Thriving Childcare



Want to increase your childcare 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 childcare rates.  That’s right, I said NO-FAIL!  This method can make you $4000* extra next year.  Really!  You in?  Let’s do this!

Many 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, many of us just don’t do it.

If we do increase childcare 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.

These 6 Words that can make you $4000 Extra Next Year

Photo by Alexander Mils on Unsplash

A Little Adds Up!

I talk more about the When, Why & How Much here, so head over there for the background and basics for implementing a successful rate increase.  It will help you build up your backbone.

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?!

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, as it says in the title, it’s just 6 words and done.   And it’s on autopilot.

Here’s the Secret Sauce!

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.

*Amounts are based on a weekly tuition rate of $250.00.  The actual increase will depend on your current rates, rate of increase and enrollment.

What do you think?  Will you be increasing your rates this year?  I would love to hear if this post has helped you develop a plan for increasing your childcare rates.

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2 Responses

  1. Tom Copeland says ” You might want to be more specific with a few more words “Rates will be raised annually on September 1st by 3%.” Do you think he’s just using an example? or suggesting it would be reasonable to raise our rates that much every year. I was thinking a 3-4% increase this year, and then maybe 1% each subsequent.

    1. That’s a really good point. I do think Tom Copeland was probably using the 3% as a generalization. It is probably a good idea for the provider to consider competitive rates in their area, when they last raised their rates and whether or not they plan to raise them annually. And of course the provider can write their rate of increase in their contract whichever would suit their business best. I think your plan to raise rates 3-4% initially and then 1% annually after that is a good one. One more thing, it is also a good thing to remember that every 2-3 years most providers experience a whole new clientele. Thanks for the question Lonna.

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Adrienne Bradley Thriving Childcare

Hey there, I'm Adrienne. I help daycare providers like you create businesses they love!

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