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Daycare Center and Family Home Forum>When/How Often Do You Raise Your Rates?
ecemom 11:04 AM 09-26-2009
I was just wondering when and how often you raise your rates? How much notice do you give? Do you use a flat fee increase or a %? Also, how to do inform your clients? Do they have to sign a new agreement or an addendum?
THANKS!!
THANKS!!
Chickenhauler 01:02 PM 09-26-2009
Being that the rates are stated in the contract, you would have to have them sign a new contract.
The reasonable (and possibly legally required thing) would be to give them at least as much notice as your contract states is required for either party for termination of services. I think two weeks is sufficient notice for a rate increase.
I think anything more than an annual review of revenue compared against expenses would be viewed as excessive, unless there is some circumstance beyond your control that is running up your expenses rapidly and astronomically (heating fuel quadruples in price overnight for example).
As for informing them, do it verbally, be polite, but firm in explaining it, along with giving them written notice, and make a note of date and time when you gave them this notice.
I know that sounds "anal", but we've all been down the "I was never told" excuse road.
The reasonable (and possibly legally required thing) would be to give them at least as much notice as your contract states is required for either party for termination of services. I think two weeks is sufficient notice for a rate increase.
I think anything more than an annual review of revenue compared against expenses would be viewed as excessive, unless there is some circumstance beyond your control that is running up your expenses rapidly and astronomically (heating fuel quadruples in price overnight for example).
As for informing them, do it verbally, be polite, but firm in explaining it, along with giving them written notice, and make a note of date and time when you gave them this notice.
I know that sounds "anal", but we've all been down the "I was never told" excuse road.
tymaboy 07:12 PM 09-26-2009
I have not raised mine since 2007. There will be new rates come 2010.
laundryduchess@yahoo.com 05:46 AM 09-27-2009
I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.
melissa ann 07:32 AM 09-27-2009
I started doing childcare in March 2008. I did have a half day rate, but my families said they would need full-day. However, after a couple months, everyone started half day. So in the fall, I eliminated half day. Had they stated from the beginning they wanted half day, I woulnd't have taken both families. However, after that the kids were back to full day.
Now, this past Aug. my rates went up by $1/day. With the prices of everything going up(food, heating oil, and our electric rate caps are coming off shortyly) I had to raise them. I had no problems with that. I still have the families. Most days the kids are here the entire time I'm open. 11 hours and I get $18/day.
Why should I not raise my rates (raise)? My dcp get raises once/year.
I think that it's fair to evaluate your expenses yearly, and if need be, raise your rates. I think that $5/week increase is acceptable per child.
Now, this past Aug. my rates went up by $1/day. With the prices of everything going up(food, heating oil, and our electric rate caps are coming off shortyly) I had to raise them. I had no problems with that. I still have the families. Most days the kids are here the entire time I'm open. 11 hours and I get $18/day.
Why should I not raise my rates (raise)? My dcp get raises once/year.
I think that it's fair to evaluate your expenses yearly, and if need be, raise your rates. I think that $5/week increase is acceptable per child.
mac60 08:41 AM 09-27-2009
I totally agree Melissa. I just lost a dc boy that I have had for 6 years, he started school in another district. I had him 6 years, and never raised his rate. So stupid of me, as mom bragged every year she got a 4% wage increase at the hospital. He started at $15 per day and ended 6 years later at $15 per day. I know, supid of me. This is a typical trap that I have gotten myself into. Not keeping my rates up with the cost of expenses going up.
Typically, if I have a family that has a new baby, I will adjust my rates accordingly then. But for those who only ever have 1 child in my care for 2 to 6 years, I do not have anything in place to raise rates, and I definately need to change that.
My expenses over the past 2 years have went up considerably. And I have not raised rates on anyone.
Typically, if I have a family that has a new baby, I will adjust my rates accordingly then. But for those who only ever have 1 child in my care for 2 to 6 years, I do not have anything in place to raise rates, and I definately need to change that.
