Here's what I've learned about raising daycare rates in my 10+ years as a daycare provider:
Raising daycare rates is like an Olympic sport and providers who "win" are the ones who know how to play the game.
While raising daycare rates at the right time can significantly increase your daycare income, raising daycare rates at the wrong time can significantly reduce daycare earnings.
Statistically, here are the three best times to raise childcare rates (with one of the best times coming up in a few weeks)!
#1. Every 1-2 years after your daycare has been open 1 year.
Raising daycare rates before your daycare has been open for a year comes off as a quick money grab which may cause parents to look for other care options.
Rather than raise daycare rates before your daycare has been open a year, allow your daycare to grow within the first year and raise your daycare rates every year (or every two years) once you're daycare has hit the one year mark.
#2. In the spring, 2-3 weeks before Easter.
In between the New Year and Summer rush, Spring is one of the best times to raise childcare rates during the year.
Parents associate seasonal and financial changes with the springtime season and raising daycare rates in Spring ensures daycare rate increases are factored into families' budgets before summer spending.
#3. In Mid-August to Mid-September.
Parents, even parents of young children associate Mid-August and Mid-September with the start of a new school year and are more receptive to daycare policy changes including childcare rate increases.
Raising daycare rates in Mid-August to Mid-September ensures daycare rate increases are factored into families' budgets before holiday and Christmas spending begins.
Mid-August to Mid-September is also an ideal time to raise daycare rates because with the year winding down and holiday season starting Mid-October even the most reluctant parents are simply more inclined to pay the daycare rate increase rather than start the whole new process for looking for another daycare.
For best results, be sure to provide families a written notice of childcare rate changes 3 weeks before rate changes are scheduled to take effect.
