Fees increase
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Thread: Fees increase

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    Default Fees increase

    Hi everyone, i am about to increase my fees after 3 years - please can you help and advise me on the wording to use when informing parents - i am struggling! thank you x

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    I always think it is awkward to increase my fees mid contract as the parents have signed up for that cost and I had agreed.
    I used to increase when I had a new Family/ LO.

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    Quote Originally Posted by FloraDora View Post
    I always think it is awkward to increase my fees mid contract as the parents have signed up for that cost and I had agreed.
    I used to increase when I had a new Family/ LO.
    yes i have wondered this....
    Hmm......what to do!

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    In my contract I say fees will be reviewed annually. I do not put up annually but it gives me a chance to look at the situation each year and decide what to do. Check your contract, do you say something like that?

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    Quote Originally Posted by moggy View Post
    In my contract I say fees will be reviewed annually. I do not put up annually but it gives me a chance to look at the situation each year and decide what to do. Check your contract, do you say something like that?
    I say that fees will be increased annually in my policies & contract, however, I only put them up every 2 years! I put them up by about 4% which doesn't add a huge amount.

    I increase my fees from April, but I put advance notice of the fee rise on the February invoice ( that goes out in the middle of Jan ... I would rather do it for the Jan invoice, but that means parents would see it just before Christmas and I'd rather not scare them ! ) I put the following ...

    'In my policies I say I will increase my fees annually each April. I have not increased my fees since April 2015, but due to rising costs I shall be increasing my fees by 4% in April 2017. Child's name rate will become £X.XX/hr. If you have any questions, please speak to me. Thank you'

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    I also tend to wait till a new child starts and charge them more than current lo's. The contract then ends when they leave to either go to school then they pay a new wrap around price which will be higher than the current school children.

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    At its most basic, just tell them it’s going to happen. Issue a month’s notice on all current contracts, together with the option to sign a new contract at the new rate. As Benjamin Jowett put it, "Never apologise, never explain. Get the thing done, and let them howl."

    We are, however (and I include myself in this) all too apologetic when it comes to money and business matters. We tolerate endless whinging at the very notion of expecting to be paid even the poverty wages we get for the job. When everyone knows that costs are rising, it’s pathetic that we have to explain. If parents don’t get this, then you just need to ask what they expect.

    Certainly the Pacey contracts recommend a 6-12 monthly review: I imagine for just such a reason.

    I know a lot of CMs don’t like to increase fees for existing clients, but there’s no particular logic for that. In the real world, plenty of fees go up for 'existing clients': utilities, internet, memberships, insurance. God knows I’ve been supping in the same pubs for years, but I don’t expect to pay 2010 prices!

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    One thing I do is an annual review of charges and mention it in my newsletter. This usually doesn’t involve a fee increase, so parents get used to the idea that it’s always a possibility and their fees aren’t set in stone until bubba leaves for college. They also get to see how seldom the fees go up. That seemed to make it generally easier when I did increase fees this year.

    To further sugar the pill, I rolled out the increase gradually. So the first to be charged the new rate were just those on some sort of assistance such as free hours or childcare vouchers. Or a new contract came in when a parent requested a change of hours, or to new clients. Further parents went on the new rate as they qualified for free hours, etc. The roll out will be complete by the end of the year, since they can all get tax free childcare at the very least.

    In fact, with all the assistance now available, it’s worth reminding parents they get far more help with costs than we ever do. I don’t have a single client who has to pay their bill in full without some government subsidy.

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