Default Style Register
Daycare.com Forum
Daycare Center and Family Home Forum>When Giving Yourself A Raise..
DancingQueen 10:29 AM 04-13-2011
or raising your rates.

What percentage do you go up? Or what $ amount? I am raising mine 1/1/12 (I plan ahead LOL) and I have seriously undercut myself up til now. But I also don't want to lose these parents. I believe they are expecting a slight increase - I just don't know what is fair and yet worth it.
Reply
thecrazyisout 10:32 AM 04-13-2011
Originally Posted by DancingQueen:
or raising your rates.

What percentage do you go up? Or what $ amount? I am raising mine 1/1/12 (I plan ahead LOL) and I have seriously undercut myself up til now. But I also don't want to lose these parents. I believe they are expecting a slight increase - I just don't know what is fair and yet worth it.
I am planning to raise rates as well. I am increasing my current families slightly, and then any new families will be the most current rate which I compare to area providers.....(I get this one my states website). It then helps the families and you to keep them, and will give you the extra revenue when a new family enrolls.
Reply
cheerfuldom 10:34 AM 04-13-2011
Where are you at now and where would you like to be? The last time I raised rates, it was $10 more per week so not a big jump.
Reply
cheerfuldom 10:35 AM 04-13-2011
oh yeah and if I add another kid in the future, they will come in at the rate that I want to be at ($15 more a week than anyone else pays). My current families will slowly but surely get up to that rate.
Reply
PitterPatter 10:36 AM 04-13-2011
Originally Posted by DancingQueen:
or raising your rates.

What percentage do you go up? Or what $ amount? I am raising mine 1/1/12 (I plan ahead LOL) and I have seriously undercut myself up til now. But I also don't want to lose these parents. I believe they are expecting a slight increase - I just don't know what is fair and yet worth it.
I'm not permitted to give myself a raise. State clients, $15 - $20 per day, that's it.
Reply
nannyde 10:41 AM 04-13-2011
See below table. I add one dollarper day to each "slot" every year... so in 2010 the 3:00 p.m. departure was 135 a week.

Our rates are calculated differently than most child care homes and Centers. The rates are based upon the total number of hours per day and the departure time. The published rates are based on a maximum of a nine hour day. If you need more than nine hours per please add $5.00/hour to our base rates.

We have a different rate structure for part time. Part time is a minimum of three full working days per week. We do not provide drop in care. We do not offer half day rates.

Full Time Rates (2011) based upon a maximum of nine hours a day and time your child departs from day care:

3:00 p.m. departure $140.00 per week

3:15 p.m. departure $145.00 per week

3:30 p.m. departure $150.00 per week

3:45 p.m. departure $155.00 per week

4:00 p.m. departure $160.00 per week

4:15 p.m. departure $165.00 per week

4:30 p.m. departure $170.00 per week

4:45 p.m. departure $175.00 per week

5:00 p.m. departure $180.00 per week

5:15 p.m. departure $185.00 per week

5:30 p.m. departure $190.00 per week

5:45 p.m. departure $195.00 per week

6:00 p.m. departure $200.00 per week


Part Time Rates

3:00 p.m. departure $34.00 per day

3:15 p.m. departure $35.00 per day

3:30 p.m. departure $36.00 per day

3:45 p.m. departure $37.00 per day

4:00 p.m. departure $38.00 per day

4:15 p.m. departure $39.00 per day

4:30 p.m. departure $40.00 per day

4:45 p.m. departure $41.00 per day

5:00 p.m. departure $42.00 per day

5:15 p.m. departure $43.00 per day

5:30 p.m. departure $44.00 per day

5:45 p.m. departure $45.00 per day

Additional hours beyond nine hours per day billed at $5.00 per hour.

Overtime must be pre-arranged and approved.

We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.

Discounts: We do not currently offer discounts for sibling groups.

State Funded Clients: We do not accept State Funding at this time.

