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I have seen a few providers post about this and was curious if there has ever been a time when parents shared rate info? I want to bring in new clients at a higher rate than my older families but I am worried how to do it without causing potential issues. What have other providers done that worked / didn't work. I figured it would be easier to do it this way than have an actual increase.
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My contract/handbook states "Rates are dependent on each individual family's needs and situation".
So basically ALL my families have a different rate.
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I took on a new family and raised my rate for the 1st time. I had NO IDEA that they knew another one of my daycare families!! They didn't realize it either until it was already a done deal. I wondered uh oh, what will happen if they realize they are paying more? It has not been a problem at all, I have no idea if they have discussed it or not...I figure, I started lower than I really wanted to just to get full and if asked I would just tell them this is my new rate, nothing more really needs to be said ya know?Comment
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I don't stress over it. My newer clients pay more because my rates go up as time goes on. I don't raise rates. I just charge more on new families. It cycles through.Comment
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That should smooth it over. Hopefully you have added something in your contract that addresses your pricing policy so that you can easily shift the conversation and refer them to the manual while assuring them what will/will not happen with their rates should your price increase.
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OK I removed tuition rates from the handbook, and put in it is based on individual needs etc. I have always had contracted times so I am just sticking with quoting rates based on contracted times etc. I can't imagine parents sharing rate info, but I will just explain to the old rates that is the new pricing that will be in effect for new contracts and telling new clients the old clients will be brought up on next increase. No matter what my rate is still competitive and the program is worth it (which is what I keep telling myself, knowing my value has been a hard lesson).Comment
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My parents know that the rate I give them when they start is the rate they will have the whole time they are with me. They also know that newer families coming in will have higher rates and older families lower rates.
They all appreciate the fact that they don't have to worry about me raising their rates in order to keep up with inflation.Comment
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I guess I'm a meanie, but I make absolutely no promises to parents that I will not raise their rates. When I opened, I needed to get full fast and I was just going off of what I saw others in the area charging. I opened charging everyone $150/week or $35/day for part time contracts, no food included, they provided all food.
I later started offering to include home cooked, organic when possible, meals and snacks for the kids for a voluntary price increase of $2/day. Every single parent happily accepted. So then my rate became $160/week or $37/day.
I gave everyone plenty of advance notice that I would be raising my prices as of the new year. I made this decision knowing that I was willing to lose them if it came to it. At that time the price increase would no longer be an option or voluntary, but it would be set that I provide all food and the rate is the $160/ or $37/ amount.
The biggest change that I split the age groups because of supply and demand. Children over age 2 would be $160/week or $37/day.
Children under age 2 would be $180/week or $43/day. This was a huge price jump.
It really didn't rock the boat like I thought it might. Now I have zero problem filling the higher priced infant rates.
I don't plan to raise them again next year, but I don't make any promises ever that I won't.Comment
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