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  1. #1
    Euphoric ! bright sparks's Avatar
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    Ontario Providers-rate increase

    Has anyone raised their fees as a direct result of the increased minimum wage as of Jan 1st 2018?

    I typically say raising rates annually as a provider doesn't work with the market. I need to stay competative and priced for my areas norm. That being said, everything has gone up in price by a lot since the MW increase. Groceries are noticably more expensive, and not just by a few pennies.

    My rate was $45 a day which was the going rate for my area from 2012-2017. It didn't increase during that time. Last year, any new parents were signed on as $47 a day even though my areas average had not increased. Cost of living has still gone up but i was stuck between a rock and a hard place...increased costs vs frozen area average. Since I did this I saw others increase and I thought at just $2 a day difference, any parents who chose not to go with me due to that small difference were not families i wanted anyway.

    Well here we are 2018 and the minimum wage has gone up from 11.70-14.00 and will go to 15.00 Jan 2019. I feel to be able to recover the significant increase in costs which are far more than previous years, I need to charge $50 a day. I wouldn't increase it again in 2019 with the additional $1 raise, I would lock that price in for everyone coming in during 2018 and likely wouldnt raise my rates again for a few years.

    I have it in my contract that I can raise rates annually for thise currently with me and anyone new coming in would get the new $50 a day rate.

    What are anyones thoughts on this? And how have any Ontario Providers acted in response to this change? TIA

  2. #2
    Expansive...
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    I’m in Halton area in Ontario and I put fees up $2 a day even for current clients. I can’t say it related directly to minimum wage hikes, but I can say it was due to my operating costs increasing. My clients didn’t even question it. Hopefully people will see that quality care doesn’t come at a bargain price. If they walk away over $2 a day, then so be it, but know that clients that value a quality program will recognize that your program is worth the increased cost.

  3. #3
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    I'm in ON, west of TO.... Every day on TV there are government ads about the thousands of licensed spots (mostly at schools I presume) the gov will open up this year across the province. That will make it even harder to get clients so I'll likely keep my rates same and see how things go in the fall .

  4. #4
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    Exactly, the centres "brand new" in my area by the way are charging $42 for full day 18 months and up children. There is no way I can compete with that. My rates are way higher than that, and I can keep increasing if I decide, because I have all the back up to do so but definitely my market has changed since schools opened their own daycares st ridiculous prices. And pay their staff a low wage.

    I'm just looking to see what happens next. Then I'll decide.

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