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Daycare Center and Family Home Forum>Changing My Rates to Accommodate a Family That Can't Pay?
playful 12:22 PM 08-27-2017
Hi I am new to the forum and I would like to know if any had a situation with a parent that wanted them to change their rate to be more cost effective for the parents, I have only been a provider for less than a year, I love taking care of this child but I am uncomfortable with changing my rates-thinking that i will need to terminate the family.

any thoughts
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CalCare 03:23 PM 08-27-2017
Hi Playful, you probably won't get a lot of response on this post because you seem to have accidentally posted under a thread about playroom pictures try to ask this again under home daycare, start a thread... And, for my 2, no way, don't lower your rates! Good luck!
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Michael 04:04 PM 08-27-2017
Originally Posted by CalCare:
Hi Playful, you probably won't get a lot of response on this post because you seem to have accidentally posted under a thread about playroom pictures
I moved it.
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mommyneedsadayoff 04:19 PM 08-27-2017
NO!! I wish toilet paper was more cost effective, but i cant ask Target to lower the price so i can wipe my booty No compromises on pay! Good luck to you! This is an awesome forum for advice!
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Leigh 05:35 PM 08-27-2017
Originally Posted by playful:
Hi I am new to the forum and I would like to know if any had a situation with a parent that wanted them to change their rate to be more cost effective for the parents, I have only been a provider for less than a year, I love taking care of this child but I am uncomfortable with changing my rates-thinking that i will need to terminate the family.

any thoughts
Here's what I have done with the "can you lower your rate" question: I agree to lower it while I search for a new family to take their space, and tell them that they can use the space until I fill it with someone else. The never leave. They FIND a way to make my price work.
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daycarediva 05:43 PM 08-27-2017
-Are your rates in line for your area and program/what you're offering?

If yes, then you should NOT lower your rates.

If your rates are lower than other providers with a similar program, then you should RAISE your rates. "Dcf, after careful consideration of your request to modify my rates I have done some research into standard rates in our area. Effective (2 weeks from today) my new rates will be X. I can keep your family grandfathered in under my old rates if you decide to stay enrolled. Let me know by X date, thanks!"

If they are higher, but you have other families enrolled that are happy with your program/rates, DO NOT LOWER your rates.

All that to say, never take a cut in pay! Parents ask the provider first 9/10. BUT, 9/10 there IS something the parent can cut out- morning coffee, eating out, nails done, reduce the cable bill, reduce the cell bill, etc. EASILY adjustable things, but she asked YOU to take a pay cut? NOPE.
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Jupadia 05:59 PM 08-27-2017
Personally I would never lower my rates for a family in care. The only time I did was for my first two full time kids I signed up within a two week period. I only even offered a lower rate to get people to pick me. I was new at the time for doing home care, and having trouble geting kids to sign up. After these kids started I raised rates back up for all new kids. Thier rates did last for the two years both boys were in care till they left. But when one of the families signed up a new sibling I only offered my current rate for him not the discount one his brother had when he was in care.

As pp have said if your rates are in line with current rates where you live and there is no other reason for you to discount. Then I would just let the file know that you are unable to drop their rates. It's not your job to make child care cost effective for parents, just to provide quality childcare for your current rates.
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Ariana 07:31 PM 08-27-2017
They always give the daycare provider the sob story so they will lower their rates. Tell them to ask the gas company to lower their rates. Without you they can't work, do they even realize that?? You are their most important bill.

I lowered my rates for a family once when I was stupid and naive so learn from my experience. The mom was divorcing her husband and gave me the whole "poor single mom" sob story. I fell for it hook line and sinker and lowered her rate to keep them. Well mom ended up buying a house that cost more than my house and kept her personal trainer at the gym. All things I assumed she couldn't do because she was "soooo poor" i felt like such a sucker. I learned my lesson big time. I do not compromise my rates for anyone now!
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hwichlaz 08:15 PM 08-27-2017
I just let a family like that go. I lowered their rate to keep them....dad had just been in ICO for collapsed lungs....and as soon as he was out they bought a house and two new cars.....and kept creeping in early every day, and picking up a few minutes later every day. GOOD RIDDANCE.
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LysesKids 08:31 PM 08-27-2017
Originally Posted by playful:
Hi I am new to the forum and I would like to know if any had a situation with a parent that wanted them to change their rate to be more cost effective for the parents, I have only been a provider for less than a year, I love taking care of this child but I am uncomfortable with changing my rates-thinking that i will need to terminate the family. any thoughts
No, No & NO... do not lower your rate; the 2 families I did it for (years ago) were some of my worst families... in fact the 2nd one went out & bought not 1, but 2 new cars & then bitched me out when I charged late fees when they started working OT with out asking - they went bye bye fast. I have bills too & when most my families said I was charging too little for what I offered, I raised my rates, not once but 2 times in 4 years
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LysesKids 08:33 PM 08-27-2017
Originally Posted by daycarediva:
-Are your rates in line for your area and program/what you're offering?

If yes, then you should NOT lower your rates.

