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  1. #1

    Raising rates when new family starts

    I'm planning on raising my rates in the new year, however I have a new family starting in January. They signed on with me in November and paid a deposit. Do you think it's fair to raise rates on them? What should I do? The child is under 2. In light of the new law, I was going to raise $5 for under 2 and $3 for everyone else.

  2. #2
    Euphoric !
    Join Date
    Sep 2013
    629 Times in 475 Posts
    I would do one of 2 things - either give them notice now that your rate is changing and give them the opportunity to look elsewhere (I would refund their deposit if they do go somewhere else as you aren't following the contract that they originally agreed to) or charge them the old rate and give them notice after a month that you are increasing your rate as of July 1st. I think if you change the rate too quickly you risk the chance that they leave anyways, once their child has been there a few months they will have more of a relationship with you and might stay despite the increase.

  3. #3
    Euphoric !
    Join Date
    Oct 2011
    677 Times in 507 Posts
    I wouldn't raise their rates ...they signed on with you at that rate and I think its unprofessional to raise their rate before they even start ...I would suck it up and raise everybody elses

  4. #4
    Euphoric !
    Join Date
    Feb 2011
    Ottawa, Ontario
    1,469 Times in 1,125 Posts
    I would probably wait on the rate increase for everyone till we know more about the laws if you are going to use that as your reason since the bill has not passed yet. It will only be after the bill has passed and the 2 under 2 kicks in that we can use that as leverage. If the raise is one in general then probably should have been thought out 2-3 months before it would take effect regardless of how much notice you gave families.

    Actually I would have raised the rates of the new family coming in by 1-2 dollars a day as that is how I do rate increases. Those in care remain at their rate the entire time they stay fulltime with me. I raise the rates of incoming families only.

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  6. #5
    Euphoric ! mimi's Avatar
    Join Date
    Mar 2012
    555 Times in 413 Posts
    I signed someone several months ago for a January start. I sent her a notice of the increase and that I had not increased my rate in 4 years, so it was due. I told her that the new price would be in effect for her 6 months after her start date to honour our contract. She was fine with this and appreciated the 6 months deferred start.

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  8. #6
    Thanks Mimi, I think that is the fairest way of doing it. I think my rate is on the low end in my area, hence the $3 increase. I opened in April 2012 - I think an increase is due.

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