Daycare.com Forum
Daycare Center and Family Home Forum>Anyone Increasing Their Rates For 2018???
Ms.Koech 10:57 AM 01-08-2018
Hi,
This is my first time posting, although Im not new to this forum. Im so thankful to have a community to go to for help/questions. So this is my dilemma. Ive been open for less than a year now. But now realize how low my rates are compared to other home centers that offer all that i do. I currently charge $120/week for ages 2+ for 9.5 hours. my rate includes all meals,we do daily activities, preschool curriculum,crafts, sign language, spanish, and field trips to museums etc. I want to also incorporate yoga once a week with an instructor. I am in the raleigh, NC area,and Im thinking of raising my rate to $140. I have 2 new kids that are paying this rate and the mom said this was even a low rate. My question is how would I go about increasing my older clients. they've all told me during their interviews that my rate was low. But i dont want to just hit them with an $80/month increase. any suggestions how I should go about? i know i give exceptional care, my kids cry when its time to go home. families are all happy and most of all the kids are learning and very happy. I just feel like im working so hard and barely able to make a profit with all we do.Thanks in advance to all!
This is my first time posting, although Im not new to this forum. Im so thankful to have a community to go to for help/questions. So this is my dilemma. Ive been open for less than a year now. But now realize how low my rates are compared to other home centers that offer all that i do. I currently charge $120/week for ages 2+ for 9.5 hours. my rate includes all meals,we do daily activities, preschool curriculum,crafts, sign language, spanish, and field trips to museums etc. I want to also incorporate yoga once a week with an instructor. I am in the raleigh, NC area,and Im thinking of raising my rate to $140. I have 2 new kids that are paying this rate and the mom said this was even a low rate. My question is how would I go about increasing my older clients. they've all told me during their interviews that my rate was low. But i dont want to just hit them with an $80/month increase. any suggestions how I should go about? i know i give exceptional care, my kids cry when its time to go home. families are all happy and most of all the kids are learning and very happy. I just feel like im working so hard and barely able to make a profit with all we do.Thanks in advance to all!
daycarediva 11:20 AM 01-08-2018
Gradual increases, say $5/week quarterly until currently enrolled families hit your going rate.
Ms.Koech 11:24 AM 01-08-2018
Originally Posted by daycarediva:
Gradual increases, say $5/week quarterly until currently enrolled families hit your going rate.
I think this may be the less painful way for my parents. Thank you!Gradual increases, say $5/week quarterly until currently enrolled families hit your going rate.
Josiegirl 03:11 PM 01-08-2018
When I found out I was charging at least $20 less a week than everybody else locally, I gave my dcfs a month's notice that rates would be increasing $5 a week every 6 months. And I'm still not up to others' rates, 
so I like the idea of quarterly much better. All new enrollments are charged the higher rate coming in.
THEN I found out a local center, which happens to own 2 big centers in our small community, charge $200 a week. That's a huge difference from what all the in-home providers are charging. I think we're getting the short end of the deal. 
so I like the idea of quarterly much better. All new enrollments are charged the higher rate coming in.THEN I found out a local center, which happens to own 2 big centers in our small community, charge $200 a week.
That's a huge difference from what all the in-home providers are charging. I think we're getting the short end of the deal.
HappyEverAfter 06:36 PM 01-08-2018
I didn’t increase rates this year but they will go up next year. When I opened this past year, I researched rates in the area and placed myself at the top right off the bat. I went $5 week cheaper than one other person but about $20 higher a week than the average. It was risky since I was just starting out but I knew how much I would feel comfortable charging for the amount of work I was committing to. I haven’t had a single issue with parents feeling my rates are too high. I even have one DCG whose mom took a second part time job in order to afford to bring her daughter to me because she felt so good about the environment I was providing.
I plan to raise rates annually in January each year starting next year. Most likely by 3%-5%.
If you want to raise your rates now, I’d do it a little at a time so that it’s gradual but make parents aware of when to expect the increases.
I plan to raise rates annually in January each year starting next year. Most likely by 3%-5%.
If you want to raise your rates now, I’d do it a little at a time so that it’s gradual but make parents aware of when to expect the increases.
Ms.Koech 05:31 AM 01-09-2018
Originally Posted by HappyEverAfter:
I didn’t increase rates this year but they will go up next year. When I opened this past year, I researched rates in the area and placed myself at the top right off the bat. I went $5 week cheaper than one other person but about $20 higher a week than the average. It was risky since I was just starting out but I knew how much I would feel comfortable charging for the amount of work I was committing to. I haven’t had a single issue with parents feeling my rates are too high. I even have one DCG whose mom took a second part time job in order to afford to bring her daughter to me because she felt so good about the environment I was providing.
I plan to raise rates annually in January each year starting next year. Most likely by 3%-5%.
If you want to raise your rates now, I’d do it a little at a time so that it’s gradual but make parents aware of when to expect the increases.
