Rate Increase

[crayolamom]

Hi everyone!

I am going to have to increase my rates because this Bill 10 is really killing me. I also needed to have an assistant more often then not due to some help problems!

I am thinking about increasing my rates by 5 dollars a day. I never increase my rates because I like to keep the familys rates the same with the rate they originally signed on but this new Bill was so out of my hands that I really don't have an option.

I am thinking of sending out the notice Thursday for November 1st? This is the first time I have ever done this so I am so lost and really stressed because I never realized what an impact this Bill would have on my business

Any advice would be so appreciated! What the heck does one even say in the letter ? I am so nervous to do this!

[Lee-Bee]

How old are the kids? It is highly unlikely the under 2's will leave because of the increase (there aren't many places for them to go to).

I would possibly consider increasing the under 2 spots for November 1st and waiting until January 1st for the over 2 spots. That gives you a bit more income but gives the families with older kids a bit more time to budget. Assuming you feel the families need more time to budget. If you suspect your cliental can pay that much more without much notice then go for it.

Unfortunately Bill 10 has created this mess and there really is little that you and the families can do about it. You need to survive and the families need care. But, some families will really struggle with a big fee increase.

In your letter let the parents know it is due to bill 10, that changes the ages and numbers of children you are hit financially and you cannot continue care without increasing the fees.

Best of luck!

[crayolamom]

I have a two year old (part-time) a two year old full-time and 2 infants. I have been advertising for the last 4 months for a 2 year old min age requirement and the last 8 responses have been 12 month olds, I even had a family lie about their child's age. I noticed the child wasn't at the level of a 2 year old so I figured he might have been delayed. I spoke to a friend and she advised me to asked for the birth certificate to prove birth date and he ended up being 18 months ?! The moms excuse was "oh well he's almost 2 and we consider him two so I just thought that it would be okay? Hmmmm Yah no lol The part-time I for sure need to increase, babies as well but my other two year old, parents mentioned they would be able to pay a max amount and it is what my new rate increase would me but I told them I don't increase rates I keep them singed on at the original rate but in this case the government did this and I don't see anyway around it.

[Lee-Bee]

I am advertising for a preschooler as well and I get tons of infants. The parents all tell me, "I know your looking for a preschooler but perhaps you'll reconsider for my special little guy". I've had a handful actually use wording similar to this! I want to respond saying as special as he is to you he's no more special then the other ten 12month olds asking for the spot!!

I can't believe they lied though!!!

I would just do an across the board $5 increase for November 1st then. Sounds like they can manage it.

Remember NOT to apologize. you are doing nothing wrong for increasing by apologizing you own up to it being your fault when it isn't. Just simply point out the reason, the hardship you now face and the cost increase. Leave it at that.

[crayolamom]

Should I explain myself or just tell them there is going to be a rates increase. OMG im so nervouuusssss!!!! ugh What should I do about te family I told their rates would never increase (I said this before Bill 10)

[Spixie33]

I am also tempted to raise my rates - not just because of Bill 10 but because this job is hard and the prices of groceries and crafting keep going up.

However - most of my families are at $35 also and I worry that going up $5 a day would be a lot for parents to handle considering that would mean an extra $100 a month. That's pretty significant to a family to adjust to so I am on the fence. $5 a day doesn't sound like much but monthly it makes a big impact.

Then I feel guilty because some of my parents have 2 kids enrolled and they would essentially have that increase x2. Sometimes I have a hard time keeping my business hat on but I am really seriously thinking of putting a letter out for a January 1st increase.

[5 Little Monkeys]

I would apologize for going back on your word and explain why. They need/deserve to have the chance to leave if they need too if they can't afford your new rate.

At the most, a child is with me a max of 4 years (unless they go on mat leave and stay/return) so I also tell parents the rate they sign on with is a fixed rate. If I need to increase (which I have), I increase it for new families coming in