My expenses over the past 2 years have went up considerably. And I have not raised rates on anyone.
ecemom 09:31 AM 09-27-2009
$18 a day? WOW. I'm almost double that and I am still within the going rate for my area. A little on the higher end b/c I have a ECE bachelors and many years of experience as a teacher/administrator/director.
I calculated out that a 3% raise is just over $4 a week and 4 % is $5.40/ week. I don't want to get into dealing with change, so I was thinking of doing a dollar a day increase- so it is an even $5 a week per child. I was thinking of doing this at the beginning of the new year (obviously, I would tell the parents way ahead of time).
I guess my concern is that I have one family that just started with me in August. My contracts had no dates for renewal on them, which I never thought of before. I would like to update the contract with a few things I need to add in (including a renewal date) and wasn't sure if it is too early to put in a rate increase for that family? They are on a school schedule, so I could always put in my new contract that rate increases will be done in September or August when they return, but I think it is only fair to do all families at once. Would you wait and just do the increase in September or would you do it at the beginning of the year?
I calculated out that a 3% raise is just over $4 a week and 4 % is $5.40/ week. I don't want to get into dealing with change, so I was thinking of doing a dollar a day increase- so it is an even $5 a week per child. I was thinking of doing this at the beginning of the new year (obviously, I would tell the parents way ahead of time).
I guess my concern is that I have one family that just started with me in August. My contracts had no dates for renewal on them, which I never thought of before. I would like to update the contract with a few things I need to add in (including a renewal date) and wasn't sure if it is too early to put in a rate increase for that family? They are on a school schedule, so I could always put in my new contract that rate increases will be done in September or August when they return, but I think it is only fair to do all families at once. Would you wait and just do the increase in September or would you do it at the beginning of the year?
tinytotzdaycare 09:35 AM 09-27-2009
My kiddos rates decrease as they get older. I only allow full-time, you can come part-time but you must pay the full time rate. I have 2 moms that choose this b/c they love it here! In December EVERY year I pick a random week to give them FREE childcare! This helps them with the holiday crunch and I feel good knowing I was being generous!! =) The fun thing is they never know when its going to happen, I just announce it on a Friday that the week was FREE! They love it!
melissa ann 10:54 AM 09-27-2009
ecemom, isn't it "weird" how daycare rates can vary? I'm in a little town and I've seen people advertise for $12-15/day. The avg I would say is about $90/week. My sister is in Az and charges $23/day. I have a cousin in Md and she pays $40/day.
I think it's unreasonable for parents to think that if their child is at the same daycare for numerous years, not to expect a rate increase. As long as the increase isn't outrageous, I would hope the dcp would be understanding about it.
I think it's unreasonable for parents to think that if their child is at the same daycare for numerous years, not to expect a rate increase. As long as the increase isn't outrageous, I would hope the dcp would be understanding about it.
tinytotzdaycare 11:07 AM 09-27-2009
Im in Marion IA and I charge $100 a week fulltime and then it goes down after they start school like I stated before, crazy how regions change the amounts so much
Chickenhauler 01:45 PM 09-27-2009
Daycare rates are largely dependant upon the local economy and wages-if you set your rates too high, nobody will bring their child, as it will eat their entire paycheck.
When we lived in OR, our daycare was double what the going rate is in MN, but so were the wages, housing, gas, taxes, etc, so it was all about equal in the end.
I believe the term is "Economies of Scale".
When we lived in OR, our daycare was double what the going rate is in MN, but so were the wages, housing, gas, taxes, etc, so it was all about equal in the end.
I believe the term is "Economies of Scale".
Unregistered 09:25 AM 09-28-2009
I raise my rates every September. I have a family that started with me in June and I chose not to raise their rates until next September, but everyone else is paying the new rate. They will all be on the same rate next year when they go up again.
Our rates around here (western WA) are pretty high compared to some areas of the country. I charge $40 per day.
Our rates around here (western WA) are pretty high compared to some areas of the country. I charge $40 per day.
