When/How Often Do You Raise Your Rates?

[momma2girls]

I started doing childcare in March 2008. I did have a half day rate, but my families said they would need full-day. However, after a couple months, everyone started half day. So in the fall, I eliminated half day. Had they stated from the beginning they wanted half day, I woulnd't have taken both families. However, after that the kids were back to full day.
Now, this past Aug. my rates went up by $1/day. With the prices of everything going up(food, heating oil, and our electric rate caps are coming off shortyly) I had to raise them. I had no problems with that. I still have the families. Most days the kids are here the entire time I'm open. 11 hours and I get $18/day.
Why should I not raise my rates (raise)? My dcp get raises once/year.
I think that it's fair to evaluate your expenses yearly, and if need be, raise your rates. I think that $5/week increase is acceptable per child.

THis is crazy!!! $18.00 for 11 hrs.!!!! It's bad enough, just making $2.00 or $2.00 and some odd cents an hour, but $1.00 an hr. how do you afford all your items, food, snacks, drinks, milk, napkins, paints, colors, coloring books, ink, pencils, craft supplies, crafts, paper, TP, kleenexes, etc. etc. on that?????

[Greenshadow]

I opened my daycare in this state in March. I just put in a 2-wk notice to my parents that Im raising my rates. They've all agreed to the rate change. I think that they went along with it because they knew I was too low before so the rate increase puts me at an average range for this area. So I went from $100/wk to $125/wk. I put it in writing as well as told each parent verbally and I let them know that it was either that or I hired someone so I could bring in more kids. I added on the letter that I gave them a 2-wk notice for the increase that way if anyone wanted to put in a two-week notice, they could. Nobody did. I thought for sure one family would quit because she's a single mom but she didnt!

[SunflowerMama]

I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.

I definitely love this method and will be using it with my new families as well when I decide to increase rates. I think it's great that families get grandfathered in with their original rate and never see an increase.

[nannyde]

My rates are based on not to exceed nine hours per day and departure time. The later the departure time the higher the fee.

We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.

I raise rates five dollars per week for incoming children each year.

3:00 p.m. departure $135.00 per week

3:15 p.m. departure $140.00 per week

3:30 p.m. departure $145.00 per week

3:45 p.m. departure $150.00 per week

4:00 p.m. departure $155.00 per week

4:15 p.m. departure $160.00 per week

4:30 p.m. departure $165.00 per week

4:45 p.m. departure $170.00 per week

5:00 p.m. departure $175.00 per week

5:15 p.m. departure $180.00 per week

5:30 p.m. departure $185.00 per week

5:45 p.m. departure $190.00 per week

6:00 p.m. departure $195.00 per week

[judytrickett]

I raise my rates by one dollar per day per year. And, anyone who starts in the current year starts of care at NEXT year's rates. I do it this way so they don't feel like they just started and then got slapped with an increase.

So, for example, all current clients are paying $37 a day. But in January 2011 they will get an increase of $1 to put their rate at $38 a day. Now, if a child starts today they will be paying $38 a day and will remain at that rate until Jan 2012.

[DCMom]

I do not raise my rates all at once, I add when I get a new family,... once a family starts with me they dont get their rates changed. I simply raise the new families when I feel I deserve it and it filters through. Noone ever gets a rate raise and noone ever gets upset. But I do get raises.

I have used this method for several years. I generally raise the rate $5/week each year; it has worked well since I have little or no turn over and no trouble filling spots (thank goodness!). For example, this year I have two that are leaving in September whose weekly rate has been $135 since they started. The two families that are starting are at $165 week, effectively giving me a $60/wk raise each September.

[MarinaVanessa]

I raise my rates by one dollar per day per year. And, anyone who starts in the current year starts of care at NEXT year's rates. I do it this way so they don't feel like they just started and then got slapped with an increase.

So, for example, all current clients are paying $37 a day. But in January 2011 they will get an increase of $1 to put their rate at $38 a day. Now, if a child starts today they will be paying $38 a day and will remain at that rate until Jan 2012.

I really like this. I'm going to start doing this. I usually raise my rates every year anyway based on my costs but doing that takes a lot of time and effort. Doing it your way makes it seem like it's not a large increase (like a %) and charging new clients next years fee and not raising their rates until the year after that is brilliant.

[daysofelijah]

My county puts out the average rates for our city. So I yearly adjust my rates to the average rates for the city. I do not raise rates on current clients though, only on the new ones. My rates vary based on age so when a current client goes down to the next age rate then I adjust it to the current rate, because they get a new contract then.