Daycare.com Forum Kidacare by Minute Menu Force of Nature Disinfectant HiMama Childcare App

Go Back   Daycare.com Forum > Main Category > Daycare Center and Family Home Forum

Daycare Center and Family Home Forum Daycare Center and Family Home owners, Directors, Operators and Assistants should post and ask questions here.

Reply
 
Thread Tools Display Modes
  #1  
Old 10-03-2014, 12:03 PM
KatieG's Avatar
KatieG KatieG is offline
New Daycare.com Member
 
Join Date: May 2014
Location: Dayton, Ohio
Posts: 35
Default 11 Years & I've Never Raised My Rates!

I know I should've been doing this all along, but I've never raised my rates in the 11 years I've been in business. It's definitely time, but I'm not sure what is a reasonable increase? I googled "inflation rates" and found this:

http://www.usinflationcalculator.com/

It says that the cumulative rate of inflation from 2003 to 2014 is 29.3%!!! Obviously I'm not going to hit my families with a nearly 30% increase, but I don't know what is reasonable. I've done some poking around, and other providers in my area are charging 20-25% more than I am, so I don't know that they'd be totally shocked. Advice please?
__________________
Daycare Provider for 11 years
Mommy to 2 boys - 21 & 18 years old
Daycare Mommy to 3
This is what I do during naptime!
Reply With Quote
  #2  
Old 10-03-2014, 12:04 PM
EntropyControlSpecialist's Avatar
EntropyControlSpecialist EntropyControlSpecialist is offline
Embracing the chaos.
 
Join Date: Mar 2012
Location: A toasty environment!
Posts: 7,430
Default

Can I ask what is your rate, in dollars, and what is the range of rates of other in-home providers AND centers in your area?
Reply With Quote
  #3  
Old 10-03-2014, 12:38 PM
KatieG's Avatar
KatieG KatieG is offline
New Daycare.com Member
 
Join Date: May 2014
Location: Dayton, Ohio
Posts: 35
Default

I charge $100/week/child for full-time. I don't have any part-timers. I am currently watching a 2yo boy, 13 month old girl, and 12 month old boy.

From what I see on Craigslist, other in-home providers are advertising $25-$30/day.

I checked with Kindercare here, it's $206-215/week for a 2yo, and $229-$232/week for a 12 month old.

A local church also has a daycare, they charge $180/week up to 12 months, $170/week 12 months - 3 years.
__________________
Daycare Provider for 11 years
Mommy to 2 boys - 21 & 18 years old
Daycare Mommy to 3
This is what I do during naptime!
Reply With Quote
  #4  
Old 10-03-2014, 12:42 PM
EntropyControlSpecialist's Avatar
EntropyControlSpecialist EntropyControlSpecialist is offline
Embracing the chaos.
 
Join Date: Mar 2012
Location: A toasty environment!
Posts: 7,430
Default

Then a MIN. I would be charging, if I were you, is $125/week. You are worth it.
Reply With Quote
  #5  
Old 10-03-2014, 12:49 PM
KatieG's Avatar
KatieG KatieG is offline
New Daycare.com Member
 
Join Date: May 2014
Location: Dayton, Ohio
Posts: 35
Default

How much notice should I give them? If I let them know today that I'm increasing as of November 3rd, that's enough time, right?
__________________
Daycare Provider for 11 years
Mommy to 2 boys - 21 & 18 years old
Daycare Mommy to 3
This is what I do during naptime!
Reply With Quote
  #6  
Old 10-03-2014, 12:50 PM
melilley's Avatar
melilley melilley is offline
Daycare.com Member
 
Join Date: Oct 2012
Location: Michigan
Posts: 5,018
Default

Rates are about the same around here. We have a Kindercare here and rates are similar, maybe a little higher.
Legal in home providers here charge $100-$175 from what I've found. I used to charge $130 and have had no problems getting families. I just recently raised my rates to $140 and have implemented that rate with 2 new families and am going to raise the rates for current families to match new families, in January. I get calls all the time at the $140 rate.

I agree with EntropyControlSpecialist, the minimum I would charge is $125, but I be you could charge more!
Reply With Quote
  #7  
Old 10-03-2014, 12:51 PM
melilley's Avatar
melilley melilley is offline
Daycare.com Member
 
Join Date: Oct 2012
Location: Michigan
Posts: 5,018
Default

Quote:
Originally Posted by KatieG View Post
How much notice should I give them? If I let them know today that I'm increasing as of November 3rd, that's enough time, right?
That sounds like more than enough time. I have it in my policies that I will give a two week notice to any changes (as long as they aren't related to licensing) so your notice sounds like more than enough time!
Reply With Quote
  #8  
Old 10-03-2014, 01:21 PM
KatieG's Avatar
KatieG KatieG is offline
New Daycare.com Member
 
Join Date: May 2014
Location: Dayton, Ohio
Posts: 35
Default

I'm going to give them a letter at pick-up today. How does this sound:

Dear (Families),

I have been a Child Care Provider since June 2003. In the almost 11 Ĺ years that Iíve been in business I have never increased my rates, even though the cost of nearly everything else has risen significantly.

