Does this sound too harsh?

[monkeymama]

I am hoping to increase fees after the new year...has anyone had a daycare family choose not to renew because of that? I secretly fear this :S

[Inspired by Reggio]

I am hoping to increase fees after the new year...has anyone had a daycare family choose not to renew because of that? I secretly fear this :S

Nope - I've raised fees alternating years in some manner or other and never lost anyone - and to be honest if I DID than I would look at that as a blessing cause they obviously did not value the service they were getting so let em move on and make room for someone who does

[Monday 2 Friday Mama]

Try not to be fearful. =) One dollar a day translates to 20 dollars more a month for your families - a very modest increase. If it makes you feel more confident, you can prepare a list of reasons why you need to increase your costs. I increased my rates by 25 dollars a week the first year I was in business. What I did was as clients moved on (children aged out of my care, children went to liscenced daycare centres) I implemented my new rates with my new clients. There was one family who I had to notify them of a price change once their anniversary date rolled around. I explained to the increase to the family: I had paid my taxes so I had a better idea of what my actual rates needed to be in order to run a profitable business, I pointed out that the cost of food had increased significantly and I wanted to provide the children with a healthy diet while they are in my care, and they already had seen over the last year all the crafts/activities/new toys that make up my program. All these things are essential to providing a quality childcare experience, but they do require cash to implement. Reggio had a post not too long ago where she provided some hard numbers about what it costs to care for children and run a good program. Take a look at it, and have those numbers in your mind - if the parents question your rate increase, you'll be able to explain your decision in a strong, business-like fashion. Good luck !

I am hoping to increase fees after the new year...has anyone had a daycare family choose not to renew because of that? I secretly fear this :S

[angelina]

I am hoping to increase fees after the new year...has anyone had a daycare family choose not to renew because of that? I secretly fear this :S

Nope. The fee increase for me is when negotiating for renewal which happens around summer. My contract runs on school year, not calendar year, so it is Sept 1, 2012 to June 30, 2013. My parents and I normally chat towards the end of summer, some Friday I invite them to a pizza night with the kids. Around the line, we discuss our kids milestones, and probably plans for next year. And of course the contract renewal comes up. I maybe lucky, but I increase mine from $35 to $40 a day without a problem. I told her around $38 is acceptable for me, and the next day, she emailed me that she like our discussions about our kids developmental milestones and how we have worked nicely well throughout the year. She offered me $40 a day to my hearts content.

The b/a was bargain who wants to pay only when her child comes here, not per contract she signed. oh well, you will pay me. end of story.

good luck and yes, the termination is a bit harsh, can't think of a milder word either.