Raising Rates?

[DaycareMom]

I was wondering how often - if at all - do you raise rates?
About 6 months ago, I increased my rate for one family by $10/week, but only because I was going to start providing meals so I don't really count that as a rate raise since it was for something specific and in all honesty does not cover my cost anyway ...

I have been open for almost 5 years and have not increased my rate ever. I was thinking of increasing the rate maybe in June.

What is a fair rate increase? Do any of you have a letter that can word it? Any help is appreciated. Thank you in advance!

[taylorw1210]

Looking forward to the responses. I have not increased my rates since opening but I believe I will do so next January.

[Msdunny]

I re-evaluate every Summer - a couple of my families are teacher's kids and come back in September. I ask myself, "Is it worth it to me to keep doing this for what I make?" If not, I have to decide what I need to make to meet our needs. I then raise rates to reflect that need. This past fall, I went up $5 per day, and no one even blinked an eye!

I can't do this job if it isn't worth it for me. If I am worried about finances or how we are going to pay bills, I need to either move on or raise rates.

So, long story short ::, I take a look at my rates every year and make adjustments if needed.

[LaLa1923]

I wish I could raise my rates. Here, mostly everyone charges the same...

[Blackcat31]

I was wondering how often - if at all - do you raise rates?
About 6 months ago, I increased my rate for one family by $10/week, but only because I was going to start providing meals so I don't really count that as a rate raise since it was for something specific and in all honesty does not cover my cost anyway ...

I have been open for almost 5 years and have not increased my rate ever. I was thinking of increasing the rate maybe in June.

What is a fair rate increase? Do any of you have a letter that can word it? Any help is appreciated. Thank you in advance!

I raise my rates anywhere from yearly to every 3 years. Depends on.....well all sorts of things. The market, the reimbursement rate for subsidy care, the raise in cost of living expenses or licensing.

My last rate increase letter says something like

"Dear DCP's

With the rising costs of running a business, it has become necessary to raise the rates in which I charge clients for the services I offer.

Unlike consumable goods you purchase in a store, parents have the ability to keep their child care costs down by scheduling only hours and/or days that are necessary for you to work or attend school. The amount of increase will be dependent on each family's needs.

The new rate scale is attached. If you have any questions, please let me know.

Sincerely,

Provider"

I charge on a graduated scale. The more time a parent uses for care, the more their rate is. If they want to keep their rate lower, they find ways to pick up earlier or keep their child home when they are not at work. That way it leaves parents in charge of increases.

[Crazy8]

I often go years without increasing rates and only usually raised them for new incoming clients. This past summer I raised them for everyone and ended up losing 2 clients (one was just moving, other was due partially to rates and some other issues). I actually just revised my rate sheet for Jan. and went back to my lower rates. Business has been tough lately.

In almost 13 years my full time rate has gone up $35/week but I made a big jump from $150 to $175/week about 3-5 years after I started because I realized my rates were pretty low. I tried going to $195/wk and now going back to $185/wk.

[LaLa1923]

I raise my rates anywhere from yearly to every 3 years. Depends on.....well all sorts of things. The market, the reimbursement rate for subsidy care, the raise in cost of living expenses or licensing.

My last rate increase letter says something like

"Dear DCP's

With the rising costs of running a business, it has become necessary to raise the rates in which I charge clients for the services I offer.

Unlike consumable goods you purchase in a store, parents have the ability to keep their child care costs down by scheduling only hours and/or days that are necessary for you to work or attend school. The amount of increase will be dependent on each family's needs.

The new rate scale is attached. If you have any questions, please let me know.

Sincerely,

Provider"

I charge on a graduated scale. The more time a parent uses for care, the more their rate is. If they want to keep their rate lower, they find ways to pick up earlier or keep their child home when they are not at work. That way it leaves parents in charge of increases.

Could you share your rate scale??

[taylorw1210]

I would be interested in seeing your rate scale, too.

[Blackcat31]

Could you share your rate scale??

It is based off Nan's

My base rate is set for pick ups at 3:00.

Rates increase with each additional half hour of care.

The increase is around $2.50 per half hour.

For example if you schedule 3:00 pick up, your rate is $150

If you schedule a pickup at 3:30, your rate is $162.50

4:00 pick ups are $175.00

I don't do half days and don't allow for small differences in pick up times. Parents choose the LATEST pick up time they need and their rate is figured accordingly.

MANY MANY times a month, I am done working at 4:00 and sometimes even 3:00 and still make the same amount of money (sometimes MORE) that I made when I was simply open from 6-6 and charged a flat weekly fee.

[originalkat]

I have not changed my rates in 6 years. It just works for my budget and is still competitive with my area.

[DaycareMom]

What would be a fair increase?

[melilley]

I have only been open for a year an have not increased my rate yet. But, I am charging $10 more a week for new families. I'm on the fence as whether or not I'm going to raise them for existing families though.

[Jack Sprat]

I have only been open for a year an have not increased my rate yet. But, I am charging $10 more a week for new families. I'm on the fence as whether or not I'm going to raise them for existing families though.

This is me. I'm not raising rates this year but, going to 50 weeks paid. Instead of no paid holidays. Also, giving parents 5 days vacation that they do not have to pay for. And of course my 5 they do not pay for. I would like to raise my rates but, I also need to stay (I feel) close to the same rate as other providers in the area. They both however, have assistants thus can have more kids.

[melilley]

I also need to stay (I feel) close to the same rate as other providers in the area. They both however, have assistants thus can have more kids.

This is why I raised it for new families. I always go to CL to see if providers post their rates and some do so I found out that right now I'm on the lower end (for licensed providers) I've see anywhere between $100 (only 1 does that rate) a week to $150. I was at $130 and I have 3 stars (the stars have to count for something, right?) so I figured I should charge towards the higher end! Of course illegal providers charge way less, but I feel parents will see past that and if not, oh well!

[TwinKristi]

Since I'm so slow now I wouldn't dream of upping my rate, even for new clients. I'm on the average for my town. If you go up to the bigger city in our county it's less, by $10+/day. But in my town just about everyone charges $45-60/day so I do too. But if I did it would be new clients or additional siblings or something.