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Daycare Center and Family Home Forum>Raise Rates Yearly? Or Lower When They're Older?
LaLa1923 03:11 PM 05-06-2013
When do you raise your rates? Yearly? For everyone?
Do you lower your rate when infants get older??
For instance, my infant rate is $225. Would that rate get lower when they are two or stay the same??
Do you lower your rate when infants get older??
For instance, my infant rate is $225. Would that rate get lower when they are two or stay the same??
MNMum 03:16 PM 05-06-2013
I think this can be regional. I have different rates for different ages. I think that is standard in my area. I didn't raise my rates this year, but may in 2014...
nannyde 03:16 PM 05-06-2013
I would never lower rates as they get older because they get harder as they get older.
MarinaVanessa 03:26 PM 05-06-2013
Originally Posted by LaLa1923:
When do you raise your rates? Yearly? For everyone?
Do you lower your rate when infants get older??
For instance, my infant rate is $225. Would that rate get lower when they are two or stay the same??
I charge the same rate flat along the whole board. I don't charge more for infants or for SA. I just figured what the hardest child age would be ... as in what age group would be most difficult ... then I figured out what I wanted to charge and charge everybody the same rate. When do you raise your rates? Yearly? For everyone?
Do you lower your rate when infants get older??
For instance, my infant rate is $225. Would that rate get lower when they are two or stay the same??
Infants take a lot of time but SA's need a lot of supervision and use up a lot more supplies and meals so if I would charge each age range a different amount based on the amount of work and amount of supplies they'd need I'd end up charging an amount for infants, lowering it when they became toddlers/preschoolers and then raising it again when they started school. I'd rather make it easier on me and charge everyone the same.
I raise my rates almost yearly, it just depends on the economy. I usually just raise my rate for new clients unless a current client goes from PT to FT or from FT to PT.
LaLa1923 03:48 PM 05-06-2013
Originally Posted by MarinaVanessa:
I charge the same rate flat along the whole board. I don't charge more for infants or for SA. I just figured what the hardest child age would be ... as in what age group would be most difficult ... then I figured out what I wanted to charge and charge everybody the same rate.
Infants take a lot of time but SA's need a lot of supervision and use up a lot more supplies and meals so if I would charge each age range a different amount based on the amount of work and amount of supplies they'd need I'd end up charging an amount for infants, lowering it when they became toddlers/preschoolers and then raising it again when they started school. I'd rather make it easier on me and charge everyone the same.
I raise my rates almost yearly, it just depends on the economy. I usually just raise my rate for new clients unless a current client goes from PT to FT or from FT to PT.
I know your in a different area but what are your rates? What are the rates in your area and how did you come to that??I charge the same rate flat along the whole board. I don't charge more for infants or for SA. I just figured what the hardest child age would be ... as in what age group would be most difficult ... then I figured out what I wanted to charge and charge everybody the same rate.
Infants take a lot of time but SA's need a lot of supervision and use up a lot more supplies and meals so if I would charge each age range a different amount based on the amount of work and amount of supplies they'd need I'd end up charging an amount for infants, lowering it when they became toddlers/preschoolers and then raising it again when they started school. I'd rather make it easier on me and charge everyone the same.
I raise my rates almost yearly, it just depends on the economy. I usually just raise my rate for new clients unless a current client goes from PT to FT or from FT to PT.
MarinaVanessa 04:06 PM 05-06-2013
Originally Posted by LaLa1923:
I know your in a different area but what are your rates? What are the rates in your area and how did you come to that??
Rates fluctuate from $100/week (low-income part of the city) to over $200/week in my city (high-income). My rates are $165/week which is just typical for what I offer (educational activities, child-led, educational toys, training/education etc. I know your in a different area but what are your rates? What are the rates in your area and how did you come to that??
