How to word letter on raising rates? DH got pay cut! ugh

[LaLa1923]

I recently posted about a client I have who's getting a really great deal on her infant. I don't have a choice now, DH is getting a pay cut and I must raise my rated to the area norm.
How do I word the letter?

Dear DCM,

Due to unforeseen circumstances, I have no choice but to raise my rates to closer match Anne Arundel County rates. You've been getting a great deal, your rate is my potty trained toddler rate. I will have to raise your rate to $225.00 a week. Please keep in mind that any time after 5:30 is still considered overtime, and that rate remains the same. Should you find that you cannot afford this, I would still need your one month written notice. This rate will go in affect March ???


Sincerely,
Marian Robinson


How does this look?? When should it take affect?? If she does give notice, would that be at her old rate?

I have someone on my waiting list who wants to pay me $250 a week. Should I change it to the 250?

[NeedaVaca]

I would leave out the "you've been getting a great deal" part. If she decides to give notice it should be at her current rate because she would not be agreeing to the new rate. I would give at least 2 weeks notice, possibly 1 month for the new rate to kick in.

I also think that if she decides to leave why make her stay for the entire month when you have someone on your wait list willing to pay more? I would let her go earlier so you can start the higher paying child faster

[butterfly]

Effective March xx, the new weekly rate will be $250. The additional charges for time used after 5:30pm remain the same.

I'd eliminate all your personal information. "due to unforeseen circumstances..." Keep it short. If they do not agree to this new rate, the notice period should be at their old/current rate.

I'd give them the same amount of notice that you require them to give for termination for the new rate to go into effect. (1 month until new rate?) Actually if you have another one on the list wanting to enroll, I'd let them out earlier and start earning the higher rate from the new family.

[MarinaVanessa]

Dear DCM,

This is a two-week notice to inform you of a rate increase of your current rates. As of Monday March 25th your current weekly rate of $$$.$$ per week will be raised to closer match Anne Arundel County infant rates and will from then on be $225 per week. Your first payment of $225 will be due on [date]. I would also like to take this time to remind you that any time after 5:30 p.m. is considered overtime, and will be charged as such.

Should you decide to find alternate child care arrangements you are required to submit a one month written notice of termination in writing.

Sincerely,
Marian Robinson


The only thing that I was thinking about that I would think that could become an issue is the amount of notice that you will be giving to your client. In the notice I put 2 weeks because that's the norm but if you require a one month's notice of termination then I would suggest you give them that much time before you start charging them otherwise you are raising their rates and forcing them to pay until they can be released from their contract a month later. So if you make this change effective immediately (whatever your contract says) then they are forced to pay the higher rate for 4 weeks, if you give them a 2 week notice then they are forced to pay the higher rate for 2 weeks. You aren't giving them a choice KWIM. I'd give a month's notice if you require a months notice of termination.

Also I put the effective date to be on a Monday so I'd suggest giving notice on a Friday so that they can take the weekend to think things over and let you know by the following Monday whether to agree to the higher rate or give you their termination notice, otherwise if they don't want to pay the higher rate they'd have to give you notice of termination that same day that you gave them the notice. Does that make sense? Or how would you do it?

And like the previous post says, if you already have a client lined up you can always offer to let the current client out of their contract early to fit the new client in ASAP.

[jokalima]

Someone shared with me this one, is what I used last year, can't remember right now who helped so sorry if it was someone from here i did some adjustments according my needs and specific situation.

Dear parents,

I am always striving to operate my child care in a more professional way. There are several things I've done to help make my child care facility be one of the best in home day cares in the area. The educational coordinator from my school district as well as other Education professionals that visit my home weekly, confirm this to me and tell me constantly that they will be more than glad to refer parents to my Day Care. I have learned many new things from other providers and workshops, I continue to gain more experience, have added new toys and educational activities and continue to stay in compliance with my Professional Family Child Care Regulations and Federal Food Program.

In order to maintain the quality of care I provide, I must increase my rates. As of August 1st 2012 my rates will increase according to the new contract I will also be handing to you. The new rate will enable me to continue providing the best of care for your child.

It has been a difficult decision. Unlike other forms of self-employment, family child care is very restrictive. There is absolutely no room for growth because the State of _____dictates the size of my business.

I appreciate your understanding of why the rate increase is necessary. if you have any questions or concerns, please feel free to discuss it with me. thank you for sharing your child with me.

Sincerely,

____________

[crazydaycarelady]

My only advice is keep it short and sweet. No need for explanations.