Former Teacher 04:46 PM 09-28-2009
My former center would raise the rates about every 3 years. This last time was in Oct. 2008. Rates went up $10.00 per week across the board. This broke down to:
0-3 years 125.00 per week
3 and up 115.00 per week
Afterschool 75.00 per week (this would change to the preschool rate during holidays and vacations)
Drop ins were:
0-3 years $55.00 a day
3 and up $45.00 a day
We use to have an hourly rate however we discontinued that since everyone would just use the daily rate. Drop ins were also cash only and must be paid before drop off - no exceptions.
0-3 years 125.00 per week
3 and up 115.00 per week
Afterschool 75.00 per week (this would change to the preschool rate during holidays and vacations)
Drop ins were:
0-3 years $55.00 a day
3 and up $45.00 a day
We use to have an hourly rate however we discontinued that since everyone would just use the daily rate. Drop ins were also cash only and must be paid before drop off - no exceptions.
Unregistered 10:01 PM 07-09-2010
In Seattle, we charge $300 week for full-time care. There are many places more expensive but this covers the expenses
momma2girls 12:45 PM 07-10-2010
Originally Posted by tinytotzdaycare:
Im in Marion IA and I charge $100 a week fulltime and then it goes down after they start school like I stated before, crazy how regions change the amounts so much
WOW!! You are cheap!!! I don't live that far from you, and I charge $130 for totally potty trained and $140.00 for infants. I have a large waiting list for infants!!!Im in Marion IA and I charge $100 a week fulltime and then it goes down after they start school like I stated before, crazy how regions change the amounts so much
momma2girls 12:47 PM 07-10-2010
Originally Posted by melissa ann:
I started doing childcare in March 2008. I did have a half day rate, but my families said they would need full-day. However, after a couple months, everyone started half day. So in the fall, I eliminated half day. Had they stated from the beginning they wanted half day, I woulnd't have taken both families. However, after that the kids were back to full day.
Now, this past Aug. my rates went up by $1/day. With the prices of everything going up(food, heating oil, and our electric rate caps are coming off shortyly) I had to raise them. I had no problems with that. I still have the families. Most days the kids are here the entire time I'm open. 11 hours and I get $18/day.
Why should I not raise my rates (raise)? My dcp get raises once/year.
I think that it's fair to evaluate your expenses yearly, and if need be, raise your rates. I think that $5/week increase is acceptable per child.
THis is crazy!!! $18.00 for 11 hrs.!!!! It's bad enough, just making $2.00 or $2.00 and some odd cents an hour, but $1.00 an hr. how do you afford all your items, food, snacks, drinks, milk, napkins, paints, colors, coloring books, ink, pencils, craft supplies, crafts, paper, TP, kleenexes, etc. etc. on that?????I started doing childcare in March 2008. I did have a half day rate, but my families said they would need full-day. However, after a couple months, everyone started half day. So in the fall, I eliminated half day. Had they stated from the beginning they wanted half day, I woulnd't have taken both families. However, after that the kids were back to full day.
Now, this past Aug. my rates went up by $1/day. With the prices of everything going up(food, heating oil, and our electric rate caps are coming off shortyly) I had to raise them. I had no problems with that. I still have the families. Most days the kids are here the entire time I'm open. 11 hours and I get $18/day.
Why should I not raise my rates (raise)? My dcp get raises once/year.
I think that it's fair to evaluate your expenses yearly, and if need be, raise your rates. I think that $5/week increase is acceptable per child.
Greenshadow 03:16 PM 07-10-2010
I opened my daycare in this state in March. I just put in a 2-wk notice to my parents that Im raising my rates. They've all agreed to the rate change. I think that they went along with it because they knew I was too low before so the rate increase puts me at an average range for this area. So I went from $100/wk to $125/wk. I put it in writing as well as told each parent verbally and I let them know that it was either that or I hired someone so I could bring in more kids. I added on the letter that I gave them a 2-wk notice for the increase that way if anyone wanted to put in a two-week notice, they could. Nobody did. I thought for sure one family would quit because she's a single mom but she didnt! 
SunflowerMama 04:34 AM 07-12-2010
Originally Posted by laundryduchess@yahoo.com:
I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.
