Rate Hikes in a Bad Economy

I am seriously considering raising my rates.  I have raised my rates only once since I started this business almost seven years ago.  It is painful to do at the best of times because I know that daycare is a family's largest expense after a mortgage, but it is necessary once in a while.

It is especially difficult to consider when the economy is in such a bad place.  It is difficult to ask more of families who might already be experiencing tightening budgets.  It is not something I consider lightly.

Costs are rising everywhere.  Food, gas, taxes, wages, supplies.  I do my best to save money without compromising the quality of the food I provide, and the activities I offer.  I have finally been able to afford refreshing my art supplies in an effort to provide better learning tools, and add a few new games and toys.  It is long past time to replace all of my puzzles, but that will have to wait.  It's been a couple of years since I celebrated birthdays and holidays for the kids.

I know other facilities build a percentage rate hike into their contract every year to keep up with the cost of living.  I am trying to avoid that.  This is difficult.  I wonder how other in-home daycare providers deal with this, and how often.