MommyMuffin 06:32 PM 05-10-2011
How do you increase fees without losing clients?
I only have 4 dc families. One family is adding a sibling at the end of the year and already asked about a sibling discount. I feel like I work for pennies as it is. I have only been open for 7 months.
Do I increase rates on my 1 year anniversary? Has anyone increased rates and lost families?
I do not want to watch any more kids. I cant wait until new enrollees to increase rates. I dont have an opening until 2013.
My rates are 10 - 15 dollars less than the average rates for my area.
daycare 06:46 PM 05-10-2011
I do mine yearly after review of several things...
1. insurance cost (usually goes up each year)
2. cost of living
3 cost of food
4. cost of curriculum and the list goes on. Basically if your over head goes up, then you need to raise your rates to reflect the price increase.
I would not raise rates to stay in "average" DC rates in your area. Parents want a reason why their rates are going up and how it will benefit thier children.
Also, what does your DC program offer. Do you offer more than the rest of the local daycares?
I can share with you a letter that I sent out to all of my families when I raised rates...just shoot me a PM...
Abigail 09:10 PM 05-10-2011
You already feel like you work for coins and you already know you ONLY want four children. Is there a certain age group, perhaps infant only care that you could watch the maximum (in my state at least) for infants to charge a higher rate?
Since you don't want more children, yet want to earn more income you'll need to first off see if you are truly being frugal and take a look at your lifestyle. Then if you're satisfied and don't want to change any spending habits (yes, daycare toys continually purchased/upgraded is part of a spending habit too) then you need to figure out what you want to earn overall. Then divide that by FOUR for the children you watch and divide it by 50 or however many paid weeks you receive and see how you can adjust your rates to reflect your wants/needs or if it is even possible.
The important part is monitoring where your money is going and whether it's a want (fast food, cable, high speed internet, leasing of vehicles, red box rentals, multiple phone lines, dvr for recording shows, etc) or if it's a need (rent/mortgage, electric-kept at a minimum, water-kept at a minimum, heat-not a problem this time of year, grocery store food-not fast food or restaurant or take out pizza food, etc) Without as many expenses whether they're for a want or need, you'll feel like you're earning more as well. Make sure you're making reasonable purchases as well, but that is a whole other story.
Meyou 03:06 AM 05-11-2011
I just increased mine due to increased expenses and my families barely mentioned it. I don't offer sibling discounts and always answer when asked, "Did you want discounted care for one of them?"
I gave them 4 weeks notice for the increase in a letter just stating that I was increasing my prices to continue to offer the same standard of care with the same benefits to their children that I always had.
Good luck! I can send you my letter as well if it will help.
laundrymom 06:27 AM 05-11-2011
When they ask about sib care I have started quoting 5 more per week than their first kid. I say, yes I offer a discount on the second child enrolled. My current rate is (10 more than their first child) but since you are a current family I will split the difference between your original rate and my new rate. Does that seem fair? Smile And do the stare.
MommyMuffin 09:02 AM 05-11-2011
Originally Posted by Abigail:
You already feel like you work for coins and you already know you ONLY want four children. Is there a certain age group, perhaps infant only care that you could watch the maximum (in my state at least) for infants to charge a higher rate?
Since you don't want more children, yet want to earn more income you'll need to first off see if you are truly being frugal and take a look at your lifestyle. Then if you're satisfied and don't want to change any spending habits (yes, daycare toys continually purchased/upgraded is part of a spending habit too) then you need to figure out what you want to earn overall. Then divide that by FOUR for the children you watch and divide it by 50 or however many paid weeks you receive and see how you can adjust your rates to reflect your wants/needs or if it is even possible.
The important part is monitoring where your money is going and whether it's a want (fast food, cable, high speed internet, leasing of vehicles, red box rentals, multiple phone lines, dvr for recording shows, etc) or if it's a need (rent/mortgage, electric-kept at a minimum, water-kept at a minimum, heat-not a problem this time of year, grocery store food-not fast food or restaurant or take out pizza food, etc) Without as many expenses whether they're for a want or need, you'll feel like you're earning more as well. Make sure you're making reasonable purchases as well, but that is a whole other story.
Yes, you are right. I have been trying to scale back on my expenses. I think there are certainly some things that I can work on too. I do tend to spend too much on dc toys and curriculum too.
momma2girls 09:15 AM 05-11-2011
I know in Jan. I am increasing my sibling rates - Right now I give about a 20% disc. on each child. Now I am increasing, it and still giving a sibling disc. but only $10.00 a week off 2nd child. I only want 3-4 children, so this way I can keep my 3-4 children.
texascare 06:40 AM 05-12-2011
Most centers increase their rates in January of each year. I don't give a sibling discount becuse I can't keep as many as a center and if they do choose to leave then i have 2 spots open....I learned the hard way.
Live and Learn 09:14 AM 05-12-2011
I am only open for the school year (Sept thru June) so any policy changes are made in June and go into effect in September.