add another paid day off every year. My families don't get any vacation time - if I'm open they pay. I give them about a month's notice of vacation, except for Christmas to New Year which I always take.
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CityGarden 11:45 AM 05-04-2017
On my rate sheet I also have:

Due to cost of living, prices may increase ~3% for the 2018/2019 School Year

This was inspired by Tom Copeland:
http://tomcopelandblog.com/easiest-way-raise-rates
http://tomcopelandblog.com/how-to-raise-your-rates-2
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NeedaVaca 06:57 AM 05-05-2017
I take 2 weeks paid vacation, 1 week paid personal days and all major holidays off paid. I get paid the same rate 52 weeks per year and I do not give any of my families unpaid vacation time. I have never had a problem doing it this way. It seems so odd that your families get more free vacation time than you do. I have a limited number of spots available and losing that much money would definitely hurt me financially.

I would definitely increase your paid vacation time and decrease theirs! Rate changes I always make as I add new families but right now I am at the higher end for my area so I don't plan on increasing any time soon. If anything I am ready to add more time off

I also noticed you said you only used one of your 6 days off! I use every.single.one! I NEED them
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LittleScholars 09:51 AM 05-05-2017
Originally Posted by NeedaVaca:
I take 2 weeks paid vacation, 1 week paid personal days and all major holidays off paid. I get paid the same rate 52 weeks per year and I do not give any of my families unpaid vacation time. I have never had a problem doing it this way. It seems so odd that your families get more free vacation time than you do. I have a limited number of spots available and losing that much money would definitely hurt me financially.

I would definitely increase your paid vacation time and decrease theirs! Rate changes I always make as I add new families but right now I am at the higher end for my area so I don't plan on increasing any time soon. If anything I am ready to add more time off

I also noticed you said you only used one of your 6 days off! I use every.single.one! I NEED them
I always feel bad for asking families to pay when their kids aren't here, but I need to stop it. With holidays, I have 16 days off (but I've even opened on holidays I said I would close for each year).

I really need the break more than the money, so this year I'm adding another day around Christmas, taking all of my days, and not giving any freebie days.
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