Thank you so much for responding! Im sending out increase letters friday!I didn’t increase rates this year but they will go up next year. When I opened this past year, I researched rates in the area and placed myself at the top right off the bat. I went $5 week cheaper than one other person but about $20 higher a week than the average. It was risky since I was just starting out but I knew how much I would feel comfortable charging for the amount of work I was committing to. I haven’t had a single issue with parents feeling my rates are too high. I even have one DCG whose mom took a second part time job in order to afford to bring her daughter to me because she felt so good about the environment I was providing.
I plan to raise rates annually in January each year starting next year. Most likely by 3%-5%.
If you want to raise your rates now, I’d do it a little at a time so that it’s gradual but make parents aware of when to expect the increases.
CityGarden 07:21 PM 01-08-2018
I have only been open a year as well. I built into my contract a 5% tuition increase each year effective in September.
Here are three relevant blog post from Tom Copeland on increasing rates:
http://tomcopelandblog.com/how-to-ta...g-your-rates-2
http://tomcopelandblog.com/easiest-way-raise-rates
http://tomcopelandblog.com/how-to-raise-your-rates-2
Here are three relevant blog post from Tom Copeland on increasing rates:
http://tomcopelandblog.com/how-to-ta...g-your-rates-2
http://tomcopelandblog.com/easiest-way-raise-rates
http://tomcopelandblog.com/how-to-raise-your-rates-2
CityGarden 09:10 PM 01-08-2018
I successfully restructured my hours and tuition after my first child was enrolled. First the new policies were rolled out to all new families and eventually notice was given to that initial family.
One thing to be clear on is what is the goal with the change.... my end goal was to shorten my day with the changes, it sounds like your goal is to increase income so always keep that in mind. I bring this up for two reasons 1) I always knew when I opened I wanted a short day but my policies did not match that - they maximized my income with the potential of a shorter day but did not guarantee the short day I desired and 2) because on one hand you state you want $20 more per week per spot but then you also say you want to add a yoga class with an instructor. Having the instructor would increase your overhead so you need to factor that when adjusting your prices to ensure you bring home what you need/want.
A couple different options to increase rates from those already enrolled:
- Add an activity fee. Sell them on new/upgraded services (preschool curric., music class, yoga, etc.). Tell them the additional fee is X per week and is due regardless of attendance. Really play up the new service(s) and get their buy in. (When I first opened I had a monthly music class fee.... it was required and not one parent questioned this.)
- In my opinion in terms of increasing income the best option is to switch to contracted hours based on pick up times for all families! When I first opened I offered contracted hours based on pick up times, the first family enrolled needed my max hours so I did not get the short day I desired but I did make a lot more money for my time. With the contracted hours I made $10 more per day than the highest provider in my area for my max hours. BlackCat & DayCare both offer contracted hours based on pick up times so look at their post especially for examples.
One thing to be clear on is what is the goal with the change.... my end goal was to shorten my day with the changes, it sounds like your goal is to increase income so always keep that in mind. I bring this up for two reasons 1) I always knew when I opened I wanted a short day but my policies did not match that - they maximized my income with the potential of a shorter day but did not guarantee the short day I desired and 2) because on one hand you state you want $20 more per week per spot but then you also say you want to add a yoga class with an instructor. Having the instructor would increase your overhead so you need to factor that when adjusting your prices to ensure you bring home what you need/want.
A couple different options to increase rates from those already enrolled:
- Add an activity fee. Sell them on new/upgraded services (preschool curric., music class, yoga, etc.). Tell them the additional fee is X per week and is due regardless of attendance. Really play up the new service(s) and get their buy in. (When I first opened I had a monthly music class fee.... it was required and not one parent questioned this.)
- In my opinion in terms of increasing income the best option is to switch to contracted hours based on pick up times for all families! When I first opened I offered contracted hours based on pick up times, the first family enrolled needed my max hours so I did not get the short day I desired but I did make a lot more money for my time. With the contracted hours I made $10 more per day than the highest provider in my area for my max hours. BlackCat & DayCare both offer contracted hours based on pick up times so look at their post especially for examples.
Originally Posted by Blackcat31:
I use contracted hours and can no longer wrap my head around why some providers do not. lol!
However, I usually introduce new families to new payment/rate policies but wanted all my families on contracted hours so I could have better control in when I work and when I am off work. I own a separate child care house so I certainly didn't want to be at work any earlier or longer than I really needed to be...kwim?
I wrote a letter telling parents that rather than raise rates across the board, I was instead implementing a rate structure that would allow the parent to control their child care costs. Basically, I "sold" it to them something that benefited THEM.
Now I know EXACTLY when I need to be here and when I can leave. Thus allowing me to schedule appointments and other personal things outside of work verses having to find a substitute or having to close.
I now make MORE money and work LESS hours.
People will find a way to do X if it will save them money.
If they just pay by the day, then they want their money's worth and won't waste using it.
I think it's the secret to "marketing" and sales really......
