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Daycare Center and Family Home Forum>Policy Change Help Please
LoraJenkins 09:54 AM 01-18-2013
I have been charging a per-day rate instead of a per-slot rate and would like to change it. It would be so nice to have a steady amount of income every week instead of getting shorted because a DCK didn't come for a few days. I am afraid the DCPs are going to be upset but I know it will be better for me and my family. I need advice on how to type up a letter letting the parents know this. Their rates will not be increasing...just no "free" days when there children are out. Any suggestions?
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MarinaVanessa 11:23 AM 01-18-2013
Here's a quick one that I typed up. Before you type up notices I would figure out how you want to everything such as whether you would like to offer full-time, part-time and drop-in childcare (for the client that only wants to pay for the days that they use). If you offer these make sure you charge what you want for FT, a little bit more for PT and then even more for drop-in (when broken down hourly). If you decide to continue to offer drop-in (at a premium) you will need a drop-in contract. The nice thing about drop-in child care is that since it's based on availability you can still continue to look for FT or PT clients. THAT is the benefit of paying a flat weekly rate vs paying as you go, you get a guaranteed spot.


Dear DCP's,

As of [two weeks from now] changes in the way that daycare spots are held, handled and paid for will be made. The daycare will offer full-time, part-time and drop-in childcare services. Each families needs will be re-assessed and each client will decide which services are best suited for their needs.

Full-time is four to five days a week [or 30-50 hours per week] and will be charged $***.xx per week.

Part-time is 3 or less days per week [or 30 hours per week or less] and will be charged $***.xx per week.

Both full-time and part-time will be charged at a flat weekly rate and will be based on enrollment, not on attendance. This will weekly fee will guarantee your child's spot based on the contracted hours and no discounts will be given for child absences.

Drop-in will be charged as follows:
Full-day: $XX.xx per day with a maximum of 10 hours per day.
Hourly: $ X.xx per hour with a minimum of four hours of childcare.

Drop-in is for clients not wishing to pay a flat weekly rate and who need pay-as-you-go childcare. Drop-in slots are based on availability and not guaranteed.

Please review these options and feel free to discuss any questions or concerns with me. All clients have until the deadline to review the options and to sign new contracts. Current client contracts expire on the above deadline.

Thank you
Provider
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tulip1969 11:27 AM 01-18-2013
I had the same dilemma as you a few years back. I started by limiting the number of free sick days to 3 per year. They are then required to pay. My new clients will have no free sick days but I wanted to give my current families a break.
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mbullette 03:52 PM 01-18-2013
I am working on the same thing this weekend. I charge per hour and they dont get charged when they are not here. Each week my income is different and its just not working out. I am giving them 2 weeks to sign the new contract or look for another provider. I am taking my chances but I have to do what is best for me at this point. Good luck!!!
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daycarediva 04:58 PM 01-18-2013
Originally Posted by MarinaVanessa:
Here's a quick one that I typed up. Before you type up notices I would figure out how you want to everything such as whether you would like to offer full-time, part-time and drop-in childcare (for the client that only wants to pay for the days that they use). If you offer these make sure you charge what you want for FT, a little bit more for PT and then even more for drop-in (when broken down hourly). If you decide to continue to offer drop-in (at a premium) you will need a drop-in contract. The nice thing about drop-in child care is that since it's based on availability you can still continue to look for FT or PT clients. THAT is the benefit of paying a flat weekly rate vs paying as you go, you get a guaranteed spot.


Dear DCP's,

As of [two weeks from now] changes in the way that daycare spots are held, handled and paid for will be made. The daycare will offer full-time, part-time and drop-in childcare services. Each families needs will be re-assessed and each client will decide which services are best suited for their needs.

Full-time is four to five days a week [or 30-50 hours per week] and will be charged $***.xx per week.

Part-time is 3 or less days per week [or 30 hours per week or less] and will be charged $***.xx per week.

Both full-time and part-time will be charged at a flat weekly rate and will be based on enrollment, not on attendance. This will weekly fee will guarantee your child's spot based on the contracted hours and no discounts will be given for child absences.

