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  #1  
Old 07-22-2011, 06:30 AM
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Question Confrontation Problem

I will avoid confrontation if at all possible. Today I'm sending out an increase rate letter to a parent. I'm nervous about handing it to her and just thinking about putting it in the child's take home bag but I know that's not professional of me. I'm nervous on what to say when i give her the letter.I'll freeze and say something stupid or give in if she says something. How do you guys give letters like that home?
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Old 07-22-2011, 06:36 AM
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Make sure you're clear in your own mind about the reasons for your rate increase - i.e., costs of doing business going up, etc. Maybe practice what you are going to say before you hand it to her. Tell yourself over and over, "I'm a professional, my services are worth every penny." Then hand it over, tell her whatever you've prepared, and say it with a smile!

Good luck.
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Old 07-22-2011, 07:23 AM
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You really need to hand it to her in person.
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Old 07-22-2011, 07:29 AM
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Yes, hand it to her. You know you are worth the increase!
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Old 07-22-2011, 07:32 AM
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In the beginning, I raised a few clients rates. I would draw up a paper and tell them that their rate is going up effective (date). I would usually give them a 6 week notice. I've never had a parent leave because the rate increase was $10 a week and they were all fine with it.

As long as your increase isn't over the top, you really shouldn't worry about them leaving.

Also...when I raised rates, I did because there have been price hikes across the board and unfortunately I have to pass on some of the additional expense. (Gas, food, utilities, etc.)

Put the letter in an envelope, seal it and put the parents name on it. Hand it to her in person and tell her, "This is for you" right as they're walking out the door.

(What is your reason for the price increase? Is this for everyone or just 1 family?)
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Old 07-22-2011, 08:19 AM
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just one family cause when i started, it was a low price. Since we were new to the daycare business we didn't know where to start. Then I found Daycare.com and found the price was a little low. So after that family started i raised the price. I just want this family to pay the same as the others.
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Old 07-22-2011, 08:41 AM
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I agree, you should hand it to her and just let her know the reason. And I did the same thing, I just started so my rates are pretty low but now I'm full and plan on increasing my rates a bit later on.
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Old 07-22-2011, 08:43 AM
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Don't feel bad about increasing rates. I think we have all lowered prices or offered discounts to get people in the door.

Hand her the letter on the way out the door. Hopefully the rate increase isn't enough to cringe at and you've given ample notice.
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  #9  
Old 07-22-2011, 09:08 AM
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Default Tell her as you hand it to her, before she is on the way out the door.

I wanted you to know that we have had to do a rate increase to bring your tuition to our current rate. I know you got an earlier rate and we appreciate your joining us as we opened, but we really need to be consistent an keep up with expenses. This letter explains all of that and I will be available to talk to you about it tomorrow if you like.

Also - be clear about the fact that you will not do this often, but that you do need to do it now.
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Old 07-22-2011, 09:16 AM
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its for the first week in Sept. I'm giving it to her today. Is that enough notice?
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Old 07-22-2011, 10:24 AM
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Yes...you are giving her 5 weeks. I'd say that's a good amount of time.
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Old 07-22-2011, 10:37 AM
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I have done rate increase and I found that just giving a honest staright forward answer is best. EX: I must increase rates to reflect the increased prices of the economny to cover my cost of food, supplies, cleaning, daycare insurance etc. etc. etc. and say no more...

Parents understand that the economy is ever changing and that we must change with it in order to survive....

Don't say, well I have to raise your rates to meet the other local provider rates or becuase I need to raise your rate to match all others in the Daycare.

sorry for all the spelling errors im on my phone...
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Old 07-22-2011, 10:42 AM
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Quote:
Originally Posted by daycare View Post
I have done rate increase and I found that just giving a honest staright forward answer is best. EX: I must increase rates to reflect the increased prices of the economny to cover my cost of food, supplies, cleaning, daycare insurance etc. etc. etc. and say no more...

Parents understand that the economy is ever changing and that we must change with it in order to survive....

Don't say, well I have to raise your rates to meet the other local provider rates or becuase I need to raise your rate to match all others in the Daycare.

sorry for all the spelling errors im on my phone...
I agree with this. Don't use the others in your daycare - just give the facts. Don't sound wishy-washy, just state it matter of factly.

Do you have anything in your contract about rate changes? I have that rates will be reviewed every year in July and increases will take effect in September. I NEVER actually do it, but its there if I need to.
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Old 07-22-2011, 10:44 AM
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no i was never going to tell she was the only one getting the increase... Yikes.... yes, that's what i was going to tell her, now that ALL the kids are on table food and the cost of food and other expenses.
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  #15  
Old 07-23-2011, 08:42 PM
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I increased my rates for one child only, because he was way more work and far more difficult than everyone else and it at least made me feel better to know that I was getting paid more for him (though I love him dearly and he can be so sweet sometimes.) I sent a note home in his bag but said to his mother at pickup that there was a note about rate increase. No explanation at all, just as of ... date the rate will be ... Made me nervous that I might lose him. Made me sort of excited that I might have the relief of not having to deal with him! They stayed, they pay more than all others, and he's growing and learning and he's getting there!
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