Raising Rates

[Core12]

Has anyone raised their rates on current clients? I just spoke with an insurance agent who said that my homeowners ins will double to $1400, if I want to insure my daycare. Therefore, I thought about increasing my rate by $5/week per kid.
I’m relatively new as a licensed business and am needing major support in the wording and handling of this if this is not out of line.
I have provided care for two families for 18 months and everyone else for less than a year.
Also, if anyone has insurance suggestions for Missouri, please do so.

[Josiegirl]

I have no suggestions for Missouri insurance but I went through State Farm recently because my long time insurance company switched everything around and no longer took family daycare with dogs. State Farm does a rider for me at 200 bucks less a year than I was paying but the deal is I cannot have more than 6 dcks at any given time.

As far as upping your rates, I think it's perfectly feasible to do so, even with long term clients. Prices of everything changes weekly, it seems. I started out a million years ago and charged a mere pittance. Couple years ago I found out local providers were charging on average of 125-135 a week. At that time I was at 105 so immediately sent notice home to everyone that every 6 months I'd be upping my rates 5 bucks until I reached 125. New dcfs came in at 125. I just sent a notice telling everyone rates are going up 5 a month in June, for everybody. That'll finally bring my long term dcfs to 125 and my 2 new dcfs to 130.

I'm no good with wording so maybe someone can help better than I can. If you send home monthly newsletters, just add it in there and say something to the effect that 'as of May 20, 2018, weekly rates will be increased to $....'. Short and sweet. Course most will need reminders.

[Core12]

Contracted hours...

Another idea I could implement is contracted hours....(thanks Blackcat).
I have 8 non family clients who all come between 7-8 am and leave by 5:15 pm.
I get resentful when I see a family think it’s ok to come at 5:15 (originally they told me they would be here at 4:30) because they have found out that I still have kids in care at that time.
So, I guess I could say...
If picked up by 4 pm it’s $
If picked up by 5 pm it’s $$
If picked up by 5:15 it’s $$$

[Blackcat31]

Another idea I could implement is contracted hours....(thanks Blackcat).
I have 8 non family clients who all come between 7-8 am and leave by 5:15 pm.
I get resentful when I see a family think it’s ok to come at 5:15 (originally they told me they would be here at 4:30) because they have found out that I still have kids in care at that time.
So, I guess I could say...
If picked up by 4 pm it’s $
If picked up by 5 pm it’s $$
If picked up by 5:15 it’s $$$

Contracted hours are nice because parents rarely if ever complain about rates since they have some control over how much their weekly rate is.

Is your insurance that is being raised...your regular homeowners (so you can't really change that) or is it just the liability part of it?

If it's just the liability part I'd check with Assure

They have pretty competitive rates and I think alot of providers used them.

[Core12]

Thank-you!!!

Awesome!

[Unregistered]

I'm legally unlicensed in Missouri. We have our homeowners insurance with American Family with an umbrella policy that runs approximately an additional $300/ year.