Rate Increase Letter -- Opinions Needed

[spud912]

Hi Everyone,

This is a spin-off of my previous thread regarding paid vacations/rate increase. Thank you to all that replied. I decided that the most fair thing to do is a rate increase so the parents aren't double paying for childcare when I am on vacation. My plan is to slowly get everyone to pay me the same so there is no confusion on my part. Anyway, I typed up a letter. Please critique it and let me know if it sounds ok. My dh always tells me that I come across blunt/semi-rude in written form (which is not at all how I am when you actually converse with me), so please read it in the mindset of parents. Thanks!

Hi Parent,

I mentioned in a prior email that there will be some changes regarding the contract. As you may have noticed on the website, I have raised the child care prices for new children to $135 per week for full-time. This fee is the same across the board for all children in my care regardless of age because I try to spend an equal amount of care for each child in my care. I have done extensive research into the prices of local daycares and found that I currently charge close to or below what other daycares charge in the area (although these daycares do not necessarily provide the same level of care). In-home daycares that provide comparable child care charge much more than I do at around $150 per week. My initial intentions when I first started child care were not to raise prices on current families. However, after some careful budgeting and introspect on what I provide (including activities and food costs), I cannot maintain my current level of care to the daycare children and provide for my family in the same respect. It is with great regret that I have decided to plan on slowly raising the child care costs for all enrolled families at a rate of $5 per week for the first 6 months (from January 2013 to June 2013) and then another $5 per week for the next 6 months and so on until everyone’s child care fees match $135 per week. I always try to look at everything from the perspective of the families I care for and I completely understand if this is a great financial burden. As always, please feel free to discuss this with me. The absolute last thing I want is to lose you as a family. Thank you so much!

Spud

[Blackcat31]

Please don't take this as me being harsh... I am NOT....just trying to give my honest opinion.

I think that you are explaining way too much. I think you are better off just telling your parents you are raising your rates in order to be more competitive with other child cares or due to the rising costs of running a business and leave it at that.

I honestly feel that the more you try to explain, the more you room you are giving your parents to argue or negotiate with you.

Same goes for apologizing to them. If you are offering a quality service and aren't charging close to what other child cares are charging, why are you apologizing for that? You should feel you are worth every penny you charge parents and they should feel that you are more than worth it.

I do like you plan to increase their rates slowly so it won't be such a financial burden on them, but I wouldn't apologize or over explain.

Just tell them you are raising your rates because the cost of doing business is more and then as a courtesy to them and their budgets, you are raising the rates on a graduated method.

HTH

[EchoMom]

I agree, this is NOT rude/blunt at all. In fact, it seems wishy washy and nervous to me. You seem like you're doing something wrong by having to justify it. Also, reading it as a parent, it's way too long and detailed and I wouldn't read the whole thing. Just get to the point is what I would be thinking. They won't remember any of your reasons, they're just going to remember that Spud is raising prices and they either wont' mind or will be mad but you can't change that much.

[Crazy8]

Originally Posted by glenechogirl

I agree, this is NOT rude/blunt at all. In fact, it seems wishy washy and nervous to me. You seem like you're doing something wrong by having to justify it. Also, reading it as a parent, it's way too long and detailed and I wouldn't read the whole thing. Just get to the point is what I would be thinking. They won't remember any of your reasons, they're just going to remember that Spud is raising prices and they either wont' mind or will be mad but you can't change that much.

I agree, shorter and simpler is the way to go. I recently posted asking about rate increase letters and BlackCat posted a very basic simple one that I plan to use. Can't figure how to copy and paste it here.

[Blackcat31]

Originally Posted by Crazy8

I agree, shorter and simpler is the way to go. I recently posted asking about rate increase letters and BlackCat posted a very basic simple one that I plan to use. Can't figure how to copy and paste it here.

Thank you. I'm glad the letter helped.

Here is the link to it https://www.daycare.com/forum/showthread.php?t=52216

[cheerfuldom]

I agree with the others....WAY to much explanation and apology.

Dear Parents,

As of X date, your childcare fee will be increased from Y amount per week to Z amount per week. The attached updated contract needs to be signed and returned by XX date in order to remain with ABC daycare.

Feel free to contact me in the following way(s) should you have any specific questions or concerns....



THEN if the parents contact you and ask something specific, you can be ready with an appropriate response. I still would not defend my decision or apologize. I also wouldnt mention a later increase down the road....I would just do it again in 6 months if that was what I was ready to do at the time.
Most likely no one will question it but if they do, I would let them know that you feel your rates were still reasonable but they are welcome to research competitors rates and services. You feel confident that your services are at a high standard while still maintaining a reasonable rate. It would be a rare parent that will take the time to comparison shop once they see that you are not open to negotiating your current rate or apologizing for a small increase.

[spud912]

Blackcat and glenchogirl....how rude!

Just kidding . Why would anyone ask for advice and then get mad about the advice . I appreciate any and all, even if I don't intend to follow it .

Thanks for the advice...I probably will shorten it and remove any apology-type of writing. I do plan on keeping the reasons as I feel I would want to know if I were in their shoes. They are all super nice and I don't think anyone will argue. I just want to keep them informed.