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Old 11-12-2012, 10:57 AM
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Default Raising Rates Over A Few Months

Has anyone else done this, my rates were way under what they needed to be for all the extras I offer, so in November I raised them and notified my families there would be an additional increase in early 2013. They were extremely understanding about the first increase but I'm really nervous about the second. My rates will still be under all the centers and will be similar to the other licensed homes (there are very few near me). But I'm still worried. From my original rate to the second increase it will be an overall increase of 12.5%.
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Old 11-12-2012, 01:31 PM
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I only do one per year (every September) - I wouldn't do two so close together, but that's just me. I would feel like parents would be concerned that I would be increasing fees on a very regular basis and scare them off.

I usually increase fees by $40-80 a month each year, depending on my areas average and increases in cost of living.
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Old 11-12-2012, 02:00 PM
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I'm not sure how much your rate increase was but typically clients don't like a lot of rate increases so unless you plan on letting them know now exactly how high their rate is going to go and at what rate you plan on stopping I'd wait until next year for another rate increase.

Meanwhile if you get any new clients start them at the rate you want to be at and the others can eventually catch up. If any full time clients go to part time or if part time clients go to full time you can start their new contract a little higher or perhaps at the rate you are hoping to have.

So for example if you charge part-timers $90 per week but are hoping to charge $100 per week and charge full timers $125 per week but are hoping to charge $140 and you have one part timer hoping to go to FT and one full timer hoping to go to PT have their new contracts reflect the $100 per week for part-time and $140 per week for FT.

At the end of next year you can do another rate increase until everyone is paying what your goal rate is.
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Old 11-12-2012, 02:15 PM
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Quote:
Originally Posted by littlemissmuffet View Post
I only do one per year (every September) - I wouldn't do two so close together, but that's just me. I would feel like parents would be concerned that I would be increasing fees on a very regular basis and scare them off.

I usually increase fees by $40-80 a month each year, depending on my areas average and increases in cost of living.
I agree

I plan my bills by the year (debt calculator plan), as a parent if I felt you were constantly changing things on me, I'd be gone.

I do mine in January each year.
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Old 11-12-2012, 04:57 PM
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They were already told about the additional increase and that rather than making a big jump I wanted to make two smaller jumps. But I don't think I will do that again. All new clients are are the full new rate. I will tell them no additional increases in 2013 and there is no reason for an increase after this because it addresses all the expenses I didn't understand when I started and set the rate.
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Old 11-12-2012, 05:02 PM
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Originally Posted by Cat Herder View Post
I agree

I plan my bills by the year (debt calculator plan), as a parent if I felt you were constantly changing things on me, I'd be gone.

I do mine in January each year.
I'm not constantly changing things? My rate was too low and my parents actually said they agreed, I broke the increase up into two smaller increases to ease the financial burden on them, not me. I told them there would be a sumolar increase in early 2013, but there won't be any other changes.
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Old 11-12-2012, 08:39 PM
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I'm not constantly changing things?
I read your OP to say two rate increases in 3 months time. 1st in November and the 2nd sometime between Jan and Feb?

If I was not made aware of that prior to enrollment, I would feel that way.

You should have nothing to worry about since you did tell them.

I was building on what littlemissmuffett said (that is why I quoted her), not so much directed at your op.
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