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When i first started my daycare a year ago, i told a potential family that I will not be increasing my rates every year for existing families, only new families. Now i wish i never said that. Cost of living changes every year and you become more valuable every year as you get more experience. I never put it in my contract though, it was just something i said verbally, and this family enrolled. How wrong would it be to go back on my word? I want a pay increase, especially since this is a problem child for me...i feel i deserve more .
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What about charging them a yearly non-refundable supply fee instead? -
Meh ~ There are alot of things I "thought" I would or wouldn't do when first starting out. Then the reality of the real world hit me and I realized alot of those plans were unrealistic.
NOTHING wrong with saying "My intentions were just not realistic. I am no longer unable to avoid raising my rates in order to continue operating"
If you feel badly about it, you can always make up for it in a different way (don't charge for holidays and/or absent days) or whatever works for you.
I always make a point of letting parents know just because something works for me/my business now doesn't mean it will always work.
I used to have a family that didn't come over the summer months. I used to just save the spot for them. It didn't effect my program or my budget so it worked for me.
Fast forward a few years and it no longer worked. I let DCM know that I would be charging her for her space over the summer even though I hadn't in the past. I said "It worked for me then but doesn't now" She was fine with it and paid for her spot over the summer.
Things change. Needs and wants change over time.
Nothing is special enough that it can avoid change.Comment
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Black Cat your response is perfect that's exactly what I'm going to say. Thanks!
I actually don't feel bad for wanting to go back on my word, they get raises at their job I should be able to get a raise too.Comment
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BC gave great advice. What you might want to consider, moving forward, is offering care at a rate that has the cost of living increases built in for 5 years (take your current rate, add 3%, and do this for 5 years, then take the average). If you did this for new families, you could avoid rate increases for the family, and still get your cost of living built in. Another option would be to set it out right in your contract:
For example: $100 per week for 1st year. $105 per week for 2nd year, and so on. I would NOT suggest charging only $100 a week!, but you get the picture.Comment
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Great advice here from the other ladies. When I had my BAS assessment done they recommend that I raise rates every 3 years.Comment
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I do it a little differently. I do NOT raise rates for old clients, but they also don't get to step down their rates as their child ages up.
So if my rates are 36 infants, 33 toddlers, 30 school aged etc. Then the rate you start with is the rate you keep until your child ages out and goes to school. It's a sneaky way to build my raises in.Comment
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