Putting prices up - cms

[squinker45]

Hi there, do you put your prices up each year? I really feel like I need to put up prices this year but am finding it hard to know how to go about it. And I am feeling guilty because of the recession etc, I know lots of my families are pretty hard up already. What do you think, and how do you go about it? Do you have to review everyone's contract individually?

My childminder put hers up 4mths after we started but hadnt put them up in the 2yrs she had been minding she apologised and informed us 6wks before hand and put it in newsletter the mth before. She increased by 25p an hr which doesnt sound alot but is £2.50 a day for the average 10hr day or £10 a week for a 4 day week which is £520 a year - (we only do 3 days but did it for easy maths as an example)

I think we all not costs increase and if you give parents 4wks notice then they have the option of negotiating with you or giving you notice and choosing somewhere else.

we use our childminder 3 days and nursery 1 day and the nursery increased theirs the day after we started and we were informed by a notice on the front door he started on the 30th of the mth and fees went up on the 1st of the next mth wasnt even mentioned when we signed contract/did settling in. They increased by £2ish a day I think.

All my contracts have a note on them stating that they are reviewed on 1st Jan each year. Each year, I implement changes to hourly rates and any other conditions, as appropriate.

All the parents know this is coming every year. I send out a letter detailing all the changes, which the parents sign and return. I include all my permission ticklists with this letter (photo, medical attention, travel, etc), so they are all up to date. I find it easier to get everything done at once.

I haven't increased my fees in 3 years, still offer the same high quality, organic foodstuffs etc. which have increased in price a lot during this time. I know I need to increase my fees but just feel so bad.

Can i ask cms by how much they increase fees if they do it on a regular basis? thanks for replies btw, is v helpful

Parents who have been with me from her the beginning have the same price still. They provide snacks/meals for their children.

My newer parents have a slight higher rate which includes snacks.

I might look at what the going rate is in hertfordshire and go from their.

This Sept will be 4 yrs since I started.

Increase varies depending on what other changes I am making. For example one year I changed to an all inclusive service (nappies, meals, outings, etc included).Another year I changed from hourly rate to daily rate (one family still on hourly, because it would have meant a huge change for them).This year my increase was £1.50 per day.

Sorry to high jack this thread. Do most cm's charge a daily rate or hourly?

Daily here. was thinking of putting prices up by £2 but this would mean a massive increase monthly for my full-timer, who is also my neighbour. Maybe £1.50 is more reasonable

Where abouts in herts are you mum2bless?
Just out of curiousity how do after schoolers fit in with a day rate?

Flat rate £15 after school here ... up to 6pm

I just have children in the holidays at the moment which suits me fine.

Don't do after schoolers at the moment but if I ever do I will charge flat rate too, maybe for before and after school £20 inclusive

It is good practice to review fees & conditions annually, keeping the needs of your business in mind, local market rates, any changes to your setting/practice etc. It is better to increase by a small amount every year than suddenly realise after 3-4 years of no increases that you are making a loss or not enough to live on and are faced with the situation where you have to impose a big increase in one go. Little and often is less painful than occasionally but big.
I review my fees annually in January & impose any changes from beginning of the tax year, giving parents written notice in February usually. I always increase my fees, usually in line with inflation.