Increasing Fees...how do I tell parents?

[DaycareLady]

Thanks ladies. I am writing in my new contract that I am revisiting it and may revise every 6 months. I do give my parents a lot of breaks, I don't ask for a deposit, I don't ask to be paid on any holidays (stat or my own), they don't pay for my personal days off, etc. I don't ask for a holding fee and hold spots for parents often. I am thinking of telling parents of this increase now but won't put it into effect for them until July ( since in my new contract I am reviewing jan and July). This gives them 4 1/2 months to find new care if they choose not to pay the extra couple of dollars a day? I also want to do this now because I have 2 new clients that work with my current clients and I know they will be discussing how much they pay, I rather everyone be on the same page and know that they are all paying the same/will be paying the same.

[apples and bananas]

Thanks ladies. I am writing in my new contract that I am revisiting it and may revise every 6 months. I do give my parents a lot of breaks, I don't ask for a deposit, I don't ask to be paid on any holidays (stat or my own), they don't pay for my personal days off, etc. I don't ask for a holding fee and hold spots for parents often. I am thinking of telling parents of this increase now but won't put it into effect for them until July ( since in my new contract I am reviewing jan and July). This gives them 4 1/2 months to find new care if they choose not to pay the extra couple of dollars a day? I also want to do this now because I have 2 new clients that work with my current clients and I know they will be discussing how much they pay, I rather everyone be on the same page and know that they are all paying the same/will be paying the same.

You could do something a little different and make some extra cash. You could put a new policy in charging for states. If there are 10 stats in a year and you charge 30 for each stat, that's an extra 300.00 a year per client. If you were to raise rates an extra $2.00 times 320 days (assuming clients take time off for vacay or sick) that would be an extra $640 per client per year. It's cheaper for the client to pay the stats.

If you write the letter right and it might not seem so harsh.

I charge a high rate for my community, but I don't charge for stats, sick, vacay. So, a new client is happy to pay a top dollar for me knowing that they will save money elsewhere. However, if you do the math I actually come out on top.

I'm with everyone else, I wouldn't do a rate change for an existing client, until they're with you a year at least. But if you need the extra income I may look at using stats or sick as an extra money maker. I can't imagion anyone would leave you for an extra 30 a month on average.