I actually tell them at the interview. I do it as a drawing card because what I tell them is barring an emergency like property taxes double for everyone in the city or whatever that whatever rate they start at is the rate they will stay at as long as they stay with me. It gives them security right from day one and they like knowing that my rates won't suddenly jump on them mid year after they have set their budget. I then go on to tell them it means of course that at any given time I have parents paying a lower rate but that as new families join the daycare the rate goes up to the current market value while others continue to enjoy their lower fee and they will have that privilege too. I have never had anyone upset about it because they realize it is in their best interest since they will benefit down the road too. I usually raise my rate anywhere from $2-5 a day depending as I say on market rates. It works better for me than making all parents pay me a dollar more every year since I have a turnover due to only taking young kids.

By the way if you pull your child during mat leave the rules change.