Reply
DancingQueen 11:08 AM 04-13-2011
I currently charge 140 for full day regardless of age. No more than 9 hours
65 for b/a school

I am getting a baby in May though and I am charging 160 for her. (her sibling is here at 140 rate)

the average in my area is 165-175 for home care for full time

for the center iit is over 200.
Everyone thinks I'm nuts and i'm the cheapest in town
Reply
SilverSabre25 11:57 AM 04-13-2011
I'm raising my rates $5/week for everyone next year (1/1/12, too!) and changing my vacation policy concurrently--I'll still get holidays paid, but they will NOT pay for my personal days off and WILL pay for their own days off (might let them have a limited number of sick days or something). That's opposite how I do it now.

The $5/week I will hide away in a savings account for a MASSIVE (to me, lol) Christmas bonus!
Reply
daycare 12:13 PM 04-13-2011
I dont think that you should raise your rates that much on your current clients, unless you can prove the need to....

I would raise it slightly on your new clients and then charge the new ones coming in the new rate.
When I got my raise, I raised it $30.00 per month per child. I showed the existing parents their new rate and then what i will be charging the new clients. NO one blinked an eye when they saw that.....
Reply
ninosqueridos 12:22 PM 04-13-2011
I raised it a lot, by $5 per day per child. I don't plan on raising again for a long, long time. I was charging just about the same as other providers who, IMHO, offered much less than I do (they were not state registered, took LOTS of kids over state limits, did lots of drop-in care, dark dreary environment on busy streets, etc) and my insurance went up.

Even with the increase, I am still under other registered providers but they have a seemingly great environment and are master-degreed women with cda's, etc which I do not have. I thought it was a fair increase all things considered and my families didn't question it at all. Did I mention I love my families?
Reply
Meeko 12:24 PM 04-13-2011
Originally Posted by Tygerluv:
I'm not permitted to give myself a raise. State clients, $15 - $20 per day, that's it.
Wow,,,that seems so unfair. The state here (Utah) acknowledges that we are self-employed business owners and as such they have no right to tell us what we can and can't charge, hours we work etc.

They tell the parent how much money they qualify for according to their income etc and how much the state is willing to put towards day care and it is up to the parent to make up the difference... if there is any.

The only thing we cannot do is charge state parents MORE than we would charge self-pay parents.
Reply
PitterPatter 01:12 PM 04-13-2011
Originally Posted by Meeko60:
Wow,,,that seems so unfair. The state here (Utah) acknowledges that we are self-employed business owners and as such they have no right to tell us what we can and can't charge, hours we work etc.

They tell the parent how much money they qualify for according to their income etc and how much the state is willing to put towards day care and it is up to the parent to make up the difference... if there is any.

The only thing we cannot do is charge state parents MORE than we would charge self-pay parents.
It is unfair I have seen more and more states like yours and I just had a long discussion with our local office supervisor regarding this. She says it won't be changing any time soon and if I feel I can not provide for my family on these wages then perhaps I should find an alternative career. Who ever makes the rules here is very inconsiderate of the providers and hand everything to the "poor single mothers" as they were once referred to. Well guess what I AM A SINGLE MOTHER TOO! What kills me is the wages the parents are permitted to make and pay a tiny portion for their fee. Students dont have to pay anything and the most I have ever seen charged to a parent is $2.00 and she pulls in almost $2000 a month.

I need to move to Utah!
Reply
nannyde 01:29 PM 04-13-2011
Originally Posted by Tygerluv:
I'm not permitted to give myself a raise. State clients, $15 - $20 per day, that's it.
Are you sure?

Here we can't charge the STATE more than we charge the private pay but we can charge the private pay more than we charge the STATE.

So for example: let's say I charge 30 dollars a day. The State will pay only up to 20 dollars a day. So they will pay me 20

They only care that we aren't charging them MORE than the privates... they don't care how much we are charging the privates OVER them... we just can't charge the state more than the privates.

If I charged 15 a day then the State would only pay me 15 dollars a day. If I charged 18 a day the State would pay 18. If I charged 20 the State would pay me 20. If I charged 21 the State would pay me 20. If I charged 25 the State would pay me 20.... and on and on.

A LOT of providers think the State sets the amount for private when they are just in the business of making sure you don't charge the state MORE than the privates.
Reply
Unregistered 02:40 PM 04-13-2011
I raise my clients 5 dollars a week more every year. Knowone has ever complained, and its a very reasonable raise to. I have in my contract that rates are subject to change once a year with a months notice. Remember you are worth it!
Reply
PitterPatter 05:33 PM 04-13-2011
Originally Posted by nannyde:
Are you sure?

