Originally Posted by Lux:
They dont pay for their slot - I charge per day currently. Almost like drop in care (though I don't do drop in care).
They do have regular days , I have a child who comes Mon-Thurs, full days. I think his mom likes how i charge because every Friday she has care through grandparents. So she pays 160 per week (40 per day). But last week she paid nothing as her child was home all week sick.
The other child comes three half days per week.
I live in the Pacific NW and we've had a lot of snow. Normally this is only an issue two weeks of the year though. Tops.
I feel like my rate is a bit high as a new provider but I only charge 40 because I charge daily.
You really are doing drop in care. The only difference is that in traditional drop off care the parent isn't guaranteed the slot. They have to pay up front and use it or loose it. Your situation is worst. You are guaranteeing the slot without upfront payment that is use it or loose it. You also aren't charging the normal drop in rate of about 150 percent of the normal daily rate.
I've never known a provider with your pay structure make it over time if her whole business plan is this model.
Once you switch to flat rate regardless of attendance while enforcing sick policies you will most likely loose the clients you have now. They actively seek newbies with your model and as soon as the gig is up and they have to pay a flat rate they just move on to the next newbie.
Be prepared to loose clients. Best plan is to put flat rate on the lowestpaying clients one at a time while you fill their slit with flat rate pay regardless of attendance. Work your way up till you replace one by one to the highest paid so far clients. Always offer the flat weekly rate and they can take it or leave it. Most will leave it because your model is what they want. They don't care if they switch daycares 3 4 times a year. They want to pay as they go with a guaranteed slot.