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AmericanHoney 08:50 PM 02-22-2014
I saw the other thread about contracted hours. I am curious as to how contracted hours work and how do you decide on how much to charge? How do you explain contracted hours to your the daycare parents? Are there forms etc? Any help would be great!
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Blackcat31 06:56 AM 02-23-2014
I set my base rate (amount I HAVE to have to survive financially) for my earliest pick up (3:00) and added fees for every 30 minutes.

That way, if a parent picked up at 3:00 daily, I wouldn't be taking a loss on my budget.

I presented contracted hours to parents as a way for them to decide how little or how much their daycare costs were. If they were on a tighter budget, they could have family members work out arrangements with them to pick up early in the day.

I highlighted the positives of the parent being in control of their budget and let them choose the contracted times that worked for them.

I was good budget-wise because no matter which time a family choose, I still made enough to meet my own financial needs.

If you are interested in seeing the letter I used to explain/present the new rate scale to parents, let me know.
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Patches 08:10 AM 02-23-2014
Originally Posted by Blackcat31:
I set my base rate (amount I HAVE to have to survive financially) for my earliest pick up (3:00) and added fees for every 30 minutes.

That way, if a parent picked up at 3:00 daily, I wouldn't be taking a loss on my budget.

I presented contracted hours to parents as a way for them to decide how little or how much their daycare costs were. If they were on a tighter budget, they could have family members work out arrangements with them to pick up early in the day.

I highlighted the positives of the parent being in control of their budget and let them choose the contracted times that worked for them.

I was good budget-wise because no matter which time a family choose, I still made enough to meet my own financial needs.

If you are interested in seeing the letter I used to explain/present the new rate scale to parents, let me know.
everything she said
For me, when the parents sign the contract, they choose their drop off and pick up times for each day of the week. That's when their weekly rate is determined. And if they ever need to change it they sign a new contract. Late fess start at their contracted pick up time. My earliest pickup time is 3:30. Same as Blackcat, the rate goes up every 30 minutes.
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Blackcat31 08:13 AM 02-23-2014
More threads on contracted hours

https://www.daycare.com/forum/tags.p...ntracted+hours
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AmericanHoney 08:21 AM 02-23-2014
I would definitely love to see your forms/papers. I think I may like to try this as I have already had one parent want there child here the entire time I'm open plus an hr early drop off which would put her child her 12hrs a DAY!
My hrs are 7am-6pm. Not sure what to decide on prices for set amount of hrs. For example you have one family who would need a 7am drop off and 5pm pick up, or a family that needs an 8am drop off and 5:30 drop off. I am in TN, not sure why my name says Ga.
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Blackcat31 08:48 AM 02-23-2014
Originally Posted by AmericanHoney:
I would definitely love to see your forms/papers. I think I may like to try this as I have already had one parent want there child here the entire time I'm open plus an hr early drop off which would put her child her 12hrs a DAY!
My hrs are 7am-6pm. Not sure what to decide on prices for set amount of hrs. For example you have one family who would need a 7am drop off and 5pm pick up, or a family that needs an 8am drop off and 5:30 drop off. I am in TN, not sure why my name says Ga.
I don't care what time a parent comes in the morning. They have to schedule a drop off time but I don't count hours and then set fees according to the number of hours they use. My fees are based on pick up times ONLY.

I open at 7. If a family uses 7-3 they pay the same weekly rate as someone who uses 9-3.

My weekly rate is the fee for full time care with a pick up of 3:00.

I charge weekly so the LATEST pick up time of the week is what dictates the weekly rate a family pays.

PM me your e-mail address and when I get home this afternoon, I will send you some of my paperwork. Rate sheets, explanation letters etc.

I am always happy to help so let me know if you need any other paperwork help.
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countrymom 09:12 AM 02-23-2014
I charge by the day but contract hours. This way if they run over their contract hours then they get charged extra. I am open from 7 to 5pm but that doesn't mean I want someones child here all day.

I also found by going with this, I know when kids are being dropped off or picked up and makes my life so much easier and there isn't any surprises. Also, this way no parent can just do whatever they want either. So If I have an emergency I have an idea where to get a hold of them.
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MCC 05:24 PM 02-23-2014
Originally Posted by Blackcat31:
I don't care what time a parent comes in the morning. They have to schedule a drop off time but I don't count hours and then set fees according to the number of hours they use. My fees are based on pick up times ONLY.

I open at 7. If a family uses 7-3 they pay the same weekly rate as someone who uses 9-3.

My weekly rate is the fee for full time care with a pick up of 3:00.

I charge weekly so the LATEST pick up time of the week is what dictates the weekly rate a family pays.

PM me your e-mail address and when I get home this afternoon, I will send you some of my paperwork. Rate sheets, explanation letters etc.

