Stores don't post signs saying prices subject to change at any moment - just imagine if the gas stations had signs like that - as if we didn't know they already did that. Everything goes up at some point.

A lot depends on how much you intend to raise your rates. And then decide if it is truly necessary. I am one that doesn't raise my rates for existing families but new families coming in pay a new rate. If mom goes on mat leave and leaves first child fulltime, new sibling comes in at old rate too. If mom goes part time then first comes in at old rate but new child comes in at current rate on their start date which is usually a dollar or so more. If child is pulled during mat leave then both come back at the then current rate - it is in parent's best interest to leave child in care.

The most I ever have a child is 3 1/2 years from 1-3 till they start school since I don't do JK so it seems to work out not to raise them for current families.

When I did have JK the parents had the option of keeping their old fulltime rate or moving to the new JK rate since they were changing contract it is subject to rates in effect at the change.

I would give the parents plenty of warning and also make it clear when they need to let you know by. There is still a chance that if your rates are high for your area that the family will still leave giving you just the minimum notice in your contract but that is a risk you have to take. Not all people get annual salary increases and many are under a wage freeze so even if you feel you deserve the raise make sure you think your families can afford it because it is sometimes better to keep the families you have at the lower rate than advertise for families to come in at the new rate.

You don't mention how long you have had your current rate or how your program has changed as that might be one of the reasons to give parents in that it no longer covers the expenses of the program.

I have never been a fan of raising rates in January since parents are just coming off Christmas and the credit card bills are starting to come in and then they have to pay an extra $20 a month in childcare. I tend to use September with the idea of the new school year but mostly because I am usually replacing kids leaving for school so those coming in Aug-Oct to replace them are starting at the new fee.