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Old 10-10-2014, 06:28 AM
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Default Rate Increase Letter - Opinions Please

This is a follow up to my last post about raising rates or terminating. I have decided to raise rates, but continue to replace the children. I would love opinions on my letter. Thanks in advance.

"I am writing to inform you that rates will be going up effective December 1, 2014. My standard rates are $800/child/month and I regret to inform you that I will no longer offering sibling discounts. In regards to the 5:30 pm pick-ups on Fridays, an additional fee of $10 per 30 minutes will be added to compensate for the extended hours.

Should you decide that you would prefer to terminate services, please be sure to provide me with your written notice, as per the termination of services guidelines in your existing contract.

Should you decide to stay a new contract will need to be signed before November 15th, 2014."
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Old 10-10-2014, 07:15 AM
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Originally Posted by KellyinCalgary View Post
This is a follow up to my last post about raising rates or terminating. I have decided to raise rates, but continue to replace the children. I would love opinions on my letter. Thanks in advance.

"I am writing to inform you that rates will be going up effective December 1, 2014. My standard rates are $800/child/month and I regret to inform you that I will no longer offering sibling discounts. In regards to the 5:30 pm pick-ups on Fridays, an additional fee of $10 per 30 minutes will be added to compensate for the extended hours.

Should you decide that you would prefer to terminate services, please be sure to provide me with your written notice, as per the termination of services guidelines in your existing contract.

Should you decide to stay a new contract will need to be signed before November 15th, 2014."
I wouldn't address them quitting your program! I would put it out there as an increase that is reasonable and logical. By discussing them leaving your program, you subtly tell them that you don't deserve the increase. I'd try something like this:

Effective December 1st, childcare rates will increase to $800/month per child to reflect inflation and the added costs to running a quality childcare program. I am no longer able to offer a discount for multiple children of one family, as I have found that my costs per child do not decrease. Also effective December 1st, anyone picking up their children after my closing time of XX:XX will be subject to a fee of $10 per 30 minute block (or ANY portion of that block) to compensate for the extended hours of care. This should give you sufficient time to arrange for your child to be picked up on time, if you choose to not pay the overtime rate.

New contracts reflecting these changes will need to be signed before November 15th, 2014.
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Old 10-10-2014, 07:31 AM
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I would skip the part about parents terminating services. Otherwise looks fine
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Old 10-10-2014, 09:46 AM
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Originally Posted by Leigh View Post
I wouldn't address them quitting your program! I would put it out there as an increase that is reasonable and logical. By discussing them leaving your program, you subtly tell them that you don't deserve the increase. I'd try something like this:

Effective December 1st, childcare rates will increase to $800/month per child to reflect inflation and the added costs to running a quality childcare program. I am no longer able to offer a discount for multiple children of one family, as I have found that my costs per child do not decrease. Also effective December 1st, anyone picking up their children after my closing time of XX:XX will be subject to a fee of $10 per 30 minute block (or ANY portion of that block) to compensate for the extended hours of care. This should give you sufficient time to arrange for your child to be picked up on time, if you choose to not pay the overtime rate.

New contracts reflecting these changes will need to be signed before November 15th, 2014.
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Old 10-10-2014, 10:11 AM
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I agree with previous posters, with another minor change.

Instead of "rates will be going up," I would state it as "new rates will be in effect as of December 1, 2014."
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Old 10-10-2014, 12:11 PM
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Thanks everyone! I am so nervous about this it is making me physically sick.

I feel like I shouldn't put the part in about inflation because they have only been here since July, so I think I will remove that part, but everything else is so great! THANK YOU!! I am only giving this increase to the only family currently getting the discount - everyone pays full price, even for siblings.

Okay, so here is the revised version. Does this still sound okay? I really liked what was suggested, but the inflation part doesn't really apply and I don't offer preschool - just basic child care. Since this increase will only be affecting one family, should I try to personalize it a bit more or leave it as is? The family knows that they are the only multiple child family. Also, how should I sign it? Do I write 'Sincerely, xxx" or "Thanks for your understanding" or what?

Here's the newest version:

This letter is to inform you that effective December 1st, 2014, rates will be increasing to $800/month per child. I am no longer able to offer a discount for multiple children of one family, as I have found that my costs per child do not decrease. Also effective December 1st, 2014, children picked up after my closing time of 5:00 pm will be subject to a fee of $10.00 per 30 minute block (or ANY portion of that block) to compensate for the extended hours of care. This notice should give you sufficient time to arrange for your child to be picked up on time, if you choose to not pay the overtime rate.

New contracts reflecting these changes will need to be signed before November 15th, 2014.
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