Raising Rates?

[DaycareMom]

How much notice should I give?
Would you just hand them a letter and let them read it at home or discuss it at pick-up?

[amtnk]

My rates have been the same, but I've only been opened a year. They are comparable to others in the area, but I do charge extra for breakfasts (and sending your kids with breakfast), if you are late without a telephone call, and more for infants under 18 months. The (only) commercial daycare around here charges $5 extra per day for infants ($45/per day), and a few other in-home charge $30-$35.

I feel that I want to charge more for some families (i.e. the child that NEVER stops crying), although she is considered full time and is only here 3.5 days per week, so I try to reason that out in my head

[melilley]

How much notice should I give?
Would you just hand them a letter and let them read it at home or discuss it at pick-up?

I have it in my policies that I can change a policy with a two week notice so that's what I would give. I would write a letter and tell them in person and then give them a new contract with the new rate on it.

[Unregistered]

You could mail it? I would give them at least 2wks notice.

[LaLa1923]

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.

How??

$2.50 for ever 30 minutes? Wouldn't that be $152.50?
I'm tired..but what am I missing??

Oh wait!! I'm sorry! You mean $12.50 right??

[TwinKristi]

[QUOTE=LaLa1923;425888]

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.[/QUOTE]

How??

$2.50 for ever 30 minutes? Wouldn't that be $152.50?
I'm tired..but what am I missing??

Oh wait!! I'm sorry! You mean $12.50 right??

It's $2.50 per 30 min per DAY, 5 days is $12.50 and those are her weekly rates.

[Blackcat31]

How??

$2.50 for ever 30 minutes? Wouldn't that be $152.50?
I'm tired..but what am I missing??

Oh wait!! I'm sorry! You mean $12.50 right??

Yes, the fees for the 30 minutes are PER DAY.

Hope that clears it up... If not, let me know, I'd be happy to explain more.

[nanglgrl]

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.

I agree. When I went to this rate scale I was really surprised that all of my clients could figure out a pick up by 3:30. Sometimes they involve family or friends but usually one parent gets off earlier than the other one and can pick up. I started with this scale but like you said I'm making the same amount (if not more) for less hours so now I just say that my hours are 7:30-3:30 and if someone calls needing more time than that I consider it on an individual basis. So far I haven't found a single family that makes me want to stay open later. .

[Jack Sprat]

I told DH that if I could raise my rates by $60 a week per family then I would just take 3 full time kids and one part time. He said to mention it the families and emphasize that with limited numbers, I would be able to give more one on one to each child, and since each family is planning on having a 2nd child they would be sure to have a spot (which they are anyway). I don't see the parents going for this. But, it was a good thought. I think

[DaycareMom]

I will be raising my rates by $10-15/ week / family. Does this seem fair?
Does anyone have a sample letter? TYIA!

[Maria2013]

I've been open 8 years and only raised rates once last fall, but to new enrollments only

[LaLa1923]

Yes, the fees for the 30 minutes are PER DAY.

Hope that clears it up... If not, let me know, I'd be happy to explain more.

oh geez... ok thank you!!


So you allow them to have a different rate daily or weekly?? Or they pick a rate??

[Blackcat31]

oh geez... ok thank you!!


So you allow them to have a different rate daily or weekly?? Or they pick a rate??

I bill weekly only.

Families choose the latest pick up time they need (even if its only one day a week) and their rate is figured accordingly.

I base ALL rates on my base rate of 3:00 pick-up and add additional fees for time needed after 3:00 and how many days per week they need. I offer 3, 4 or 5 day options only.

3 day base rate is either $110/$125
4 days is $125
5 days is $150
**********************************

3 days a week is a flat $110.
If they need time beyond 3:00, I add $2.50 for every half hour needed.
If the 3 days are the same 3 days each week.. Cool!
If they need various 3 days each week, I add $15 to their weekly fee.

So it would look like this for these families:

Family #1 needs 3 days each week (same 3 days) pickup at 3:00 two days and pick up at 4:00 one day.
$110
$10.00. ($2.50 for each half hour past 3:00)
Total weekly rate is $120 per week

*******************************
Family #2 needs 4 days per week with a 4:00 pick up everyday

Base rate for 4 days is $125
Pick up after 3:00 four days a week is $20
Total weekly rate is $145

********************************

Family #3 needs 5 days a week with 3:00 pick up
Rate is $150 per week with no additional charges

********************************

Family #4 needs 5 days a week with pick up at 3:00 on T/R and 4:00 pick up M, W, F

Their base rate is $150
Add the pick up after 3:00 three times per week ($15)
Total rate is $165
*****************************

This way, I know exactly when I am done working each day/week and make MORE $ per week( in terms of hours worked) than simply charging a flat weekly rate of $150 and letting everyone come from open to close.

Families will find ways to save a buck and pick up early. I haven't run into any kinks yet but Im sure someone somewhere has a wonky schedule that wont fit into my formula but so far it works well for me.

Hope that makes sense.

[Second Home]

This is the first time I have raised my rates ( for all new starting families in 2014) in the 10 + years I have been open .

[therov]

- I reevaluate every year, but raised after the third year I was open. I raised it for new families only. I still grandfather one family at the lower rate because they have been repeat customers x 3 kids (not continuously over 4 years). I raised by 5%.

- Don't forget that you can deduct the cost of meals and snacks from your taxes at the federal reimbursement rate. So while $10/wk won't cover the meals and snacks entirely, you'll be rebated at tax season (something like $2.62 per meal, $0.65 per snack)

- I would give existing families one month's notice, which coincides with my agreement that requires 30 days' notice for termination.

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!