Rate Increase Question

I am just about through with the licensing procedures for my state (Wyoming) and when I get through with it I want to increase the rates for one family that I currently care for. I have watched her 1 year old son full time for several months and watch her 9 year old daughter for an hour after school. I currently only charge her $100 per week which is my standard rate for one child. With summer break approaching I had told her I would do both kids for $125 per week which is because she is a friend of my husbands through work. I plan to tell her that I can no longer keep the rate at $125 per week because her daughter though it is only temporary is taking up a spot in my care which prevents me from taking another child. I feel really bad about it but I need to cover costs for while she is here during the summer. I just am curious as to how to break it to the mom that the rate will be increased, I am fearful of losing her as a client. I have also heard that I should make it a verbal thing as well as a written thing. I want to wait until I am licensed to say anything so that can be part of my reasoning, I should be licensed in the beginning of May just waiting of my rezoning. Does anyone have any suggestions?

[momofboys]

Originally Posted by Unregistered

I am just about through with the licensing procedures for my state (Wyoming) and when I get through with it I want to increase the rates for one family that I currently care for. I have watched her 1 year old son full time for several months and watch her 9 year old daughter for an hour after school. I currently only charge her $100 per week which is my standard rate for one child. With summer break approaching I had told her I would do both kids for $125 per week which is because she is a friend of my husbands through work. I plan to tell her that I can no longer keep the rate at $125 per week because her daughter though it is only temporary is taking up a spot in my care which prevents me from taking another child. I feel really bad about it but I need to cover costs for while she is here during the summer. I just am curious as to how to break it to the mom that the rate will be increased, I am fearful of losing her as a client. I have also heard that I should make it a verbal thing as well as a written thing. I want to wait until I am licensed to say anything so that can be part of my reasoning, I should be licensed in the beginning of May just waiting of my rezoning. Does anyone have any suggestions?

I would simply let her know that because you will be caring for the older daughter all day in the summer you have to make your price reflective of the care given. It is not fair for her to expect to pay the same when your work will increase significantly. That is how I would word it.

[nannyde]

Originally Posted by Unregistered

I am just about through with the licensing procedures for my state (Wyoming) and when I get through with it I want to increase the rates for one family that I currently care for. I have watched her 1 year old son full time for several months and watch her 9 year old daughter for an hour after school. I currently only charge her $100 per week which is my standard rate for one child. With summer break approaching I had told her I would do both kids for $125 per week which is because she is a friend of my husbands through work. I plan to tell her that I can no longer keep the rate at $125 per week because her daughter though it is only temporary is taking up a spot in my care which prevents me from taking another child. I feel really bad about it but I need to cover costs for while she is here during the summer. I just am curious as to how to break it to the mom that the rate will be increased, I am fearful of losing her as a client. I have also heard that I should make it a verbal thing as well as a written thing. I want to wait until I am licensed to say anything so that can be part of my reasoning, I should be licensed in the beginning of May just waiting of my rezoning. Does anyone have any suggestions?

I don't know the rates in your area but that is a very low rate for an infant and an afterschool schoolaged child. A hundred a week is REALLY low for two kids. School aged care is one of the most expensive hourly rate care during the school year. Unless you live in a really low income area the rate you are charging now is really low.

The rate you quoted her for the summer is CRAZY low. If you care for the kids fifty hours a week you will be making fifty cents an hour for the school aged child. No matter where you live that's not enough to cover her expenses.

Call the Mom and tell her you miscalculated. Charge her for a FULL spot for the summer or let her off the hook for the summer for her older child. If she can find somewhere cheaper than your FULL time rate for the summer let her have at it.

If you allow this you will be basically careing for the kid for free. In my opinion school agers are by far the hardest age group to care for. Not only are they difficult to keep happy but they DON'T TAKE A NAP. All the hours she is there you will have her up. You won't get a break AND you will have to deal with her with her baby brother. That's going to be very hard even with a really well minding and well behaved nine year old.

Don't let parents fool you into thinking that the kid is older thus they are/should be easier. I know very few providers who would suggest that school aged kids are easier than under fives.

Please don't get into giving her this rate in order to keep the baby in your care. You are throwing money at money if you do that. Be willing to loose the baby if that is what you need to do. You can't care for two full time kids for sixty two bucks a week. That's like a $1.25 an hour average per kid. Thats not enough no matter where you live.

Tell her now. Don't bring the license thing into it. It doesn't matter if you are licensed or not, you can't take that kind of money for this hard of work. Tell her now so she has time to find summer care for the older one. I promise you she won't find it for 25 dollars a week.

Again, I don't know what the going rate in your area is but if you are undercutting to get clients than this is the natural progression that lower paid providers go thru. As soon as you realize that you are doing hard work for cheap you want more money. That's understandable. The problem is that the parents receiving the low undercut rates will just move on to the next person who is offering a low undercut rate. That's how this deal works. Not saying this is what is happening with you... just sayin

Nan

[momma2girls]

The going rate where I am from is $125.00-$150.00 for one child. SOme give a sibling break, and some of them don't. I charge $125.00 for school aged children during the summer all week long.