Daycare.com Forum
New Members - Welcome to the Daycare.com Forum!>Raising Rates
klh1088 01:20 PM 02-19-2013
I am in the very beginning stages of my daycare. I have been watching kids since I was a kid, but now I'm trying to get state certified. Unfortunately, I have had the same dilemma all the while. I don't charge my parents nearly enough. I know there must be a proper way to up my prices, but I feel so guilty since I'm asking them to pay me for playing with their kiddos. I currently charge $2-3/hr per child. I have one child who I don't charge for at all because she's 9. I am seriously getting ripped off. I have kids from the time I wake up in the morning until I fall asleep at night and parents sometimes neglect to tell me they are dropping off at all or they pick up whenever instead of the agreed upon time. I need an idea of what to charge people who don't have a lot of money. I know it isn't my problem, but most of my parents are close friends. I feel used and at my wit's end. I plan to accept govt assistance for care once I am certified, but that's only $3/hr. I have some regulars, a lot of irregulars and some random kids. I need guidance
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melilley 01:47 PM 02-19-2013
Hi! Welcome, this forum is great! I would just tell the parents that you are going to be state certified and that you are going to raise your rates-easier said than done, right, especially if they are your friends! I would just explain to them that as of ***day your rates will increase and it will be up to them if they want to stay or not. Be prepared though, some may leave. Plus when you get licensed/certified there are certain ratios and rules that you have to follow. It's hard to take irregular kids and schedules, especially with all the paperwork you have to do. I would make a contract that they have to sign stating specific hours and also have hours that your business will be open. As far as accepting state payments, you will charge your rate and the state will pay a certain percentage and the parents will have a co-pay. You are lucky, in my state, dhs pays $2.60 for children 2 1/2 and under and $2.40 for older kids. For me, I researched the rates in my area by going on Craigslist and through my state's referral agency-you used to be able to see other provider's rates and I just made up a figure that was in the middle and that I'm happy with. I have a weekly and daily rate.
Good luck, it sounds like this is going to be hard to do, but one thing I have learned from others on this site is to have a backbone (this is hard for me)! After all, you have to live too!
Good luck, it sounds like this is going to be hard to do, but one thing I have learned from others on this site is to have a backbone (this is hard for me)! After all, you have to live too!
Blackcat31 01:58 PM 02-19-2013
Originally Posted by klh1088:
I am in the very beginning stages of my daycare. I have been watching kids since I was a kid, but now I'm trying to get state certified. Unfortunately, I have had the same dilemma all the while. I don't charge my parents nearly enough. I know there must be a proper way to up my prices, but I feel so guilty since I'm asking them to pay me for playing with their kiddos. I currently charge $2-3/hr per child. I have one child who I don't charge for at all because she's 9. I am seriously getting ripped off. I have kids from the time I wake up in the morning until I fall asleep at night and parents sometimes neglect to tell me they are dropping off at all or they pick up whenever instead of the agreed upon time. I need an idea of what to charge people who don't have a lot of money. I know it isn't my problem, but most of my parents are close friends. I feel used and at my wit's end. I plan to accept govt assistance for care once I am certified, but that's only $3/hr. I have some regulars, a lot of irregulars and some random kids. I need guidance.
Welcome to the forum! I am in the very beginning stages of my daycare. I have been watching kids since I was a kid, but now I'm trying to get state certified. Unfortunately, I have had the same dilemma all the while. I don't charge my parents nearly enough. I know there must be a proper way to up my prices, but I feel so guilty since I'm asking them to pay me for playing with their kiddos. I currently charge $2-3/hr per child. I have one child who I don't charge for at all because she's 9. I am seriously getting ripped off. I have kids from the time I wake up in the morning until I fall asleep at night and parents sometimes neglect to tell me they are dropping off at all or they pick up whenever instead of the agreed upon time. I need an idea of what to charge people who don't have a lot of money. I know it isn't my problem, but most of my parents are close friends. I feel used and at my wit's end. I plan to accept govt assistance for care once I am certified, but that's only $3/hr. I have some regulars, a lot of irregulars and some random kids. I need guidance
.I think you obviously have a big heart since you are actually providing care for some kids for free.
However, having a big heart will NOT pay your bills or put food on your table
You need to write up some policies regarding your rates, times you are and aren't available for care and what things (behavior wise from BOTH parents and children) that you will and won't put up with.
This forum is definitely a great place to start.
The first thing is begin by writing up a handbook with your rules and policies in them. NEVER ever provide care without payment first (or in your case payment at all).
You need to cover rules/policies about;
- Deposits
- Payments
- Receipts
- Supplies (what I ask the parents to provide)
- Hours of Operation
- Drop Off's and Pickups
- Late Pickup Fees
- Visits
- Meals and Snacks
- Cleaning/Hygeine
- Sick Child
- Vacations (mine and theirs)
- Personal/Sick Days (mine)
- Holidays Closed
- Medications
- Termination of Care
Here are a few really good threads about handbooks to get you started.
https://www.daycare.com/forum/showthread.php?t=28072
https://www.daycare.com/forum/showthread.php?t=19394
https://www.daycare.com/forum/tags.p...tract+-+sample
daycaremom76 03:15 PM 02-19-2013
I don't update my contract every year so I have 2 parents that have had the same rates for the past 2 years even though the new people pay more. Today I decided to bring everyone up to date and sent out new contracts to be signed to bring everyone up current. It's an increase of $10 per week so I expected a little push back but not the attitudes that I got from bother parents! I mean seriously I provide all meals and snacks and I haven't asked for anything the last two years! This even with electric going through the roof and food prices up so high too! Oh well I gave them enough notice, the rates don't go up til April!
