changing hourly rate tactics!

[smartbear]

Well, with our tax credits apparently in freefall I'm coming to terms with raising our hourly rate. TCs were really keeping us viable! Question is, whether to go for one big rise or several smaller steps. We currently charge £3.50 including absolutely everything which is an absolute bargain & not gone up since 2010. I'm thinking £4. BUT 1 of our families will really struggle while another would easily & happily pay more cos they've said so. And it does sound like quite a jump all in one go. So opinions on

£3.80 1st or straight to £4?

And does everyone charge the same for all families?

So difficult! And to restore the lost TC income we really need to charge £5 but I think the sky would fall in if we tried that!

[Mrsh3103]

My fees are negotiable. I've got 2 families paying 1 amount another paying slightly less & another something entirely different. I'd put it straight up to £4 for the family who can afford it & do a gradual increase for the other! :)

[Helen79]

I increased my fees from £3.50 to £4 a few years a go without any problems. Do you include meals in your fees? Maybe do the small increase now and also either start charging for meals or ask parents to bring in lunchboxes instead.

[Bluebell]

What is comparable average rate in your area? I assess my fees annually and just put them up in april to be more in line with other childminders but didn't want to put up too much in one go. Only to find that they also put their rates up in line with raising costs and so on and so i am still behind some ( we are slightly different as we all are individuals but tend to stay fairly in line with each other.
instead of doing it annually could you do it partly and then 6 months later or have 1 customer on less if you think they will struggle? With rates i gave everyone plenty of notice and tried to keep them all in line with each other but with other contract changes - like charging for holidays I didn't introduce that to existing customers only new customers.
good luck with whatver you decide

[VeggieSausage]

I agree put some up to £4 and the one you think can't afford a big rise up by less. Then introduce charges for food with the option for them supplying their own if they would rather, you are a business after all and not a charity, if you are struggling financially then you must increase fees or you will be unable to continue....

[Smileyface]

Wow I'm shocked at you guys charging £3.50 per hour
We charge £5.00 here in Surrey.

[SJ35]

I've just put mine up to £3.75 from £3.50 for new families. My existing parents will go up to this rate in January.
I don't provide meals either :) x

[ktdg85]

I would agree, different rates would work too and if parents ever questioned it then you can say different children need different levels of care and you charge accordingly.

I would go straight to £4 for the family that can afford and give the other family the choice of £4 or, £3.75 and them provide meals, at least then you have given an option?

[hectors house]

Drip feed in the increases - charge £3.75 an hour but start charging for meals eg: £1.50 per meal and ask for a contribution towards toddler groups you attend and trips you take children on.