Price Jump

I was hoping someone could give me an opinion. I’m planning on raising my prices on 1/1. My current price is $25 per day for one child, and $45 per day for two children, with a minimum of 4 days per week.
Starting January 1st my prices will be $28 per day for one child and $50 per day for two children, with a minimum of 4 days per week.

Is this too much of a jump? I’m planning on notifying parents this month so they have time to adjust. My health insurance goes to $600 a month starting this month so I don’t feel like I have much choice but to adjust prices.
I’ve been open 3 years and have had all of my current families since the year I’ve opened.

[Blackcat31]

Originally Posted by Unregistered

I was hoping someone could give me an opinion. I’m planning on raising my prices on 1/1. My current price is $25 per day for one child, and $45 per day for two children, with a minimum of 4 days per week.
Starting January 1st my prices will be $28 per day for one child and $50 per day for two children, with a minimum of 4 days per week.

Is this too much of a jump? I’m planning on notifying parents this month so they have time to adjust. My health insurance goes to $600 a month starting this month so I don’t feel like I have much choice but to adjust prices.
I’ve been open 3 years and have had all of my current families since the year I’ve opened.

I dont think it's a huge leap at all but I do have to ask why are you shorting yourself because a family has two or more children?

Siblings don't receive discounted care so why a discounted rate?

I think sibling discounts were common years ago but aren't so much now days. Each child takes up a separate space so I think they should be charged a full rate for that space.

I know child care is a big cost for families that have more than one child but why should the provider be the one to take a loss so the family can save money? Seems a bit unfair in my opinion.

Originally Posted by Blackcat31

I dont think it's a huge leap at all but I do have to ask why are you shorting yourself because a family has two or more children?

Siblings don't receive discounted care so why a discounted rate?

I think sibling discounts were common years ago but aren't so much now days. Each child takes up a separate space so I think they should be charged a full rate for that space.

I know child care is a big cost for families that have more than one child but why should the provider be the one to take a loss so the family can save money? Seems a bit unfair in my opinion.

That is true. I do feel like I’ll start to price myself out of the market in my area charging full price for siblings since it seems like most providers give a discount around here. But that is definitely I change I’ll think about for the future. Thank you!

[CountryRoads]

I don't think it's that big of a jump. Besides, if you let them know this month then they have plenty of time to figure something else out if it doesn't work for them.

And I agree with BC. I don't offer discounts for siblings, either. I'm only allowed X amount of spots, and there's no way I would take a loss so someone else can save. A spot is a spot.

[284878]

You can make this change for current families but then charge all new families $28 per child. As Tom says, it is alright if each family has a different contract with you.

Originally Posted by CountryRoads

I don't think it's that big of a jump. Besides, if you let them know this month then they have plenty of time to figure something else out if it doesn't work for them.

And I agree with BC. I don't offer discounts for siblings, either. I'm only allowed X amount of spots, and there's no way I would take a loss so someone else can save. A spot is a spot.

this. Remember, parents will always do what's best for them. You have to do what's best for you. I was told that $75 a week, for 3 6-hour days preschool was far too much. I was shocked. That amounts for $25 a day, for a full curriculum. I don't know why people think that they're going to get something for nothing.

[coloradoprovider]

No, the price jump is reasonable. I don't know the market in your area, but your rates would be considered low in my area. Most providers charge at least $40 per day for a preschooler; even more for an infant. Are your rates in line with other providers? Often, providers are such caretakers that we aren't very good at taking care of our needs and we under value our worth. If you do your job with care and concern, you are worth good pay!

Originally Posted by coloradoprovider

No, the price jump is reasonable. I don't know the market in your area, but your rates would be considered low in my area. Most providers charge at least $40 per day for a preschooler; even more for an infant. Are your rates in line with other providers? Often, providers are such caretakers that we aren't very good at taking care of our needs and we under value our worth. If you do your job with care and concern, you are worth good pay!

The other home providers I know of charge about $25 per day per child with sibling discounts. A nice center in the area has their prices listed as $40 per day for infants, and $31.50 for 3-5 years. I originally wanted to change my prices to $30 per day for one child, but I was nervous I would start pricing myself out of the market. However, I am licensed and have an associates in ECE, along with credentials. Is it unreasonable to raise my prices to $30 per day all at once? I live in a pretty rural area, so I feel like that causes prices to be lower in my are.

I guess I’m also nervous to upset the parents I have as some I will probably have for 3-4 more years.