Childminders Club: Putting Prices Up????

[looneytune]

Hello

How often do you put your prices up? and when you do, how much do you increase them by per hour??? 10p, 20p???

Just thinking ahead. Wasn't planning on putting prices up yet but someone has mentioned it so it's started me thinking.

Also, if you put prices up, what do you do if someone has only just signed a contract within the last month or 2 using the previous price per hour?

Any feedback would be great :)

Thanks

I decided to put my prices up from beginning of April so I sent a letter to all parents saying prices going up to £xx, unfortunately due to increasing overheads etc, I still charge less than average for area, if they have any probs with this please talk to me etc and no-one has said anything (I gave them 3 months notice that prices were going up so that they could make alternative arrangements if not happy). I have been minding for 2 years and this is my first increase. I have just got my parents to sign a slip saying that they agree to price increase and will staple it to their contract cos most of my mindees contracts need reviewing/renewing within the next 2 months.

I calculate my fees yearly so after a certain date in sept or april I put up the rates and all contracts after that date are at the new rate

When I sign contract I say that my prices rise each year

If parents did have a problem with the rates going up what would you do? Keep them the same?

No - ask them to find alternate care

Even if you really liked the child?

Well if you kept them at a low rate - you'd have to keep everyone at a low rate and for most people they get 70% from the IR (so for a 20p an hour rise they pay 6p more an hour)

Anyone else want to share what they do? :)

If I was planning to put up my fees I would have quoted the new fees to prospective customers. I review first contracts after 3 months but I wouldn't put up the fees in that time, I don't put up fees in the first 12 months.

I don't add notes to contracts, if anything changes I do a new contract. I tell parents in advance when fees are going up but they aren't charged the new fee until the next contract.

I put my rates up every September. If I have any new mindees starting anytime after February/March, I charge them the new rate that I will charge everyone in September. The new family won't then have to suddenly pay the increase (because they're already paying it).

I don't put it up a set amount each year. I tend to play it by ear - I check out what all the other minders are charging, whether they charge for activities etc (I don't charge), whether there is still work available and so on. I've always put it up by a minimum of 15p.

Thanks for the feedback everyone! I haven't mentioned anything to any of the parents as to be honest, I hadn't even thought about putting prices up so there was nothing to mention. I will now have a good think about what I intend to do in the future but I will make sure all parents are given plenty of notice :)

Thanks for the feedback everyone! I haven't mentioned anything to any of the parents as to be honest, I hadn't even thought about putting prices up so there was nothing to mention. I will now have a good think about what I intend to do in the future but I will make sure all parents are given plenty of notice :)

But when you do, just tell them your charges are going up. That's what my CM does. No negotiation - she's selling a service, we take it or leave it.

We take it. She's fab.

Thanks, I'll try (I'm a bit soft - working on it )

TP, can i ask if other CMs in your area do the same? I feel that I need to revise my charges as the cost of living rises but am worried that I'll be charging more than others around here.

As a parent our CM puts her prices up every Jan. She explained this when we first went to her. TBH I think if you are going to put them up do it is Sept and warn them now it will be happening.

One thing my CM did when we first went to her was hand us a 3 or 4 page information document all about her to read. This is a brilliant idea as it set out everything from her qualifications and experience, to things like this. It was well wroth it for her and us as she didn't have to keep repeating herself to all new people and forgetting things. It also meant we knew everything before signing a contract. For her it also meant we had everything that may not be in the contract in writing before we decided on her. I felt it was a really professional thing to give us and very useful. She updates it as and when, but basic information remains the same.

I know that most of the childminders I know in the area put their rates up annually. The ones that don't tend to be the ones that don't go out and about and meet other minders - their rates tend to be lower than the others.

I also tell parents at initial chats that I put my rates up in September. As I said earlier, anyone starting from Feb/March time will be charged the rate everyone else will be on the following September. Those parents won't get an increase until the following year (if that makes sense). I don't think it's fair to let someone start and then put their rates up a couple of months later.

Thanks for the feedback. As I said, I'm not planning on putting my prices up yet, probably not until next year, just wanted to plan ahead how I can deal with this when it happens.

:)