Quote Originally Posted by Spixie33 View Post

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.