Beginning Monday, November 3, 2014, my weekly rate for full-time care will increase to $125 per week per child.

Thank you for understanding this necessary change.

Sincerely,
(Me)
__________________
Daycare Provider for 11 years
Mommy to 2 boys - 21 & 18 years old
Daycare Mommy to 3
This is what I do during naptime!
Reply With Quote
  #9  
Old 10-03-2014, 01:32 PM
KIDZRMYBIZ's Avatar
KIDZRMYBIZ KIDZRMYBIZ is offline
Daycare.com Member
 
Join Date: Jun 2013
Posts: 669
Default

The rate range is huge, and it all depends on what is offered. The last time I checked about 7 years ago, around here, centers are around $200/wk for infants, and around $160 for older children. In-home is anywhere from $85-$160/wk, depending on age, area, and how much is being offered (licensed, nutrition program, preschool, etc.). I offer all of it under the sun, and charge $135 for babies, and $115 for older kids.

I would suggest for you to increase now by $15 per week. That is not a lot of money, but will add up nice for you. Two-weeks notice is plenty. Just a short note of the change is all that is necessary. Your DCFs know the freaking awesome deal they've been getting, and won't be surprised. Then, I would up it again in January to where you want it, with a chart that compares your rates and what you offer with everyone else. With 2-weeks notice again. You don't want to give them too much time to shop around.

When I did my rate increase, that's what I did. It took some sleuthing, but it was worth it, and no one could argue that they were still getting the best deal around.
Reply With Quote
  #10  
Old 10-03-2014, 01:36 PM
KIDZRMYBIZ's Avatar
KIDZRMYBIZ KIDZRMYBIZ is offline
Daycare.com Member
 
Join Date: Jun 2013
Posts: 669
Default

JMO:

I don't think the DCFs would care if your rates haven't changed in 11 years. They weren't there then, and all they care about is how much THEY have to pay NOW.

I think a chart comparing yourself to others in your area shows them they are still getting a good deal.

And then showcase anything new for the business so they can see how their child is directly benefitting from the extra pay.
Reply With Quote
  #11  
Old 10-03-2014, 01:42 PM
NeedaVaca's Avatar
NeedaVaca NeedaVaca is offline
Daycare.com Member
 
Join Date: Mar 2012
Location: The Middle
Posts: 2,248
Default

I would do the rate increase for the full amount, I would find it odd as a parent to get a rate increase in Nov and again 2 months later. I like your letter and not raising your rates in 11+ years shows the families that you don't do increases very often.
Reply With Quote
  #12  
Old 10-03-2014, 01:45 PM
KatieG's Avatar
KatieG KatieG is offline
New Daycare.com Member
 
Join Date: May 2014
Location: Dayton, Ohio
Posts: 35
Default

KIDZRMYBIZ, that's sort of what I thought too...a sudden 25% increase would be shocking, but 15% is probably doable. I know I'm *worth* more, but I don't want to send them packing, or maybe worse, stay and resent me. KWIM?

Quote:
Originally Posted by KIDZRMYBIZ View Post
I would suggest for you to increase now by $15 per week. That is not a lot of money, but will add up nice for you. Two-weeks notice is plenty. Just a short note of the change is all that is necessary. Your DCFs know the freaking awesome deal they've been getting, and won't be surprised. Then, I would up it again in January to where you want it...
__________________
Daycare Provider for 11 years
Mommy to 2 boys - 21 & 18 years old
Daycare Mommy to 3
This is what I do during naptime!
Reply With Quote
  #13  
Old 10-03-2014, 01:55 PM
TwinKristi's Avatar
TwinKristi TwinKristi is offline
Family Childcare Provider
 
Join Date: Aug 2013
Location: California
Posts: 2,389
Default

They should be thankful their childcare prices are reasonable. I charge twice what you do for FT infants! But I live in a very high COL area.
Reply With Quote
  #14  
Old 10-03-2014, 03:04 PM
cheerfuldom's Avatar
cheerfuldom cheerfuldom is offline
Advanced Daycare.com Member
 
Join Date: Dec 2010
Posts: 7,415
Default

Increase. if the parents dont like it, replace them. you cant work at $100 a week forever. if they stay and give you attitude, interview a replacement and then term. anyway you slice it, you win, more income for the same amount of work. I wold do another increase in 6 months.
Reply With Quote
  #15  
Old 10-03-2014, 03:15 PM
EntropyControlSpecialist's Avatar
EntropyControlSpecialist EntropyControlSpecialist is offline
Embracing the chaos.
 