Here we can't charge the STATE more than we charge the private pay but we can charge the private pay more than we charge the STATE.

So for example: let's say I charge 30 dollars a day. The State will pay only up to 20 dollars a day. So they will pay me 20

They only care that we aren't charging them MORE than the privates... they don't care how much we are charging the privates OVER them... we just can't charge the state more than the privates.

If I charged 15 a day then the State would only pay me 15 dollars a day. If I charged 18 a day the State would pay 18. If I charged 20 the State would pay me 20. If I charged 21 the State would pay me 20. If I charged 25 the State would pay me 20.... and on and on.

A LOT of providers think the State sets the amount for private when they are just in the business of making sure you don't charge the state MORE than the privates.
Yep I'm sure. It's the state that decides what they pay no matter what. ALL providers get the same. Centers get more but all home providers have a set scale. $20 being the highest for preschool and under then it goes to $15 for school age. The state doesnt care what we charge private pay. They offer a set pay for everyone. Now if I want to go through school and get credits, more classes etc take bigger steps they will pay $2 more per day but that's the highest possible
Reply
DancingQueen 06:02 AM 04-14-2011
I would never go up much - I love my families and don't want to blow a good thing - but even THEY think my rates are too low LOL
Reply
melskids 06:06 AM 04-14-2011
Originally Posted by Tygerluv:
Yep I'm sure. It's the state that decides what they pay no matter what. ALL providers get the same. Centers get more but all home providers have a set scale. $20 being the highest for preschool and under then it goes to $15 for school age. The state doesnt care what we charge private pay. They offer a set pay for everyone. Now if I want to go through school and get credits, more classes etc take bigger steps they will pay $2 more per day but that's the highest possible
here, the state decides what they pay as well, but we can charge the difference. so if my daily rate is 30, and the state only covers 20, then the parent has to come up with the other 10. are you allowed to do that too?
Reply
Meyou 06:09 AM 04-14-2011
I just did a 10% daily fee increase and none of my parents had an issue with it.
Reply
Blackcat31 08:11 AM 04-14-2011
Nan,
What are your hours of operation? I know you do contracted hours but what is the earliest one arrives? Is 3:00 p.m. the 9 hour mark?
Reply
PitterPatter 10:38 AM 04-14-2011
Originally Posted by melskids:
here, the state decides what they pay as well, but we can charge the difference. so if my daily rate is 30, and the state only covers 20, then the parent has to come up with the other 10. are you allowed to do that too?
No I am not allowed to charge them anything but the $2 or whatever the state says is their portion if anything. Up until last yr we couldnt even charge late fees of any kinds NOTHING!. It was in the parents book that if your provider ever charges u for anything other than your daily fee u are required to report them immediatley. (maybe not word for word but very close) When I had problems collecting the parents fees and called the state for assistance they said they would not get in the middle. It was my choice if I wanted to trem the client for nonpayment. If I chose to do that I am required to give a 30 day notice to the client. (so they can sit in my daycare and continue to rack up fees they wont be paying) The client then can go to another provider and get the state to pay them. Late pick ups after closing time... State said again I have the right to term them as long as I give the notice but other than that theres nothing they can do and I wasnt allowed to charge fees. Now we can tho so that's 1 step for providers. Its all for the clients as if they dont get enough handed to them on a silver platter! Sorry started to vent a lil.
Reply
Unregistered 06:37 PM 04-14-2011
Originally Posted by nannyde:
See below table. I add one dollarper day to each "slot" every year... so in 2010 the 3:00 p.m. departure was 135 a week.

Our rates are calculated differently than most child care homes and Centers. The rates are based upon the total number of hours per day and the departure time. The published rates are based on a maximum of a nine hour day. If you need more than nine hours per please add $5.00/hour to our base rates.

We have a different rate structure for part time. Part time is a minimum of three full working days per week. We do not provide drop in care. We do not offer half day rates.

