Raising Rates - How Do You Prepare The Parents?

[jenny31052]

I've been in the business (I'm licensed) for a little over a year, and I think I've passed the "newbie" stage where you try everything to get your first kids.

After some thinking, I've realized that I'm way underpaid for the amount of work that I do, the things that I offer, and qualifications that I have, and I've decided that I want to raise my rates to where they should be, and not where I have to keep them in order to get business.

How much notice do you give parents? Since I have a couple of Moms that are teachers, I was thinking about presenting the new rates in August, when school starts again, and the kiddos come back...


Any advice?

Thanks!!!

[melissa ann]

My contract states that contracts are renewed yearly. My contract states that any rate changes will be made at that time, so my families know this when signing up.
Do you have anything about rates in your contract?

[momofboys]

Originally Posted by melissa ann

My contract states that contracts are renewed yearly. My contract states that any rate changes will be made at that time, so my families know this when signing up.
Do you have anything about rates in your contract?

I agree w/this. And if your teacher families are returning next year you could get contracts to them or re-new your contracts every summer (if they don't come in the summer) for the new school year. I don't think you need to explain the rate change though. I would get contracts to school/teacher parents by the end of July of mid-July at the earliest. Require they be returned to you by a certain date (maybe 2 weeks prior to school starting) or by August 1st.

[SunshineMama]

Do daycare centers outside of the home do regular rate changes yearly? I wonder what their process is...

[cheerfuldom]

your are the business owner, you can change rates whenever you want. I would write a letter outlining changes, give one week to decide and either 1. sign a new contract or 2. give two weeks notice that they are leaving. I have raised twice in five years but I dont think there are "rules" about this.

[GoodKarma]

I also have a section about rates being reviewed annually and subject to increase. I hand out my contracts at the beginning of December, they are due back to me 2 weeks later and go into effect at the beginning of January.

[frugalmama4]

I'm also planing to raise my rates and change up a few policy this year.

I'm planing on charging one flat weekly rate instead of by age (as I do now) rather its an infant or 3-4yr I give the same amount of care to all. Yes, some or more work then others...but I think the teething/potty training/table manners/sharing/shoe tie stages etc are more work.

I would start advertising before sending out a letter, just in case some families leave, this why you have a waiting list. And as the owner you have the right to change rate/policy when you think its best.

Good Luck!

[satcook]

Originally Posted by SunshineMama

Do daycare centers outside of the home do regular rate changes yearly? I wonder what their process is...

I'm the director of a daycare center and we raised rates last January. We put a notice in our monthly newsletter in October, then reminders in November and December so they had plenty of warning. We hadn't raised rates in 3 years though so that was a big selling point!! We didn't have to raise rates this January, but will probably do so again next January.

Lori

[kendallina]

Originally Posted by SunshineMama

Do daycare centers outside of the home do regular rate changes yearly? I wonder what their process is...

In my experience, child care centers review their rates annually, although they don't necessarily raise them annually.