Rate increase

[CurtainCrawlerCaretaker]

I'm increasing my rates this Sept for the first time in 6 years as all my costs have gone up considerably. Currently I charge $32 ($27 for the sibling) a day and I want to go up to $35($30 for the sibling). This is an increase of 9.5%. Is this too much of an increase all at once? $35+ is the going rate in our communtity. Thank you very much in advance!

[Blackcat31]

I'm increasing my rates this Sept for the first time in 6 years as all my costs have gone up considerably. Currently I charge $32 ($27 for the sibling) a day and I want to go up to $35($30 for the sibling). This is an increase of 9.5%. Is this too much of an increase all at once? $35+ is the going rate in our communtity. Thank you very much in advance!

I don't think it's too much but I would get rid of the sibling discount if you can.

I don't think it's a benefit to YOU at all to do a sibling discount.

Just charge per space. If you feel it's too big of a raise at one time, then eliminate the sibling discount now and then go to $35 per day for everyone in September.

Most time during rate increases, the families that choose to leave are the families that only chose you in the first place because you had lower rates.

IME, families that choose child care based on prices aren't the right "fit" for me.

[spinnymarie]

I agree that *any* rate increase will weed out some families, most likely. I think yours is reasonable, and I also agree with dropping the sibling discount
If you wanted, you could send out a notice of a gradual increase ending at $35 over the next 6 months or something.

[renodeb]

I think that is a totally reasonable rate increase. I would drop the sibling discount though, think of it this way: they dont get less care! I have never lost a family from a rate increase because i always make it a where its reasonable!
Deb

[SignMeUp]

I haven't lost anyone due to a rate increase either. And also don't do sibling discount - they don't cost me less and they are not less work.

I increase annually, on the advice of one of my old parents. A parent actually suggested it to me happyfacehappyfacehappyface Now parents expect it each fall, and it keeps the increase small. My rates are on the high end (didn't start out that way, but that was eons ago: But my rates are not out-of-norm for my area either, even with small annual increases.

Most of my parents are specialty coffee drinkers (Starbucks, small specialty coffee shops) on a daily basis. If I raise a dollar a day, the weekly increase is one coffee per week. That's not bad for the care they get

[CurtainCrawlerCaretaker]

Thanks so much for your input. I have 2 sibling sets and then 2 single kids now. So 6 kids in total enrolled. One sibling is off to Kindergarten full time this fall. So it will only leave me with 1 sibling set and I really adore this family. Pay on time, every time. Keep me in the loop with everything going on. Just great communication all around with this family. I know they won't leave. I know all my families will stick with me. I just don't want to ruffle any feathers with a giant increase. But, I suppose nobody is ever happy with rate increases, just as I wasn't happy when my hydro, natural gas, fuel, insurances etc all went up....

[TwinKristi]

Thanks so much for your input. I have 2 sibling sets and then 2 single kids now. So 6 kids in total enrolled. One sibling is off to Kindergarten full time this fall. So it will only leave me with 1 sibling set and I really adore this family. Pay on time, every time. Keep me in the loop with everything going on. Just great communication all around with this family. I know they won't leave. I know all my families will stick with me. I just don't want to ruffle any feathers with a giant increase. But, I suppose nobody is ever happy with rate increases, just as I wasn't happy when my hydro, natural gas, fuel, insurances etc all went up....

Well you could always stagger your increase and changes per family. Keep the sibling discount for them if you want to, but don't accept any new families with a sibling discount.

And I don't think your increase is unreasonable at all especially if that's the going rate now. Good luck!!

[SignMeUp]

Well you could always stagger your increase and changes per family. Keep the sibling discount for them if you want to, but don't accept any new families with a sibling discount.

And I don't think your increase is unreasonable at all especially if that's the going rate now. Good luck!!

[CurtainCrawlerCaretaker]

Yes! I love the idea of keeping the discount for the existing kids. Any newbies would not get that. I had thought of that but not sure how that would go over if new people found out one other family had the discount...Oh well. As long as thats what they agree to in the contract, then that's the way it is!

[TwinKristi]

Yes! I love the idea of keeping the discount for the existing kids. Any newbies would not get that. I had thought of that but not sure how that would go over if new people found out one other family had the discount...Oh well. As long as thats what they agree to in the contract, then that's the way it is!

Well no one should be talking numbers with one another really, but if they did and found out they have to pay an extra $5/day than an old client and complained I would promptly explain how your system works LOL. They were grandfathered in on the sibling discount since they've been with you so long but you increased your rates and continued offering them the discount since they've been with you so long. Maybe once THEY'VE been there many years and you have another rate increase and THEY are the lucky grandfathered family they will understand! LOL

[SignMeUp]

I found there were far fewer fee comparisons among parents once I went to a use-based fee system. It's rare to have two families with the exact same fee. It's based on age, days, hours and each family has a regular weekly fee.

When I raised my fees, I used to publish a rate chart. Now instead, I do an individual handout for the family when we update paperwork. It doesn't break down their fee, just gives them their new fee

If someone wants to make a change in hours, they generally ask how it works, but otherwise no one ever asks. And I am fine with that

New families do get a rate chart, so I do make one each year. That way they can figure out what times they want to use, based on the fees. This generally keeps my day a bit shorter, (and child care kids' days too!) and I feel I have more control over my time than when I had only daily or weekly rates.

Also, if I decide a family is slightly more trouble than they're worth, I might raise them by a dollar a day. It isn't much, and I don't tell them about it. It's just included in their fee at time of the annual increase. And it makes me feel just a smidge better.

[GKJNIGMN]

I don't think your increases are too much. I only increase rates for new clients and when someone asks for a schedule change.

My problem family asked for a schedule change and I quoted them at my new rate this year. All that happened was they found a way to pick up earlier to keep the current rate. So I have the kids less and get paid the same as I was. Even better

[Lucy]

This is just me, but if I do any raises for CURRENT families, I do it effective Jan 1st with about 4 weeks notice. However, I try not to raise current families, and just raise for new ones coming in. But if I have a long-term family (which I do often - 5-10 years), then I will raise in small increments like 5% each January until I get them equal with the new families just coming in.

Oh, and if I have an interview with a family with a sibling, (don't judge me!) I quote them a couple dollars a day more for the first child, and "discount" the 2nd child by double the discounted amount. In other words, if my regular rate is $30/day, I would quote $32/day for the first child, and $28/day for the sibling. Comes out the same in the end, and they think they're getting a "deal".