Old Rate or New Rate?

[Lianne]

I've been doing home daycare for four years now. When I started, my fees were comparable to most in my town. Two and a half years ago I started a family with one child in my care for Mon/Wed/Fri. Fast forward to this past March and the family has a second child. In January, this second child will be starting in my care the same 3 days/week as his sister. This past spring I realized that the going rate for home daycare in my area has risen to $5/day more than what I'm currently charging. I've decided that I will NOT raise my rates for my existing families/children but will (and have) raised my rates for anyone new joining my care. My question is, for this family whose second child will be starting care, do I charge the old rate for the baby which is what they're paying for the daughter since they're already a client or do I charge them the new, increased rate because the baby will be new to care?

FTR, this family (as are all of my families) are fantastic clients. They never give me any grief, are more than willing to work with me, are flexible and reliable. All my current clients are like this which is why I've decided not to raise their rates.

[mac60]

Definately, charge the new rate. While I don't generally raise rates on existing families, I do raise them to my new rates if their situation changes....such as adding a sibling, change of schedule, days, etc. And if there is no change, especially with a sibling, it comes back to bite me in the butt bad, especially when a family is with you for 5 or 6 years fulltime, and it ends up being the same rate all those years.

[Live and Learn]

If you don't already charge for days that children are gone sick on their scheduled days I would be more concerned with that at this point. Let's say big sis gets sick and parent stays home to care for her. many times the parent will just keep the baby home too. All of a sudden you are not paid for 2 kids.
.....I found out the hard way that can add up quick. I just work during the school year and have already had six absences due to illness.
if you are going to raise rates I would say if you have a waiting list ask for a raise for both kids if no waiting list then maybe just the new baby.....and paid when the kids rare sick.

[Lianne]

If you don't already charge for days that children are gone sick on their scheduled days I would be more concerned with that at this point. Let's say big sis gets sick and parent stays home to care for her. many times the parent will just keep the baby home too. All of a sudden you are not paid for 2 kids.
.....I found out the hard way that can add up quick. I just work during the school year and have already had six absences due to illness.
if you are going to raise rates I would say if you have a waiting list ask for a raise for both kids if no waiting list then maybe just the new baby.....and paid when the kids rare sick.

All of my families pay for the days they're scheduled for care regardless of attendance, that is not the issue. I'm trying to decide if I should be charging an existing client the old/lower rate or the new/higher rate. I do not have a waiting list and this boy will fit into a spot shared with another part timer who will be here on the days he will not. It just worked out this way.

[Live and Learn]

Sorry for going off issue with the sick day comment. We have had an earlier than usual outbreak of buggery noses...I must be extra focused on that! In my experience many parents want a discount for the second child not a rate increase so of course you are taking a risk by raising your rates on the original sibling. Several years back I raised my rates for all existing and new clients by $5. I did lose one family who I cared for very much. I filled their spot almost immediately from my waiting list. I think that it is completely reasonable to raise your rates but you just don't know what their expectations are. I would for sure use your new rate for the new sibling but only raise the rate for the original sibling if you can afford for the family to walk.
I think I am rambling.....please tell me I am not catching their cold!!

[MarinaVanessa]

I would raise my rates gradually each year until that family is caught up with all of the others. I plan on raising my rates by $1 a week next year from $155 a week to $156 a week (difference of only $52 a year) but one family that started at a lower rate (first family) only pays $150 a week and so I'll be raising their rate by $3 a week and then another $3 a week the next year. I've never raised their rates so they're ok with that and then it'll only go up $1 a week again like the rest of the families.

[bgmeyers]

I'd charge them the new rate. If they say anyting, let it seem like you are doing them a favor by keeping older child at old rate.

[Live and Learn]

I agree with bgmeyer.