CM Club: Help with a letter re: raising fees

[crace]

Hi everyone, I've been doing this nearly 4 years and I've not raised my rate once. It's £1.50 below the local area "high" and about £1 below the mid. I'd only want to raise it 50p an hour which is big enough, as I have lovely families, and I don't want to lose them as I am lucky enough to be 75% full but I need to get a little more in line with the local childminders. Not being greedy but because of my hatred to deal with all things financial I have never dealt with it.

So this is where you all come in. Please help me draft a letter letting my parents all know if 4 weeks or whatever is recommended on the contract, will have to check!! But as for the rest of it?

Help, please?

dear parents
i hope you have all enjoyed the summer and looking forward to autum.
after much diliberating i have decided to raise my fees by 50p per hour from Ocober half term, this will coinside with NCMA guidelines of childminders pay locally. please feel free to talk to me about this
many thanks Crace x

Its much better to do an annual rise from the start, that way parents expect it, much the same way as the annual inflation increase most employees get. I always raise my fees at the beginning of April in line with the new tax year, even if its only by a nominal amount. I am affected by inflation & rising costs of living in the same way as other businesses so this is important. I normally give 2 months notice but actually only need to give 2 weeks as this is the termination period on my contract.
If you have never raised your fees it's more difficult but needs doing. I would suggest saying something along the lines of 'Following a business review, with effect from x date my hourly rate will increase to £xx.xx per hour and new contracts will be issued with the revised fees.' You could emphasise the fact that this is a business decision and that it will be the 1st increase in 4 years. For all new business I would charge the local going rate too. Then do this annually, its much better all round, if you can.

I agree it's easier if they expect it. My policy is to 'review' the fees in Sept/Oct, notify them by the end of October and the new fees are from 1st February. This way they expect it every year plus they have plenty of notice. If I were you, I'd mention a change of policy at this stage and I'd review annually. You don't always have to increase (and if you don't increase, it then they love you LOL). But if you did it this way, you could slowly up the price to get it more in line with the rest. And maybe have a different rate for any new starters.

As a parent who has used childcare for the last 6 years most people understand that fees can't standstill for every and as long as you give plenty of notice, I would consider notice now that fees will go up in November fair, reasonable parents will understand.
Childrenatheart's wording is exactly what I would expect as a parent.
As a business owner I increase my professional fees every 12 to 15 months in the last 4 years an annual increase for 4% has been what we have done. This has merely maintained profit (what I live on) at the same level.

Thank you very much everyone- need to read them properly and I really appreciate it.