Can I Raise Prices Whenever I Want?

[EchoMom]

Can I raise my prices whenever I want? I am charging way too little for infant care and am seriously considering raising it. I'm not too worried about losing my current babies because the demand in my area is OVERWHELMING and I could fill the spots immediately! I have an anticipated opening coming up anyway.

If my contract doesn't say any end date, can I raise my rates whenever I want, or do I have to stick to my contract until the end of time because I put no end date?

[Blackcat31]

Your business, your rules.

You can raise rates art any time you would like to do so. I revise and re-supply my contract any time a big change happens (this includes rate increases). Some times it is once every 2 years and sometimes it is twice in one year. Depends on my current situation and the needs of myself, my family and the clients I have enrolled.

You do what you need to do and don't worry about the rest.

I agree that you need to be charging a premium rate for infants. I charge a full weekly rate for infants regardless of how much or little they want to attend as infant space here is also very limited.

[cheerfuldom]

change it anytime you want. parents sign a new contract. put in verbiage that you reserve the right to alter your contract as you see fit in the future, at which point parents will be notified of the changes and asked to sign a new contract. My parents here sign a new contract every year, but the changes are not always rate increases.

[Heidi]

we are required to address that in our handbook. Mine says I can make changes with 2 weeks notice. I would probably not do a rate change for current families, but would let them know that I am changing my rates. That way, they can be prepared when their contract comes up, and if they ever compare notes with other dc families (and then someone confronts you), you can say they were granfathered in.

If you do want to do it, and you're ok with loosing someone, then it seems reasonable to give them whatever notice of change as you would of termination.

[EchoMom]

I checked my policy handbook I created (forgotten what I'd wrote!) and I do VERY clearly say that I can change the rates & contract at any time and if I do I will give it to them to look at and they have a week to decide.

I will give them more notice than that, but I am charging way too low for infants I realize. I'm charging $150 a week for infants but I think I can get $200/week. The centers on the CORNER near my house charge 50-60/day and I'm currently only charging $30/day for infants! And I have a waiting list a mile long. I know that if I raise the rate from $150 to $200 I will probably lose the families I have now, but I can refill it the very next day!

[daycare]

Originally Posted by glenechogirl

I checked my policy handbook I created (forgotten what I'd wrote!) and I do VERY clearly say that I can change the rates & contract at any time and if I do I will give it to them to look at and they have a week to decide.

I will give them more notice than that, but I am charging way too low for infants I realize. I'm charging $150 a week for infants but I think I can get $200/week. The centers on the CORNER near my house charge 50-60/day and I'm currently only charging $30/day for infants! And I have a waiting list a mile long. I know that if I raise the rate from $150 to $200 I will probably lose the families I have now, but I can refill it the very next day!

I am all for make necessary changes, but I think that a $50.00 a week increase is way too much. I have raised my rates, but only by about $50.00 for the entire month.

I also would think that it would be costly to turn over like that and many parents may see your rate increase being pushed by the wrong motives.

I raised my rates not to compete with others, but because of the price increases within the economy as well as the fact that I started transporting and needed to purchase a higher insurance policy.

If I were you, I would raise the rates gradually. If some leave, then you can charge the new families coming in the higher rate. But like others said, your business.....You do what you want how you want because you CAN!! n

[Mary Poppins]

I just started my dc last year and was charging wayyy less than I should have been. So I've gradually raised rates but never on current clients. I even made sure to tell them not to worry when they see my new rates (I post them on my website) because their spots are secure and the contracts we have are still in place. I also have it in my policies that I can make changes with 2 weeks notice, but I didn't feel it was fair to them to raise my rates.

In exchange, I use their adorable children's photos for advertising and they make great references for me.

[3girls]

I'd like to raise rates but there are too many SAHMs here who will do work for almost nothing, and drop in centers that are only $20 for up to 13 hours...yikes!!!

I charge $20 day regardless of age.

[mrsp'slilpeeps]

But why can't we raise our rates for current clients too? Isn't that the point of raising rates?

[daycare]

Originally Posted by mrsp'slilpeeps

But why can't we raise our rates for current clients too? Isn't that the point of raising rates?

I don';t think anyone said you can't, it's just that most dont. I did raise rates on all of my clients last year....