Raising my rate

Hello everyone, I need a bit of help, I want to change my daycare to low ratio and raise my Rate. Im currently $36 a day and would like to raise it to $40. My issue is that I just raised my rate last Jan from $35 -$36 I don't want to do such a big jump and scare my parents away. It does however say in my contract that I have the right to raise my fee every January.

My reasoning is 3 kids is easier than 5 and my son is going to school in the fall and the way I cook which I know I choose to cook the way I do but I treat all my DC kids as my own. But milk snacks it's all expensive. Im in the Ottawa area if that makes a difference. :) But im just wondering if I should just wait for another turn around in my ay care or just raise my rate slowly or just let all my parents know what my plan is for Jan and give them time to leave if they don't want to pay my new rate.

Thing is im cheap for my area everyone else around me is $40-$45 a day. Morally stuck I have a good relationship with all my parents. One of my clients are leaving so im losing two of my kids. They were my first clients and now they moved and are going to school which is why I said I want to switch to fewer kids I won't have to look for any new one's. Thanks in advance for any advice

J

Just let parents know you're raising your rate, sounds fine if it's still in line and cheaper than the others anyway which it sounds like it is, as to your plans, it sounds great, and yes 3 would be easier (less than more) for sure.