When Increasing Your Rates...

[taylorw1210]

How much did you increase at one time?

[Blackcat31]

How much did you increase at one time?

Last time I actually raised rates I did a $1 per day.
Those that attend 3 days verses 5 pay a higher daily rate so it was an easy raise.

About 3 yrs ago I "restructured" my rate system and went to contracted hours only with additional fees added to the "daily rate" for those families that picked up after 3:00.

For many families their rates remained the same. For those that wanted/needed longer days (pick up after 3:00) their rates increased anywhere from $5-$15 per week but that increase was controllable by the family so they no one was forced into paying more if they didn't want to.

[Leigh]

My last increase was $17.50 a week for one of my families, a little less for the others.

[DaveA]

My last increase was $10/week. I hadn't raised rates in 3 years I think.

[Unregistered]

I raised mine 25 cents per hour for 2 years plus and 35 cents for under 2 years.

[spud912]

I usually do rate increases of $5 per week. When I first opened, my rates were ridiculously too low, so the parents who got in when it was super cheap had a $5 per week increase every 6 months until it got to where it should have been.

[Movingforward]

We base our rates on the minimum wage so when the minimum wage goes up, so does ours. This is all in our contract so the parents know what to expect and it wouldn't be awkward asking for an increase.

[grandmom]

I increase rates substantially with new families. So a family with an infant who started here 6 months ago pays less than one who starts this week. Then I raise rates a little bit every year in March. It isn't a set amount, or even a set percentage. Partly, it's what I think I can get for that spot, while keeping in mind what other local places charge.

[daycare]

We base our rates on the minimum wage so when the minimum wage goes up, so does ours. This is all in our contract so the parents know what to expect and it wouldn't be awkward asking for an increase.

you charge min wage rates??

so right now min wage is 9.50 here. do you charge that per hour and then get your flat rate?

or how do you do it?

[Unregistered]

I increase rates substantially with new families. So a family with an infant who started here 6 months ago pays less than one who starts this week. Then I raise rates a little bit every year in March. It isn't a set amount, or even a set percentage. Partly, it's what I think I can get for that spot, while keeping in mind what other local places charge.

I just charge the new rate for new families. The longer I'm in business, the more I know, more skills/experience = more pay.

I did however up everyone's rate 10 years ago when I first started since I was super cheap! No one complained.

[AmyKidsCo]

I have in my policies an automatic raise of $5/week for FT each September 1. PT is raised also, but I don't remember how much offhand.

[ashleyh]

My last increase affected the infants only. We moved from an in home to center so it was a hefty increase of about 20 a week. For 2 and up it stayed the same.

When I raised rates initially when we were in home it was by 10 a week from 125 to 135.

[Movingforward]

you charge min wage rates??

so right now min wage is 9.50 here. do you charge that per hour and then get your flat rate?

or how do you do it?

Yup, so we charge the minimum wage per hour and get a flat rate per month. I know it's on the pricey side (therefore risky trying to find families) but in my area, there is a high demand. There is a large range of rates in the city though some charge dirt cheap and some charge even more than I do.

[daycare]

Yup, so we charge the minimum wage per hour and get a flat rate per month. I know it's on the pricey side (therefore risky trying to find families) but in my area, there is a high demand. There is a large range of rates in the city though some charge dirt cheap and some charge even more than I do.

I'm in a pretty expensive town and no way could I get that rate. That's about $500 a week and not even our high end private academy like Stratford charges that.

What area are you in.

[Movingforward]

I'm in a pretty expensive town and no way could I get that rate. That's about $500 a week and not even our high end private academy like Stratford charges that.

What area are you in.

Northern California
I know other FCCs that charge more then me and centers that charge a whole lot more. There's a really high demand here so parents are willing to pay as long as they secure their children in a childcare. It also depends on what part of the city you are located in ie convenience for parents to get to work, neighborhood etc.
When we tell parents our rates and how we came up with it, most of them will say it's fair. But like I said it is on the pricier side (so we are targeting parents that have higher incomes)and if I were looking for childcare I would not be able to afford my own rates ::