Raising rates

[Msdunny]

I seem to have all the questions this week!

When you do a rate increase, by how much do you raise your rates at one time? I am considering $5 more per day, but i have 2 families who have increased their time with me over this past year, and I am considering $10 per day for them.

Normally I would just raise rates for new clients, but with my current group, I could have them for the next two years with no changes. The mom that has been asking for an extra hour here or there (i posted about her yesterday) told me that she is starting a new job and will need the extra hour more often. So I am thinking I would raise her rate more to accommodate for the extra time each week. Any thoughts? I am currently at $40/day, if that helps.

[Cat Herder]

I would get a lot of push back and lose clients with a $25 per week increase.

My last increase was $10 per week. Everyone stayed. They all budget bills by a set amount per month, so saw it as a $40 increase.

Prior to that, I used to go up by $2 per week, annually, Jan. 1st. No one ever complained about that.

[Msdunny]

Originally Posted by Cat Herder

I would get a lot of push back and lose clients with a $25 per week increase.

My last increase was $10 per week. Everyone stayed. They all budget bills by a set amount per month, so saw it as a $40 increase.

Prior to that, I used to go up by $2 per week, annually, Jan. 1st. No one ever complained about that.

Thanks! This was the kind of feedback I needed.

[rosieteddy]

I would go up 20. a week.The cost of everything we buy has gone up.You need to remember a third of your pay goes to taxes. A coffee on the way to work costs close or more than that.Personally I wouldn't even bother with 2 dolllars a week.Twenty seems much more reasonable.Think about hours that's less than 50 cents an hour more right?I would give a notice with new rates home on Friday 27th.Take effect week of October 15th.I would spell out the point that it is less than 50 cents an hour raise.Good luck ,your worth it.

[Cat Herder]

Originally Posted by Msdunny

Thanks! This was the kind of feedback I needed.

With new callers/clients, you can simply quote the new rate. It is only existing clients that I move slower with. Also, that was $2 per week, per child. Most of my clients are sibling groups.

When my rates were way too low when I moved, I ended up replacing all of my clients with new ones at the new rate over the summer. One by one. Sometimes that is all you can do.