Raising Rates

[Sparkles]

I've got 2 long time families (both 5 year clients- my first families) that are still in my old rate, which is $5 less per day than my new rate, which all my other families pay.

Family A has 2 kids in care, 3 days a week. Her oldest is aging out, so he will be done here in August. She wants her second child to go full time when school starts so she can accommodate the school schedule.

Family B has one kid in care. She misses the cut off by 2 weeks, but tested in. Dcm can't decide if she's going to send her to KG or not and has not given me an answer every time I ask. This has been several months of me asking, and her saying she still isn't sure.

I've decided that I will be putting both families on my new rate, I'm just not sure when.

My state has new rules and policies that must be added to our policies by August 1. Should I put the rate change for these families to start August 1, or for when school starts? I feel like it makes sense to just do it when I have to add the new policies. But at the same time, Family A won't be starting a new contract until school starts, and if Family B decides to wait a year, they won't be taking a spot for a potential "new rate family" until school starts.

What would you do?

[Blackcat31]

Id do what is easiest for YOU. For me it would be implementing the new rate on August 1st since that is when the other changes need to happen.
The time line other families are on is of no concern to me....kwim? Contract renewal can happen prior to actual end date if the requirements, policies or rates change.

[GirlMomma]

Raise your rates. The sooner, the better. Nothing is getting cheaper. This is probably our “new normal.”

I contemplated doing this for months before I made the choice. Rates go up in June and then again in July - I did a gradual increase. The families had to have their new rate agreement submitted by this Friday or I assumed they wouldn’t be continuing care and I’d fill their spot. Needless to say, every family signed the new form and I have all but one of them. (Any guesses on which family didn’t turn theirs in today? )

Anyways, with you closing a few Friday’s this summer, this could be a great way to supplement some of that income, too.

[GirlMomma]

Sparkles that’s exactly why I waited to do it, too! We got a new to us car at the end of March. We also had a vacation planned and paid for since December (right after Christmas) that my families have known about since January. I have contemplated increasing my rates since last November, but it was never the right time. I didn’t want people to think I was doing it because of our vacation or my new car. The truth is, DH and I live off of my daycare income. I’m just too hyper-independent to be a full SAHM without an income.

My grandma and aunt (who also did home daycare) told me “people will think that regardless. You deserve a raise - period!” That’s when I finally did it. When I sent the email, my parents told me they all expected it much sooner than June and July. That’s why I am telling you to go for it!

[Cat Herder]

Anytime they mention the hot tub or vacation I respond "I know. It only took four years to save that up, too. I am so excited, I expected it to be five, at least."

[GirlMomma]

Cat Herder you’re so witty!!! ❤️