There are many costs associated with running a daycare. Aside from your operating expenses, you also need to provide meals for the children in your care, as well as supplies and equipment to help them learn. Unfortunately, you may have to increase your rates from time to time to cover the rising costs of food, equipment, and supplies. When you have to increase your daycare center’s rates, you will have to issue a letter informing parents of your new rates. However, there is a way to inform parents of your new rates in a clear, concise, and respectful manner.
When you increase the rates of your daycare center, there is a chance that you may end up losing a few customers. However, I am going to give you the tools that you need for maximum customer retention. Below are four examples of rate increase letters below. You must ensure that you are including all of the previously mentioned required elements in your daycare center’s rate increase letters. These elements matter in your letter because they provide your customers with all of the information they need regarding your rate increase. They also give your customers the opportunity to make informed decisions regarding their childcare needs.
Learn how to value a childcare business here.
Table of Contents
This is an example of a clear and concise rate increase letter that gets straight to the point. This example does not have much of a personal touch, so I would recommend personalizing it a bit before sending it out to the parents or guardians of your students. This letter would suit a larger daycare, where there are many children enrolled.
Effective _________________, our rates will increase to ___________ per month, per child. Please be advised that to keep _____________________________ enrolled in our center, you will continue to be charged, whether your child attends or not. The due date for your payment will remain the same.
If you need to speak with me regarding this matter, you can contact me via email at [email protected]. I will be available for appointments on Wednesday afternoons from 2:00 PM to 4:30 PM if you wish to discuss this matter in person.
Your Name, Director
Your Daycare Center’s Name
This example has more of an understanding feeling. This rate increase letter would be a perfect fit for a smaller center, or an in-home daycare. The parents or guardians of the children in your daycare will appreciate this letter because of its personal touch, which gives you the opportunity to be a person, rather than a business owner.
Dear ____________________, parent or guardian of __________________________,
I have am sorry to inform you that due to the rising coasts of food, supplies, and equipment, our rates must increase to ________________ per week. To provide you with adequate time to adjust to this change, this will go into effect _______________.
Please be advised that in order to keep your child’s spot reserved at our center, you will be billed each week, regardless of attendance. We must do this because of the high demand for childcare services in our community. Please do not hesitate to contact me at [email protected] if you have any questions or concerns regarding this matter.
I will be available on Wednesday afternoon from 2:00 PM to 4:30 PM if you have any questions or concerns regarding this matter. I apologize if this has caused you any inconvenience.
Your Name, Director
Your Daycare Center a Name
The third example of a rate increase letter that you can use to inform parents or Guardians that there will be an increase in their weekly fees combines elements of both the first and second examples. This example has a professional tone, yet remains friendly enough to allow you to come off as more than a business owner. This letter is good for when you have a medium sized daycare center, but still know your customers on a personal level.
I’m sorry to inform you that _________________ tuition will increase to ________ per week, effective _________ due to the rising costs of meals, supplies, and equipment we use daily to enrich your child’s learning experience.
Please make note that our policy states that you will be charged for your child’s weekly tuition, regardless of attendance. We do this to hold your child’s spot because of the rising demand for childcare services in our community.
Please feel free to contact me at youremailaddress@youremailprovider if you have any questions or concerns. I am also available on Wednesday afternoons from 2:00 PM to 4:30 PM if you would like to discuss this matter further in person.
Your Name, Director
Your Daycare Center’s Name
In conclusion, there are several different ways in which you can inform your customers about your upcoming rate increases. It is important that you choose the letter that best suits your personality, and the personality of your daycare center. While you should not be afraid to personalize any of these examples to make it your own, it is imperative that you make sure that your letter includes the date that your rate increase goes into effect; the amount that your rates will be increased; the name of the child or children, as well as the name of the parent; your contact information, and your preferred method of being contacted, and a brief reminder of your rate and attendance policies. These four examples will help you to have maximum customer retention because you have clearly and concisely informed your customers of your upcoming rate increases.
What are the costs of supplies and equipment for your daycare center?
The costs for supplies and equipment in your day care center will fluctuate, depending on the supplies and equipment you used to keep. According to the Houston Chronicle, these costs can be up to $4,700. This is an approximate average of $60 per child, based on the average enrollment of a medium-sized daycare center. If you have a larger daycare, you can expect these costs to be higher, while they will be lower if you have a smaller center. However, the average cost per enrolled child she be approximately the same.
What is the cost for meals in your daycare center?
Again, this is an amount that will fluctuate depending on the amount of students who have enrolled in your daycare center. Food costs will be roughly $100 per week for each child enrolled in the your center. You can expect food costs for your daycare center to average $3 per meal, per child, according to the Houston Chronicle. If you are starting a day-care, and have trouble initially covering the cost of food, you can find information pertaining to grants for start up daycares here.
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
To learn more on how to start your own daycare checkout my startup course and documents here.
Meet Shawn Chun: Entrepreneur and Childcare Business Fan.
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online daycare business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a childcare business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Daycare Business Boss: I want to help childcare business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.
