Does this sound too harsh?

[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