When I first started I started at $155/week and I quickly found out that I was charging too low for what I offered. I raised my rate for new clients within 6 months or so of opening to $160. Just this year I reached $165. I came to this amount by figuring out what I need in order to stay afloat on my bills with 3 clients. Everything else that I make is extra play $$.
cheerfuldom 04:14 PM 05-06-2013
my price is the same no matter the kids age. i think infants can be hard because of the crying and nap issues at time but older kids can definitely get into a lot of trouble quickly.
mom2many 04:15 PM 05-06-2013
I charge $40/day whether they are 6 weeks or 4 yo. However, once they start school, I drop my rate to $30 for all s/a dcks.
blandino 04:38 PM 05-06-2013
Originally Posted by nannyde:
I would never lower rates as they get older because they get harder as they get older.
Ditto. I would venture to say that my 3&4 year olds are more work than my 1 year olds. I think it's easier to change diapers and give bottles, than some of the "work" associated with preschoolers. I would never lower rates as they get older because they get harder as they get older.
My rates do not go down at any age.
bgmeyers 04:40 PM 05-06-2013
I charge more for infants (under 2 years) only because the demand is high and I am limited in how many I can have by licensing.
I also raise my rates by $1 per day every year across the board.
I also raise my rates by $1 per day every year across the board.
JoseyJo 04:53 PM 05-06-2013
Originally Posted by blandino:
Ditto. I would venture to say that my 3&4 year olds are more work than my 1 year olds. I think it's easier to change diapers and give bottles, than some of the "work" associated with preschoolers.
My rates do not go down at any age.
Ditto. I would venture to say that my 3&4 year olds are more work than my 1 year olds. I think it's easier to change diapers and give bottles, than some of the "work" associated with preschoolers.
My rates do not go down at any age.
Wow! I wish our market here would allow that. The market here is $125-200 for infants and 80-130 for 18 months to 6 years. I wish I could charge infant prices for my preschoolers and get away with it.
LaLa1923 04:59 PM 05-06-2013
Originally Posted by JoseyJo:
Wow! I wish our market here would allow that. The market here is $125-200 for infants and 80-130 for 18 months to 6 years. I wish I could charge infant prices for my preschoolers and get away with it.
Me too! I'd like to charge one rate for all spaces. The average here is $225 for infants, $175 for toddlers, and $100 for before and after school. Wow! I wish our market here would allow that. The market here is $125-200 for infants and 80-130 for 18 months to 6 years. I wish I could charge infant prices for my preschoolers and get away with it.
Now I don't know what to do!!
littlemissmuffet 05:00 PM 05-06-2013
Originally Posted by nannyde:
I would never lower rates as they get older because they get harder as they get older.
I would never lower rates as they get older because they get harder as they get older.
Agree 100%.I charge the same monthly fee for everyone, regardless of age.
I raise rates EVERY September, for EVERYONE!
LaLa1923 05:05 PM 05-06-2013
Originally Posted by littlemissmuffet:
Agree 100%.
I charge the same monthly fee for everyone, regardless of age.
I raise rates EVERY September, for EVERYONE!
What do you raise it? How did you come up with your rate? Agree 100%.I charge the same monthly fee for everyone, regardless of age.
I raise rates EVERY September, for EVERYONE!
blandino 05:24 PM 05-06-2013
Originally Posted by JoseyJo:
Wow! I wish our market here would allow that. The market here is $125-200 for infants and 80-130 for 18 months to 6 years. I wish I could charge infant prices for my preschoolers and get away with it.
That is a huge difference between infants and toddlers/preschoolers !! In OK, anyone under 2 takes a "infant spot". So that is the age when rates tend to drop some. Locally infant daycare is 140-205 (the low end being home daycare, and the high being a center) and toddlers & preschoolers are $125.00 (home) -160.00 (center). So not nearly as big of a gap between infants & toddlers. My rates are $150.00-$160.00. Wow! I wish our market here would allow that. The market here is $125-200 for infants and 80-130 for 18 months to 6 years. I wish I could charge infant prices for my preschoolers and get away with it.
