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Old 11-19-2018, 07:54 PM
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Default Rate Increase

Hi everyone, I just realized that my rate is quite below the norm in our area and considering to do an increase next year. Just curious to know How do you handle rate increase? How much is a decent increase? How do you often do it? Will you increase some families and some are not? Will you increase the families just started 6 months ago just to go with the rest? Thanks in advance.
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Old 11-20-2018, 04:28 AM
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I have it in my contract that fees are evaluated each November for a rate increase Jan 1. I'm raising mine $10/ week per child. If you are really below your area's average ($15-20/ week per child less) I would consider phasing it in over 2-3 months for existing families. New enrollees would start at the higher rate.
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Old 11-20-2018, 06:32 AM
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Current clients won't care that you did not know your competitor's rates so it is likely you may lose them if you go higher than they can afford.

I generally started new families at the desired rate and increased current families $5 per week, per year. Most age out in under 4 years ($20 increase, tops ), so if you need a quicker increase, be prepared to fill every slot.
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Old 11-20-2018, 07:12 AM
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I also start new families with the new rate. It is just easier.
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Old 11-20-2018, 07:13 PM
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I raise my rates regularly, but only for incoming clients.

I have some families paying $30 a week more than others.

I offer clients the same price for life as long as payment is current, policies are followed and enrollment doesn't stop (ie: they can't leave for a year and then sign up again at their old price)

It keeps clients from looking elsewhere. They know they may possibly find someone cheaper...but for how long? So they stay with me. As kids age out (I am licensed for 16) they are replaced with higher rate kids.

It works for me.
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Old 11-21-2018, 03:55 AM
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I was at 105 a week for many years then found out the going rate for home dcs was 125-135. What I did was send home a newsletter explaining my planned rate increase and the reasons for it. At the time I raised all the dcfs $5 a week every 6 months until I hit 125. Then my 2 newest dcfs I raised to 130 a week and all my incoming dcfs now get the rate of 135. I made sure I gave my dcfs plenty of notice because these were long term families and some had 2 dcks enrolled. I didn't have anyone leave and feel much better about my value and worth.
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Old 11-21-2018, 09:19 AM
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I raise my rates every couple of years but only for new incoming families. I also stopped giving sibling discounts.
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Old 11-21-2018, 08:28 PM
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I only raise for incoming families, but you don't get to step down when your infant turns 2 either. What you start at paying, is where you stay.
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