Talk Some Sense Into Me!

[EchoMom]

Please talk some sense into me and tell me if I'm being too emotionally attached to a DCfamily, or if I SHOULD fight to keep these great clients???

My rates are slightly high but fair for my area. DCM has brought her baby to me for the last 8 months and it's been mutually terrific. She is very pleased with my care, and I'm very pleased to have her. She always pays, never any conflict, good parents, good baby, perfect ideal family you'd hope for.

She is having a 2nd baby extremely close together. The babies will be 3 months and 17 months. She is considering going elsewhere to find someplace more affordable than me, but she doesn't want to give up the quality of my care.

She currently pays $150/week full time for her 1 baby (baby 2 not born yet). BUT I am raising my prices in Jan. to $200/week (this is for SURE happening). So it would be $200/week for EACH baby, aka. $400/week.

In my area, this is still cheaper than a center, still cheaper than a nanny, infant care is in HIGH demand. I know that if I let her go I can fill her spots in a second. I seriously DOUBT she will find anyone else that can take her TWO babies, and no one that is quality will be much cheaper than me.

Should I be willing to lose her, or should I make a deal with her in order to keep excellent customers???

[EMC2]

Just my 2 cents...advise her of your upcoming price increase, then offer to keep her at the current rate. If she still needs to leave, then let her...she may end up coming back. You have a business and need to keep your prices to keep up with your high quality service. Don't sell yourself short.

Hope that helps,
-Gerry

[Country Kids]

Here's how I look at it-if they were from seperate families they would pay the $200 a week because they are taking a spot.

Now you need to ask youself, because they are siblings are you working less requiring less pay? Just because you buy two of something at the store you don't receive a discount-even on large items unless there is a sale.

[Meyou]

I would charge her full price. You have to do the same amount of work.

[Kaddidle Care]

I personally feel that going from $150.00 to $200.00 per week is a HUGE jump. Is she aware of the price going up already?

[Crazy8]

while I agree with not giving sibling discounts, can I ask why if you say your rates are slightly high for your area why you are raising them $50/week??? That is a steep price increase and I would think any family would have issue with such an increase - especially if your $150/week was already on the high side for a home daycare.

If you know you can get the $200 per child easily by replacing them AND you would regret making $100 or more less per week by keeping this family then you should just give her your new rates and no deals and let her look around and decide if she's willing to leave. For me personally, I love my dc families and would be ok with the less money to keep the family, I never raise rates on current families - but I know many providers don't roll that way.

[countrymom]

I personally feel that going from $150.00 to $200.00 per week is a HUGE jump. Is she aware of the price going up already?

I agree with this, I can see maybe 10 dollars increase but 50 dollars, thats alot. Thats 40 dollars a day, no one charges that here, not even the city run daycares.

[EchoMom]

I agree with this, I can see maybe 10 dollars increase but 50 dollars, thats alot. Thats 40 dollars a day, no one charges that here, not even the city run daycares.

My prices right now are $150/week for all ages the same price. This is a fair amount for the over 2 year olds, but is way too low for infants and children under age 2. I have 2 daycare centers one block away from me and both are full for infants, no room, waiting lists to get in and they charge $250 a week.

I am raising my 2+ prices by only $10. From $150 to $160/week in January, after I have been in business for 1 year. This actually isn't an increase at all since I started doing meals and that's included in the new $160. But for the under 2 year olds I am raising prices from $150 to $200 because I underpriced myself too much in a rush to get my business started.

[EchoMom]

I personally feel that going from $150.00 to $200.00 per week is a HUGE jump. Is she aware of the price going up already?

Yes she is aware of the price going up, it will not go up until January when I've been in business for one year. I think if it were just the price increase she'd be ok with it. But the fact that she's having a second baby so so close together makes it really expensive.

[SilverSabre25]

WOW $200 a week for infants? I'd do infant-only care in a heartbeat if I could get paid that much. Actually, even $150 is more than I'm able to get! I opened charging $140/week and had to drop that a year later to $120...and I have a TON of trouble getting people to pay me even that!

Let me know where you live and if there are any homes for sale in your area.... I'm kidding.

Kind of.

Would be totally serious if I thought we could sell our house...

[MN Day Mom]

I have rarely over the years raised my rates on current families. If you really want to keep this family, maybe you could consider letting the older child have the 2+ rate come January?

[momofsix]

I have rarely over the years raised my rates on current families. If you really want to keep this family, maybe you could consider letting the older child have the 2+ rate come January?

This would be a good compromise since the older one would be 2 in half a year anyhow.
I don't raise my rates either on current families. Once they're given a price, that's it until their child ages out. I charge new families higher rates than old families.

[Blackcat31]

A fellow provider I know enrolls children at one rate. That child stays at that rate the entire time they are enrolled in her program. New children (including siblings) are enrolled at whatever the going rate is when they enroll.

So in your case, first child would stay at $150 and second child would enroll at $200 per week.

I think it is a nice way to build a professional relationship with a family.

I guess I don't know your reasoning for the rate increase as that is often a very personal issue but I too, think the jump from $150 per week to $200 is a HUGE increase and I can see why you might be concerned about this parent not being ok with it.

But there are times where the family is so golden that it is well worth making a deal with them on rates simply because they are so easy to deal with and the kids are so easy going. That is one of the beauties of being self-employed...we get to make those kinds of exceptions when we want to.

[momma2girls]

Maybe go to $170.00 or $175.00 for infants.

[EchoMom]

Good idea, that's what I was thinking too, of offering the 17 month old to stay at the 2+ price of $160 and the new baby to be at the $200 price.