Increasing fees advice how to do it ?

[babybeanwood]

Been minding a year now started my prices low £3 per hour but friend opposite charging £4 per hour so want to increase to £3.50 has anyone done this if so what reason did you give ? Thanks Hayley

[ajs]

hi my price increase comes into effect as of sept 1
i wrote a letter to all my parents explaining that as i had been minding at the same price for a number of years (but you could say that's it your annual increase) that my hourly rate would be 3.75 from 1/9
i intend to increase my 25p every sept though i chareged 3.50 for 7 years which is ridiculous as everything else has got more expensive including my mortgage

[babybeanwood]

Thanks for advice keep worrying they will all leave but no reason to think that as all the children love it in my care. Also my oldest mindie I dont charge holiday and want to start but think one step at a time as I have since taken on the sibling.

[heldraincloud]

Hi Hayley

If I were to put my prices I would give a months notice, the other ladies that are more experienced will be able to help more..... how many mindees do you have on board?? could you take new children on at the new rate? then increase the others at 6 month intervals? xx

[babybeanwood]

currently look after 4 children and one starting sep I have charged at new rate was thinking of putting all up except new one Jan. Is 50p bit much maybe just increase by 25p ?

[ajs]

i must say that i was worried too about one family in particular she doesn't have much money but my fees are paid by working family tax credit so it doesn't really affect her and when all's said and done it's (for me anyway) equivalent to £2 per day to her if she gave up onepack of cigerettes a week she could afford it no problem
but since putting up my prices i've taken on two more children so the increase will make a big difference at the end of the week.

have you seen how expensive bread is these days there's your reason you need to feed yourself and your family and prices increase for everything

[ajs]

i only did 25p as i was the most expensive childminder in our town now they've all caught up with me i felt it time to move on up.
and i let them know in june when i gave them my holiday dates

i only increased for the families who have been with me a year or more or started since the letter went out.

[babybeanwood]

ajs you did make me laugh but its so true everything has gone up including toddler groups (which I pay for). Might do one family at a time. Starting with the youngest child as they are hard work at the moment !!

[lou]

hi i hav done this, started minding at £3 per hour, stayed at that for 3 yrs, then put it up to eaither £3.75 per hour or £32.50 for a day (8-6pm).

although it was a big leap my parents were all dead good about it, all happy with my service and knew they couldnt get it any chaeper.

one of my mums said i would have paid more!!!! lol

good luck

let us know what happens xx

lou xxx

p.s WELCOME!!!!!!!!

[ajs]

oh yes welcome

come to our virtual birthday party in the lounge
go to the main page and find the liunge when you get there look for the thread our virtual party come and say helloxx

[angeldelight]

I have not had a price increase for years

I intend to at the start of the new year so I will give out letters soon warning everyone about it

Remember too that most recieve tax credits so they get most of it paid for them anyway so If I was you I would not worry about it

Good luck let us know what you do

Angel xx

[mel]

I think that I have set myself too low really - probably 50p lower than others in the area but it has meant I am nearly full and I think I will increase next September.

It is a difficult one but I doubt that parents would want to disrupt their care arrangements for a reasonable increase

Mel x

[jules]

I would put it up by 50p. If they really moan you could always reduce it to a 25p increase. That will make them feel as though they have got a bargain (which they have!!!) and will still give you an increase.

Don't forget that most people will get an increase in their annual salary each year.
Jules

[mel]

It is hard not to do ourselves down. We have no manager to call us into the office for a rise and I'd not thought about the fact that most people get an annual rise. I suppose being self employed we have to fight our own corner!

Mel x

[tasha]

I increase 50p at a time & sight rising costs as my reason, as well as being in line with area prices. I give 4 weeks notice (or say at the time of signing contracts). I increase in April as that's the start of my year. I was registered in November - increased by £1 in April (I was charging well under everyone else, to get my foot in the door as competition is high where I live - the pound increase put me average with my area costs & I warned everyone at time of signing contracts that come April the new pph was...I also put it in the contracts). I have warned the new set of parents that I have that I am increasing my charges in April & put this in the contracts, I will increase in 2008 & sight the EYFS as the reason! If a parent moans - I simple say with a bit of a cheeky smile that if they want the best for their children- then they have to pay for it!!! ;D The way i see it I'm a business & not a charity - I work damn hard for my money & deserve it - I don't charge over the odds for my area & even if I was at the higher end - which I'm not - that's my perogative! Ultimately the kids benfit, as it means I have a little bit more to spend on resources, so I refuse to defend my prices - we don't question how much are taxi fair will cost, or our rent.....so why should I feel bad for what I charge!
Tasha
Tasha

[lorri]

HI Tasha

Glad I just read your message because I'm charging £4 here where the average seems to be £3.50 but a lot of them don't do half as much as I'm going to do.

They don't do B23 or anything like that, they don't plan activities, have policies, handbooks, etc.

Was beginning to think I should charge less like they do but no why should I? You are right!

Mind you, doesn't help me get children does it! Ha ha!

Lorri x

[rainbowmum]

Hi, I have it in my policies and on my contracts that I review prices in April or if for a child will be starting school on september of that year then contract will be reiviewed then.

I will give out a letter informing of any changes to pricing a month before.

Some one mentioned the price of bread - I buy Tesco's own bread & it is equally as good as the brand names and at least 40p a loaf cheaper!

[tasha]

Lorri,
When parents come I make a big point of bringing up all the extras I do that others don't - makes the etra 50p look like the bargain it is!!!!
Tasha

[tasha]

It's taken me 9 months, but I'm as full as I want to be & the exta 50p an hour makes all the difference! It was definately worth sticking to my guns! I have never really had a problem because of my prices, because I have always pointed out - what I do extra - my only problem has been the extra 2 nursaries that opened after I became registered!!!
Tasha

[rubybubbles]

When I last put my prices up I sent a letter out in the January

something like, In line with the other childminders in the area, my hourly rate is going up to £3.50 per hour as of April, in line with the tax year or something like that

hth