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  #1  
Old 08-12-2019, 04:39 PM
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Default Opinion About Rate Increases

Im increasing rates for the fall. Iíve never increased rates for current families just new families as they were enrolling. Do I explain why Iím increasing rates besides saying increased cost of living? Our minimum wage has drastically increased and in order for me to have good employees, I have to pay way more. I either increase rates or downsize.

Do I just say due to cost of living increased and that my last rate increase was in 2014? Or say in order to continue with a quality program, costs have gone up, etc.?
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Old 08-12-2019, 04:54 PM
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You don't owe anyone an explaination. You're not asking your boss for a raise-you are raising the rates that you charge for your services. They can take it or leave it.
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Old 08-12-2019, 04:55 PM
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I would tell them that due to the increase in minimum wages and the economy in general that you must increase your prices to reflect the increase
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Old 08-13-2019, 05:21 AM
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Every time they raise the minimum wage, we must increase our rates to meet our bills which also go up. Inflation.

Politicians use wage increases to buy votes, knowing they don't really help. Everyone knows it, your clients should be expecting it, so not really surprised by it.

During my last big rate increase, I just told them the truth. My grocery, power, insurance, land tax and utilities all went up with the rising minimum wage. If they wanted me to stay open and reliable, they'd have to pay more. Not because I owed them an explanation, but because it was a great teachable moment. My clients are younger than me and many had not experienced this "phenomenon" before. It was well-received, I hope I created some voters, too. 29% turnout locally last year was pathetic.
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Old 08-13-2019, 08:00 AM
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Quote:
Originally Posted by Cat Herder View Post
Every time they raise the minimum wage, we must increase our rates to meet our bills which also go up. Inflation.

Politicians use wage increases to buy votes, knowing they don't really help. Everyone knows it, your clients should be expecting it, so not really surprised by it.

During my last big rate increase, I just told them the truth. My grocery, power, insurance, land tax and utilities all went up with the rising minimum wage. If they wanted me to stay open and reliable, they'd have to pay more. Not because I owed them an explanation, but because it was a great teachable moment. My clients are younger than me and many had not experienced this "phenomenon" before. It was well-received, I hope I created some voters, too. 29% turnout locally last year was pathetic.
A bit of a tangent, but it confuses me why more people don't understand this. Here minimum wage is currently $11/hour. 2020, it goes up to $12/hour.

We've seen huge increases in pricing. Apples are over $2/lb. Celery and lettuce is almost $2/bunch. These things used to be $.99 last year.

McDonald's "value" meal is now $8 - $9.

I have to increase rates just to feed these kids. Otherwise, they'd be eating ramen and hot dogs all day. NOT something I am okay with.

We have a private water company, just to get water to the house it's $60 in fees. Just FEES. 2 months ago they increased our per gallon usage price so they could subsidize the cost of water in another community 30 minutes from here. My water bill, is $200+ a month and that is with conservative water usage.
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Old 08-13-2019, 08:21 AM
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Quote:
Originally Posted by Baby Beluga View Post
A bit of a tangent, but it confuses me why more people don't understand this. Here minimum wage is currently $11/hour. 2020, it goes up to $12/hour.

We've seen huge increases in pricing. Apples are over $2/lb. Celery and lettuce is almost $2/bunch. These things used to be $.99 last year.

McDonald's "value" meal is now $8 - $9.

I have to increase rates just to feed these kids. Otherwise, they'd be eating ramen and hot dogs all day. NOT something I am okay with.

We have a private water company, just to get water to the house it's $60 in fees. Just FEES. 2 months ago they increased our per gallon usage price so they could subsidize the cost of water in another community 30 minutes from here. My water bill, is $200+ a month and that is with conservative water usage.
Tell me about it! Our minimum is now $13/hour. McDonaldís for my family Of 5 is about $40 and thatís buying just food and no drinks. Im my Šrea, centers have almost doubled their rates in the past 5 years.
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Old 08-13-2019, 01:35 PM
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I tell parents it's because I've gained another year of experience plus ___ additional hours of continuing education. Most jobs increase pay/benefits with experience and education.
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Old 08-14-2019, 05:56 AM
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My rate is the same as when I started 9 years ago. I raised it slightly for the longer hours option but its still not enough. The problem here is that there is a provider on every corner so for every new provider charging $35 a day an experienced and educated provider can only go so high before pricing themselves out of the market.

I would not offer an explanation, just let them know your new fee structure.
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  #9  
Old 08-14-2019, 06:00 AM
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Quote:
Originally Posted by Baby Beluga View Post
A bit of a tangent, but it confuses me why more people don't understand this. Here minimum wage is currently $11/hour. 2020, it goes up to $12/hour.

We've seen huge increases in pricing. Apples are over $2/lb. Celery and lettuce is almost $2/bunch. These things used to be $.99 last year.

McDonald's "value" meal is now $8 - $9.

I have to increase rates just to feed these kids. Otherwise, they'd be eating ramen and hot dogs all day. NOT something I am okay with.

We have a private water company, just to get water to the house it's $60 in fees. Just FEES. 2 months ago they increased our per gallon usage price so they could subsidize the cost of water in another community 30 minutes from here. My water bill, is $200+ a month and that is with conservative water usage.
Because in Utopia, a world that doesnít exist but people claim exists, CEOís will forgo their paycheck to offset the costs rather than passing the cost onto customers.

Our water bill is now equalized so no matter how much water is used your bill is the same. Zero incentive to conserve. Unionized jobs are destroying the economy.
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Old 08-14-2019, 06:56 AM
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Generally, I don't offer an explanation. I have also raised for incoming enrollees and gradually weed out. Or I have raised for incoming enrollees throughout the year and raised for ALL in Jan 1. Just some ideas. Whatever mood I'm in I guess
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Old 08-14-2019, 07:44 AM
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I have it in my contract fees are evaluated each November.
If I raise rates I don't give a reason. Just what the rate is, when it takes effect, & when contract addendums will be given out.
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  #12  
Old 08-14-2019, 09:05 AM
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Where I am (WA) people voted to increase wages a LOT a couple of years ago as many think they will get extra $. Well, no. Now employers have to increase costs to pay for employees and everything else as it has a ripple effect, so child care rates went up. Where I worked we were told keep it simple and forward them to the office management team if they were unhappy. My families, except 1 constant asshat, understood.

Also, some places decrease hours for employees so they earned the same amount.
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