Raise Rates Yearly? Or Lower When They're Older?

[melilley]

I charge the same rate for all ages. Licensed home childcare's around me charge anywhere from $120 to $145. Some have different rates for different ages, but the majority have the same. I am at $130-I just kind of averaged it, but I just opened in January and I think I'm going to raise my rates if I lose any kids and get any new families. Now that I have been open for a few months and from interviews (I still offer to have them even though I am full -just in case) and hearing about some of the other home day care's around me, I believe that my program offers a lot more than some and I feel that I short handed myself so therefore a "raise" is in order. And I have been checking out CL to see what the other providers around here offer. Some sound really professional and homey at the same time and some just sound plain unprofessional and not so homey-if that makes sense. Sorry I am going way off subject!

Now, as for the bigger corporate day care's around here, they all charge more for infants with the average being $250 a week and rates go down after they are 2 1/2 to around $180 and then go lower for SA I believe.

One thing to think of is that if you have your rates set higher for infants, you will be used to getting that income. Now when they get older and your rate drops, your income will also drop unless you can get another infant to make up for it-depending on what ratios you can have you may not be able to do that. Someone gave me that advice a while ago on here and it made me think!

[melilley]

Oh, I also did what MV did. I thought of what I needed to make by filling a minimum of 3 full time openings to be able to pay bills and that was a factor. The other 2 spots I wanted only PT kids just because I wasn't sure how it would go. I worked in centers for 14 years prior to opening my home and knew it would be way different doing it myself versus having others there to help.

[LaLa1923]

Oh, I also did what MV did. I thought of what I needed to make by filling a minimum of 3 full time openings to be able to pay bills and that was a factor. The other 2 spots I wanted only PT kids just because I wasn't sure how it would go. I worked in centers for 14 years prior to opening my home and knew it would be way different doing it myself versus having others there to help.

This gave me a lot to think about. Only thing is everything I make is extra, but I like being able to have one flat rate.

hmmmm.

[littlemissmuffet]

What do you raise it? How did you come up with your rate?

Every year I call about 15 dayhomes and centers to get an average. If I am lower, I will raise it to be closer to what the average is. If I am the same or above, I will only raise it slightly. I charge monthly, so an annual increase can be anywhere between $10 and $50/month.

[Blackcat31]

I charge the same base rate to ALL children.

The additional fees come with additional hours, additional expectations and additional work.

Otherwise each age seems to have it's own set of issues or things that are hard and easy.

I no longer take SA kids but I do think they are far more work than any group of toddlers or preschoolers hands-down.

[wdmmom]

I used to do 1 price increase per enrollment. Now I don't do any increase or decrease unless their need/hours change.