Right now I offer three different rates for care - since I only care for school aged kids, I have a before school only rate, and after school only rate, and a rate for both before and after.

I have a great group of kids this year, but I'm losing two of my older ones for next year, so I am really thinking about "downsizing" and going with a smaller group. However, I am also raising my rates a bit. Lately I've been considering how to get by with less money next school year, as the majority of the remaining kids are afternoons only. I think I'd end up making more in the long run if I don't even offer before or after only, but accept only those who need both.

My remaining two families have both indicated that they want to send their children back here next year. However, one is a single parent (I know, I know ) and I know they won't be able to afford the higher rate. I have no other problems with them at all. Is it wrong of me to terminate them because I want to restructure things so that I can make more with less children? How would I even go about telling the parent? I know it should be a "business decision", but I like this family.

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