Am I Charging Too Much?

[KDC]

So, my daily rates for full time are $45/day for 18 months +, and $50/day for 18 months and younger. I am open 7-5:30, they are allowed to come and leave anytime within these hours.

I always struggle with pricing part time. I think I started too low with one family. They are (I know a big no-no) my neighbors which have become our friends. They have 2 children. One Kindergarten age 5 child (1/2 days) and one 3 yr. old, full days.

They will drop off both children at 7, I will feed them breakfast, get the kindergartener on the bus at 8:15, get Kindergartner off the bus at 12:20. I will feed him lunch and he will be in my care until 5:30. I also did some stupid sibling discount when they started so the 3 yr. old is only at $40/week. Oh, and they only come 3 days a week (Tuesday, Wednesday & Thursday).

I called around and 6 hours at any center would be considered full time, and have to follow a full time rate. Also anything less that 4 days a week is considered part-time and the rates are higher. Also they are a teacher family so I don't charge them summers (even though it would DEF help if they came even 2 days a week, but I'm a wuss!)

So... I thinking of charging $30/day for the DCB - Kindergarden Age, and removing the sibling discount to charge $45/day for the DCG. Because they're our friends, I don't want to rock the boat... this is $30 a week more than they're currently playing, but I think it's what's fair? They got a discount last year... They've reduced their hours by 2 1/2 days, so overall they'll still be paying less than they did last year? Is this fair? Do I need to explain to them why the hike?

[DaisyMamma]

It sounds fair to me. I'm sure they are well aware that they are getting a big discount from you. Just let them know that you've been giving them a big discount and it is really hurting your business. You are sorry, but you will have to increase their rates as follows... and then also make sure you let them know that they are still saving X amount as you are not charging the full rate for the older boy.

[Crazy8]

obviously whether or not you are charging too much can only be determined by your geographic location but for this family - you are saying they pay $13/day for the 3 year old???? I don't see where you say how much for the kindergartener??? Is he at the $45/day rate??? If that's the case they are paying $175/week for the 2 kids now?? And you are looking to have them pay $225/week?? While I think that sounds fair I'm not sure mom will look at a $50/wk rate increase the same way. I would give them some notice simply explaining that you are doing away with the sibling discount but because the kindergartener will be gone part days you are lowering their rate to $30/day (from the usual $45/day).

Not sure if I have the kindergarteners rate correct though - were you charging less than 45/day for that already???

Personally, I charge $45/day for part timers and only $25/day for kindergarteners but they aren't here as many hours as yours since I am not open as many hours and I have other b/a school programs that transport kids to compete with.

[dave4him]

Wish i could get away with those prices. The only kid i have paying out of pocket is 90$ a week since he holds a full time spot even though he is only here 12 hours, and his aunt acts like that is too much