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Daycare Center and Family Home Forum>Raising Rates, Renewing Contracts
Abigail 10:26 PM 01-02-2014
I'm going to hand out new contracts on Monday. I did new contracts last year but only added a provider vacation day and everything else stayed the same. This year is my first year raising rates for just 4 families that have been here for 2 years since I opened. I am raising their rates just $5/week per child so one family goes up $10/week and the other 3 go up $5/week each which is a $20 total increase for me but it's going straight to staff wages since I hired new staff and needed to offer more. Anyways, how do you announce that rates go up? It's just for half the families and I announced a few weeks ago in a newsletter that new contracts, information sheets, and updated handbooks would be available in January. I guess I am just nervous about printing the weekly rates for those few families. I also am adding 1 more paid holiday day which I planned to just add the day to the list and not specify the difference in the new contract. Do you outline the differences or just expect them to read it? I have great families and assume they will read it and hold to it, but wonder what others do. So if I hand out everyone's on Monday morning to them and put the effective date on the contract to being January 31st (Friday so the first week of February has the new rates and also covers the newly added President's Day holiday) is 3 weeks enough time? I feel it's fair but I know I could have been more generous for time frames too.
The downfall is recently I had staff turnover and illnesses and I had to close TWO days, one each week with no notice but everyone was reimbursed yet it brought burden to some families because they were already in a bind with Christmas Eve/Day and New Years Day off already. I know not to do too much at once for families or it's overwhelming but those who were burdened the most were recently enrolled so the only thing changing is adding one paid holiday.
Please share your thoughts!
1. Raising rates just by printing it in their contract or talk to them or have a "cover letter explaining changes"?
2. Giving 3 weeks for changes to take effect?
The downfall is recently I had staff turnover and illnesses and I had to close TWO days, one each week with no notice but everyone was reimbursed yet it brought burden to some families because they were already in a bind with Christmas Eve/Day and New Years Day off already. I know not to do too much at once for families or it's overwhelming but those who were burdened the most were recently enrolled so the only thing changing is adding one paid holiday.
Please share your thoughts!
1. Raising rates just by printing it in their contract or talk to them or have a "cover letter explaining changes"?
2. Giving 3 weeks for changes to take effect?
melilley 05:08 AM 01-03-2014
I didn't raise rates, but I did change some things in my phb/policy. I gave them a cover letter that summarized the changes and also wrote out an "official" handbook page that they have to sign and date and then I made a copy of it for them to staple to their old handbook. I also talked to them as I handed them the new contract and handbook/policy changes page. That way, there is no way that they can come back and say "I didn't know that". 
Also, I think 3 weeks is enough time. I put it in my phb/policies that I reserve the right to change my policies at any time and I will give them a two week notice before changes will take effect. That way I'm covered if I ever need to change anything!
Also, I think 3 weeks is enough time. I put it in my phb/policies that I reserve the right to change my policies at any time and I will give them a two week notice before changes will take effect. That way I'm covered if I ever need to change anything!
MCC 06:09 AM 01-03-2014
I raised my rates this year. I sent out a memo Dec. 1 that the Dec 30th payment would be at the new rate. I also told them if they planned on not enrolling for 2014, they needed to let me know by 12/16.
When I handed them my Phb for 2014, I did include a cover letter with all the changes.
I have in my contract that I will give them 4 weeks notice of any rates changes.
When I handed them my Phb for 2014, I did include a cover letter with all the changes.
I have in my contract that I will give them 4 weeks notice of any rates changes.
VTMom 06:28 AM 01-03-2014
I also do a cover letter with any significant changes. This year, I'm raising my rates and changing my closing time. I feel that your notice is sufficient. I'm also raising the same amount as you. In my cover page, I stated "due to rising costs, etc etc, I will need to raise rates by $1.00 per day". DH remarked that it didn't really seem like I was raising them at all when I put it that way. That was my hope!
melilley 10:46 AM 01-03-2014
Originally Posted by VTMom:
I also do a cover letter with any significant changes. This year, I'm raising my rates and changing my closing time. I feel that your notice is sufficient. I'm also raising the same amount as you. In my cover page, I stated "due to rising costs, etc etc, I will need to raise rates by $1.00 per day". DH remarked that it didn't really seem like I was raising them at all when I put it that way. That was my hope!
I like the $1 a day! It does seem lower when you put it that way..lolI also do a cover letter with any significant changes. This year, I'm raising my rates and changing my closing time. I feel that your notice is sufficient. I'm also raising the same amount as you. In my cover page, I stated "due to rising costs, etc etc, I will need to raise rates by $1.00 per day". DH remarked that it didn't really seem like I was raising them at all when I put it that way. That was my hope!
