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Old 10-14-2011, 11:29 AM
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Default Cover Letter For Rate Increase

Im getting ready to increase my rates (rather change my policy where current families pay for the day as long as Im available). I am also adjusting a few policies as well. Do I need a cover letter for the packet highlighting the policy changes & reasons for the rate changes?

Also I am tossing around the idea of using a parttime/fulltime rate. This is the system my county subsized program uses. Does anyone use a pt/ft rate?

a little background:
3/6 dck are on a daily rate. when theres no school, sickness, or when mom/dad doesnt work- I get burned.

Options I am tossing around:

1- pay the 25/day regardless of attendance as long as I am available.
2- pay XX for 1-19 hours of care per week or XX 20-45 hours per week.

TIA!!!
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Old 10-14-2011, 11:47 AM
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i charge a daily rate x teh number of days that the child is present. Never less than three days a week. so lets say 50 a day x 3 weekly rate is 150.00 parents are paying for a slot here in my childcare, not for the time used. Sorry I meant to say two to 3 days a week

Last edited by daycare; 10-14-2011 at 11:53 AM.
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Old 10-14-2011, 04:02 PM
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I went for simplicity.

One rate, per week, regardless of attendance. (monthly bills+$200 retirement/6 slots, for me)

I give them 2 weeks vacation, per family, per year, unpaid. I do require them to give me a 30 day notice so I can I budget around them.

I do not charge them for my two weeks vacation each year. I have my calendar available through 2013, currently, so budgeting requires little to no effort.

I do take all National Holidays that fall during the week, paid. I get no argument for this since I meet them halfway with scheduled vacations.

It really has made life more peaceful.
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Old 10-15-2011, 11:02 AM
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I like catherders policies .... BUT i would cut back on their vacation time. I did one week unpaid and up to 3 days at half rate. and for next year, I think I am just going to offer the one week unpaid. Parents also pay for major holidays and I do NOT get paid for my vacations/closed days.

I used to do it just like you did (just pay for the days you use) and last year in November I got royally screwed (I was supposed to have 8 kids/day for 5 days, so 40 spots. Because of illness and parents vacation time I ended up with 15 spots paid for AND I had to pay my assistant since she had been scheduled because we were out of ratio! - I paid out money that week to stay open and I realized very quickly that I couldnt keep doing that!)

Yes, I would do a cover letter to explain that some of your policies are changing But I would NOT highlight them. I wouldnt point out something that parents might not even think is an issue (and although I was so terrified of parents pushing back on my policy change, I only lost one family because of it and I was glad when they left! Now my new families expect to pay for the week regardless of whether their child attends. And some have even offered to pay me for my vacation time!)

Let me see if I can find my cover letter for next year and I will post it for you
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Old 10-16-2011, 06:35 PM
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Default Thank you!

thanks for the responses! some great info!

My next question is: Do I need to include in the cover letter an explanation of why my rates are changing? I can see where if i explain they might have the oh yeah that makes sense. Yet part of me says no explanation. I dont know.
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Old 10-16-2011, 07:40 PM
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No, the simpler the better... If you explain it you are giving them reason to push back and if you point it out specifically then again you are opening yourself for push back. I found the letter that one of the other providers wrote for me (I think it was DCMOM).

Hi Everyone,

It's that time of year when rates/policies are updated and contracts are signed!

Attached is my new policy handbook. Please to be sure read it carefully, as I have made some significant changes to my payment policies, late fees, holidays (insert whatever you want say here). If you have ANY questions or need any clarification, please do not hesitate to ask me. This copy is yours to keep for future reference.

I have also attached my copy of your contract signature page which outlines your new rate which goes into effect (insert date you choose). Please sign and return to me by (insert date here). This copy is for my records; your copy is included with your policy handbook. Please don't forget to initial that you have received and read your policy handbook

I look forward to working with you in the new year and as always if you have any questions or comments please do not hesitate to talk to me~

Thank you for your business,
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Old 10-16-2011, 07:47 PM
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The one that I ended up using was much simpler (I used the one below for 2 of the families and one of them pushed back about everything, so I modified it). I can't find the other one on my computer but it was something like this:


Hi Everyone,

It's that time of year when rates/policies are updated and contracts are signed!

Attached is my new policy handbook and new contract. The new contract goes into effect 01.01.2011. Please sign my copy and return to me no later than 12.01.2010.

I look forward to working with you in the new year and as always if you have any questions or comments please do not hesitate to talk to me~

Thank you for your business,
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Old 10-17-2011, 11:10 AM
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Default Thanks!

These are great! Thanks! I really appreciate it
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