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Daycare Center and Family Home Forum>Should i change my rate?
dave4him 05:18 AM 10-10-2012
I only have one DC who is paid out of pocket. He is here the following
Monday 2-6
Tuesday 11-6
W-F 7-6

His aunt pays 90$ a week which my wife seems to think is fair and is above the amount i get for my DHS kids a week. But i really could use a little more, any ideas on if i should even bother trying to raise the rate or how i would go about it.
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countrymom 05:48 AM 10-10-2012
I would charge
monday $20 dollars (under 4 hours)
tues. $30 dollars (reg. rate)
wed.$40 dollars (reg. rate-30 dollars plus 5 dollars anything over 9 hours per hour)
thurs.$40 dollars
friday$40 dollars

so the total is $170 dollars, omg you are so under charging them. And this is basically a standard rate.
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lovemykidstoo 05:55 AM 10-10-2012
You are WAY undercharging. I charge $35 a day for everyone no matter how many hours they come. I'm open from 7:30-5:30. So that comes out to $175 for 5 days. You definately need to change your rates.
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dave4him 06:07 AM 10-10-2012
The daycare centers in town charge 25$ a day
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melskids 06:07 AM 10-10-2012
Our rates are all different based on our area, but I say whatever your full time rate is, thats what I would charge. Regardless of the fact that he's not there as much on Monday, he is still taking up a full time spot.
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dave4him 06:17 AM 10-10-2012
So how do i tell his aunt i need to up the rate
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lovemykidstoo 06:17 AM 10-10-2012
Originally Posted by melskids:
Our rates are all different based on our area, but I say whatever your full time rate is, thats what I would charge. Regardless of the fact that he's not there as much on Monday, he is still taking up a full time spot.
Very true. Once in awhile, I get on the phone and call around and see what a sampling of daycares are charging and adjust accordingly. Like you said though even though he's not there as much on Monday, he's still taking up a full time spot. I would charge the $25 per day then if that's what the other place in town is.
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littlemissmuffet 06:49 AM 10-10-2012
Part-time rates are very rare where I live. Almost all providers charge a full-time rate regardless of schedule. I am not the exception. I would be charging my usual full-time rate for this little one.

I would simply send home a letter stating that as of (this date) the aunt's rate will be increasing from (this amount) to (this amount) in order to offset the cost of operating the daycare.
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Crazy8 06:54 AM 10-10-2012
Originally Posted by melskids:
Our rates are all different based on our area, but I say whatever your full time rate is, thats what I would charge. Regardless of the fact that he's not there as much on Monday, he is still taking up a full time spot.
this!! I hate when people say you are way undercharging if they don't know the exact area you live in. Rates can REALLY vary depending on geographic location. Even within a state there can be a huge difference. There are many areas where $20-25/day is a very "average" daycare rate and there are areas where $40/day is considered cheap!!

What is your full time rate? I would charge that or very close to it - maybe discount it $5-10/week for the 2 shortened days. But, how long have you had this client??? I would not raise their rate if they've been with you less than 6-12 months. I think its very unprofessional to get a client in the door and raise their rate soon after.
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dave4him 06:57 AM 10-10-2012
She came for month in Jan and i charged her 125 a week, she came back in May and i have been charging her 90 since.
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DaisyMamma 07:05 AM 10-10-2012
Originally Posted by dave4him:
The daycare centers in town charge 25$ a day
Then your rate is right where it should be. How much are you looking to raise it? $10 is reasonable since you can't fill the hours the kid isn't there on the first two days.

However, I just saw your most recent post and since she is willing to pay $125 I would do it!!
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dave4him 07:08 AM 10-10-2012
She changed jobs, so im not sure what her income level is now. Thats why he was gone for a while in the middle. Ill see if i can get a little bit more out of her
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DaisyMamma 07:08 AM 10-10-2012
Originally Posted by DaisyMamma:
Then your rate is right where it should be. How much are you looking to raise it? $10 is reasonable since you can't fill the hours the kid isn't there on the first two days.

However, I just saw your most recent post and since she is willing to pay $125 I would do it!!
I take that back. I didn't add right. $25x5 is $125. So yea, you should do it!
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lovemykidstoo 07:12 AM 10-10-2012
Originally Posted by dave4him:
She came for month in Jan and i charged her 125 a week, she came back in May and i have been charging her 90 since.
Was there a reason you charged her 2 different rates?
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Countrygal 07:32 AM 10-10-2012
Of course, it depends mostly on the rates in your area. I charge 110/wk plus 5 a month craft fee and 3 paid holidays and a week's pd vaca. One family pays this off by the week which comes to an extra 8 a week year round - 118/wk.

This also includes diapers.

Part-time is 75/week under 35 hours. Full time is 35 - 50 hours. Over 50 hours is an hourly charge over the weekly rate. This is working really well so far for me.

Personally, it is my opinion we are well underpaid for the services we provide. Unless we make a total of 30 an hour or more, we are NOT making what we are worth!
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dave4him 07:35 AM 10-10-2012
Really not sure why i lowered it down, i think it was when i was desperate to fill my daycare
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lovemykidstoo 07:45 AM 10-10-2012
Originally Posted by dave4him:
Really not sure why i lowered it down, i think it was when i was desperate to fill my daycare
I hear ya, I've done that too. If you just re-started her in May, I probably wouldn't change it. I would wait until the 1 year.
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itlw8 08:30 AM 10-10-2012
that is a BIG jump/ I would raise it though. $10 a week and I would let her know now it will be going up Jan 1st.

I would also charge any new family 110 a week. if her hours increase raie it up to the 115.
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busymommy0420 11:06 AM 10-10-2012
I opened in May of 2011 and set my rates low, by looking at Craig's List Ads. I wanted to raise them after I opened and filled up so quickly. I waited until January to raise them and went from $25 a day to $32 a day. The rate is average for my area. I felt for me it would be better to have lower income vs. no income coming in if I were to change my rates too early after signing contracts, if the parents were to leave my program. I had a new contract written for January 1st 2012 and all my families signed and were fine with the increase.
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LK5kids 11:06 AM 10-10-2012
Originally Posted by Crazy8:
this!! I hate when people say you are way undercharging if they don't know the exact area you live in. Rates can REALLY vary depending on geographic location. Even within a state there can be a huge difference. There are many areas where $20-25/day is a very "average" daycare rate and there are areas where $40/day is considered cheap!!

What is your full time rate? I would charge that or very close to it - maybe discount it $5-10/week for the 2 shortened days. But, how long have you had this client??? I would not raise their rate if they've been with you less than 6-12 months. I think its very unprofessional to get a client in the door and raise their rate soon after.
I agree with all you said.
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