11 Years & I've Never Raised My Rates!

[rosieteddy]

That letter is more than reasonable.If parents decide to pull then I would interview right away.I also would charge any new families 150.00 .You may even want to let your currant clients know new people will pay a higher rate.The cost of utilities,food and supplies really do warrant an increase.Good luck.

[KatieG]

Thanks ladies! I've decided to think on it over the weekend & give them notice of an increase on Monday.

[biglou]

I know I should've been doing this all along, but I've never raised my rates in the 11 years I've been in business. It's definitely time, but I'm not sure what is a reasonable increase? I googled "inflation rates" and found this:

http://www.usinflationcalculator.com/

It says that the cumulative rate of inflation from 2003 to 2014 is 29.3%!!! Obviously I'm not going to hit my families with a nearly 30% increase, but I don't know what is reasonable. I've done some poking around, and other providers in my area are charging 20-25% more than I am, so I don't know that they'd be totally shocked. Advice please?

Ms. KatieG

I believe your current families will not be interested in you failing to increase in 11years and asking them to increase by 25% can be shocking. I suggest you have a backup plan to any objections from current families. If someone objects strongly and you feel they will go and you want to keep them offer a 15%increase now with a 10%increase to follow in 6 months. Any new family gets new rates of course. In future, consider raising rates every three months as new families enter your program. Sure it will be a small increase but you are always hedging against inflation this way. Existing families need rate increases at least one time per year. If you don't ask you will never get it. Don't be afraid.

Big Lou.

[Unregistered]

I charge $100/week/child for full-time. I don't have any part-timers. I am currently watching a 2yo boy, 13 month old girl, and 12 month old boy.

From what I see on Craigslist, other in-home providers are advertising $25-$30/day.

I checked with Kindercare here, it's $206-215/week for a 2yo, and $229-$232/week for a 12 month old.

A local church also has a daycare, they charge $180/week up to 12 months, $170/week 12 months - 3 years.

I charge 300 per child. I give discount to parents with two children, 25 dollars off per child.

[BrooklynM]

I would also note on your letter, that for any new families coming in, your new rate will be 150 per child, so they feel like they are getting a good deal.