Default Style Register
Daycare.com Forum
Daycare Center and Family Home Forum>Rate Change/Rate Increase?
LittleCrawfishCC 10:48 AM 11-07-2011
Okay, so here is the deal, my familys are starting to get to know eachother, and I hope that they never talk "fees" because they are all over the place. In my hand book I have an annual increase of no more than 10% a year, but honestly, I just want to go ahead and change the fees all together.
Here is where I am at, especially on one family

1 1/2 year old - Now - $50 Want to be at $75
8 week old - Now - $100 want to also be at $100
8 year old, morning only Now - $20 only for gas to school, want to be at $33

So this would change from $170 a week to $ 208.

The behavior of these kids are all over the place, and its like one day is great and the next is horrible!

Do ya'll think I could change my rates legally? Even though my contract says only 10%, this would be a $38 a week raise
Reply
Crazy8 11:02 AM 11-07-2011
Personally, I wouldn't do it. I'd raise the 1.5 year old up the $17 or so and leave it at that. I would take that 10% out of your contract for future clients though.

You'd be breaking the agreement of your own contract otherwise and and I just think it sets a bad business example but that is JMO.
Reply
LittleCrawfishCC 11:07 AM 11-07-2011
Yeah, but I am wayyyyyyyyyyy under in this area, a infant is average $160-$180 and a toddler is average $130-$160
Reply
wdmmom 11:11 AM 11-07-2011
I'd say $200 and not mess with the $8.
Reply
small_steps 11:13 AM 11-07-2011
Originally Posted by LittleCrawfishCC:
Yeah, but I am wayyyyyyyyyyy under in this area, a infant is average $160-$180 and a toddler is average $130-$160
I was going to say it sounded like you were way under. I don't know where you're located but that seems low for anywhere. Could you raise 10% now and then again in January so that it's technically a different year? Just let them know that it's coming so they can be prepared for the increase. I'm not sure what what your "year" is like. Mine is Jan-Dec but I know some do the school year.
Reply
LittleCrawfishCC 11:16 AM 11-07-2011
I just put out contracts (My first btw, about a month and a half ago) and these were the parents that challenged my on my contract. The kids are just so grumpy and their baby screams all day long, its like, I am to the point, they can either pay me more for the screaming baby, or find somewhere else. Plus I drive their 8 year old 15 miles round trip, and have to load up 3 kids every am.
Reply
Crazy8 11:20 AM 11-07-2011
Originally Posted by LittleCrawfishCC:
Yeah, but I am wayyyyyyyyyyy under in this area, a infant is average $160-$180 and a toddler is average $130-$160
So why did you give the rates you did?? I understand your predicament but I still just wouldn't go breaking my own contract - its one of those live and learn things to me (I've had plenty of those, LOL!). If you can get away with raising now and in January I would maybe do that but give them notice ahead of time.

One thing that helped me with rates was making a rate sheet. Its not public info - just for my own use but it helps me to determine a rate for a family when they are calling/interviewing. I just used to get a little flustered when thinking of rates and a few times did misquote people with rates lower than I should have so having a sheet of rates based on hours, ages, etc. helped me.
Reply
LittleCrawfishCC 11:22 AM 11-07-2011
This was my first family, and I didn't know exactly what I was doing, they know that they are WELL below average, I started out watching their daughter in the summer for $65 and their son was in daycare for $135, so that right there was $200, and I just felt guilt tripped into a low price, because of the things they would tell me.
Reply
Crazy8 11:27 AM 11-07-2011
Originally Posted by LittleCrawfishCC:
I just put out contracts (My first btw, about a month and a half ago) and these were the parents that challenged my on my contract. The kids are just so grumpy and their baby screams all day long, its like, I am to the point, they can either pay me more for the screaming baby, or find somewhere else. Plus I drive their 8 year old 15 miles round trip, and have to load up 3 kids every am.
sorry, I replied before I saw this - in this case, I'd probably just term them (and I don't take terming a family lightly but if it affects the happiness of my daycare I would do it). But I'd go ahead and give the new rates and let them decide.
But still, take that 10% thing out of your contract for new families - be more general saying "rates will be reviewed each year" or something like that!!
Reply
small_steps 11:28 AM 11-07-2011
Can you make changes to your contract and just say that you reserve the right to increase tuition prices once a year and have them review and sign again and then raise the rates. Just take out the 10% Give them a two week notice of policy changes maybe?
Reply
LittleCrawfishCC 11:35 AM 11-07-2011
Little Diamonds, that is a good idea! I don't much mind it for the rest of my families, because they are pretty much all the same. But I am to the point where I work the same, and I should be paid the same, I think I am going to talk to the hubby tonight, and see if he wants the full rate increase, or like small steps said, and increase 10% now, and 10% in Jan.
Reply
LittleCrawfishCC 12:52 PM 11-07-2011
Any other suggestions ladies?
Reply
renodeb 01:04 PM 11-07-2011
I dont do a %. In my contract I just have that rates are subject to change once a year with a months written notice. When I raise the rates its only $5.00 a week per family. Not a very big raise and I have never had a complaint. What your proposing seems like a big hike. If anything I would take out the 10% and put a clause that states that the rates are subject to change.
Debbie
Reply
LittleCrawfishCC 02:10 PM 11-07-2011
So I had a talk with the father, and he was like, well we are struggling already, and this isn't going to go over well with the wife, and he was like, well we told you not to claim the money so you wouldn't be taxed on it, and I am like ARE YOU SERIOUS?!?! Like I said stupid enough to do that and get audited!
Reply
Tags:contract - revisions, rate change, rate increase
Reply Up