Rates!

[Retiredchild]

My rent went up by 20 percent recently and I'm upping the prices for parents.

I've had my in home daycare since 2014 and have never changed the rates before. It's always been 500 per month for toddlers and 575 for infants. I'm considering raising it by 100.

All of the parents are above average income and I'm sure they could afford it (they all gave me 200 dollar Christmas bonuses along with some gifts) I'm just nervous they might all leave. Am I charging too much? I'm giving warning now and the price change won't happen until January 2018.

I'm open Monday-Friday 6am-6pm and provide breakfast, snacks and lunches (vegetarian friendly and all homemade) which is expensive and time consuming. Most places in the area charge 555 for infants and 500 for toddlers.

[hwichlaz]

I think upping it to the average cost for you area should be fine. If they get upset they'll call around and see for themselves.

Also, If you have a good reputation, for new incoming clients, I'd go a bit above average.

[CityGarden]

I personally feel a $100 increase is a lot at once. These families have not been with you since 2014.... so they may not understand you making up for 3-4 years without a raise all at once.

In your shoes I would increase my rates just above market for all new families enrolling and for current families increase rates 10% for your January 2018 timeline and then X% each year their after.

Build the annual rate increase of X% directly into your contract. Tom Copeland has a good article about annual increases: http://tomcopelandblog.com/easiest-way-raise-rates

That said you need to do what you feel best with but in your shoes that is what I would do!

[Retiredchild]

Thank you! Maybe I should have started a different thread for this-
I'm new here but how do you go about getting new families?

I'm lucky. The children I watch used to go to the center I worked at but quit because the place was insane (I'm shocked that so many parents put up with that place, they broke so many rules w/ children to teacher ratios and all that- yet they still passed every inspection) and later joined mine when they found out I was starting my own!

The majority of my parents are doctors and have all recommended me to coworkers but now all the children are school aged and being forced to move to a daycare near where they live and go to school (I live on a different side of town and don't drive).

I'm surprised that centers cost more than in-home daycares. With the long hours, one on one care and healthy meals I'd imagine in-home would cost much more. My hours are longer yet it's way less stressful than the center I was working at.

[midaycare]

Originally Posted by CityGarden

I personally feel a $100 increase is a lot at once. These families have not been with you since 2014.... so they may not understand you making up for 3-4 years without a raise all at once.

In your shoes I would increase my rates just above market for all new families enrolling and for current families increase rates 10% for your January 2018 timeline and then X% each year their after.

Build the annual rate increase of X% directly into your contract. Tom Copeland has a good article about annual increases: http://tomcopelandblog.com/easiest-way-raise-rates

That said you need to do what you feel best with but in your shoes that is what I would do!

Yes to this. I raise rates for all new families, but never for families that are already signed.

[Blackcat31]

Originally Posted by Retiredchild

Thank you! Maybe I should have started a different thread for this-
I'm new here but how do you go about getting new families?

I'm lucky. The children I watch used to go to the center I worked at but quit because the place was insane (I'm shocked that so many parents put up with that place, they broke so many rules w/ children to teacher ratios and all that- yet they still passed every inspection) and later joined mine when they found out I was starting my own!

The majority of my parents are doctors and have all recommended me to coworkers but now all the children are school aged and being forced to move to a daycare near where they live and go to school (I live on a different side of town and don't drive).

I'm surprised that centers cost more than in-home daycares. With the long hours, one on one care and healthy meals I'd imagine in-home would cost much more. My hours are longer yet it's way less stressful than the center I was working at.

Getting new kids enrolled is different everywhere....some areas really do well advertising on Craig's List whereas I would never place an ad in our local CL so it depends on where you live if it's usable or not.

Many providers use Facebook and even more just use word of mouth. Also flyers and business cards...put ANYWHERE and EVERYWHERE you can think of that a parent would see them.

You could also have an Open House...I've heard of many successful programs introduce themselves to the community via an open house. Again dependent on your area.

Welcome to the forum!

Here are several more threads on advertising: https://www.daycare.com/forum/tags.php?tag=advertising

[daycare]

I would raise them by $20 in 2018 and then start new clients with the new rates.

I think $100 is a lot of money to increase at one time.