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  #1  
Old 11-22-2011, 12:29 PM
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Default Raising Rates For New Clients Only?

Does anyone do this?

I want to make my rate go to 170 from 160 but only for new parents. My old parents have all agreed on this rate and I know it works for them, so I'd rather not change it up for them. However, in August, I know I'll send off 2 to school and get 2 new clients.

I'm thinking of letting current parents know, simply for the purpose of referrals. I already know one of them it trying to bring in a friend of hers and I want to make sure she has the right info.

Will it be weird to do this? Thanks!
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Old 11-22-2011, 12:30 PM
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you are lowering your rate?
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Old 11-22-2011, 12:32 PM
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I don't think it's weird. I lowered my rate for my new client as I was having some trouble getting new clients. So my old client and new client pay different rates.
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Old 11-22-2011, 12:32 PM
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No,its 160 and I want to raise it to 170. I just worded it strange lol
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Old 11-22-2011, 12:34 PM
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lol sorry...

I don't think that its strange. I have changed my rates and it only affects new clients. However, when I do the annual price increase, (if needed) I will also raise my old families too.

I don't have anyone that is grandfathered in anymore...
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Old 11-22-2011, 12:43 PM
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That is always how I've done it. I call it "grandfathering" and have never raised a rate for a current client just new ones.
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Old 11-22-2011, 10:14 PM
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wow, that is a high weekly rate. You must have a better minimum wage and better paying jobs where you live! LOL. It sounds like you almost want your current clients approval to raise rates mainly because one of them trying to get their friend to switch to your daycare.

Have you ever raised rates before? How did you originally come up with $160 for the current clients? I think it's okay to raise rates for new clients as they start, but you should adopt the "grandfathered" in viewpoint for current clients so they always pay the same or just as their renewel date raise their rates as well.
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Old 11-22-2011, 10:16 PM
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I do it all the time.

And I agree about it being high. You're lucky you are able to charge this much and get it!
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Old 11-23-2011, 04:56 AM
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It's the best way to do it
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Old 11-23-2011, 05:34 AM
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I've done this and I have told current clients that if they refer anyone that the new rate is higher than the old rate. They normally leave talking about pricing to me if they refer someone. My families know that a referral doesn't mean I'll take them but I will interview and see if they fit.
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Old 11-23-2011, 06:23 AM
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I have changed my rates once in 11 years. When I did this I changed the age bracket for a price. The old families are grandfathered in, but they get a copy of the new handbook and KNOW that they are getting a deal, but anyone that starts is the new rate.

I had one mom say well I pay x amount for my 2 year old for 40 hours, then told someone at her work that. When i quoted the referral to the person they asked about the price difference, I just told them that the rate and contract they start with is their rate as long as they stay with me. They understood.
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Old 11-23-2011, 07:19 AM
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Quote:
Originally Posted by Joyce View Post
I do it all the time.

And I agree about it being high. You're lucky you are able to charge this much and get it!
Are you familiar with her area? Is it high for the area? If $170 is in the normal range for the area, I'd have no problem changing the rate for the new people, but leaving the old families the same. I probably wouldn't tell the families though. I'd just wait until a new family called and name $170 as your rate. If they say, "but _____ said the rate was $160), just say that you have raised your rates since they started.

I charge much more than $170 per week, so the rate doesn't sound too high for me, but I know it depends on where you live. My rate would be too high in a different area right around me, but not for where I am.
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Old 11-23-2011, 07:40 AM
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I am doing that for the new clients I hope to have coming in the summer. I'm raising rates by $2.50/day.

It all depends on where you are for the rates. In my area it's common to pay between $30-$40/day for home daycare.
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Old 11-23-2011, 04:29 PM
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I am raising my rates for the new year also. All the daycares around here charge 20 a week or more than what i do. I feel like since ive been open a year already, i deserve some credit. I dont feel bad about it since they still wont find anyone cheaper. Hubby thinks i should grandfather in the old families too but i dont know...
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Old 11-23-2011, 08:16 PM
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I do this all the time too. I have a client that's been loyal even after getting laid off and still used me as drop-in while he looked for work and when he found work he went back to full time so I reward him by not raising his rates. He still has the the same rate that he had when he started 3 years ago. Usually I raise my rates by $1 a week every year but I cleaned house a while back and just started everyone new at the higher rate that I wanted. I kept everyone else at the same rate they had
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