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Daycare Center and Family Home Forum>Should I Raise His Rates?
small_steps 10:36 AM 01-05-2012
I have a 4 year old. I've had him about a year and a half. He as seniority over everyone here now because he started not long after I first opened. At that time I was charging $100 per week which is average for home daycares in my area.
A few months later I raised my rates to $115 for all new customers. Everyone else here now is at $115. I have not raised his rates at all but I'm considering it. He will go to school this Fall so I only have him for a few more months. I go above and beyond for this child and he is usually the first here and last to leave so I'm seriously considering raising him to what the others are. I've recently raised my rates again to incoming customers just because I'm now competing with the centers in my area and even at $125 I'm about 10 to 15 dollars less than them per week. I think I offer just as much as the centers do and the kids probably receive more one on one here as well.
Any advice on if I should raise the rates for him? The mom will probably complain but I don't think she will leave. I even keep him late somedays for her which is a huge inconvenience but I'm just trying to be nice. When I do keep him after hours I charge her $10 per hour. On the other hand, he's only going to be here until Fall so I'm not sure if I should even bother. Of course that's still several months away so I'm kind of back and forth. He's a pretty good kid for the most part...a little mouthy every once in a while but other than that I have no complaints.
What would you do?
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Cat Herder 10:40 AM 01-05-2012
Originally Posted by small_steps:
I've had him about a year and a half.

He as seniority over everyone here

I only have him for a few more months.

He's a pretty good kid for the most part

I have no complaints.

What would you do?
I would not raise his rates. Professional courtesy.
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wdmmom 10:42 AM 01-05-2012
Given that he's leaving in 7 months for school, I wouldn't raise rates either.
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Heidi 10:46 AM 01-05-2012
Niether would I, especially if she pays you $10 per hour for "overtime".
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melissa ann 10:47 AM 01-05-2012
I agree. I wouldn't raise them either.
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mismatchedsocks 11:04 AM 01-05-2012
My kids are locked in at whatever rate they sign up with. So I personally wouldnt raise his rate.
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littlemissmuffet 11:12 AM 01-05-2012
Every January I decide if I am raising my rates, how much - and what I will charge new clients (which will always be more than current clients, as a courtesy to my original peeps). However, I take many factors into consideration when I decide how much or even if I will raise rates for each family. In this particular case I wouldn't raise them. You said he's a good kid, and he's leaving within the year. You are also compensated for any extra hours you ALLOW him to be there. I don't see any reason to raise this family's rates.
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small_steps 11:33 AM 01-05-2012
Thanks everyone! I've just been so back and forth on it because sometimes I just feel like my time and the care I offer is worth more. And I guess since he is here from open until close everyday it just sometimes makes me wish I raised it. But I probably shouldn't. It's only a few more months and then he will be going to kindergarten. I think I can make it until then.
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Cat Herder 11:36 AM 01-05-2012
Originally Posted by small_steps:
Thanks everyone! I've just been so back and forth on it because sometimes I just feel like my time and the care I offer is worth more. And I guess since he is here from open until close everyday it just sometimes makes me wish I raised it. But I probably shouldn't. It's only a few more months and then he will be going to kindergarten. I think I can make it until then.
I FULLY understand that.

You ARE worth so much more.

Think of it as advertising dollars well spent. Word of mouth is the absolute BEST way to get new clients.
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bgmeyers 12:37 PM 01-05-2012
I raise my rates every year or I give myself more paid time off. I'm where I want to be in the paid time off area, so my clients know that the rate is going up every September from this point.
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small_steps 01:34 PM 01-05-2012
bgmeyers and the others of you that raise your rates yearly...is there a certain percentage you raise your rates every year or a certain amount? $5 per week, etc?
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MyAngels 01:40 PM 01-05-2012
Originally Posted by lilrugrats:
My kids are locked in at whatever rate they sign up with. So I personally wouldnt raise his rate.
Just out of curiosity - do you take new sibs of current kids, and if you do, does the new baby get the grandfathered rate or your current rate?
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daycare 02:18 PM 01-05-2012
Originally Posted by Catherder:
I would not raise his rates. Professional courtesy.
Ditto...........

I raise my rates on the new clients coming in. Only one time in 8 years did I do an increase in rates across the board and it was only $10.00 per month.
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mismatchedsocks 02:27 PM 01-05-2012
Originally Posted by MyAngels:
Just out of curiosity - do you take new sibs of current kids, and if you do, does the new baby get the grandfathered rate or your current rate?
I do take new baby siblings. The older child is grandfathered in, the baby is at the new rate.
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CheekyChick 02:46 PM 01-05-2012
I wouldn't raise his rates.
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busymommy0420 05:08 PM 01-05-2012
I started in March 11' with two families which were on my "unlicensed" rate. I became licensed in May 11' and my rate changed for new families. I did new contracts for all and everyone had an increase beginning January 1st 2012 and are now all at the same rate. The original folks had a $35 a week increase and the others had a $10.00 a week increase. I was nervous but all 5 families I work with renewed. They said my rates were fair and they appreciate all the things we do here. (weekly field trips, Just 1 hr a week of screen time, a fabulous playground area and a pre-school curriculum) I had to do what was right and fair to them but also for myself as this is my business.

Will he be coming before and after school in the fall?
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small_steps 05:58 PM 01-05-2012
Originally Posted by busymommy0420:
I started in March 11' with two families which were on my "unlicensed" rate. I became licensed in May 11' and my rate changed for new families. I did new contracts for all and everyone had an increase beginning January 1st 2012 and are now all at the same rate. The original folks had a $35 a week increase and the others had a $10.00 a week increase. I was nervous but all 5 families I work with renewed. They said my rates were fair and they appreciate all the things we do here. (weekly field trips, Just 1 hr a week of screen time, a fabulous playground area and a pre-school curriculum) I had to do what was right and fair to them but also for myself as this is my business.

Will he be coming before and after school in the fall?
He won't be coming for before and after school in the fall but he could possibly come back during the summer when school's out. And I do not do a discount for school agers if I take them. I normally don't take them anyway because they get bored so easily and I have so many other younger children. However, with him I make an exception. but I charge the same for school age rate that I do for all kids because of course, they take up a slot and therefore must pay the same as everyone else.
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Cat Herder 06:05 PM 01-05-2012
If he leaves (terminates contract) then comes back next summer (new enrollment)..... THAT is when the new full price would come into effect for him, here.

Rate changes would accompany contract changes.
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Tags:4 year old, rate increase
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