When Increasing Your Rates...

[daycare]

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 ::

I'm also in the Bay Area. Guess childcare is getting more expensive than I realized. My best friend has a daycare in athertons the most expensive place in the U.S. To currently live and she only charges $375 a week for full time care.

Not doubting you, just shocked.

[Josiegirl]

I've only raised my rates a few times over the past 30+ years. Last year I made some changes that worked the same(for me) as raising my rates. I changed my policies to getting paid for 52 weeks a year. Plus I decreased the amount of sibling discount I was giving. I'll be changing things again soon, probably playing with the part time versus full time rates and/or increasing $1.00 a day.

[daycarediva]

I raised them by $1/day. I am at the high end in FCC (just called around in Dec for rates and I was the highest FCC in my city, $10 less than the cheapest center and slightly below standard market rate for centers for my county) I also charge higher daily rates for PT, and I only accept PT if it fits my available days so I am not giving up a FT space for a PT client.

I have also stopped doing sibling discounts. I charge for 52 weeks/yr.

[taylorw1210]

Thanks for all of the responses, guys. I am increasing my rates for the first time since opening 2 years ago, and was feeling a little insecure about the rate changes. My infant spots are only going up by $5/wk, as I had already raised those for the new clients coming in. But my 24mo+ rates are going up by $15/week, however with the increase they are right on par for the average in my area. I recently hired a FT assistant, so my costs have gone up quite a bit and need to off-set them with an increase in rates.

[Movingforward]

I'm also in the Bay Area. Guess childcare is getting more expensive than I realized. My best friend has a daycare in athertons the most expensive place in the U.S. To currently live and she only charges $375 a week for full time care.

Not doubting you, just shocked.

Oh yes, I was shocked too! I was originally going to charge a lower rate but realized very quickly that you can get families in with a low rate or with a high rate. So I took the leap of faith and set it on the high end. Where you friend lives may be the most expensive place to live but there are higher demands in good old SF.

Definitely don't sell yourself short if there is a demand fellow providers! Our job is a lot harder than most so our rates should reflect that

[NoMoreJuice!]

I just interviewed a client last night for an August spot when the kindergartners move on. I pitched her my new rate, which is $25 higher than my old rate, and she is taking the spot. So now that I have three kids turning over, I will be filling their spots with higher rate kiddos. Same thing with three kids in August of 2016.

Another great way to give yourself a raise is to step back and evaluate how you are running your business. Eliminating part time gaps and sibling discounts, starting the food program if you aren't already on it, and maximizing your capacity are all ways to find money without raising tuition.

[kitykids3]

I just raised mine, because QRIS says I have to every year, otherwise I wouldn't. Anyways, it's only like $3 a week for FT over 2 and about $5 for under 2. The PT under 2 went up about .50 per hour tho. Tired of PT babies on home schedules makes it so much harder.

[Blackcat31]

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 ::

That's awesomely funny! ::

Kudos to you though for getting such a fantastic rate!!!

I just raised mine, because QRIS says I have to every year, otherwise I wouldn't.

That is the first time I've heard anything about QRIS having a requirement I would actually agree with.....

[melilley]

I raised my weekly rates by $10 a week and I also raised my p/t rates based on number of days. I only raised them for new families, but most are now on the new rate system.

[kitykids3]

That is the first time I've heard anything about QRIS having a requirement I would actually agree with.....

really? yours doesn't want you to 'take care of you' by having health ins, a retirement plan, pay increase every year and paid days off? I thought they were very similar if not the same across the states. Guess not.

[Nancy2015]

any providers in virginia ??

any home daycare providers in virginia fairfax county or prince william ??

[Blackcat31]

really? yours doesn't want you to 'take care of you' by having health ins, a retirement plan, pay increase every year and paid days off? I thought they were very similar if not the same across the states. Guess not.

Nope, there hasn't been anything in our state's QRIS program that is beneficial for the provider. At least not so far.

We do get reimbursed by the state assistance program 20% more than what the normal reimbursement rate is but most providers already charge more than the state pays out so the higher differential only benefits the parent....less out of pocket expenses for them.

[Annalee]

really? yours doesn't want you to 'take care of you' by having health ins, a retirement plan, pay increase every year and paid days off? I thought they were very similar if not the same across the states. Guess not.

In my state, the QRIS Child Care Center Report Card has a Staff Compensation component but the Family/Group Child care does not.

[Unregistered]

When one of my infants moved to another country, I set out interviewing again with dread. I just hate the interviewing part of this job, and trying to find the right fit. I didn't really want to take on another child, but we need the money. So, when a parent called about the slot (I do hourly daycare on a part-time basis), I threw out $13 an hour when I normally only charge $12 an hour. She didn't even hesitate! Maybe I should have asked for $14 an hour. LOL!

Infant slots are just so in demand that parents are desperate for quality care...