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melissa ann 03:05 PM 06-09-2009
I've been doing childcare for a little over a year. I'm thinking of raising my rates. How much of an increase seems fair? $5/week for those who do weekly rates? Right now, I charge a daily rate for days child is in my care. However, it's rare that I get a full week. I'm thinking of changing it, to a flat rate based on numbers per day. Ex: $90 (5 days), $80 (4 days), $66 (3 days), 50(min. 2 day).
Or keep it to a daily rate, but have a min. rate of 3 days. I want to hand out the new handbook this week, but I keep wrestling with the rate.

How often are rate increases acceptable? Once a year?
Thanks for any help anyone can offer.
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mac60 07:10 PM 06-09-2009
I need to do what you are doing as I never raise my rates on current families unless they have another child, then I will alter my new rate to my then current rates.

I think $5 is very fair, as I am sure in the past year your expenses have went up more than $5 per child per week.

I do have a minimum of 2 days, but I am changing that to 3. I also charge more per day for lesser days.

How often to do a rate increase. I know some providers do it yearly, and others every other year.
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GretasLittleFriends 04:39 AM 06-10-2009
I have it in my contract to review every May. This May I just left rates alone. Next May, we'll see. I charge hourly, and I tend to keep an eye on what the Child Care Assistance Program in our state pays and judge from that.
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tymaboy 10:07 AM 06-10-2009
I revised my policy this yr. I changed to a daily rate for new clients. My old clients are on an hourly rate. For new clients I raised the rates. I left the hourly rate the same since the parents I have are great. If I did not have great parents then I would have switched them over to the new daily rate.

When parents sign their contract I have it in there that I may raise rates each yr. This is the 1st time I changed them in 2 yrs but it did not effect the families I had in care.
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mac60 11:02 AM 06-10-2009
This is kind of how I do it. But, when a family of 1 stays with you for 5 or 6 years,,,,,,which is GREAT!, still getting paid $15 a day, same as when started 5 years ago, is quite low. I haven't figured out how to go about raising the rates at least once with these families, I am always thinking it will make them mad. I have go to work on this though, I am screwing myself big time not keeping my rates with the inflation.
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melissa ann 03:56 PM 06-10-2009
I feel I'm kind of stuck. I have 3 kids from the same family. 1/2 brother/sister and their cousin. They get dropped off/picked up together by the grandfather who adopted the cousin. Plus they all live in the same apt. building. So, by raising the rate $5/week it would be $15 for them. The grandfather and his daughter take turns paying me. My sister does childcare care too, in a different state then me. She has in her contract (which I want to put in mine) that this is her paycheck and as such, it needs to be somewhat stable. So she is having a guarantee min. pay rate. Some weeks I'm barely over $100 and that's with 3 kids because I right now I only charge when they are here. But lately, they have been changing their schedule after it has been made and I don't have the kids. So I have decided, that once the week's schedule has been made, no deductions will be given if a child is not here. They will pay whatever I was told the schedule will be. So if they tell me 4 days but they decide to make other plans and are only here 3, I will expect payment for the 4 days.
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mac60 02:45 AM 06-11-2009
You are kind of in a tough spot. Barely making $100 for 3 kids, not hardly worth your time. I do like the statement from your sister. I need to add that to my handbook.

I live in a very low rate area, and I still get $30 for 2 kids per day. You should be getting at least $40 to $45 per day for 3 kids, I would think.

I cared for 3 kids from one family once during the summer, 5--10 hour days, and only charged $125. Never again. Way too low. That was when I was just starting. Now if someone wanted care for 3, I am not sure, but the 3rd would probably be back to full rate. I can't make a living giving sibling discounts on 2 out of a 3 kid family.

Good luck changing this. You do have to make it worth your while though.
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Chickenhauler 09:37 PM 06-11-2009
Originally Posted by mac60:
This is kind of how I do it. But, when a family of 1 stays with you for 5 or 6 years,,,,,,which is GREAT!, still getting paid $15 a day, same as when started 5 years ago, is quite low. I haven't figured out how to go about raising the rates at least once with these families, I am always thinking it will make them mad. I have go to work on this though, I am screwing myself big time not keeping my rates with the inflation.
Be honest, but don't back down. I'm sure that after all this time, both the kids and parents are happy with the service you provide, and they don't really want to change providers.

I'm sure that initially, the parents are going to be in shock when you bring it up to them, but when they start asking around (if they haven't compared notes with other parents already), they will find that they are getting a bargain, and as long as you don't go berserk with your increase (bring the rate up to industry norms in your locale), they will understand.

