Raising Rates

[cara041083]

I need opinions. I have a family that is the most work, the mother is a nightmare and gives me the most problems, and her kids are my worst kids. When they started in Jan, I gave them $20.00 off a week for a sibling discount. I will never do it again, but It was my first set and thought I was helping. I have decided that I want to make up the 20.00 by raising the rate to what everyone else pays Since they are the most work. I have them more, I no longer feel they should get a discount. My husband thinks instead of raising them (and potentially loosing kids) that I should raise every one a few dollars so I can make up the 20 evenly. What would you ladies do?

[craftymissbeth]

Why would everyone else have to make up the difference for the discount another family gets? This family should be the one getting the rate change, IMO

[coolconfidentme]

Does your contract or policy state how long the discount is in effect?

[cara041083]

Originally Posted by craftymissbeth

Why would everyone else have to make up the difference for the discount another family gets? This family should be the one getting the rate change, IMO

I agree and this is what I think but I want to show him I am not the only one that feels this way

[Blackcat31]

When you say "the most work", what do you mean by that?

[cara041083]

Originally Posted by Blackcat31

When you say "the most work", what do you mean by that?

Its the 2 that I have the most problems with and the 3 year won't speak but is constantly being mean to other kids and the 8 month old is now mobile and crys all day. They end up getting more of my attention then the other kids unfortunately. and I have them longer then any of the other kids and the mom for example, I had been asking for cream for diaper rash for a week now and when I finally demanded it she went off on me for not asking before then which I had several times. and this is every week that she acts like this. I didn't mean it to sound like I don't want to work lol.

[cara041083]

Originally Posted by coolconfidentme

Does your contract or policy state how long the discount is in effect?

It doesn't say. In my contract before I print it out I type in the fee. the sibling discount was a verbal one that I offered before I open and honored even thought they signed on later for there 8 month old and 3 year old they pay 180 a week and I cover all food and formula. I am just not making enough to cover everything any more. Its not that I am trying to be mean or demanding. If that makes any sense

[Blackcat31]

Originally Posted by cara041083

Its the 2 that I have the most problems with and the 3 year won't speak but is constantly being mean to other kids and the 8 month old is now mobile and crys all day. They end up getting more of my attention then the other kids unfortunately. and I have them longer then any of the other kids and the mom for example, I had been asking for cream for diaper rash for a week now and when I finally demanded it she went off on me for not asking before then which I had several times. and this is every week that she acts like this. I didn't mean it to sound like I don't want to work lol.

THATS (Bolded) what I was looking for....

Have you considered changing your rates to a graduated scale that matches the number of hours a day or week a child is in care?

Raising your rates across the board is one solution but I chose to raise my rates ONLY for those families using the most care.

I did this by having my normally daily(weekly) rate end at 3:00 and adding additional fees to the time used after 3:00.

Most my families did not see a rate increase because they picked up or attended less than X amount of hours per day/week but the families that used every.single.hour of the day/week felt the increase.

I end up with either kids here from open to close leaving early so the parent could avoid the rate increase or I ended up making more money off those families since they used so much care.

In my eyes, that is fair to everyone.

[cara041083]

I do have contracted times, but the same rate for everyone other then them. I remember seeing a break down that you did on another post. I will go back and take a look because I think that is the info I need and for me I think that would work better for me instead of charging a flat rate.

I believe I read a Tom Copeland blog saying that you do not have to charge families equally either. When I raised my rates by a dollar, I raised my difficult or contentious families by $2 instead (NOT related to hours used - that is contracted also). I plan to do the same the next time I raise rates.

[Childminder]

You could possibly tell them that their introductory discount was for 6 months and that they now will have to pay the contracted amount starting August 1st.

If you choose to go to the contracted hours like Blackcat does you will need to redo your handbook and contract and start everyone when their contract ends, I would think. At least mine has a statement in the contract stating it is in effect until their anniversary date, is yours set up like that?

[AmyKidsCo]

Originally Posted by cara041083

I do have contracted times, but the same rate for everyone other then them. I remember seeing a break down that you did on another post. I will go back and take a look because I think that is the info I need and for me I think that would work better for me instead of charging a flat rate.

He does say that. The only reason you CAN'T have different rates is if it would be considered discriminatory - the child had a disability or same-sex parents, etc.

I'd go ahead and raise the rates to bring them in line with everyone else.

[Heidi]

Do they make your day longer than everyone else? Meaning, do they come earlier or stay later, so you only end up with those 2 for a period of time?

If so, that would be a good reason to raise their rate. "So, DCM, I just wanted to let you know that effective August first, there will be some changes in my rate structure. My regular hours will be 8-4:30 M-F. The weekly rate will be $140 per child, and I am no longer offering a sibling discount. Also, any time contracted after 4:30 pm will be an additional $3.00 per hour, per child. I'm letting you know now so that you can see what you can finagle to be here by 4:30, if possible. Otherwise, your rate will be $x per week." I'm just using those numbers as an example, but basically, cut your hours to what the majority needs.

Maybe she'll term, and you'll probably be doing a secret happy dance. More likely, she'll shop around and find out there's no openings for 2 sibs with one being an infant, and if she does find one, it'll be either more expensive.

[KSDC]

I see no reason why you can't get rid of the sibling discount.

I offered the same thing when I started. This past fall I re-worked my handbook. One of the things I changed was to drop the discount.

If you are having trouble filling spots, it makes a good selling point to get families. But, since I always have a waiting list, I don't need to offer discounts anymore. KWIM?

[Josiegirl]

I agree with dropping the sib discount.
I like how Heidi suggested doing it.

I do wish we could charge dcps according to their child/ren's amount of difficulty. Some would pay....well, let's just say so much more.

[Lucy]

Here's what I've done (because I'm a big chicken when it comes to possibly offending someone or having them ask confrontational questions!! LOL)

I type up a notice "as if " it's going to everyone. I put something along the lines of: "Dear Parents: There will be a rate increase effective ________. Your new rate is written below."

I print it out, then write in their new amount as if everyone got the notice and had a handwritten amount filled in on the blank line. Then I pencil the family's last name up in a corner - again, as if everyone got the notice with their name penciled in for delivery purposes.

I think what I might do in your situation is to raise them $10 now, and $10 next January. That way, you're making back your $20, but it just looks more natural. As if you had rate increases every 6 months.

That's just me though.

[cara041083]

Originally Posted by Lucy

Here's what I've done (because I'm a big chicken when it comes to possibly offending someone or having them ask confrontational questions!! LOL)

I type up a notice "as if " it's going to everyone. I put something along the lines of: "Dear Parents: There will be a rate increase effective ________. Your new rate is written below."

I print it out, then write in their new amount as if everyone got the notice and had a handwritten amount filled in on the blank line. Then I pencil the family's last name up in a corner - again, as if everyone got the notice with their name penciled in for delivery purposes.

I think what I might do in your situation is to raise them $10 now, and $10 next January. That way, you're making back your $20, but it just looks more natural. As if you had rate increases every 6 months.

That's just me though.

This is what I will do! I hate conflict also lol so this will be perfect!

[NeedaVaca]

Honestly I would just "rip off the bandaid" now...just let them know you are no longer offering sibling discounts. I think that is much better than 2 rate increases in 6 months. You could still implement a pay scale like BC mentioned-they could save that money by using less hours.

[TwinKristi]

Holy smokes I never considered raising my rates for just one problem family! LOL... That's genius!!