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  #1  
Old 04-29-2015, 07:34 AM
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Default When Increasing Your Rates...

How much did you increase at one time?
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  #2  
Old 04-29-2015, 09:37 AM
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Originally Posted by taylorw1210 View Post
How much did you increase at one time?
Last time I actually raised rates I did a $1 per day.
Those that attend 3 days verses 5 pay a higher daily rate so it was an easy raise.

About 3 yrs ago I "restructured" my rate system and went to contracted hours only with additional fees added to the "daily rate" for those families that picked up after 3:00.

For many families their rates remained the same. For those that wanted/needed longer days (pick up after 3:00) their rates increased anywhere from $5-$15 per week but that increase was controllable by the family so they no one was forced into paying more if they didn't want to.
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Old 04-29-2015, 10:25 AM
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My last increase was $17.50 a week for one of my families, a little less for the others.
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Old 04-29-2015, 11:32 AM
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My last increase was $10/week. I hadn't raised rates in 3 years I think.
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  #5  
Old 04-29-2015, 12:01 PM
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I raised mine 25 cents per hour for 2 years plus and 35 cents for under 2 years.
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Old 04-29-2015, 02:49 PM
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I usually do rate increases of $5 per week. When I first opened, my rates were ridiculously too low, so the parents who got in when it was super cheap had a $5 per week increase every 6 months until it got to where it should have been.
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Old 04-29-2015, 03:27 PM
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We base our rates on the minimum wage so when the minimum wage goes up, so does ours. This is all in our contract so the parents know what to expect and it wouldn't be awkward asking for an increase.
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Old 04-29-2015, 03:32 PM
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I increase rates substantially with new families. So a family with an infant who started here 6 months ago pays less than one who starts this week. Then I raise rates a little bit every year in March. It isn't a set amount, or even a set percentage. Partly, it's what I think I can get for that spot, while keeping in mind what other local places charge.
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Old 04-29-2015, 03:50 PM
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We base our rates on the minimum wage so when the minimum wage goes up, so does ours. This is all in our contract so the parents know what to expect and it wouldn't be awkward asking for an increase.
you charge min wage rates??

so right now min wage is 9.50 here. do you charge that per hour and then get your flat rate?

or how do you do it?
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  #10  
Old 04-29-2015, 05:16 PM
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I increase rates substantially with new families. So a family with an infant who started here 6 months ago pays less than one who starts this week. Then I raise rates a little bit every year in March. It isn't a set amount, or even a set percentage. Partly, it's what I think I can get for that spot, while keeping in mind what other local places charge.
I just charge the new rate for new families. The longer I'm in business, the more I know, more skills/experience = more pay.

I did however up everyone's rate 10 years ago when I first started since I was super cheap! No one complained.
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  #11  
Old 04-29-2015, 05:24 PM
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I have in my policies an automatic raise of $5/week for FT each September 1. PT is raised also, but I don't remember how much offhand.
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  #12  
Old 04-29-2015, 06:41 PM
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My last increase affected the infants only. We moved from an in home to center so it was a hefty increase of about 20 a week. For 2 and up it stayed the same.

When I raised rates initially when we were in home it was by 10 a week from 125 to 135.
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  #13  
Old 04-29-2015, 10:08 PM
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Originally Posted by daycare View Post
you charge min wage rates??

so right now min wage is 9.50 here. do you charge that per hour and then get your flat rate?

or how do you do it?
Yup, so we charge the minimum wage per hour and get a flat rate per month. I know it's on the pricey side (therefore risky trying to find families) but in my area, there is a high demand. There is a large range of rates in the city though some charge dirt cheap and some charge even more than I do.
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  #14  
Old 04-29-2015, 10:48 PM
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Quote:
Originally Posted by Movingforward View Post
Yup, so we charge the minimum wage per hour and get a flat rate per month. I know it's on the pricey side (therefore risky trying to find families) but in my area, there is a high demand. There is a large range of rates in the city though some charge dirt cheap and some charge even more than I do.
I'm in a pretty expensive town and no way could I get that rate. That's about $500 a week and not even our high end private academy like Stratford charges that.

What area are you in.
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  #15  
Old 04-29-2015, 11:39 PM
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I'm in a pretty expensive town and no way could I get that rate. That's about $500 a week and not even our high end private academy like Stratford charges that.

What area are you in.
Northern California
I know other FCCs that charge more then me and centers that charge a whole lot more. There's a really high demand here so parents are willing to pay as long as they secure their children in a childcare. It also depends on what part of the city you are located in ie convenience for parents to get to work, neighborhood etc.
When we tell parents our rates and how we came up with it, most of them will say it's fair. But like I said it is on the pricier side (so we are targeting parents that have higher incomes)and if I were looking for childcare I would not be able to afford my own rates
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  #16  
Old 04-30-2015, 03:00 AM
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Northern California
I know other FCCs that charge more then me and centers that charge a whole lot more. There's a really high demand here so parents are willing to pay as long as they secure their children in a childcare. It also depends on what part of the city you are located in ie convenience for parents to get to work, neighborhood etc.
When we tell parents our rates and how we came up with it, most of them will say it's fair. But like I said it is on the pricier side (so we are targeting parents that have higher incomes)and if I were looking for childcare I would not be able to afford my own rates
I'm also in the Bay Area. Guess childcare is getting more expensive than I realized. My best friend has a daycare in athertons the most expensive place in the U.S. To currently live and she only charges $375 a week for full time care.

