Raising Rates

[Unregistered]

How do you go about raising your rates with current families? I usually just get my new families coming in with my new rates, but I would like to raise rates on my current families. How do you go about doing it?

[lovemydaycare0912]

How do you go about raising your rates with current families? I usually just get my new families coming in with my new rates, but I would like to raise rates on my current families. How do you go about doing it?

I've never raised my rates since I just started a year ago. However, I would write a letter stating the new rate would go into effect 30 days from date of letter. Probably have them all sign a new form as well maybe by a certain date to know they are on board.

Hopefully someone else will give input.

[EntropyControlSpecialist]

I raised my rate for the first time since I opened, 4 years ago, in January. I sent out a letter and had them check off if they were remaining enrolled or check off if they were giving their 2 week's notice. All families remained enrolled (despite the full-timers paying $15 more a week!). I was very anxious, though, but not anxious enough that I didn't want to be making the same rate off with my full-timers that I was with my part-timers.

[Controlled Chaos]

Good advice above.

Do you send home newsletters? I would probably attach it to June's newsletter and have new rates start in July. I would keep it short and to the point.

Woot woot for raising rates happyface

[Michael]

Here are some threads on Rate Increase Letter: https://www.daycare.com/forum/tags.p...ncrease+letter

[Unregistered]

I am anxious! I don't want to lose families!! It will be $18/week diff

I think I'll send home a letter with a new contract...

[Magic]

I am raising my rates in June
it was a hard decision
I have not raised them in 8 years
so months ago I started to discuss it with my clients and why
reminded them of my over head ex...
I told them it would be in June so they had months to prepare
then end of April I gave out a funny news letter with a reminder of rates increase for June
I have had support from all parents

[thrivingchildcarecom]

In his post “How to Raise Your Rates”, Tom Copeland says if providers “make it a practice to raise your rates annually will add up over the years and make a big difference in your income.

I thought that was a really interesting concept and something I had never thought of.

[Unregistered]

I do a small raise annually. It's stated in the contract.

[CityGarden]

For the students I tutor I built an annual rate increase into the annual contract, I plan to do the same with my home based preschool.

[Cat Herder]

I have never gone over $5 per week increase in one calendar year. I do raise it annually.

One thought though, it is risky to do it at the end of the school year. With so many teachers/college students, off for the summer, about to flood the market it will be very easy for your clients to jump ship quickly.

It will buy them time to find a cheaper provider for next school year as well.

[CityGarden]

I have never gone over $5 per week increase in one calendar year. I do raise it annually.

One thought though, it is risky to do it at the end of the school year. With so many teachers/college students, off for the summer, about to flood the market it will be very easy for your clients to jump ship quickly.

It will buy them time to find a cheaper provider for next school year as well.

most in this area increase with the new school year so August / September or in January.

[Unregistered]

I have never gone over $5 per week increase in one calendar year. I do raise it annually.

One thought though, it is risky to do it at the end of the school year. With so many teachers/college students, off for the summer, about to flood the market it will be very easy for your clients to jump ship quickly.

It will buy them time to find a cheaper provider for next school year as well.

Very true!!!