I am always happy to help so let me know if you need any other paperwork help.
When you switched to contracted hours, did you increase your rate for the later pick ups? Or lower the rate for the 3:00 pick up? For example:

My rate is $280. If I went to contracted hours would you suggest I make the earliest pick up $280, and then raise it from there, or make the earliest pick up $260 (or so) and then raise to reach $280 for the latest pick up?
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Blackcat31 05:39 PM 02-23-2014
Originally Posted by MCC:
When you switched to contracted hours, did you increase your rate for the later pick ups? Or lower the rate for the 3:00 pick up? For example:

My rate is $280. If I went to contracted hours would you suggest I make the earliest pick up $280, and then raise it from there, or make the earliest pick up $260 (or so) and then raise to reach $280 for the latest pick up?
I made my earliest pick up time my regular weekly rate.

In your case, make your 3:00 pick up time $280 and add from there. I know providers who add fees by the hour, by the half hour and by 15 minutes so handle that part in whatever way works for you. I chose to go every 30 minutes.

Same thing applies to your rate scale. If you don't think your current parents would take kindly to having to pay a lot more (especially if you have a lot of 5:00 pick ups) so you could use 4:00 as your base rate.

It all depends on what you feel is the best marketing move for your business.

If it's hard to find kids and you really don't want to risk losing anyone, compromise. Find a middle ground, but IMHO your base rate really shouldn't cover more than 8.5 - 9 hours of care at the VERY most.
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AmericanHoney 06:15 PM 02-23-2014
$280 how do you get parents to pay that kind of money???
I set a weekly rate for my first family (starts tomorrow).
Do you typically get better pay with contracted hours?
I am not certified so I can only have 4 children unrelated right now.

Blackcat I will PM you now.
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MCC 11:36 AM 02-24-2014
Originally Posted by AmericanHoney:
$280 how do you get parents to pay that kind of money???
I set a weekly rate for my first family (starts tomorrow).
Do you typically get better pay with contracted hours?
I am not certified so I can only have 4 children unrelated right now.

Blackcat I will PM you now.

I live in Washington DC area, so that is why my rates are so high. The average rates around me are $220-350.


Blackcat- Thank you so much! I am seriously going to consider switching to contracted hours.
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jenboo 12:58 PM 02-24-2014
Originally Posted by Blackcat31:
I don't care what time a parent comes in the morning. They have to schedule a drop off time but I don't count hours and then set fees according to the number of hours they use. My fees are based on pick up times ONLY.

I open at 7. If a family uses 7-3 they pay the same weekly rate as someone who uses 9-3.

My weekly rate is the fee for full time care with a pick up of 3:00.

I charge weekly so the LATEST pick up time of the week is what dictates the weekly rate a family pays.

PM me your e-mail address and when I get home this afternoon, I will send you some of my paperwork. Rate sheets, explanation letters etc.

I am always happy to help so let me know if you need any other paperwork help.
Can you send me the info too please?? I would love to start doing it this way in the future. Ill send you a PM.
Thanks BC!
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cara041083 01:24 PM 02-24-2014
I charge a flat rate per week for 9 hours a day, 5 days a week. Anything out side of that 9 hours a day, I charge a 15.00 hourly fee. I still get paid the flat rate no matter how many days they are here or not here. If they take the spot the pay for it. The only thing extra I charge is for over the 9 hours, or late fees. I have learned the hard way that parents willl bring their kids at open and pick up at close (even if its 15 hours a day) unless you make them pay for it!
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TwinKristi 01:30 PM 02-24-2014
I charge a daily rate based on their hours/days of need. I charge $45/day for FT, $50/day for less than 4 days and $55 for just 1 day but that rarely happens here. As long as they come more than 4hrs than it's the full rate. Less than 4hrs (also hasn't happened) is charged at a lower rate. I just tell parents up front that I work on the hours they need. If they work 7:30-1:30 than I watch the child 7:15 to 1:45 or what not depending on their commute. But I don't just open at 7am and have the kids here til I close at 6pm.
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melilley 01:30 PM 02-24-2014
I have contracted hours and on my contract, the parents have to write down the hours they need care. I only allow up to 10 hours a day. I have a set weekly and daily rate.
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Mom o Col 01:33 PM 02-24-2014
Black Cat, would you mind sharing that with me?
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lucky 02:39 PM 02-24-2014
Would you mind sharing with me also. I've been thinking of moving to contracted hours for quite a while
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craftymissbeth 06:32 PM 02-24-2014
My "business hours" are 7-5, but I changed to contracted hours. My rates are based on pick-up times like Blackcat's. This is how mine work:

Drop-off can be any time between 7-9 am. I do not take drop-offs after 9.

Pick up times:
3:00 $80.00
3:15 $85.00
3:30 $90.00
3:45 $95.00
4:00 $100.00
4:15 $105.00
4:30 $110.00
4:45 $115.00
5:00 $120.00

Contracted drop-offs between 6 am and 7 am are $5 per day per child. Contracted pick-ups between 5 pm and 6 pm are $5 per day per child.