There's no free lunch, and there certainly isn't any quality child care free.
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melissa ann 05:22 PM 06-12-2009
Well, I gave my new handbook out. The grandfather was in a hurry when he picked the kids up so I couldn't give him a heads up on it. I put the handbook in the diaper bag so I wouldn't forget. But, I did not get the schedule for next week. Which is nothing new. Normally, they will call sunday night around 8. I have that the new rates/handbook policy will start in Aug. I have a 2 month notice for any rate increase.
I did call another provider in the next little town from me. I live in an area with little towns all around. She charges a different rate depending on the number of days per week. For 5 days, $93 4 days, $80 I can't remember the other rates. With my increase, that would give my 5 day rate to $90 and my 4 day rate to $72. So, I'm in the ballpark. I'm having a 3 day min. rate. I have to have some consisitency in my paycheck. That will be new. Right now, I just charge for the days they are in my care.
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mac60 06:41 PM 06-12-2009
Your rates are real close to my area for rates.
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tymaboy 06:18 AM 06-13-2009
Originally Posted by melissa ann:
Well, I gave my new handbook out. The grandfather was in a hurry when he picked the kids up so I couldn't give him a heads up on it. I put the handbook in the diaper bag so I wouldn't forget. But, I did not get the schedule for next week. Which is nothing new. Normally, they will call sunday night around 8.
I had a family like that once, but they would wait till almost 10:00pm to call. So when I revised my policy I put in there that I had to know what the next weeks schedule was before 8:00pm on Sun. & if I did not know what it was I would not take them on Monday. I also had to add all sorts of other rules all due to this 1 family. My policy went from 7 pages to 12. So glad I no longer have them.
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melissa ann 01:04 PM 06-13-2009
the mother of the 2 youngest, gets her schedule a month at a time. When they first signed up, she said would give me a copy of it, and if they needed a day off for a dr. apt. or other plans, she would let me know. That never materialized. She's also always late. When they first stated coming I used to call her because she would be like an hour late. I didn't know if they were coming or not. Her dad is always here by 6:20am when he brings the kids. But she will say, 9:00 and she won't get here until at least 10.
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GretasLittleFriends 08:20 AM 06-14-2009
Originally Posted by melissa ann:
But she will say, 9:00 and she won't get here until at least 10.
Do you charge her starting at 9 since that's when you were expecting them?


I'm starting to have issues with one of my moms. She has been pretty good, but lately not so much so. Parents are divorced, and I understand that the little guy needs his time with his father, but for instance she told me last Sunday that the little guy would be here Friday and she was also scheduled to work Saturday, but no call no show. I had it in my contract that I only charge if the child is here, but I'm thinking now I need to change that and have it stated I will charge if the child is scheduled here. Then I wouldn't feel bad charging her for Friday and Saturday. Of course if I know IN ADVANCE that he's going to be at his dad's I don't charge her for that. One that I have done already with this same family is she drops him off for the day, I expect him say 10:15a - 8:30p. Then Grandparents call at 5 and want to pick him up at 6. I've already planned on having him for dinner and have started to prepare enough food for him as well. (He's quite an eater.) I do charge her for the whole day even though he was picked up at 6.
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melissa ann 11:31 AM 06-14-2009
I charge for a full day no matter how many hours they are here. When I first started, I did have a half day rate, but they would show up late dropping off or early picking them up to get the half day rate. After about 4 months, I elimated the half day rate. I'm going to be charging for any days that the kids are scheduled to be here. Almost evey week, I don't have the kids on a day because the mom's boyfriend has off and decides to keep all 3 kids. (only 1 is his) I have it in my handbook that once the schedule has been set, that's the rate that is expected. If your child is not here for any reason, the rate will still apply. Rates are not based on attandence, rather the spot reserved for them.
I still haven't heard from them for their schedule this week. Normally they will call sunday evenings between 8 -8:30. Now, that's when I'm putting my kids to bed and some nights, that's when I go too because I do get up at 5:30. my hubby said since this is the only family I have, I should not answer the phone if it rings after 8. Right now our answering machine is broken. And then not get up tomorrow. I don't know if I could do that. I'm such a softie. But I have told them countless of times that I need the schedule fridays.
I have been posting on craiglist and I want to put some signs up around town again.
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tymaboy 07:30 PM 06-14-2009
Originally Posted by melissa ann:
the mother of the 2 youngest, gets her schedule a month at a time. When they first signed up, she said would give me a copy of it, and if they needed a day off for a dr. apt. or other plans, she would let me know. That never materialized. She's also always late. When they first stated coming I used to call her because she would be like an hour late. I didn't know if they were coming or not. Her dad is always here by 6:20am when he brings the kids. But she will say, 9:00 and she won't get here until at least 10.
That sounds so much like that family. I had to start an early/late drop off pick up fee (didnt have one till this family) One time they were 1 hour 45 minutes late picking up & thought thought they didnt have to pay the late fee since the state paid their child care.
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Chickenhauler 07:44 PM 06-14-2009
Originally Posted by melissa ann:
But she will say, 9:00 and she won't get here until at least 10.
The billing should start at 9am....if I order a service provider to be ready at 9am, I start paying at 9am whether I'm ready for their services or not.
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melissa ann 03:03 PM 06-15-2009
Well, I did not get a phone call night for this week's schedule. But, I got a phone call this morning at 6:20. I told the grandfather that nobody called me last night and when that happened before, they didn't need childcare for monday. He was on the front porch w/the kids. I told him give me a few minutes and I would be down. He said he didn't see his daughter all weekend. He figured his daughter would call with her schedule. I told him, she never calls me. I'm sure he was late for work. But that's not my problem. I thought about not answering the phone this morning, because no one else would call at that time.
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Unregistered 02:24 PM 06-17-2009
I charge 125 per week or 25 per day. Usually I only accept full time enrollments. Parents must pay whether their child is here or not. For example, this week I had a little girl gone on Monday and Tuesday. When her dad dropped off today (wed) he left a check for 125. They know it is expected and it is common for our area unless the provider is not registered/licensed in which case the rates they charge are a lot lower.
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