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Old 03-11-2019, 08:52 AM
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Default Increasing My Rates

Hi all,

Can anyone give me tips on raising rates without making my parents hate me?

I run a before/after school care service and am considering upping my rates for the next school year. I'm currently the cheapest option around and I really think my prices are too low. My weekly rates are cheaper now than our local yclub program's (and that's what I've modeled my business after). My husband told me the other day that I shouldn't be trying to compete with yclub because they're a corporation and I'm a boutique. I think he may have a point! At the same time, I don't want to lose the great parents/kiddos that I have.

I do flat rate pricing and right now I'm at $41 for AM care and $50 for PM care. I am considering increasing to $45 for am and $55 for pm, which is about a 10% increase. Is this too much?
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Old 03-11-2019, 08:59 AM
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What hours are you actually providing care? I am not following how your program flows.

Weekly, hourly, daily?
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Old 03-11-2019, 09:02 AM
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I don't think it's too much, and if you're talking about new rates for September, or even starting July, they have plenty of time to look elsewhere if they don't like it. If that rate is still competitive to other similar providers, the increase shouldn't cause too much trouble.

Rate changes happen. Just make sure parents have enough notice to make a decision.
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Old 03-11-2019, 10:03 AM
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Sounds perfectly acceptable.
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Old 03-11-2019, 10:51 AM
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Quote:
Originally Posted by Cat Herder View Post
What hours are you actually providing care? I am not following how your program flows.

Weekly, hourly, daily?
Sorry, 41 per week for morning care (7am to 8:45)
50 per week for evening care (3:30 to 6pm).
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Old 03-11-2019, 11:08 AM
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Got it.

My market would not support it but if yours will, go for it. That sounds amazing. Here B/A care is offered in the public schools (6A-6P) with tutoring/homework center with teachers, breakfast and PM snacks for $5 a day (free for subsidy students, about 80%, free dinner for athletics dept). Few private providers bother offering it, anymore. There is an untapped market in transportation, here, though. Just too few private payors for me to dip my toes in.
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Old 03-11-2019, 11:28 AM
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Quote:
Originally Posted by Cat Herder View Post
Got it.

My market would not support it but if yours will, go for it. That sounds amazing. Here B/A care is offered in the public schools (6A-6P) with tutoring/homework center with teachers, breakfast and PM snacks for $5 a day (free for subsidy students, about 80%, free dinner for athletics dept). Few private providers bother offering it, anymore. There is an untapped market in transportation, here, though. Just too few private payors for me to dip my toes in.
Wow they definitely don't have that here, what a nice deal for parents. Here, there is a huge demand for before/aftercare. Yclub is the most affordable program but they have huge waitlists and you never get in. Daycares charge 600-700/month for the service. Hence, my little business was born!
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Old 03-11-2019, 04:48 PM
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Here are some threads that relate to rate increases: https://www.daycare.com/forum/tags.p...=rate+increase

Here are some rate increase letter samples: https://www.daycare.com/forum/tags.p...=rate+increase
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