Thanks again for all of the replies. To answer a few questions, I provide wipes, food (breakfast, lunch and two snacks), milk, juice, toys, supplies...pretty much everything except diapers, formula and baby food. I'm not a big fan of having the kids bring their own food because it seems to cause problems where one child isn't happy with what they have and want what the other has. Instead, I prefer to make healthy meals for all to share.
I've spent the last few days researching rates for other home daycare providers in my area (Bolingbrook/Naperville area~western suburbs of Chicago). The more that I compare, the more that I'm realizing that I'm much lower than most. I've found rates at homes as high as $250 per child per week and one that was $150 but in a much lower income area of town. The majority of rates were $175-$200 so I think that with the raise, I will still be pretty close to the lower end.
I've been in business over 17 years and only advertised in the very beginning. All of my current clients called me because someone that they knew gave them my name and phone number. I am currently full and have had random calls but have told them that I'm not taking any more children.
The children are here about 10 hours a day and eating most of their meals here as well. My first child arrives just before 7:00am and the last one leaves about 5:50. Besides this, I have spend time preparing for the day as well as cleaning up after the children have left.
I do not charge the teachers anything to hold their spots over summer and they do not have to pay me for their spring or winter break. Besides that, they have to pay the weekly fee whether the child in there or not. I do have a clause in my contract that states if a child is out ill for the entire week that they don't have to pay but they must bring a note from the doctor stating that the child is now well enough to return.
My expenses are going up just like everyone else. The utility bills are increasing as are my taxes and insurance. The repair, maintenance and cost to replace items is steadily increasing as well.
I claim all of my income and pay self-employment taxes. Two families do the pretax plan at their work and I complete the paperwork for them to get reimbursed.
I've decided not to do the increase the first of the year because every seminar that I've gone to says that after the holidays is the worst time for an increase. I thought that Oct would be about 8 weeks notice and give parents time to do some research on their own. Like I said, we've built a relationship so if they asked, I'd be happy to give them the information that I have regarding other providers and their rates.
I'm working on the letter and will have it done by the end of the week. My only concern is that the teachers will not be here to give it to until school starts. I'm not sure I want to spring this on them over the phone, in an email or mailing a letter but I want to give them as much notice as possible.
Anyway, thanks for listening and for the suggestions!
