How many families do you have at the lower rate and will you be keeping them a long time. Ex. I don't take kids in school so they come at age 1 and leave at age 3 1/2 or they go on maternity leave 12-18 months after starting.

A jump of $15 a week means you will probably anger and annoy some parents and they will leave care for the other ladies that are charging under $35 which means you will lose in the long run unless you are able to fill the spaces with higher paying clients right away.

I only raise my rates for incoming families and even then only do it every 3-5 years. At the same time I have been in care long enough that I find I have to scramble to find enough deductions in the sense that I have everything I need so my expenses are limited to consumables such as food, toilet paper etc. and craft supplies but with the little ones I don't use anything elaborate. I cut costs at one point by cutting back on craft supplies and my parents either didn't notice or didn't care.

I would probably rethink the increase based on how much you really need. Have your expenses really gone up $60 per child per month or is there a way to look at the total amount you need per month and then divide it out so there is a less increase per family. I understand how nice the numbers look when you take the full $35 and multiply by 5 but a sudden $3 per day is quite a percentage jump all at once for a parent's budgeting. Just start moving towards the higher rate for all is one option or let parents know as of say Jan 2011 that the new fees will apply and ask them to sign contracts by a certain date giving you time to replace if they wish to leave. Alternately you could take the risk depending on your area and say as of Sept 2011 the new rates will be and then replace anyone that disagrees and leaves. Hard call but I know how more money seems so appealing - but it isn't if families leave in anger saying they feel duped and accepted under false pretenses and the word is spread.