Full Time Rates (2011) based upon a maximum of nine hours a day and time your child departs from day care:

3:00 p.m. departure $140.00 per week

3:15 p.m. departure $145.00 per week

3:30 p.m. departure $150.00 per week

3:45 p.m. departure $155.00 per week

4:00 p.m. departure $160.00 per week

4:15 p.m. departure $165.00 per week

4:30 p.m. departure $170.00 per week

4:45 p.m. departure $175.00 per week

5:00 p.m. departure $180.00 per week

5:15 p.m. departure $185.00 per week

5:30 p.m. departure $190.00 per week

5:45 p.m. departure $195.00 per week

6:00 p.m. departure $200.00 per week


Part Time Rates

3:00 p.m. departure $34.00 per day

3:15 p.m. departure $35.00 per day

3:30 p.m. departure $36.00 per day

3:45 p.m. departure $37.00 per day

4:00 p.m. departure $38.00 per day

4:15 p.m. departure $39.00 per day

4:30 p.m. departure $40.00 per day

4:45 p.m. departure $41.00 per day

5:00 p.m. departure $42.00 per day

5:15 p.m. departure $43.00 per day

5:30 p.m. departure $44.00 per day

5:45 p.m. departure $45.00 per day

Additional hours beyond nine hours per day billed at $5.00 per hour.

Overtime must be pre-arranged and approved.

We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.

Discounts: We do not currently offer discounts for sibling groups.

State Funded Clients: We do not accept State Funding at this time.
Do all your kids leave at 3 then?
How do you get clients to pay this much? I am a licensed teacher and have low ratios and have a quality program but our private preschools dont even charge this much in my area so I could NEVER get ANYONE to pay this much. Who can afford this? Do you live somewhere that the number of clients is so vast that you only take the top tier earners? Where I live 100,000 people total in whats considered this area I could never get this rate. Does charging this rate only allow a certain type of client and thus weed out people you don't want coming to your daycare? I just couldnt justify this ever in my area and it boggles my mind that anyone would/could pay this much- well I guess I mean the people who would need care after 4 pm anyway.
Reply
DancingQueen 09:29 AM 04-15-2011
I really like the way you charge. You are still getting full time pay/rate but anything beyond 9hrs they are gonna pay good for and it discourages families from doing that.
I love it.

What do you do if a parent drops off at 11 and picks up at 3? are they still paying the 9hr rate? or less?

That is a fear of mine - that parents would bring them less and my income would decrease.
Reply
melskids 09:38 AM 04-15-2011
Originally Posted by Tygerluv:
No I am not allowed to charge them anything but the $2 or whatever the state says is their portion if anything. Up until last yr we couldnt even charge late fees of any kinds NOTHING!. It was in the parents book that if your provider ever charges u for anything other than your daily fee u are required to report them immediatley. (maybe not word for word but very close) When I had problems collecting the parents fees and called the state for assistance they said they would not get in the middle. It was my choice if I wanted to trem the client for nonpayment. If I chose to do that I am required to give a 30 day notice to the client. (so they can sit in my daycare and continue to rack up fees they wont be paying) The client then can go to another provider and get the state to pay them. Late pick ups after closing time... State said again I have the right to term them as long as I give the notice but other than that theres nothing they can do and I wasnt allowed to charge fees. Now we can tho so that's 1 step for providers. Its all for the clients as if they dont get enough handed to them on a silver platter! Sorry started to vent a lil.
thats crazy. i would NOT be taking state payed clients, period.
Reply
broncomom1973 10:52 AM 04-15-2011
Well, the reason I started daycare in the first place was that while I was on maternity leave after having my son, our daycare provider increased her rates for all of her families by 50%. Honestly, the day my two older dd (they were 1 and 4 at the time) came home with that note in their bag, I felt sick. Her note was very nice and I know she didnt want to raise rates, but for her own familys well being, she needed to do it. Fifty percent though, was a substantial increase.

I previously worked part-time (3 days/week) and I knew that with the daycare cost increase, there was really no point in me working anymore after the cost of childcare. So, maybe 10 or 20% wouldnt be a big deal to some parents, but each family will probably be different. Its just going to depend alot on their current financial situation.
Reply
Tags:raise rates, salary
Reply Up