Price increase 2022

[MissLisa08]

Hello, I am already planning and figuring out what I'm going to change with the new year approaching. How much of an increase is good to do per year? Cost of living is going up and minimum wage will also be going up in January. Also if you have a significant price increase do you raise it on already enrolled families or just new enrollment going forward? Any help or suggestions would be helpful.

[Michael]

I think 10% will be fair for this year.

Here are some more threads on rate increase. https://www.daycare.com/forum/tags.p...=rate+increase

Also, check out our new forum: https://forum.daycare.com

[Leigh]

I am working on my 2022 rates this evening. My online searching tells me that the average rate for in-home daycares went up 69% from 2019 to 2020.

What I know is that I have not been charging enough all of my years in business, but that I have always been at the top of the rate scale. I don't know of any in-homes that charge more than I do, and only one other that charges the same that I do. I was considering a 30% increase due to my own issue with not charging enough, my extremely increased expenses in the last 2 years, and the fact that our clients, locally, have received HUGE pay increases to finally start addressing terribly low wages. Parents have received 10%, 20%, and even higher wage increases (again, they were VERY LOW here before-some went from $9/hr to $20). Then, there's the $300/mo child credit, too, that was to help pay for childcare. I haven't yet decided what to do with my rates, but I am thinking 25% to 40% increase. I have low enrollment right now (by choice, I didn't fill my spots this fall when kids returned to school, and want to have my wages set when I start accepting kids again in January), so there's no better time to increase rates for me, I think.

I'm very interested in what others are doing as far as increases. Groceries are insane here, and I know that I COULD cut corners, but I pride myself on serving balanced AND palatable full meals, made from scratch. I should add that we have lost a LOT of daycares in this city recently-due to regulatory changes as well as just not being able to make it financially on what parents are willing to pay. They will pay more for higher quality, I know, but will they pay enough for me to make a decent wage? Years ago, my rates were working for me, but these last 5 or so, I have known that this day is coming that I'll be the talk of the childcare community for my insane rates. I just want to do more than break even next year.