Full disclosure I opted to do away with contracted hours for myself since I quickly realized I did not want to offer a full day program regardless of the additional money.I use contracted hours and can no longer wrap my head around why some providers do not. lol!
However, I usually introduce new families to new payment/rate policies but wanted all my families on contracted hours so I could have better control in when I work and when I am off work. I own a separate child care house so I certainly didn't want to be at work any earlier or longer than I really needed to be...kwim?
I wrote a letter telling parents that rather than raise rates across the board, I was instead implementing a rate structure that would allow the parent to control their child care costs. Basically, I "sold" it to them something that benefited THEM.
Now I know EXACTLY when I need to be here and when I can leave. Thus allowing me to schedule appointments and other personal things outside of work verses having to find a substitute or having to close.
I now make MORE money and work LESS hours.
People will find a way to do X if it will save them money.
If they just pay by the day, then they want their money's worth and won't waste using it.
I think it's the secret to "marketing" and sales really......
Ms.Koech 05:30 AM 01-09-2018
Originally Posted by Josiegirl:
When I found out I was charging at least $20 less a week than everybody else locally, I gave my dcfs a month's notice that rates would be increasing $5 a week every 6 months. And I'm still not up to others' rates, so I like the idea of quarterly much better. All new enrollments are charged the higher rate coming in.
THEN I found out a local center, which happens to own 2 big centers in our small community, charge $200 a week. That's a huge difference from what all the in-home providers are charging. I think we're getting the short end of the deal.
Same with me, Im about $20-$30 lower than others nearby and I offer much more than them. Lesson learned I know I sold myself short now When I found out I was charging at least $20 less a week than everybody else locally, I gave my dcfs a month's notice that rates would be increasing $5 a week every 6 months. And I'm still not up to others' rates,
so I like the idea of quarterly much better. All new enrollments are charged the higher rate coming in.THEN I found out a local center, which happens to own 2 big centers in our small community, charge $200 a week.
That's a huge difference from what all the in-home providers are charging. I think we're getting the short end of the deal. . Im going to do the $5 increments every quarter. Thanks for responding!
cpajarillio 06:15 PM 01-23-2018
i'm in California and the weekly rates in here is $250 and up for 2-5 yrs old and i increase rate every July depending on child care rates from the gov't that i get every year too
hwichlaz 08:41 AM 01-24-2018
I'm in California too. We're the size of a small European country, so prices vary widely as does the cost of living.
I chare $180 per week for infants, and $165 for everyone else. I raised my rates at the new school year in September.
When I raise my rates I usually just make my infant rate my new preschooler rate, and then raise the infant rate. I don't raise on current families....but they don't get to step down when their child ages up either...so it all works out.
I chare $180 per week for infants, and $165 for everyone else. I raised my rates at the new school year in September.
When I raise my rates I usually just make my infant rate my new preschooler rate, and then raise the infant rate. I don't raise on current families....but they don't get to step down when their child ages up either...so it all works out.
proudmommyofthree 10:43 AM 02-09-2018
Originally Posted by cpajarillio:
i'm in California and the weekly rates in here is $250 and up for 2-5 yrs old and i increase rate every July depending on child care rates from the gov't that i get every year too
I’m also in California and just starts taking infants again and started my rates at $185. Moms who came to interview said my rates were very reasnible. Now I see why lol. I’m under charging. What part of California are you in? I’m in southern Cali, riverside county.i'm in California and the weekly rates in here is $250 and up for 2-5 yrs old and i increase rate every July depending on child care rates from the gov't that i get every year too
hwichlaz 11:22 AM 02-09-2018
I do increases in September, every two years. I increase to the daily rate in the new Market Rate Survey. So I keep my rates very average.
So I keep my rates very average.
hwichlaz 11:26 AM 02-09-2018
Results of Californias 2017 Market Rate Survey by facility type and county.
http://www3.cde.ca.gov/rcscc/index.aspx
http://www3.cde.ca.gov/rcscc/index.aspx
BrynleeJean 04:46 PM 02-09-2018
i like the idea about the 5% increase written into their policies, i may do that. I was also low and only increased for new parents coming in, if i still got the "wow your low" then id increase it again, i may have had one family around 120 another around 135 and another around 150 but it evened out for me and when the older tuition kids aged out i still had my bigger rate for new incoming families
TooManyKitties 05:10 PM 02-09-2018
Thank you for posting that hwichlaz! I haven’t opened yet, won’t be for awhile, and seeing the reimbursement rates is very useful in helping me set mine.
hwichlaz 07:03 PM 02-09-2018
Originally Posted by TooManyKitties:
Thank you for posting that hwichlaz! I haven’t opened yet, won’t be for awhile, and seeing the reimbursement rates is very useful in helping me set mine.
They are based on a survey sent out to random providers in each county. In my county it goes out to every provider because there are so few of us. They use it to come up with an average rate. I always round up so I’m a bit higher than average. Thank you for posting that hwichlaz! I haven’t opened yet, won’t be for awhile, and seeing the reimbursement rates is very useful in helping me set mine.