I'm not working more than 10 hours per day without making good money for doing so, kwim? I have one family that gladly pays the $25 extra per week to be able to drop off at 6:15, but they worked it out so they can pick up at 3:15. Their weey rate is $110... I still make what I need to but work a whole lot less than when dcg was here until 5 everyday
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craftymissbeth 06:33 PM 02-24-2014
I forgot to add that I'm done with my day by 3:45 every single day and I still make what I need to pay the bills and put some in savings
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daycaremom2014 01:32 PM 03-02-2014
Originally Posted by Patches:
everything she said
For me, when the parents sign the contract, they choose their drop off and pick up times for each day of the week. That's when their weekly rate is determined. And if they ever need to change it they sign a new contract. Late fess start at their contracted pick up time. My earliest pickup time is 3:30. Same as Blackcat, the rate goes up every 30 minutes.
hi my name is Dana and I am a provider if you still have the letter available please send thank you and good luck! Dana email is dannabromm@yahoo.com
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Blackcat31 01:37 PM 03-02-2014
Originally Posted by daycaremom2014:
hi my name is Dana and I am a provider if you still have the letter available please send thank you and good luck! Dana email is dannabromm@yahoo.com
I sent you a Private Message (PM) with the link.

If you have any questions, let me know.
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morgan24 03:15 PM 03-02-2014
I started doing it Blackcats way. I sent out new contracts last week and I gave everyone two weeks notice before it starts. Everyone already has their contracts back and I only have one staying until 5:00.
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Blackcat31 05:07 PM 03-02-2014
Originally Posted by morgan24:
I started doing it Blackcats way. I sent out new contracts last week and I gave everyone two weeks notice before it starts. Everyone already has their contracts back and I only have one staying until 5:00.


cool! Keep us posted as to how you feel it is going.
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mim 02:17 PM 04-23-2014
I am a provider and have been for about 10yrs. I just never knew about contracted hours. I just pm'd Blackcat to see if I could get those forms and letters as well. It would be greatly appreciated. I am new at the whole forum thing to. So I am sorry in advance.
Thanks so much
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Unregistered 03:36 PM 04-23-2014
Originally Posted by Blackcat31:
I set my base rate (amount I HAVE to have to survive financially) for my earliest pick up (3:00) and added fees for every 30 minutes.

That way, if a parent picked up at 3:00 daily, I wouldn't be taking a loss on my budget.

I presented contracted hours to parents as a way for them to decide how little or how much their daycare costs were. If they were on a tighter budget, they could have family members work out arrangements with them to pick up early in the day.

I highlighted the positives of the parent being in control of their budget and let them choose the contracted times that worked for them.

I was good budget-wise because no matter which time a family choose, I still made enough to meet my own financial needs.

If you are interested in seeing the letter I used to explain/present the new rate scale to parents, let me know.
I do a twist on this same fee schedule. I prefer (8 months out of the year) to start later. So my base rate is for an eight hour chunk of day, and then I add on fees by the half hour at the beginning, and subtract fees by the half hour at the end of the day.
Explained the same way: Parents have more control over their fees. (And I have more control over my time. I can go grocery shopping in the a.m. if I need to. Or dr. appt. or dentist. IF I don't have anyone early.) I find most families add on 1/2 hour in the a.m. and take nothing off in the evening. 90% of the time, I know exactly when I'm starting, and 90% of the time I know exactly when I'm ending. (There is one family soon leaving, who abuses both ends. In a week or so, it will be 100%!!)
I love it. LOVE. IT. Parents seem to like it too.
It's not hard to figure out the fees. Each fee stays the same weekly. I just write them out like this to figure them out: [ $XX (daily base) + $4 (2 extra half hours) - $2 (1/2 hour earlier pickup) ] TIMES the number of days they attend = weekly fee.
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Unregistered 03:39 PM 04-23-2014
Forgot this part: If someone needs earlier care once in a while, I charge 2X the normal 1/2 hour fee. I don't give discounts for the occasional early pickup though - that is called Being A Parent Who Likes To Spend Time With Their Child. (Plus it doesn't happen often. Even when parent comes in play clothes.)
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spinnymarie 06:37 AM 04-24-2014
I don't want anyone here more than 9 hours, so we have contracted hours: any nine between the hours of 7 and 5, you choose drop off and pick up at enrollment. If you need 9.5 hours we charge an extra $15/wk, and 10 hours/day would be an extra $30 every week.
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MarinaVanessa 07:16 AM 04-24-2014
I also do contracted schedules however mine works a little differently than how BC's works.

