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Lil'DinoEggs 02:09 AM 02-12-2014
Originally Posted by craftymissbeth:
Why pay for a service that are not using?

Perhaps looking at your tuition differently will help you see it from a business perspective. Many centers and home daycares come up with their rates differently than you may think.

Let's say that there are 260 work days in a year (because Google told me so). The daycare will be closed 10 holidays per year as well as one full week during winter break. That means they will be open 245 days in the year. They are going to go ahead and figure in 5 unexpected closures for the year (weather related, loss of utilities, illness, etc.) so now they are at 240 days open for the year.

They charge $25 per day per child. Multiplied by the amount of days they estimate they will be open = $6000. To make payments easier for parents they divide this amount into 52 equal payments = rounded to $115 per week.

Assuming that clients are long-term (which is ideal) this means that the clients actually ARE only paying for days the daycare is open. They are not paying for days the daycare is closed. In fact, it's likely that they are getting free days in the end... if the daycare doesn't actually close for all 5 of those additional days they figured in. It sure feels like you're paying for every day, but it's likely you're not. In the scenario above if they charged for all 260 work days regardless of closed days the weekly rate would be $125.

I hope that makes sense
I love it. It is something I have thought about but was unable to put into words. I am saving this!
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