Kind Of Nervous... Raising My Prices After Only 1 Month Open

[preschoolteacher]

When I first opened, I offered parents a price break if they picked their kids up early. However, it's been a huge hassle to go through and figure out who gets credits for picking up early (since they pay in advance).

I also have one family who drops off earliest and picks up earliest. Their kid is here longer than any other kids, but since they get the price break for picking up early, they pay the least amount!!!?? Woops! Not great planning on my part. I saw it going differently in my head...

Anyhow, I now decided I'm going to do a flat rate regardless of pick-up and drop-off times. I'm also going to start charging for holidays starting in 2014. I am emailing the parents this afternoon. I'm a little nervous about raising rates so soon, but after my first month was over, I think I deserve more for what I'm doing. I have a huge waiting list (12 families) so I feel confident I could replace anyone who left, but I don't want to make anyone mad...

[Heidi]

I am thinking about raising mine, too. I thought I was on the high end for our area (because I went by the surveys the CC&R does), and it turns out I'm low.

[preschoolteacher]

Same! I thought I had high prices. My licensor was actually the person to tell me otherwise.

[TwinKristi]

When you have a waiting list and people willing and able to pay more than I think it's only reasonable that you adjust your structure. It's part of owning a business, not greed. There are situations you can't foresee when you offer certain things and someone paying less for more hours doesn't work for a profitable business.
If people are unhappy, at least you have plenty of people to fill the spots if needed!

[cheerfuldom]

have you considered going to contracted hours?

[Tdhmom]

I raised rates on a family after 2 weeks. I take 2 dck's to preschool everyday from 12:15-3:10...they drop off at 7:20 don't get picked up until 5. When I told dcm my rates, I didn't factor in her hours. I had her children 1 hour less everyday than my other family and she was paying almost half as much. It wasn't fair to anyone...especially me! These kids are hard! She found someone to take them on non school days to save some $. But school days I raised $4 each per child (twins).

[cara041083]

GOOD FOR YOU! The same thing happened to me. When I first started, I tried part time, Only charging days in my care, and I only charged $80 a week! I had parents not pay me when there child was absent, I had parents changing days each week. It was a mess! not to mention I didn't make any money at all. Even to this day, I have 2 families that lost there jobs. They are expecting me to hold there spots but are refusing to pay me while I hold there spot. So like you. I sent out letters and told them I was raising prices, not doing day by day, told them I had a new contract with a handbook. The way I figure it, I can start fresh and actually make a living lol. I learned really quick that people will take as much as they can from you. I think we all make these mistakes when starting out.

[preschoolteacher]

Thanks... ugh, I got a "we'll have to talk about what we want to do" response from one family, and the other family I was actually worried about hasn't responded yet. The thing is, I'm not really raising prices... just no longer offering a discount. I also threw in some "free" vacation for families as well so I wasn't the only one getting it. I keep thinking about my wait list, and it's helping me feel less stressed and guilty...

[Heidi]

Does anyone have a good letter about raising rates?

I only have 4-5 kids, since I have almost all under 2's. I am charging less than the centers in the area, and I think I should actually be in line or higher. I am also going to go fully to contracted hours vs. a weekly rate.