I Feel Like The Bad Guy

[Unregistered]

My daycare family has been getting care for their two kids for 200/week for both kids. When I updated the contract I let them know there would be a fee increase. I increased it to 280/week for both kids.

Yesterday, dcm told me it's not in their budget and if I can negotiate, they will have to look at other options. I feel I need to stand firm, but feel bad at the same time. I know it's a big increase, but I also have these kids 11 hours a day, 4 days a week.

[Sugar Magnolia]

Your new price sounds fair. If you look at it from the parents point of view however, that is $360 a month.....that increase is probably more than their car payment.

[bklsmum]

I don't think you are the bad guy at all. You have to do what is best for your business and your family but...they have to do the same and if they can't afford it then they can't afford it and it may be best for you to part ways.

[Angelsj]

How do your prices fit with the surrounding providers? If you are getting top dollar, you might be able to negotiate a bit. If you are still one of the lower cost providers, I would just stick to what you need, and wish them well.

That is well over what I would charge for that situation, but I am in a lower cost area as well. It really more depends on what your area will support and what you, as the business owner, need to pay your bills.

[Little Buttons]

Awww you are not the bad guy! Price increases are sometimes a part of childcare. You gave them notice and you were respectful. However, like a PP said, $80/wk adds up to quite a bit in one month. I do not know your area, but your prices sound very fair to me. Unfortunatelly, no one likes to pay more and not everyone is in a position to where they can pay more. Don't beat yourself up about it! Handling the money aspect of childcare is my least favorite part :-\

[Unregistered]

How do your prices fit with the surrounding providers? If you are getting top dollar, you might be able to negotiate a bit. If you are still one of the lower cost providers, I would just stick to what you need, and wish them well.

That is well over what I would charge for that situation, but I am in a lower cost area as well. It really more depends on what your area will support and what you, as the business owner, need to pay your bills.

I am one of the lower cost providers. Most providers in my area charge at least $150 per week per child with no sibling discount.

[EntropyControlSpecialist]

I am one of the lower cost providers. Most providers in my area charge at least $150 per week per child with no sibling discount.

If I needed them and wasn't getting many calls, I would lower it to $130.00 per week instead of the $140.00. If you are able to quickly replace them then I would do that.

[Angelsj]

I am one of the lower cost providers. Most providers in my area charge at least $150 per week per child with no sibling discount.

Then I wouldn't give it another thought. You need to do what is necessary to maintain your business. They aren't going to be happy about it, but child care is expensive.
It is a shame that parents can't think, "Wow, what a great deal you gave us for so long. Thanks!!" ::

[Blackcat31]

I am one of the lower cost providers. Most providers in my area charge at least $150 per week per child with no sibling discount.

If that is true, then I would encourage DCM to look at other options.

Then she will come back to you and realize what a great deal she is getting.

[lovemykidstoo]

I'm sure it's nothing against you or what other providers are charging. If she can't afford it, then she cant afford it. Not saying that your rates aren't legit, but $80 a week can be a lot for some people. If it bothers you and you hate to see them go, then see what price she had in mind and see if it's something you can work out. Maybe a slightly lower price will give you more in your pocket and be affordable to them or if you can afford to lose them and you're getting calls, then let her go elsewhere.

[AmyKidsCo]

ITA that you should be paid what you're worth, but at the same time going from $200 to $280 is a 40% increase. I'd totally freak out if any of my bills went up 40% at once.

If you like this family and worry about filling 2 spots I'd increase it less this year, then increase it again next year. After all, you already know these children and this family, and "a bird in the hand is worth two in the bush."

[KiddieCahoots]

ITA that you should be paid what you're worth, but at the same time going from $200 to $280 is a 40% increase. I'd totally freak out if any of my bills went up 40% at once.

If you like this family and worry about filling 2 spots I'd increase it less this year, then increase it again next year. After all, you already know these children and this family, and "a bird in the hand is worth two in the bush."

.......
When I was told by licensing my rates were on the low side for the area, I started doing this, and increased my rates by $10. a year until I was at a more desirable rate.
The clients I had at the time, I loved, and they were all very accommodating.

[Meeko]

I did away with price increases a while ago. I tried something new and it's working so far.

We offer same price for "life" as long as payments are on time, enrollment is current and policies are followed.

It won't ever go up unless they screw up.

It's been a brilliant incentive so far. And as kids age out, move away etc. new ones come in at higher prices.

I had one family who were with me for a couple years. She decided to be a SAHM. It lasted about 4 months and they wanted to come back.

Now they are part-time, paying the current full time rate which is higher than they were paying for full-time care a few months ago. BUT...they are OK with it, because they chose to leave and knew their old "locked in" price was gone.

I don't have parents threatening to leave or trying to cut deals because I raised rates etc. They toe the line because they don't want to lose their locked in rate and are reluctant to shop around because they know they can't come crawling back and get their old rate back.

Late payments? Three times and your deal is over. Late pick-ups? Same thing. Could cost them a FORTUNE more in the long run. So they are behaving and so far so good...................

[lovemykidstoo]

I did away with price increases a while ago. I tried something new and it's working so far.

We offer same price for "life" as long as payments are on time, enrollment is current and policies are followed.

It won't ever go up unless they screw up.

It's been a brilliant incentive so far. And as kids age out, move away etc. new ones come in at higher prices.

I had one family who were with me for a couple years. She decided to be a SAHM. It lasted about 4 months and they wanted to come back.

Now they are part-time, paying the current full time rate which is higher than they were paying for full-time care a few months ago. BUT...they are OK with it, because they chose to leave and knew their old "locked in" price was gone.

I don't have parents threatening to leave or trying to cut deals because I raised rates etc. They toe the line because they don't want to lose their locked in rate and are reluctant to shop around because they know they can't come crawling back and get their old rate back.

Late payments? Three times and your deal is over. Late pick-ups? Same thing. Could cost them a FORTUNE more in the long run. So they are behaving and so far so good...................

I don't increase while they're here either. That's why I'm sad to see my twin girls leave for kindergarten this year, but am happy with the income I"ll be getting now. They were coming 2 days a week at a discounted rate of $55.00 a day total. Now I have an infant coming 3 days a week for $35.00 a day. So, I'm only short $5.00 a week, but I only have 1 child in that spot versus 2, so income wise I'm excited to get the higher rate.