Drop-in will be charged as follows:
Full-day: $XX.xx per day with a maximum of 10 hours per day.
Hourly: $ X.xx per hour with a minimum of four hours of childcare.

Drop-in is for clients not wishing to pay a flat weekly rate and who need pay-as-you-go childcare. Drop-in slots are based on availability and not guaranteed.

Please review these options and feel free to discuss any questions or concerns with me. All clients have until the deadline to review the options and to sign new contracts. Current client contracts expire on the above deadline.

Thank you
Provider
As always, MV is awesome!

My rates are
175- 5 days/up to 50 contracted hours
160- 4 days up to 40 contracted hours
135- 3 days up to 30 contracted hours
100- 2 days up to 20 contracted hours
50- 1 day drop in, up to 10 hours

I also have it outlined that parents days are SET DAYS to allow me to enroll another PT child or accept a drop in. This way, PT makes me more money, and since PT placements are becoming more frequent requests, it made sense to change things up.

I have a dcb who uses my Monday drop in regularly (actually just discussed contracting for that day), and a dcb who comes T-F. 2 kids in one spot= $210

I have another PT kid who comes T/Th for $100, and a PT kid who comes M/W/F for $135. 2 kids in one spot $235

It has worked out amazingly well for me & makes it worth enrolling PT kids!
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Michael 05:22 PM 01-18-2013
Some more rate change letters here: https://www.daycare.com/forum/tags.p...e+notification
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mbullette 09:22 AM 01-19-2013
As I am working on my rate increase today how much is to much? I charged per hour and families took advantage of that. Some families who said they would be coming 40 hours a week will show up for 20 if I am lucky. I am not making enough and so I need to change my rates. I have one family that their currently weekly rate comes out around $100 a week if I am lucky. With my new rates they would be pay closer to $160. I think that is a huge jump but then again I never know when he will show up. Next week he will only be here 5 hours which I just found out about this morning. She has decided to have her mom watch him and then took vacation. I had one family this past week come just Tuesday and at pick up they told me they wouldnt be back for the rest of the week because Grandma was watching her. The families just do what they want and my income is never consistent. I am working on this right now but is that a huge jump in price or should I not even worry about it? Help!!!
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Blackcat31 09:42 AM 01-19-2013
Originally Posted by mbullette:
As I am working on my rate increase today how much is to much? I charged per hour and families took advantage of that. Some families who said they would be coming 40 hours a week will show up for 20 if I am lucky. I am not making enough and so I need to change my rates. I have one family that their currently weekly rate comes out around $100 a week if I am lucky. With my new rates they would be pay closer to $160. I think that is a huge jump but then again I never know when he will show up. Next week he will only be here 5 hours which I just found out about this morning. She has decided to have her mom watch him and then took vacation. I had one family this past week come just Tuesday and at pick up they told me they wouldnt be back for the rest of the week because Grandma was watching her. The families just do what they want and my income is never consistent. I am working on this right now but is that a huge jump in price or should I not even worry about it? Help!!!
It IS going to be a huge increase for your families but you either want a consistent income or you will need to deal with families who sign on and then do everything they can to lessen their costs by having family members watch their child whenever they can so they don't have to pay because they can and you are allowing it....kwim?

I am not saying they are bad parents for doing so, as anyone would do the same...Imean why pay you when someone else will do it for free? Basically you are only back up for when they can't find that free caregiver.

If you are willing to risk losing some families (rate changes and requirements to HAVE to commit will cause those families who are only using you as back up to find alternate arrangements) then just make the changes YOU need to continue having a profitable business. Do what YOU need to do to make an income and stay in business.

Require families to commit. Require a certain minimum for payment and/or attendance to save or hold those spaces and start requiring families to give you written notice of their schedules as well as not allowing them to jsut tell you the night before that they will or won't be there or atleast continue to charge them when they do that.

If you want, I will share my handbook, rate sheet and contract page with you. Just PM your e-mail address. You can get a good idea of how I do things and are welcome to use any of the methods, rules and or policies I have.
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