melilley 03:23 PM 02-19-2013
Originally Posted by daycaremom76:
I don't update my contract every year so I have 2 parents that have had the same rates for the past 2 years even though the new people pay more. Today I decided to bring everyone up to date and sent out new contracts to be signed to bring everyone up current. It's an increase of $10 per week so I expected a little push back but not the attitudes that I got from bother parents! I mean seriously I provide all meals and snacks and I haven't asked for anything the last two years! This even with electric going through the roof and food prices up so high too! Oh well I gave them enough notice, the rates don't go up til April!
I don't think that parents realize what a deal they are getting for child care, especially when meals and snacks are included! If you break it down to the hour, it's peanuts. Especially for home daycare's! Centers around me charge more than double of what I charge so if people have a problem with my rates, they can go somewhere else! If they get mad over $10, then they don't value you!I don't update my contract every year so I have 2 parents that have had the same rates for the past 2 years even though the new people pay more. Today I decided to bring everyone up to date and sent out new contracts to be signed to bring everyone up current. It's an increase of $10 per week so I expected a little push back but not the attitudes that I got from bother parents! I mean seriously I provide all meals and snacks and I haven't asked for anything the last two years! This even with electric going through the roof and food prices up so high too! Oh well I gave them enough notice, the rates don't go up til April!
klh1088 02:27 PM 02-21-2013
I really appreciate all the information. This is exactly what I needed to hear. This is the letter (out of format) that I will be sending out, unless anyone sees somewhere I can improve.
Parents/Guardians,
For the past several months, I have had the honor and pleasure of getting to know your children as individuals. They are polite, kind, and well adjusted boys and girls. I more than appreciate the level of respect you all have shown me as a provider and a person.
As you already know, my rates are well below that of the average in the area. I absolutely plan to keep it that way! I love what I do, and I most certainly am not trying to lose any of you as clients. However, since the beginning of my road to state certification, my own pocketbook has become too light to pay my bare minimum expenses. Due to absolute necessity, I must inform you that my prices will be increasing. I understand that I may lose some of you to relatives and other free alternatives.
At this time, I do not have any other options. The price increase will go into effect as of Monday, April 1st, 2013. I am more than happy to discuss payment arrangements. As most of you know, I was attempting to hold off on price changes until after certification. I apologize, but this is no longer a viable option.
Please, as always, feel free to contact me with any questions or concerns you may have. Below are the new rates and conditions. I will have contracts for you all and additional information by March 15th. Out of pocket charges will decrease for those of you approved for government assistance once I am set up. I assure you, I am working to schedule all of my trainings and classes in as timely a manor as is possible, while still being available to accommodate your schedules.
Thank you for your time and understanding regarding these changes. You have all become important in my life and I look forward to continuing to build upon the already strong relationships we share.
Thank You Again
It's great to hear I'm not alone in not standing up for myself dept. today and tomorrow I will be calling around to several daycares in the area to get an idea of what they're charging. That way I can at least make an informed decision on how much to charge, not to mention have a come back for ne1 trying to leave. They really don't have any idea what a bargain they're getting.
Parents/Guardians,
For the past several months, I have had the honor and pleasure of getting to know your children as individuals. They are polite, kind, and well adjusted boys and girls. I more than appreciate the level of respect you all have shown me as a provider and a person.
As you already know, my rates are well below that of the average in the area. I absolutely plan to keep it that way! I love what I do, and I most certainly am not trying to lose any of you as clients. However, since the beginning of my road to state certification, my own pocketbook has become too light to pay my bare minimum expenses. Due to absolute necessity, I must inform you that my prices will be increasing. I understand that I may lose some of you to relatives and other free alternatives.
At this time, I do not have any other options. The price increase will go into effect as of Monday, April 1st, 2013. I am more than happy to discuss payment arrangements. As most of you know, I was attempting to hold off on price changes until after certification. I apologize, but this is no longer a viable option.
Please, as always, feel free to contact me with any questions or concerns you may have. Below are the new rates and conditions. I will have contracts for you all and additional information by March 15th. Out of pocket charges will decrease for those of you approved for government assistance once I am set up. I assure you, I am working to schedule all of my trainings and classes in as timely a manor as is possible, while still being available to accommodate your schedules.
Thank you for your time and understanding regarding these changes. You have all become important in my life and I look forward to continuing to build upon the already strong relationships we share.
Thank You Again
It's great to hear I'm not alone in not standing up for myself dept. today and tomorrow I will be calling around to several daycares in the area to get an idea of what they're charging. That way I can at least make an informed decision on how much to charge, not to mention have a come back for ne1 trying to leave. They really don't have any idea what a bargain they're getting.
sally 08:29 AM 05-15-2013
I have been doing a small home daycare for a year now. Since I wasn't sure if it was going to work out I basically have been a baby sitter for the family I watch for. But now I have decided to have a real daycare and am working on making my policy and contract. How do I explain this to the parents of the 2 kids I watch and raise my rates as I have only been charging $3 per hour for the 2 kids without upsetting them.