Decreasing Numbers, Increasing Rate...

[SunflowerMama]

So I have a pretty large group and would love to maybe reduce my numbers by 2 kids. I think there would be more opportunities for one-on-one interactions throughout the day, more flexibility as far as activities and more room for the ones that are here.

Here's the question do you think if I decided to drop 2 dcks the other parents would go for a rate increase? Maybe $10/week? Right now I'm about in the middle as far as rate for my area. If I increased $10 I'd be closer to the high end but definitely not the highest for my area.

I do have a waiting list and I kind of stand out a bit because 1) I'm licensed (almost all of the other home daycares around me are just listed or registered), 2) my menu is a bit more wholesome (organic) than most of the other home childcares I have seen around here and 3) I provide cloth diapers and wipes so don't ask parents to provide any of that.

I think most of my families might be ok with an increase but I could never say for sure. I also don't know how I would decrease and who I would cut. All of my families are gone by 5p except one (siblings) and they are picked up by 5:30p. So I could alter hours a bit or just let everyone know about a possible increase and see who would be willing to pay the little extra for more one-on-one and who would chose to search for alternative care.

What do you guys think? Has anyone increased rates that much on families before? How did they take it? Did you lose anyone? Would you just email everyone and ask how they would feel about an increase or email that it will happen? I just received my official license (probation period just ended and just passed last inspection) so I could link the increase to my license.

[AnythingsPossible]

A daycare provider in our area tried to do this. She went from nearly full to 2 kids at this time. Our rates in this area vary by about 10 dollars a day. She is currently 15 dollars a day higher then our cheapest and about 5 dollars a day more then the average. I think that if you decide to decrease your numbers, then you make the choice to decrease your pay as well. I guess you would need to seriously look into what other providers in your area are charging for service. I could maybe see asking for a higher wage if you watched say less then 6 because you would be providing more individualized care, but only cutting by 2, I don't think is justifiable to raise rates on the rest of your parents. I am licensed for 10, and don't think cutting 2 from my numbers would really give me that much more time available for the other 8. JMO though. Like I said, look at what others are charging before you change your prices I would say.

[Live and Learn]

This is how I roll too. I would much rather provide care at a higher rate for fewer children. I like a 1 to 3 ratio.

I raised my rates substantially a couple of years ago. I lost one family whose lil one I adored but I had a waiting list and replaced him.

My advice is to raise your rates...you might lose 1 or 2 and then you can fall back on my waiting list if you want.

When I started "perfecting":: my policies about three years ago I did it in this order.

1) I raised my rates to where I wanted them for all of my existing families. Their rates remain the same as long as they are with me now.
2) I started getting paid for their child's slot rather than the days attended.
3) I did away with drop in...too much hassle.
4) I get paid before I provide care....I gave the option to pay once a month or every two weeks and everyone wanted once a month...love it.

Again...so cool that you made the switch to cloth...you are actually saving your families money because they don't need to supply disposables anymore while at dc.

Good luck...I have a really good feeling that this will work out for you.

[Cat Herder]

I went up $10 a head, per week, for 2011. That was a $20 increase per week for a couple families. I did not even get a question as to why.... Granted my last increase was a few years ago and all my families have friends on my waiting list

All of my parents can see the recent improvements like 2 new little tykes climbers/slides, a couple new swings/merry-go-rounds and about 40 new toys. As long as they can see where the extra funds have been invested, they really don't seem to mind a bit.

On the flip side, if I suddenly was wearing new jewelry, sporting a fake tan/nails etc., they would probably be up in arms....::

[SunflowerMama]

If I choose to increase my rate and make my closing time a concrete 5p (would only be an issue for possibly one family) would you state something in the email/letter that there may be families that choose to search for alternative care and I will not be filling these openings leaving more one-on-one time for the children in care?

As reasoning I may just state my new license, the increasing cost of organic and fresh food, and a smaller group for more individualized attention.

[lvt77]

Good morning!! Well its morning here....

I just increased by $30.00 a month. I too have a unique program here, as I offer a preshool/kinder ready program. I am about $20.00 cheaper than all others in my area and did this so that I could get the DC full. Worked!

My parents had no issues with the increas and they felt it was necessay. Lucky for me.... What I did, was increase it by the day...

IE....rate here is 40.00 per day which becomes your weely rate based on the number of days that are used... so 3 days a week $120.00.

In the letter I told parents the new rate will be $41.50. even though parents could sit and figure out the math, not one person did and even one parent said only $1.50 a day are you sure??

I also dont think that I would use one on one as your only reason, some parents may be upset to think that it may have been their child that was getting ignored.

If you want, I can share with you the letter I used..

Good luck and great idea...

[Live and Learn]

I notified my families of rate changes face to face. i didn't give a specific reason but like Cat Herder said...the benefits of my dc are obvious.

[lil angels]

I increased by $5 per week on the first of the yr. I just had a letter that I added to my contract that I have them sign a new one at the beginning of each yr and no body said boo. I also am closed by 5 every day. I have my own family to take care of and 5:30 is to late. By the time you get done making supper and going to swimming lessons or something it is to late. I love being done that early.

[Daycare_Mama]

I think your best bet is to raise your rate across the board and finalize that 5pm end time and expect (hope) that someone wants to leave.

That way, there won't be any harsh feelings by any of your families who might think you are signaling them out.

Of course, you might find that everyone stays. And then you'd have to decide if you are fine with the extra money you are bringing in or if you want to give someone notice.

But I would at least try to raise your rate first and see if anyone leaves!
Just a thought!

[Abigail]

If I choose to increase my rate and make my closing time a concrete 5p (would only be an issue for possibly one family) would you state something in the email/letter that there may be families that choose to search for alternative care and I will not be filling these openings leaving more one-on-one time for the children in care?

As reasoning I may just state my new license, the increasing cost of organic and fresh food, and a smaller group for more individualized attention.

It sounds like you really want to change your end time to 5:00 AND have less children. I would do this: 1. Write a contract with 2 weeks to return it that your rates will increase as of (one month from date of letter or Monday, February 28th--this is the last week of Feb/first week of March this year. When was the last time you raised your rates? I would state that your rates are increasing to such and such dollar amount per week/day...whichever you already use. If you charge $125/week full time now for one child, I would say the rates are increasing 8% bringing their rates to $135/week. Anything 10% or less is good. Don't give a written reason as to why rates are increasing...you never gave a written breakdown explaination of why you charge "such and such" amount when they enrolled so don't do it now. You can tell them if they ask and give them a variety of reasons. I would focus on stating your license is official, but I would AVOID stating one on one time with children. I also would wonder if it's too much for you to handle if I was concerned my child wasn't getting the attention they deserved.

2. If your enrollment doesn't drop and you still want to shorten your work day, I would schedule a meeting with your only family that stays until 5:30 and see if their is a way to work out a 5:00 OR even a 5:10 pickup. If you don't think they'll take you up on your offer, you can simply tell them your hours will be changing and post a newsletter stating new hours.

[SunflowerMama]

Thanks everyone for all the great advice. I had in my contract that rates would increase $5/week the 1st of the year and they did for 2 of my older families. All the newer families came in under the new rate to begin with. So if I did an increase it would probably be just for all the newer families. After talking to my husband last night I think I'm going to stay where I am for the time being and see how things pan out in the summer. I have some teachers' children, one little boy heading to kinder, and one dcm expecting so I may wait until Sept. to institute a rate increase. I have updated my website though with what I would like for my new rate and if I lose anyone for any other reason will bring anyone new in under the new rate. Thanks again!