Rate increase amount

[mom-in-alberta]

Rate increases are tricky business. They are necessary in the long run, but have to be handled carefully since they do, indeed, tend to tick people off. I was actually thinking the other day that it was something I should consider.
Myself, I think $60 per month/ family is a little steep. I understand the need for the extra income, but from their perspective, is it justified? If you believe it is, then do it. Ultimately, as we all know and love, you call the shots.
Here is what I think is important: I don't want to change rates on families already in care, unless it has been quite a long time. So I will be changing my rate schedule, but "grandfathering" (so to speak) the current clientele. Those folks will be given a 3 or 6 month heads up.
You said that you have now been in business for a year. Have you had all the same clientele for that period? I am guessing that anyone who has only been around a few months will be unhappy if their rates increase already. Do any of them have more than one child with you? For them that won't be a mere 60 bucks, it's 120, which may not be managable for them.
Believe me, I am not saying you can't raise your income, just hoping to point out some of the common issues with parents when you do so!! Good luck, and let us know how it goes.

[Spixie33]

Rate increases are tricky business. They are necessary in the long run, but have to be handled carefully since they do, indeed, tend to tick people off. I was actually thinking the other day that it was something I should consider.
Myself, I think $60 per month/ family is a little steep. I understand the need for the extra income, but from their perspective, is it justified? If you believe it is, then do it. Ultimately, as we all know and love, you call the shots.
Here is what I think is important: I don't want to change rates on families already in care, unless it has been quite a long time. So I will be changing my rate schedule, but "grandfathering" (so to speak) the current clientele. Those folks will be given a 3 or 6 month heads up.
You said that you have now been in business for a year. Have you had all the same clientele for that period? I am guessing that anyone who has only been around a few months will be unhappy if their rates increase already. Do any of them have more than one child with you? For them that won't be a mere 60 bucks, it's 120, which may not be managable for them.
Believe me, I am not saying you can't raise your income, just hoping to point out some of the common issues with parents when you do so!! Good luck, and let us know how it goes.

I have had all the families with me since the whole year mark already and none of them are full time siblings so it shouldn't be too much of a burden on the full time families I have.

As Judy said - it is my own doing. I started off at 32 with the intent of raising prices once I 'lured' families in. I really always planned to get to $35. Heck I was paying $35 to my providers SEVEN YEARS AGO and prices of living have definitely gone up in the last 7 years.

I have seen providers start at $25, $28 around here when they first get started so I thought I was being more reasonable at $32.

I really am sort sof surprised (but not offended Judy !) that the responses are so cautious about rate increases. I really thought it was quite standard to raise rates once a year or so. I have used home daycares in the past and had rate increases while using them and it didn't get me to consider actually changing cares

[Judy Trickett]

I really am sort sof surprised (but not offended Judy !) that the responses are so cautious about rate increases. I really thought it was quite standard to raise rates once a year or so. I have used home daycares in the past and had rate increases while using them and it didn't get me to consider actually changing cares

I am NOT cautious about raising fees and I did NOT want my reply to imply that sentiment. I think you SHOULD raise your fees. I just wanted you to see it from "the other side" with regard to being a new provider and the error in your logic.

I raise my fees EVERY year. Yep, ALL my contracts expire Dec 31st of every year and the new contracts that come into effect Jan 1st always include a fee increase. Typically, unless something really strange happens in the world of finance etc, my fees increase by $1 per day per child every year. So, that is an additional $5 a week which I think is MORE than fair for a parent to pay more of every year. And that one dollar a day per child can make a big difference to a provider. That is an additional $25 a week, or about $1250 a year. BUT, the BIG difference happens cumulatively. For example. When I started 8 years ago at $30 a day my income would have been $37,500 a year (all assuming we are always full and working 50 weeks a year at five kids in care). NOW, 8 years later my fees are earning me $47,500. See the difference that ONE DOLLAR PER DAY can make over the long haul??

Something else I typically do is if I want to really increase fees when I feel inflation is costing me more to buy supplies and feed my own family, is to do a real fee hike to any new family coming in. So, while your fees might be $32 a day right now, you start newbies off at $35 a day (or more). I am actually doing this right now. My fees are currently $38 a day but any new family coming in will start off right now at $40 a day. It's just an easy way to increase your fees without anyone really realizing it because they are accustomed to paying that rate right off the get go.