Abigail 12:00 PM 01-03-2014
Is putting a sticky note on the front of the contract starting something as simple as "Please notice the new weekly rate effective January 31st" good enough?
Not everyone has a new rate, only my 4 original families. Everyone is getting President's Day added to the closed paid holiday list too so I wonder if anyone will even notice or if I should put a note about President's Day this year?
I could even put it in my newsletter about adding President's Day then just do the sticky note for the families to take note of their new rate. Does that sound good?
Not everyone has a new rate, only my 4 original families. Everyone is getting President's Day added to the closed paid holiday list too so I wonder if anyone will even notice or if I should put a note about President's Day this year?
I could even put it in my newsletter about adding President's Day then just do the sticky note for the families to take note of their new rate. Does that sound good?
Blackcat31 12:10 PM 01-03-2014
Originally Posted by Abigail:
Is putting a sticky note on the front of the contract starting something as simple as "Please notice the new weekly rate effective January 31st" good enough?
Not everyone has a new rate, only my 4 original families. Everyone is getting President's Day added to the closed paid holiday list too so I wonder if anyone will even notice or if I should put a note about President's Day this year?
I could even put it in my newsletter about adding President's Day then just do the sticky note for the families to take note of their new rate. Does that sound good?
When I re-do contracts and policies, I personally tell each parent to read over everything carefully as there have been changes in several areas that may or may not affect them and to contact me if they have any questions. Is putting a sticky note on the front of the contract starting something as simple as "Please notice the new weekly rate effective January 31st" good enough?
Not everyone has a new rate, only my 4 original families. Everyone is getting President's Day added to the closed paid holiday list too so I wonder if anyone will even notice or if I should put a note about President's Day this year?
I could even put it in my newsletter about adding President's Day then just do the sticky note for the families to take note of their new rate. Does that sound good?
I used to give a cover letter outlining any and all changes made but IME, then the parent only read that and didn't even bother with anything else so now I am purposely vague so they HAVE to read it all to find the changes.
melilley 12:13 PM 01-03-2014
That sounds good since you're not raising rates for all families, just make sure the sticky note doesn't fall off.
I would be sure to tell them to read over everything before signing the contract to make sure they agree to the changes. That way you are covered.
I would be sure to tell them to read over everything before signing the contract to make sure they agree to the changes. That way you are covered.
melilley 12:15 PM 01-03-2014
Originally Posted by Blackcat31:
When I re-do contracts and policies, I personally tell each parent to read over everything carefully as there have been changes in several areas that may or may not affect them and to contact me if they have any questions.
I used to give a cover letter outlining any and all changes made but IME, then the parent only read that and didn't even bother with anything else so now I am purposely vague so they HAVE to read it all to find the changes.
That's a good idea! I did a cover letter and put to make sure they reread the handbook, but like you said, they probably won't do that. I know one of my parent's will not look at it for sure, she signed right when I gave it to her. Well it won't be my fault if she shows up when I'm closed and don't open the door...When I re-do contracts and policies, I personally tell each parent to read over everything carefully as there have been changes in several areas that may or may not affect them and to contact me if they have any questions.
I used to give a cover letter outlining any and all changes made but IME, then the parent only read that and didn't even bother with anything else so now I am purposely vague so they HAVE to read it all to find the changes.
Blackcat31 12:18 PM 01-03-2014
Originally Posted by melilley:
That's a good idea! I did a cover letter and put to make sure they reread the handbook, but like you said, they probably won't do that. I know one of my parent's will not look at it for sure, she signed right when I gave it to her. Well it won't be my fault if she shows up when I'm closed and don't open the door...
Yep and for that reason alone I have a spot on my contract that actually reads:That's a good idea! I did a cover letter and put to make sure they reread the handbook, but like you said, they probably won't do that. I know one of my parent's will not look at it for sure, she signed right when I gave it to her. Well it won't be my fault if she shows up when I'm closed and don't open the door...
I have read and agree to the statements and policies outlined in ABC Child Care's handbook. I fully understand all rates, payments, late fees, and scheduling procedures._______.
I was given ample time to read the handbook and was provided contact info should I have any questions. I understand that by signing this contract I agree to abide by all rules and policies set forth in the handbook. _______.
Failure on my part to fully read the handbook does not give me valid excuse to disregard any policies and rules and that I can be terminated immediately for violation of any or all of ABC Child Care's policies. _______.