Would You Raise Your Rates or Risk Losing Families?
You don’t have to figure out the childcare business alone. I’ve been where you are. I’ve been a family childcare provider, a center owner, a director, a leader of teams, and a multi-location owner. I’ve made mistakes. I’ve learned. I’ve expanded. I’ve had to rebuild and grow. Now I share what I’ve learned to help you build your childcare business!
I can remember when I used to struggle with the thought of raising my tuition. In fact, I was afraid that if I raised my rates that parents would leave my childcare business. Not anymore! I have found that if a parent truly loves, appreciates and needs the service that you offer, they will pay the increase within reason.
For the past three years I have consistently raised my rates at the beginning of the year. I believe this is a great way to increase your business income every year and keep up with the rising cost of childcare. Moreover over, this is a great way to be sure that you can afford to give your employees an annual pay increase and continue to provide a quality child care program.
Let me tell you how I raise my rates:
- I issue and post a notice to families 45-60 days before the rate increase.
- I slowly raise the rates of my currently clients. For example, the new rates go in effect in January, however the current families receive a rate increase on their child’s birthday or anniversary or their enrollment date in the year that I increased the rates. This assures that families only pay one increase a year.
- My rate chart is updated and posted on our website and parent handbook on January 1st.
Be Honest: Are you afraid to raise your tuition? Why or why not?
Dr. Shiketa Morgan
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