I have made the decision to raise rates. I currently have 2 families:

FAMILY #1
DCB 4 - Monday-Wednesday 7:15 a.m. -5:00 p.m.
He has been with me about 2.5 years

FAMILY #2
DCG 4 and DCB 1 - Monday-Thursday 7:15 a.m. - 5:30 p.m.
DCG is almost 5 and has been with since 3 months old

I plan on giving 1 months notice and I am planning on increasing my rate for family #1 by $10/week, and by $15/week for family #2.

Does this seem fair to you?

Also here is the letter I will be giving family #1 (The letter for family #2 is basically the same):

Dear Parents,

This letter is to inform parents of a small rate increase for childcare. Due to rising costs of groceries, utilities and supplies, starting on February 24, 2014, my childcare charges will be increased to $XXX per week. It has been 5 years since I have last set my rates, and this new rate will enable me to continue providing the best of care for your children.


I appreciate your understanding.
Thank you for sharing your children with me!





Sincerely,







Child’s name: John Smith

As of 2/17/2014, my daycare rates will be increased to $XXX /week for the following days/hours of care:
Monday - Wednesday 7:15 a.m. - 5:00 p.m.

If additional days will be needed the rate will be:

$XX/day

Rates are guaranteed whether or not you bring your child.


Should I break it down more than that to make them realize what a small increase it is or just leave it as is?

This is the first time I have ever raised my rates. I am super nervous! Any advice/help/suggestions would be appreciated. Thanks!

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That's a huge pay jump for my area. The most other providers raise rates here is $5/week.

I also think the guaranteed rate should be reworded.

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Any suggestions on how to reword it?

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"Rate is based on ensuring the availability of your contacted days, and there are no discounts for days you chose not to attend."

I think your increase is reasonable.

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Are you changing this from how it was handled before? If it's always been pay for the spot, not attendance, then I would just take it out all together.

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If you haven't raised rates in 5 years, you are probably behind other providers in your area. I wouldn't hesitate...but my rate is currently 175 a week full time, and I am only increasing by 5 every other year. Normally if a child is with me from 18mo. to 5 years, they only see a raise once or possibly twice.

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I agree. I think your increase is very reasonable considering you haven't had an rate change for 5 years now.

I also think that the suggestion Sugar made above for re-wording the rate guarantee is great wording.

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only suggestion is for family #2 I would give the rate increase per child - not sure if that's how you planned on giving it to them. Since the older one will probably be going off to school soon I would just have it there as reference for them when they are down to 1 child in your care.

I agree with the rewording of "rates are guaranteed" - that didn't sound right.

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I will re-word it! Thank you for your suggestion!

I was attempting to give family #2 a bit of a break since they have 2 children with me and are more "full-time". I felt like $20/week (or $80/month) would be hard on them. This morning she actually said to me that they decided not to have another baby based on the fact that they can't afford it so I know they are struggling.

I am pretty sure that the DCMs will compare so that is the other thing I am hesitant about ...

What would you do?

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I think it sounds good with the changes.

The last rate increase I did was for ONE family over a year ago, and it was literally to cover the cost of the things he was breaking. I raised it $20/week.

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