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Daycare Center and Family Home Forum>Charging Higher Rates - Wish Me Luck!!
toddles 11:54 AM 03-22-2013
SO from the beginning I told the wife of the couple that I babysit for that I was thinking about becoming a daycare in which my rates would change. I have never full-time watched any kids other than my own so really didnt know how much hard work it would be I get 20 a day for an 20 month old and after school, total 10 hous a day.. I told them my new rates 100 for full-time 75 for part, 15 dollar discount for siblings (160). They called a bunch of daycares and told me that people around here don't charge that much. Well I did my own investigation and I haven't found one daycare out of the five that charge less than me. Plus they were telling me that a day care an hour away from here did a flat rate of 2 dollar an hour, well good for them!! I gave them a month notice (March 1st) That my rates would be changing. Today I am going to give them a handbook and tell them they can bring it back on April 1st if they choice to stay with me. To be honest even if I wasn't starting a full-time daycare I couldn't do it for two dollars an hour anyway. But on both sides mine and the parents we have been very respectful of each other so thats a good point!! lol

Anyone charge higher rates and have people leave?
littlemissmuffet 12:01 PM 03-22-2013
I don't care what other daycares around me charge, and I certaintly wouldn't care if a parent tried to bring it to my attention . I charge what I feel covers the expenses of owning/operating a daycare as well as a portion to myself for my time, energy and sanity. Ok, not the sanity part, otherwise, I'd be charging $200/hour! But still.

I increase fees annually. I have never had a family leave and if someone ever chooses to - I support that. I need to do what is best for me and my families need to do what is best for them.

I NEVER make business decisions based on how parents will react.

Good luck. If you do lose a family, there's another one out there willing to pay for quality care!
EntropyControlSpecialist 12:03 PM 03-22-2013
Your rate is incredibly reasonable! Good for you!
Evansmom 12:03 PM 03-22-2013
I haven't had anyone leave bc of rate changes but I have had some leave for other contract changes like changing vacation days.

I had someone call last week and tell me their current provider charged $30 per day for 3 kids! and wouldn't I accommodate that? Nope. $50 for one child drop in, $30 per day per child with a contract. I can't imagine working for less!

If that family wants to drive an hour for $2 per hour care, more power to them!
NeedaVaca 12:07 PM 03-22-2013
I suppose it's possible they will leave over a rate change, it's a chance we all take when we decide to raise rates but it sounds like you have done your research and you shouldn't sell yourself short! People will often pay more than other providers charge simply based on how nice your program is. Rates also really differ in my area, if I were to go an hour away they could be even more diverse. They can't really compare something that far away to your program.

I would probably have told them enjoy the 2 hour drive everyday and wow, you sure will be spending a lot in gas too....
KnoxMom 02:59 PM 03-22-2013
Good luck! Ultimately you have to do what's best for your family and they have to do what is best for their family. Everything will work out in the end.
Tags:raise rates, raising rates
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