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Best way to raise rates

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July 25th, 2011, 05:33 AM
Join Date: Jul 2011
Posts: 1
Hi all! I have been a home day care provider for two years. I am not licensed because in my state you do not need a license unless you have more than five children, including your own. Right now, in addition to my two girls, I watch two sisters three days a week. I am pretty happy with the family. The parents are very happy with me, they pay on time, they pay even when their children are not here, and they are being very flexible about finding alternate care for two weeks after my son is born in November.
My issue is this. They pay me $125 a week for 3 days, total for both girls, including food. I have been watching them for almost a year and $125 is just not enough anymore to cover food amd supplies, so I am going to raise my rates. I want to ask for $150 a week. This is still a great deal for them since the cheapest daycare around here charges $110 per child for a three day week. What is the best way to go about asking? I plan on saying something like " I've been watching your girls for a year now and the cost of living has gone up, so I am raising my rates to $150 a week." Does this sound reasonable? I am so nervous and I have been putting it off. I guess I m just looking for support and encouragement.
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July 25th, 2011, 01:13 PM
Albertachick's Avatar Regular
Join Date: Mar 2009
Location: Calgary
Posts: 88
I am also a Private day home.
If I need to raise my rates with my families, I do it at contract renewal once a year, and that way it allows me to adjust my policies if need be.
In my contract I have it stated that fees are increased once a year.

If I need to raise fees sooner that I would give my families atleast a month notice
and do a chang eof contract form stating the fee increase.

Do you have anything in your contract with this family regarding fee increase.

I think your increase sounds reasonable.

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