[littlemissmuffet]

I agree with the others - don't give an explaination, and leave it short and sweet. Also, if you require 1 months notice, you should give the family the courtesy of one months notice for the rate change to take effect.

Also, YES, I would absolutely bump to $250.00/wk if you have someone on your waiting list willing to pay that.

[blandino]

I would try and get the message across that she is currently getting a great deal, but without saying it.

Dear DCF,

Due to unforeseen personal circumstances I will need to raise my rates closer to the average for our area. Beginning on xx/xx/2013 your weekly fees will amount to $250.00 a week.

If you and your family wish to seek alternate care, please remember that a written two week notice is required.

Thank you,

DCP

[Blackcat31]

Just as we (as child care providers) should never allow a parent's financial situation to become our problem, I don't think it is wise or fair to let your personal financial situation be the DCP's problem......kwim?

If you are going to raise their rate (which I would absolutely do) I would simply give them written notice that their rate will be increasing to $250 per week as of March xx, 2013.

Since you do have someone else on your wait list to fill the space, I would let them know that if they choose to leave your care, you will waive the final months attendance/payment requirement.

[Willow]

Just as we (as child care providers) should never allow a parent's financial situation to become our problem, I don't think it is wise or fair to let your personal financial situation be the DCP's problem......kwim?

If you are going to raise their rate (which I would absolutely do) I would simply give them written notice that their rate will be increasing to $250 per week as of March xx, 2013.

Since you do have someone else on your wait list to fill the space, I would let them know that if they choose to leave your care, you will waive the final months attendance/payment requirement.

Completely agree.

To add, I would be beyond miffed if as a parent my provider told me they were raising the rate (whether or not original rate was a great deal or not is moot, you offered it and they accepted per a contract they had with you), and then trying to force me to stay and pay the new rate for an entire month before I could leave.

If you're going to raise the rate make it effective in whatever the amount of times notice you required per the original contract. If it was two weeks they are entitled to care for two weeks at their original rate, if it was a month they are entitled to care for the next month at their original rate.

If you choose to break the original contract by requiring a higher rate and you want that higher rate to start effective immediately you need to give this family an out immediately.

They will *NOT* be required under the law to pay the new rate under a new contract effective immediately if they never signed a contract agreeing to that. You changed the original terms, they cannot be forced to honor the new terms if you're not honoring the old ones. It would never stand up in court.

I hope that makes sense, I had a hard time trying to explain it.

[JLH]

I would not include "due to unforseen circumstances". The parent will come to find out about the job loss eventually and will think you are taking that out on them or making them pay for your problems. It's just my opinion, but I would leave that out. In the same way that you wouldn't want to hear about their financial problems when their bill is due, they won't want to hear about your financial problems effecting their bill. Good luck!

[MyAngels]

Dear DCM,

This is a two-week notice to inform you of a rate increase of your current rates. As of Monday March 25th your current weekly rate of $$$.$$ per week will be raised to closer match Anne Arundel County infant rates and will from then on be $225 per week. Your first payment of $225 will be due on [date]. I would also like to take this time to remind you that any time after 5:30 p.m. is considered overtime, and will be charged as such.

Should you decide to find alternate child care arrangements you are required to submit a one month written notice of termination in writing.

Sincerely,
Marian Robinson


The only thing that I was thinking about that I would think that could become an issue is the amount of notice that you will be giving to your client. In the notice I put 2 weeks because that's the norm but if you require a one month's notice of termination then I would suggest you give them that much time before you start charging them otherwise you are raising their rates and forcing them to pay until they can be released from their contract a month later. So if you make this change effective immediately (whatever your contract says) then they are forced to pay the higher rate for 4 weeks, if you give them a 2 week notice then they are forced to pay the higher rate for 2 weeks. You aren't giving them a choice KWIM. I'd give a month's notice if you require a months notice of termination.

Also I put the effective date to be on a Monday so I'd suggest giving notice on a Friday so that they can take the weekend to think things over and let you know by the following Monday whether to agree to the higher rate or give you their termination notice, otherwise if they don't want to pay the higher rate they'd have to give you notice of termination that same day that you gave them the notice. Does that make sense? Or how would you do it?

And like the previous post says, if you already have a client lined up you can always offer to let the current client out of their contract early to fit the new client in ASAP.

What she said happyface

[MamaBearCanada]

Yes like a previous poster mentioned unless it is somehow covered in your contract I always thought that the provider raising rates made the original contract void on the date the rate raise goes into effect. For a rate raise to be legally binding a new contract or amendment must be signed. To me this means the notice period must be no longer than the date that the new rate comes into effect.