Want to increase your rates this coming year? Want help with the best way to do it? Today’s post is devoted to a NO-FAIL & PAIN-FREE method for raising your child care rates. That’s right, I said NO-FAIL! This method can make you $4000* extra next year. Really! You in? Let’s do this!
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Most providers are very reluctant to increase their rates. Whether it’s because we are nervous about approaching clients with an increase or we are unsure just how to implement the change, most of us just don’t do it.
If we do increase our rates typically it is something we reserve for new clients. Often times we will leave the previous rate for existing clients.
Well today, I am going to give you the secret to making an annual rate increase THE EASY WAY. Believe me, you will thank me! Every year.
6 Words that can make you
$4000 Extra Next Year
A Little Adds Up!
It is suggested that an annual increase be 2% – 5%
Let’s say your average weekly tuition rate is $250.00. If you increase your rates by 3% annually, that will give you an extra $7.50 weekly. Annually that’s an additional $390.00. If you have 10 clients, that turns into $3900.00* more each year.
Now let’s take that same weekly tuition rate of $250.00 and increase it by 4%. That will give you an extra $10.00 weekly. Annually that’s an additional $520.00. If you have 10 clients, that turns into $5200.00* more each year.
See how a little adds up?!
Increase your rates – The EASY WAY!
What’s the EASY WAY?
So you’re skeptical right? Usually, when people say EASY it’s not so easy. Well, I promise. This is SUPER EASY! As a matter of fact, like it says in the title, it’s just 6 words and done. And it’s on auto pilot.
The Secret Sauce
According to Tom Copeland here’s what you do: You (update) add the following sentence to your contract “Rates will/may be raised annually.” You might want to be more specific with a few more words “Rates will be raised annually on September 1st by 3%.” If you opt to use the latter sentence a specific date is associated with your annual increase and all you need to do is to send out a reminder in August each year (30-days is plenty notice).
This will automatically increase your rates annually
Will it spook your clients?
Now listen, I can’t guarantee that clients will love this small increase. But in all likelihood, not many will push back and head for the hills for such a slight increase. Remember if you increase the rates across the board it is the accumulation that amounts to thousands more each year.