Raising daycare rates?

[playfelt]

Also consider that you are part time and those kinds of spaces often do come with a premium rate. The provider is probably finding after three months that she is losing too much income by giving you the space. The space itself is worth $200 a week and you are paying only $80. The provider has asked you to pay an extra $10 to bring the rate up to $90 which is still less than half the income of the full time space. My part time rates are more than my daily rate to compensate for lost income, expenses not spread over the whole week such as putting aside for replacing playpens or printing newsletters, or birthday gifts to the child.

Having said that, the fact that your contract says rates in effect till 2013 then that should be honoured. There may also be a clause that allows the caregiver to ammend the contract by giving a certain amount of notice. She may also be raising the rates for her fulltime clients to $45 a day as well. If you truly feel that the increase is not what you are prepared to pay then you do have the option of looking for care elsewhere noting the timeframe of notice you need to give. What you might be able to do is under the circumstances acknowledge her need to be better compensated for the space but also for it to be phased in such as going from $80 a week now to $85 in January and then to $90 in February/March.

[kidlove]

I have only raised my rates once in the last 9 plus years, but when I decided to raise my rates was when I realized I was lower than most other providers in the area and even the state was paying more than I was charging hourly. When I raised it went up 5$ per day, but because of the way I charge (which is a minimum due) most parents went up and average of 15$ a week. Not a single parent complained or made any sort of comment, as a matter of fact a few made comments to the effect of "It's about time!"