Not doubting you, just shocked.
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  #17  
Old 04-30-2015, 04:21 AM
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I've only raised my rates a few times over the past 30+ years. Last year I made some changes that worked the same(for me) as raising my rates. I changed my policies to getting paid for 52 weeks a year. Plus I decreased the amount of sibling discount I was giving. I'll be changing things again soon, probably playing with the part time versus full time rates and/or increasing $1.00 a day.
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  #18  
Old 04-30-2015, 04:39 AM
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I raised them by $1/day. I am at the high end in FCC (just called around in Dec for rates and I was the highest FCC in my city, $10 less than the cheapest center and slightly below standard market rate for centers for my county) I also charge higher daily rates for PT, and I only accept PT if it fits my available days so I am not giving up a FT space for a PT client.

I have also stopped doing sibling discounts. I charge for 52 weeks/yr.
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  #19  
Old 04-30-2015, 07:25 AM
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Thanks for all of the responses, guys. I am increasing my rates for the first time since opening 2 years ago, and was feeling a little insecure about the rate changes. My infant spots are only going up by $5/wk, as I had already raised those for the new clients coming in. But my 24mo+ rates are going up by $15/week, however with the increase they are right on par for the average in my area. I recently hired a FT assistant, so my costs have gone up quite a bit and need to off-set them with an increase in rates.
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  #20  
Old 04-30-2015, 02:30 PM
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Quote:
Originally Posted by daycare View Post
I'm also in the Bay Area. Guess childcare is getting more expensive than I realized. My best friend has a daycare in athertons the most expensive place in the U.S. To currently live and she only charges $375 a week for full time care.

Not doubting you, just shocked.
Oh yes, I was shocked too! I was originally going to charge a lower rate but realized very quickly that you can get families in with a low rate or with a high rate. So I took the leap of faith and set it on the high end. Where you friend lives may be the most expensive place to live but there are higher demands in good old SF.

Definitely don't sell yourself short if there is a demand fellow providers! Our job is a lot harder than most so our rates should reflect that
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  #21  
Old 05-01-2015, 06:20 AM
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I just interviewed a client last night for an August spot when the kindergartners move on. I pitched her my new rate, which is $25 higher than my old rate, and she is taking the spot. So now that I have three kids turning over, I will be filling their spots with higher rate kiddos. Same thing with three kids in August of 2016.

Another great way to give yourself a raise is to step back and evaluate how you are running your business. Eliminating part time gaps and sibling discounts, starting the food program if you aren't already on it, and maximizing your capacity are all ways to find money without raising tuition.
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  #22  
Old 05-01-2015, 08:15 AM
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I just raised mine, because QRIS says I have to every year, otherwise I wouldn't. Anyways, it's only like $3 a week for FT over 2 and about $5 for under 2. The PT under 2 went up about .50 per hour tho. Tired of PT babies on home schedules makes it so much harder.
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  #23  
Old 05-01-2015, 08:26 AM
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But like I said it is on the pricier side (so we are targeting parents that have higher incomes)and if I were looking for childcare I would not be able to afford my own rates
That's awesomely funny!

Kudos to you though for getting such a fantastic rate!!!

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I just raised mine, because QRIS says I have to every year, otherwise I wouldn't.
That is the first time I've heard anything about QRIS having a requirement I would actually agree with.....
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Old 05-01-2015, 12:28 PM
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I raised my weekly rates by $10 a week and I also raised my p/t rates based on number of days. I only raised them for new families, but most are now on the new rate system.
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Old 05-01-2015, 01:24 PM
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That is the first time I've heard anything about QRIS having a requirement I would actually agree with.....
really? yours doesn't want you to 'take care of you' by having health ins, a retirement plan, pay increase every year and paid days off? I thought they were very similar if not the same across the states. Guess not.
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  #26  
Old 05-10-2015, 03:21 PM
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Default any providers in virginia ??

any home daycare providers in virginia fairfax county or prince william ??
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  #27  
Old 05-11-2015, 07:47 AM
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really? yours doesn't want you to 'take care of you' by having health ins, a retirement plan, pay increase every year and paid days off? I thought they were very similar if not the same across the states. Guess not.
Nope, there hasn't been anything in our state's QRIS program that is beneficial for the provider. At least not so far.

We do get reimbursed by the state assistance program 20% more than what the normal reimbursement rate is but most providers already charge more than the state pays out so the higher differential only benefits the parent....less out of pocket expenses for them.
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Old 05-11-2015, 09:54 AM
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really? yours doesn't want you to 'take care of you' by having health ins, a retirement plan, pay increase every year and paid days off? I thought they were very similar if not the same across the states. Guess not.
In my state, the QRIS Child Care Center Report Card has a Staff Compensation component but the Family/Group Child care does not.
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  #29  
Old 05-15-2015, 07:43 AM
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When one of my infants moved to another country, I set out interviewing again with dread. I just hate the interviewing part of this job, and trying to find the right fit. I didn't really want to take on another child, but we need the money. So, when a parent called about the slot (I do hourly daycare on a part-time basis), I threw out $13 an hour when I normally only charge $12 an hour. She didn't even hesitate! Maybe I should have asked for $14 an hour. LOL!

Infant slots are just so in demand that parents are desperate for quality care...
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