Paid Holiday/Increase in Rates

[spud912]

Hi everyone,

So I'm sure this has been asked a million times over, but I'm trying to decide whether to ask for a paid holiday or an overall increase in rates from my current clients. This change would go into effect January 1st, 2013 with the roll-out of my updated contract.

As far as what I currently offer, I feel like I am definitely a step above when compared to other nearby home daycares. There are a handful of other home daycares that I feel are comparable to my services, yet they charge a great deal more than I do (at $150 plus per week; whereas my current families pay either $110 or $125 depending on when they started). My rates are comparable to average to below-average home daycares in my area. I don't mind charging what I do, however I do have to admit that I do not make any income besides having enough to pay our house payment, one bill, plus my exorbitant daycare expenses. On the other hand, I feel like I literally break the bank any time I take one day off, let alone take a vacation. I use all of our tax money to pay off debt I've accumulated over the year, leaving us with no savings or money to take time for ourselves. Again, I don't mind pouring everything into these kids because it makes my heart happy, but at some point I need to be able to afford a day off or something for myself.

With that being said, I want to incorporate either a paid vacation or increase everyone's rates. I have never once done a rate increase or had a paid vacation, so I feel absolutely terrible asking for either one. I can't help but put myself in the parents shoes, especially since I have a great set of parents! I was thinking of giving them the option of either paying for the 10 days of vacation I have planned (spread out throughout the year with 4 days in April, 1 day in July and 5 days around Christmas) or taking a $5 pay increase. I was going to address this in a letter hand delivered to each parent at pick up. Do you think this is ok or does it make me sound greedy? I need input please!

[Scout]

I think your rates are super cheap! I have seen your set up & loved your outdoor area so I would do the $5.00 increase. I take it that's pr week? That won't make or break anyone. good luck!

[nanglgrl]

I just sent out my new contracts and am crossing my fingers that none of my parents have a problem with the changes. I went from 6 to 10 paid holidays a year and if the holiday falls on a Sunday I get Monday off paid, if it falls on a Saturday I get Friday off paid. I took: New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, Christmas Eve Day, Christmas Day, the day after Christmas, and the day of New Years Eve.
The average rate in my area is about $150 a week. I charge $125 but my clients all leave at 3:30 pm instead of the normal 5:30 pm. If they are here until 5:30 pm they pay $150 so I guess I could say I charge less but only if they leave earlier. They also have to pay if they are gone (sick, vacation or personal days) and they don't get any "free" days. They don't have to pay if I close for sick, vacation or personal days although I was tempted to add a few sick days.
So far none of my parents have complained so I say do what works for you. I used to not charge if kids were sick but then I had my whole group get the flu a few weeks before Christmas but my family wasn't sick so no one was there, they didn't have to pay and I had no Christmas money. No one complained when I changed it.

I just realized who you were in the Decor group. Your set up is one of my favorites! You've put a lot into your daycare, I don't think any of your parents will complain...most are probably wondering why you didn't do it sooner!

[cheerfuldom]

I would not send out letters giving parents the options. I guarantee it is going to get confusing to keep track of people wanting and doing different things with this decision. If you go with a majority vote, someone is going to get upset that their preference was not the final decision. I really think it would be best for you to decide what YOU want and then inform the parents. Alter your contract and then give a deadline where they must be signed. It is VERY common for an established daycare provider to ask for both paid time off and a higher wage so there is nothing to feel guilty about. You dont have to feel bad for these parents! You are providing a fantastic service that is still cheaper than almost anyone else around! You have a career here and people in established careers get benefits....like paid time off and increased wages. Plus, if the parents really throw a fit about it, they can find another provider. Its not like they dont have a choice here. I will also add that in the past five years, I have never had anyone leave when I increased wages or provided more benefits to myself.

[itlw8]

If you charge an extra 7.60 per week oer child and stick it in a savings account your vacation will be paid for yet they have a week with out paying you.
I would still raise your rates. Explain part of it will pay for your days off. Th other part is a cost increase. Costs are going up and you need to raise rates just to break even where you are now

You are losing money on the old clients i would raise them more than those at 125 slowly catch them up.

so maybe raise those that pay 125 $13 a week that is 8 for vacations and 5 cost increase

Those that pay 110 raise them 15 a week slowly they will catch up

Make it clear only part is a cost increase and they will not have to pay when you take a week off.

The advantage to this is if a family leaves they have already paid for your vacation.