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Daycare Center and Family Home Forum>When Should I Raise Rates?
EchoMom 07:54 AM 06-29-2012
When should I drastically raise rates? When I started my business 6 months ago I was in a bad spot financially and urgent to get my business started so I was conservative in my infant pricing. I am charging $150/week for infants. However, demand in my area is OVERWHELMING and I've done some research...
I charge $150/week for infants.
TWO child care centers right ON MY CORNER (literally one block from me) are both full with waiting lists and charge $250/$260/week. I also have a waiting list and anytime I put out an add I get tons of inquiries for infants. I put out some ads on Craigslist at the new price of $200/week just to see if I still got interest and YES tons of interest.
So, I want to raise my rates from $150 to $200/week for infants. Obviously if I lose an infant and sign up a new infant I would do the higher price, but if my current babies aren't going anywhere for anytime soon anticipated, what should I do?
Should I wait until January when I've been in business for one year because at least that makes some sense? Should I not raise it so much, or should I not care about making the current baby families angry and possibly leave because I'd have it filled the very next day at the higher price?
That seems harsh and like bad business to dramatically raise it so soon, but they won't find such a great value for the EXCELLENT care I provide anywhere else and if this is a business to benefit my own family shouldn't that be my priority??? What should I do??? I realize it's a big increase, which will be shocking to the families, but when I think of how much more income I could be making and the great care I provide...
Thoughts???
I charge $150/week for infants.
TWO child care centers right ON MY CORNER (literally one block from me) are both full with waiting lists and charge $250/$260/week. I also have a waiting list and anytime I put out an add I get tons of inquiries for infants. I put out some ads on Craigslist at the new price of $200/week just to see if I still got interest and YES tons of interest.
So, I want to raise my rates from $150 to $200/week for infants. Obviously if I lose an infant and sign up a new infant I would do the higher price, but if my current babies aren't going anywhere for anytime soon anticipated, what should I do?
Should I wait until January when I've been in business for one year because at least that makes some sense? Should I not raise it so much, or should I not care about making the current baby families angry and possibly leave because I'd have it filled the very next day at the higher price?
That seems harsh and like bad business to dramatically raise it so soon, but they won't find such a great value for the EXCELLENT care I provide anywhere else and if this is a business to benefit my own family shouldn't that be my priority??? What should I do??? I realize it's a big increase, which will be shocking to the families, but when I think of how much more income I could be making and the great care I provide...
Thoughts???