I figured out what I wanted to charge for FT and defined it for me. To me FT is 4 or 5 days a week, 50 hours a week, 10 hours a day on a fixed schedule. Realistically it's difficult to find a client that only wants to come 1 day a week to fill in a gap if a client wants only 4 days and many times 1 day a week children have adjustment issues so I don't bother, therefore clients wanting 4 days a week pay the FT fee anyway. I personally could care less how many hours a day a client needs each day, as long as they need 4 or 5 days a week that's FT to me. Clients working in retail or restaurants with schedules that change every week also pay FT. If they need me to have a FT spot open for them, they will pay for it. If they have an alternating schedule it's an extra $15\week fee.

I charge my PT clients similar to BC. That's when I use the pickup scale. They give me their schedule and we figure out how many days a week they need and based on the pickup time for each day I come up with their weekly rate. My earliest pickup is also 3pm and then I charge extra for every 30 minutes after that. When you break it down hourly my PT rate is higher than my FT rate. Like FT my PT fee is a flat weekly rate based on enrollment not attendance so every client pays their rate whether their child was absent or not. FT and PT clients have a guaranteed spot in my daycare.

Then I also have Drop-In available for those only want to pay for the days that they use. I charge a daily rate that is higher than my PT rate or an hourly rate which is higher than my daily drop in rate and has a minimum of 4 hours. They do not have a guaranteed spot in my daycare.

I have a handbook with policies that all clients follow and I have separate contracts for my FT and PT clients (this is one contract) and they sign a fee agreement. Each time they move up to FT or down to PT or if a PT clients needs to change their schedule then they fill out a new fee agreement. My drop in clients have their own drop in contract.

I should also say that even though I work based on contracted schedules I may occasionally get a request for a temporary or permanent early care or evening care and if I agree to it and accept a child before 7am or after 6pm then I charge the hourly droo in rate in addition to what my normal fees would be.

For example if a FT client needed one day a week to start at 6am and only needed 9 hours of care that day they would still pay the regular rate and I would charge them my drop in rate for the early hour even though they are typically allowed 10 hours per day.

My forms are all available for download from my website which is posted in my signature below. You can find them in the Parent secrion under enrollment.
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MarinaVanessa 07:20 AM 04-24-2014
Double post
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Annalee 08:58 AM 04-24-2014
Originally Posted by MV:


My forms are all available for download from my website which is posted in my signature below. You can find them in the Parent secrion under enrollment.
I really like your contracted hours form....I offer my parents 9 1/2 hours a day not to exceed 4:30 which works for all parents except 1, of course. She only works 3 days a week but I allow her 6-4:30 because she works 12 hour shifts and her mom picks them up. It seems now she is constantly asking if she can come at least one of the other 2 days but I told her if she did that, the 9 1/2 hr rule will go into affect which I waived during the interview on her contract. She has been here for 3 years now and I think a specific contract like this would force her to choose all week with only 9 1/2 hours a day which she can't because no one can get the kids on time or come 3 days from 6 to 4:30 with NO OTHER DAYS ATTENDANCE AS OPTIONS. Thanks for sharing!
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MarinaVanessa 09:15 AM 04-24-2014
Originally Posted by Annalee:
I really like your contracted hours form....I offer my parents 9 1/2 hours a day not to exceed 4:30 which works for all parents except 1, of course. She only works 3 days a week but I allow her 6-4:30 because she works 12 hour shifts and her mom picks them up. It seems now she is constantly asking if she can come at least one of the other 2 days but I told her if she did that, the 9 1/2 hr rule will go into affect which I waived during the interview on her contract. She has been here for 3 years now and I think a specific contract like this would force her to choose all week with only 9 1/2 hours a day which she can't because no one can get the kids on time or come 3 days from 6 to 4:30 with NO OTHER DAYS ATTENDANCE AS OPTIONS. Thanks for sharing!
Yes, it really makes it clear what their days are and what their fee is. I just recently started doing this and it has really cut down on the amount of flip flopping people are trying to do. They fill out what days they need, I fill in the cost for those days and if they later need more days that are not on the fee schedule/contract then those days are charged extra.
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Jack Sprat 12:58 PM 04-24-2014
Originally Posted by cara041083:
I charge a flat rate per week for 9 hours a day, 5 days a week. Anything out side of that 9 hours a day, I charge a 15.00 hourly fee. I still get paid the flat rate no matter how many days they are here or not here. If they take the spot the pay for it. The only thing extra I charge is for over the 9 hours, or late fees. I have learned the hard way that parents willl bring their kids at open and pick up at close (even if its 15 hours a day) unless you make them pay for it!
I do something similar to this. Parents have contracted hours. They can not come before their contracted time and can not pick up later then their contracted time. If they do late fees start. When I did open-close hours parents abused it in a big way and I was beyond exhausted! None of my kids are here longer then 9 hours. If anyone wants longer hours then I think I will charge more.
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