Locally, all commercial daycares reduce rates with age. So by the end of a child's daycare time, the commercial daycares have reduced their rates to somewhere around where ours are for children the same age. I figure, even though our rates for preschoolers are about equal with a center, parents have saved a ton of money at the beginning of their child's time in daycare, versus a center. So they still wind up saving money over a daycare that reduces rates as children age.
melilley 06:13 PM 05-06-2013
I charge the same rate for all ages. Licensed home childcare's around me charge anywhere from $120 to $145. Some have different rates for different ages, but the majority have the same. I am at $130-I just kind of averaged it, but I just opened in January and I think I'm going to raise my rates if I lose any kids and get any new families. Now that I have been open for a few months and from interviews (I still offer to have them even though I am full -just in case) and hearing about some of the other home day care's around me, I believe that my program offers a lot more than some and I feel that I short handed myself so therefore a "raise" is in order. 
And I have been checking out CL to see what the other providers around here offer. Some sound really professional and homey at the same time and some just sound plain unprofessional and not so homey-if that makes sense. Sorry I am going way off subject!
Now, as for the bigger corporate day care's around here, they all charge more for infants with the average being $250 a week and rates go down after they are 2 1/2 to around $180 and then go lower for SA I believe.
One thing to think of is that if you have your rates set higher for infants, you will be used to getting that income. Now when they get older and your rate drops, your income will also drop unless you can get another infant to make up for it-depending on what ratios you can have you may not be able to do that. Someone gave me that advice a while ago on here and it made me think!
And I have been checking out CL to see what the other providers around here offer. Some sound really professional and homey at the same time and some just sound plain unprofessional and not so homey-if that makes sense. Sorry I am going way off subject! Now, as for the bigger corporate day care's around here, they all charge more for infants with the average being $250 a week and rates go down after they are 2 1/2 to around $180 and then go lower for SA I believe.
One thing to think of is that if you have your rates set higher for infants, you will be used to getting that income. Now when they get older and your rate drops, your income will also drop unless you can get another infant to make up for it-depending on what ratios you can have you may not be able to do that. Someone gave me that advice a while ago on here and it made me think!
melilley 06:17 PM 05-06-2013
Oh, I also did what MV did. I thought of what I needed to make by filling a minimum of 3 full time openings to be able to pay bills and that was a factor. The other 2 spots I wanted only PT kids just because I wasn't sure how it would go. I worked in centers for 14 years prior to opening my home and knew it would be way different doing it myself versus having others there to help.
LaLa1923 07:01 AM 05-07-2013
Originally Posted by melilley:
Oh, I also did what MV did. I thought of what I needed to make by filling a minimum of 3 full time openings to be able to pay bills and that was a factor. The other 2 spots I wanted only PT kids just because I wasn't sure how it would go. I worked in centers for 14 years prior to opening my home and knew it would be way different doing it myself versus having others there to help.
This gave me a lot to think about. Only thing is everything I make is extra, but I like being able to have one flat rate. Oh, I also did what MV did. I thought of what I needed to make by filling a minimum of 3 full time openings to be able to pay bills and that was a factor. The other 2 spots I wanted only PT kids just because I wasn't sure how it would go. I worked in centers for 14 years prior to opening my home and knew it would be way different doing it myself versus having others there to help.
hmmmm.
littlemissmuffet 12:13 PM 05-07-2013
Originally Posted by LaLa1923:
What do you raise it? How did you come up with your rate?
Every year I call about 15 dayhomes and centers to get an average. If I am lower, I will raise it to be closer to what the average is. If I am the same or above, I will only raise it slightly. I charge monthly, so an annual increase can be anywhere between $10 and $50/month.What do you raise it? How did you come up with your rate?
Blackcat31 12:30 PM 05-07-2013
I charge the same base rate to ALL children.
The additional fees come with additional hours, additional expectations and additional work.
Otherwise each age seems to have it's own set of issues or things that are hard and easy.
I no longer take SA kids but I do think they are far more work than any group of toddlers or preschoolers hands-down.
The additional fees come with additional hours, additional expectations and additional work.
Otherwise each age seems to have it's own set of issues or things that are hard and easy.
I no longer take SA kids but I do think they are far more work than any group of toddlers or preschoolers hands-down.
wdmmom 12:41 PM 05-07-2013
I used to do 1 price increase per enrollment. Now I don't do any increase or decrease unless their need/hours change.