If your rates are lower than other providers with a similar program, then you should RAISE your rates. "Dcf, after careful consideration of your request to modify my rates I have done some research into standard rates in our area. Effective (2 weeks from today) my new rates will be X. I can keep your family grandfathered in under my old rates if you decide to stay enrolled. Let me know by X date, thanks!"

If they are higher, but you have other families enrolled that are happy with your program/rates, DO NOT LOWER your rates.

All that to say, never take a cut in pay! Parents ask the provider first 9/10. BUT, 9/10 there IS something the parent can cut out- morning coffee, eating out, nails done, reduce the cable bill, reduce the cell bill, etc. EASILY adjustable things, but she asked YOU to take a pay cut? NOPE.

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amberrose3dg 05:09 AM 08-28-2017
That stuff bugs the crap out of me. So you are supposed to lower your rate when they agreed on it in the first place. If it was me I would not. If you do it you will probably regret it like the many stories here. I have had people try and get me to not charge them on days they don't come or a cheaper rate so they will enroll with me. I do not budge. It is not that I don't want to help out "poor" families. If they are truly poor they will qualify for the state to pay for their daycare. I had a call on Friday from a lady that was blown away i don't offer a big discount for a sibling(i offer no discount). I am sorry you choose to have two children that require daycare at the same time. I am not doing less work with two of your kids here. It is the same amount of effort, food, and more cleaning.Either they will pay or leave. Most likely they will not find someone cheaper that offers the same things you do. They will either be stuck paying the same rate elsewhere, try and bully someone into being cheaper or will use as I call it iffy alternate care that most likely isn't a great option.
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midaycare 06:08 AM 08-28-2017
I had this sob story before. Parents go to Chicago almost monthly for the weekend. It's driveable, but there's still the hotel, eating out, etc. They also go out weekly.

They were such a pitb that I let them pay on Friday instead of Monday. But that's about all.
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Blackcat31 07:22 AM 08-28-2017
I've heard them all at this point. Believed some of them and things worked out, believed some others that didn't work out so well...

What I've learned because of that?

I've learned there really aren't alot of truly poor people that have come my way, just alot of people that made bad choices.

Once I learned that ^^ I simply took each situation and decided if I wanted to help because I wanted to (personal fulfillment)and/or helped out IF I was able to (profit...keeping the family) and that it's also okay to say "I am not able to do that".

So my advice....do what works for YOU, YOUR family and YOUR budget not what works for others. It's easier that way and much less stressful.
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amberrose3dg 07:28 AM 08-28-2017
Originally Posted by Blackcat31:
I've heard them all at this point. Believed some of them and things worked out, believed some others that didn't work out so well...

What I've learned because of that?

I've learned there really aren't alot of truly poor people that have come my way, just alot of people that made bad choices.

Once I learned that ^^ I simply took each situation and decided if I wanted to help because I wanted to (personal fulfillment)and/or helped out IF I was able to (profit...keeping the family) and that it's also okay to say "I am not able to do that".

So my advice....do what works for YOU, YOUR family and YOUR budget not what works for others. It's easier that way and much less stressful.

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Pestle 09:01 AM 08-28-2017
Here's my thought:

There are actually some desperately poor people out there. My mother was one of them. So we got what she could pay for: Horrible care, some of it abusive. The people in that situation, who know they don't have money for decent care, aren't even coming to you to ask you to change your rates; they're finding (awful) alternatives to traditional care.

Even if the truly destitute WERE coming to us, the damage we'd take vs. the help we could offer aren't equal. If you can't afford the basic necessities of life, and I let you persuade me to offer my time and labor below cost, I will be in the same situation you're in. I won't be saving you; you'll be dragging me into poverty. I'm sorry to see you suffering this way, but salvation from the damage that poverty brings? That comes from directions that are NOT your family day care provider. If you can't afford me, there are lots of other necessities you can't afford, and wrecking my own life to make myself affordable to you--that's not going to make a significant difference in your overall situation.
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renodeb 03:52 PM 09-01-2017
Don't do it. That family will expect other favors down the line or they will tell there friends that you will do it for them.
Deb
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laundrymom 04:49 PM 09-01-2017
Pestle, that bolded part.
O. M. G.

Truth! Straight truth!!


Originally Posted by Pestle:
Here's my thought:

There are actually some desperately poor people out there. My mother was one of them. So we got what she could pay for: Horrible care, some of it abusive. The people in that situation, who know they don't have money for decent care, aren't even coming to you to ask you to change your rates; they're finding (awful) alternatives to traditional care.

Even if the truly destitute WERE coming to us, the damage we'd take vs. the help we could offer aren't equal. If you can't afford the basic necessities of life, and I let you persuade me to offer my time and labor below cost, I will be in the same situation you're in. I won't be saving you; you'll be dragging me into poverty. I'm sorry to see you suffering this way, but salvation from the damage that poverty brings? That comes from directions that are NOT your family day care provider. If you can't afford me, there are lots of other necessities you can't afford, and wrecking my own life to make myself affordable to you--that's not going to make a significant difference in your overall situation.

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