This question has become particularly worrisome for many childcare centers during the last few years as some enrollments fell during the recession. Some of these enrollments still haven’t returned to normal levels.
Every market is different and every childcare center’s circumstances need to be considered individually. However, it is very important to remember that the cost of living increases most every year. The cost of paying teachers increases most every year. If you are not increasing your rates at least once a year, you are simply paying these increased costs out of you own pocket.
Unless there are truly dire circumstances, rates should be increased by at least the Cost of Living plus teachers’ raises every year. While I understand that you may not want to raise rates and that you may be placing the concerns of your clients (parents) ahead of your own needs, you should remember that the profits made by your center take care of your family.
From a purely financial viewpoint, the rule of thumb is….”If you raise your rates and no one leaves the center, then you didn’t raise them enough.”
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