Advice please!!!

[mbullette]

I need some advice. I need to raise my rates in order to keep doing this out of my home. Both my husband and I are in school full time along with working full time. My husband is in nursing school and his hours are going to be cut with his clinicals starting. I need to make up the difference that he is not going to bring home weekly. My choice is either to raise my rates or get a job outside the home. I love what I do so I want to keep doing this. I don't know how to tell my families without making it seem like I am money hungry or desperate. I had some families just start at the end of last year and I don't want to look bad. My rates are very low for my area. I am fairly new to this all. I just want to sound professional and not desperate. I have not raised my rates at all since any of these families have started.

[Hazel]

I'm not sure what to tell you since in the 10 years I've been doing this, yes I have raised my rates, but the way I do it is raise them for incoming families. So eventually, with turnover, I now have everyone at the higher rates. I recently changed my rates again, charging more part timers... 4 or 5 days one price, 2 or 3 days $5 higher per day. I havent had any new kids yet coming part time, so I haven't had to implement the new rates .... Yet!
Hope someone has some ideas for you! Good luck!

[cheerfuldom]

Raising your rates is not something to feel guilty about. you are already low for the area and providing quality care, so there is nothing wrong with being compensated for that.

Do you have a plan of what you will do if someone doesnt like the rate? Are you able to get replacements easily?

How much are you wanting to raise it? It seems in general that more than $10 a week rate increase for full timers is going to be more hard to do but even at that rate increase, you will be getting an extra $40 per kid.

As for how to do it, just write a simple and short letter that lets them know what the increase is and when it will begin (usually two weeks out). Have them sign a new contract or at least an ammendment to the contract. If they do not return the signed item, then their two weeks notice would immediately start and care would end on X date (usually another two weeks). So if they dont want to do the increase then care would for sure end at four weeks from the date you send out the letter. That is plenty of time to find a new provider.

[ashleyh]

Aside from opening a daycare this spring I also own a photography business and had to raise rates so I can understand what you mean about the positioning of it so it doesn't effect customers a certain way. Feel free to use this and change the parts that apply to your daycare!

What it does- States how long you've been in business, how it effects you, what you have done for your customers, what will be different in the future, how this affects the clients, and a way out to someone else if the rates are not something that works for them. I hope this helps.

This is how I said it:

With four years of an active business I finally understand where I actually am in this and have a clear path of how things will be in the future for you. As a photographer many of us have a passion to share our portraits with little want in return. As a *** photographer I have kept costs low to spread my passion of photography a long to you. After much reflection I have a clear path of goals for this business.I am opening my calendar to accept *** Photography, and *** Photography in *** City, and local areas such as *** and the surrounding communities. Starting now service will evolve to greater serve you with more personalized service, communication, and value. Because of this rates will change to sessions of $XX with portrait collections beginning at XX. Clients whom have already booked have no need to worry of rates changing. Going forward booking will see the new rates. I value clients who will stick with me through this change however if someone feels this may not be for them I will gladly refer them to another photographer whom will be in line with their needs.

For those who will stick around I say thank you and look forward to our sessions in the future!