Raising Rates - How Much Is Too Much?

[childcaremom]

The going rate in my area is anywhere between 25-38/day.

I currently charge $30 and would like to be charging $35. Is that too much of an increase for my existing clients?

[Crazy8]

I wouldn't jump to a $5/day charge for exsisting families, that is a big jump. I would however start with the new rates for new clients and maybe raise the existing families a little at a time based on whatever your contract says about rate increases.

[Blackcat31]

I agree that $5 per day is a bit much for currently enrolled parents.

Maybe you could put them on a plan of raising their rates every 6 months to a year by $5-10 per week until they are at whatever your current rate is.

I would definitely charge all new enrollees the new rate though!

[cheerfuldom]

I wouldn't do more than $10 a week unless you are willing to lose families. A huge rate increase of $25 a week and people are going to be seriously upset

[TwinKristi]

Yeah for new clients obviously you can start ASAP but for current clients I think a tiered increase over a few months would be the easiest way to keep everyone happy and increase as well. Like others said, more than $10/wk will seem like a lot. $25/wk, $100/mo, is quite a jump and may cause people to leave. If that's ok than go for it, but I would probably try and stagger the increase.

[daycarediva]

I would do $10 a week for existing and bump them up next year by another 2-3. All new clients would come in at 35 though. That's what I charge for FT and I am raising to 37.50 next year.

[Unregistered]

I raised my rates for the first time in 8 years.I raised them for new clients last year and sent out a newsletter with a months notice for my clients I've had for years.
I went from $185/week to $195 and from $40 /day to $45.
No one had any problem with it,as a matter of fact they said they had been expecting it for a couple years. However I've had most of these families since I opened.If you have any new clients they may get a little upset but they'll get over it.
Sorry,it cost more for groceries,water,heat,supplies. That's just life!