I definitely love this method and will be using it with my new families as well when I decide to increase rates. I think it's great that families get grandfathered in with their original rate and never see an increase.I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.
nannyde 04:38 AM 07-12-2010
My rates are based on not to exceed nine hours per day and departure time. The later the departure time the higher the fee.
We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.
I raise rates five dollars per week for incoming children each year.
3:00 p.m. departure $135.00 per week
3:15 p.m. departure $140.00 per week
3:30 p.m. departure $145.00 per week
3:45 p.m. departure $150.00 per week
4:00 p.m. departure $155.00 per week
4:15 p.m. departure $160.00 per week
4:30 p.m. departure $165.00 per week
4:45 p.m. departure $170.00 per week
5:00 p.m. departure $175.00 per week
5:15 p.m. departure $180.00 per week
5:30 p.m. departure $185.00 per week
5:45 p.m. departure $190.00 per week
6:00 p.m. departure $195.00 per week
We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.
I raise rates five dollars per week for incoming children each year.
3:00 p.m. departure $135.00 per week
3:15 p.m. departure $140.00 per week
3:30 p.m. departure $145.00 per week
3:45 p.m. departure $150.00 per week
4:00 p.m. departure $155.00 per week
4:15 p.m. departure $160.00 per week
4:30 p.m. departure $165.00 per week
4:45 p.m. departure $170.00 per week
5:00 p.m. departure $175.00 per week
5:15 p.m. departure $180.00 per week
5:30 p.m. departure $185.00 per week
5:45 p.m. departure $190.00 per week
6:00 p.m. departure $195.00 per week
judytrickett 05:58 AM 07-12-2010
I raise my rates by one dollar per day per year. And, anyone who starts in the current year starts of care at NEXT year's rates. I do it this way so they don't feel like they just started and then got slapped with an increase.
So, for example, all current clients are paying $37 a day. But in January 2011 they will get an increase of $1 to put their rate at $38 a day. Now, if a child starts today they will be paying $38 a day and will remain at that rate until Jan 2012.
So, for example, all current clients are paying $37 a day. But in January 2011 they will get an increase of $1 to put their rate at $38 a day. Now, if a child starts today they will be paying $38 a day and will remain at that rate until Jan 2012.
DCMom 04:36 PM 07-12-2010
Originally Posted by laundryduchess@yahoo.com:
I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.
I have used this method for several years. I generally raise the rate $5/week each year; it has worked well since I have little or no turn over and no trouble filling spots (thank goodness!). For example, this year I have two that are leaving in September whose weekly rate has been $135 since they started. The two families that are starting are at $165 week, effectively giving me a $60/wk raise each September.I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.
MarinaVanessa 06:35 PM 07-12-2010
Originally Posted by judytrickett:
I raise my rates by one dollar per day per year. And, anyone who starts in the current year starts of care at NEXT year's rates. I do it this way so they don't feel like they just started and then got slapped with an increase.
So, for example, all current clients are paying $37 a day. But in January 2011 they will get an increase of $1 to put their rate at $38 a day. Now, if a child starts today they will be paying $38 a day and will remain at that rate until Jan 2012.
I really like this. I'm going to start doing this. I usually raise my rates every year anyway based on my costs but doing that takes a lot of time and effort. Doing it your way makes it seem like it's not a large increase (like a %) and charging new clients next years fee and not raising their rates until the year after that is brilliant.I raise my rates by one dollar per day per year. And, anyone who starts in the current year starts of care at NEXT year's rates. I do it this way so they don't feel like they just started and then got slapped with an increase.
So, for example, all current clients are paying $37 a day. But in January 2011 they will get an increase of $1 to put their rate at $38 a day. Now, if a child starts today they will be paying $38 a day and will remain at that rate until Jan 2012.
daysofelijah 09:29 AM 07-14-2010
My county puts out the average rates for our city. So I yearly adjust my rates to the average rates for the city. I do not raise rates on current clients though, only on the new ones. My rates vary based on age so when a current client goes down to the next age rate then I adjust it to the current rate, because they get a new contract then.