I feel like I have been undercharging families...

since I have been interviewing other daycares around my area for a part-time space for my son (3 yrs old).
I believe I have a pretty good set up:
- a large playroom on main floor, with rotated toys (member of a toy lending place)
- ABC & 123's, pictures and artwork on the walls
- Parent board with weekly menu, monthly newsletter, articles
- I network with other home daycare ladies and attend workshops
- a pretty good schedule with a mix of outdoor play, creatives and quiet time
- home cooked, nutritious meals and snacks
- Themed weeks depending on the interests of the children
Most of the home daycares ladies I interviewed had none of these things, with a few toys in a small area, nothing on the walls, no programming. It just seemed like they didn't treat it as a serious business and didn't put the time and effort in.
My issue is that they are charging the same amount I have been charging which is $35 per day.
When I opened 2 years ago, I did my research and most people around my area we charging $35 per day so I went with the average not expecting that the average was so below the kind of service I was offering.
I have signed on with a daycare lady who has a very similar set up to me but she is more qualified with many years experience working with children at various jobs and has childcare certificates. She charges $40 per day and I don't want to charge that much but I don't have her qualifications but want to meet somewhere in the middle.
Right now I have one family who has been with me for 1.5 yrs, another for 1 year and another for 6 months. I have another 1 year old I am signing on in Sept.
How do I go about raising my rates?
Also, I have noticed that many ladies charge extra for over 9 hours of care. All my kids are here for almost 10 hours a day.

I am new here (daycare doesnt open for another 5months) but I think if I was you I would charge $40 for new clients. I am in St. Catharines and as I am getting ready, I am still torn about what to charge. Most here charge $35.. some lower.. some $40.00. I would love to charge $40 but i have no idea how i would compare to others. I wish there was a way of knowing. I think its great that you had an eyeopener when looking at spots for your DS. I plan on having a setup like you. Very professional, I have lots of curriculum programs here all set up etc but Ihave no clue if everyone else does the same.
If you found that all the $35's in your area didnt offer what you did (dont worry about titles and expertise) next time you try to find a client, try it at $40.00. If it doesnt work then you can drop it back down but sounds like you deserve it!

by the way i am surprised with what you found. I would have assumed that most would be like yours, makes me think. Its one of the hard parts about this business is you have no idea what the competition is doing. Glad you found that out for yourself though!

I think you either have to decide to raise prices yearly from the start or as you take on new clients. I'm kind of stuck wondering what to do as well...A lot of people keep the same pricing for the families they've been with, and raise only for new clients. I think it also depends on where you stand in your pricing overall. Our pricing is a bit higher than what you can find out there so I don't want parents to feel that I am gouging them for every last cent so I think I am going to keep it the same this year for my old clients. Maybe think about raising it next year? Not 100% sure yet cause I am having to raise my assistants wages as well so why should that only come out of my pocket? Either way, I agree with Shopgirl, it sounds like you deserve it so why not raise it to $40 for the next ones. I think you'll be surprised. There are always people who are willing to pay more for better care.

If you raise your rates will you still attract clients? Are you confident that it will work? I renew my contracts once a year and that's when I make any changes, but if your contract doesn't have a renewal date then I would suggest sending out a letter to your current clients giving them 60 days notice that rates will be going up and tell them it is to keep up with the cost of living and the cost of food, don't explain any more than that.

I am lucky to have an entrance hallway at my front door so it is covered with all the things you mentioned including a bulletin board with my newsletter posted. People have mentioned before at interviews that they like that they can come into my home and see that I am dedicated to my daycare and proud to display the children's artwork. Also, our weather frog is on the wall out there and we change his clothes according to the weather. But I know a lot of people only want to have daycare things in their daycare room and I understand that too.

Don't compare yourself to anyone else. Do what you feel is best for you and advertise all your good points and point them out at interviews. We are all sooo very different.

I am in Okaville and I charge $45.00 per day for a full time 7-5:30 but I found out people are charging $50-$57 per day in a home daycare.