Join Date: Mar 2012
Location: A toasty environment!
Posts: 7,430
Default

Quote:
Originally Posted by cheerfuldom View Post
Increase. if the parents dont like it, replace them. you cant work at $100 a week forever. if they stay and give you attitude, interview a replacement and then term. anyway you slice it, you win, more income for the same amount of work. I wold do another increase in 6 months.
Absolutely.
Reply With Quote
  #16  
Old 10-03-2014, 04:12 PM
rosieteddy's Avatar
rosieteddy rosieteddy is online now
Daycare.com Member
 
Join Date: Jan 2014
Location: Massachusetts
Posts: 1,080
Default

That letter is more than reasonable.If parents decide to pull then I would interview right away.I also would charge any new families 150.00 .You may even want to let your currant clients know new people will pay a higher rate.The cost of utilities,food and supplies really do warrant an increase.Good luck.
Reply With Quote
  #17  
Old 10-03-2014, 05:16 PM
KatieG's Avatar
KatieG KatieG is offline
New Daycare.com Member
 
Join Date: May 2014
Location: Dayton, Ohio
Posts: 35
Default

Thanks ladies! I've decided to think on it over the weekend & give them notice of an increase on Monday.
__________________
Daycare Provider for 11 years
Mommy to 2 boys - 21 & 18 years old
Daycare Mommy to 3
This is what I do during naptime!
Reply With Quote
  #18  
Old 10-06-2014, 06:23 AM
biglou's Avatar
biglou biglou is offline
Sunburst Daycare
 
Join Date: May 2012
Location: New York, NY
Posts: 64
Default

Quote:
Originally Posted by KatieG View Post
I know I should've been doing this all along, but I've never raised my rates in the 11 years I've been in business. It's definitely time, but I'm not sure what is a reasonable increase? I googled "inflation rates" and found this:

http://www.usinflationcalculator.com/

It says that the cumulative rate of inflation from 2003 to 2014 is 29.3%!!! Obviously I'm not going to hit my families with a nearly 30% increase, but I don't know what is reasonable. I've done some poking around, and other providers in my area are charging 20-25% more than I am, so I don't know that they'd be totally shocked. Advice please?
Ms. KatieG

I believe your current families will not be interested in you failing to increase in 11years and asking them to increase by 25% can be shocking. I suggest you have a backup plan to any objections from current families. If someone objects strongly and you feel they will go and you want to keep them offer a 15%increase now with a 10%increase to follow in 6 months. Any new family gets new rates of course. In future, consider raising rates every three months as new families enter your program. Sure it will be a small increase but you are always hedging against inflation this way. Existing families need rate increases at least one time per year. If you don't ask you will never get it. Don't be afraid.

Big Lou.
Reply With Quote
  #19  
Old 10-06-2014, 02:42 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by KatieG View Post
I charge $100/week/child for full-time. I don't have any part-timers. I am currently watching a 2yo boy, 13 month old girl, and 12 month old boy.

From what I see on Craigslist, other in-home providers are advertising $25-$30/day.

I checked with Kindercare here, it's $206-215/week for a 2yo, and $229-$232/week for a 12 month old.

A local church also has a daycare, they charge $180/week up to 12 months, $170/week 12 months - 3 years.
I charge 300 per child. I give discount to parents with two children, 25 dollars off per child.
Reply With Quote
  #20  
Old 10-06-2014, 03:06 PM
BrooklynM's Avatar
BrooklynM BrooklynM is offline
Provider
 
Join Date: Sep 2013
Location: California
Posts: 517
Default

I would also note on your letter, that for any new families coming in, your new rate will be 150 per child, so they feel like they are getting a good deal.
Reply With Quote
Reply

Tags
rate increase

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
How Do Your Infant Rates Compare To Preschooler Rates? AcornMama Daycare Center and Family Home Forum 33 11-08-2013 05:30 PM
Initial Rate... Wanting To Change... How? lflick Daycare Center and Family Home Forum 13 07-02-2013 05:17 PM
Initial Contact - Rates? AfterSchoolMom Daycare Center and Family Home Forum 15 01-08-2011 08:34 PM
Posting Rates in Ads legomom922 Daycare and Taxes 20 08-25-2010 03:28 PM
Raising Rates mac60 Daycare Center and Family Home Forum 2 05-25-2009 09:39 PM


All times are GMT -7. The time now is 11:47 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming