Latchkey Care Pricing Policy

Hi All - new to the board. I am starting a before and aftercare business from my home this fall and I am working on pricing policies.

My initial thought was to have flat rate pricing - so fees are due whether your child is ill, absent, and this includes dates that school is closed for parent teacher conferences, etc. I wanted to simplify and also guarantee consistent income.

In addition, I'm offering full day, drop-in care for an additional fee, on snow days, parent teacher conf. days, breaks etc. Initial thought was to charge an additional per day fee, on top of the existing flat rate.

I'm getting parent feedback that this might not be the way to go, and I happen to agree on some level. Does anyone have an idea on how to clarify the policy? Should I have a per day price for each family? Any advice would be appreciated!! Thanks in advance!

[Cat Herder]

Convenience is expensive. The provider does not sit on a shelf, they still need to pay bills to be able to be convenient and reliable.

"According to Care.com's 2017 Cost of Care Survey, the average after-school sitter made about $15 per hour in 2016 -- which added up to about $232 per week for 15 hours of work. That said, that number can vary widely from family to family, based on a number of different factors." - That price does not include school closures.

[Lil_Diddle]

I think a flat rate is fair, you have to have an income you can count on. And they expect you to be reliable. You should be able to expect the same from them. That the kid is not going to go away for a week and you are not going to get paid. And of course it should be an extra charge for full day. You set the prices you see fair and reasonable, it they are really in need of your services and expect you to be reliable they will pay.

[Blackcat31]

Originally Posted by Unregistered

Hi All - new to the board. I am starting a before and aftercare business from my home this fall and I am working on pricing policies.

My initial thought was to have flat rate pricing - so fees are due whether your child is ill, absent, and this includes dates that school is closed for parent teacher conferences, etc. I wanted to simplify and also guarantee consistent income.

In addition, I'm offering full day, drop-in care for an additional fee, on snow days, parent teacher conf. days, breaks etc. Initial thought was to charge an additional per day fee, on top of the existing flat rate.

I'm getting parent feedback that this might not be the way to go, and I happen to agree on some level. Does anyone have an idea on how to clarify the policy? Should I have a per day price for each family? Any advice would be appreciated!! Thanks in advance!

If you operate based on feedback from parents in regards to rates, fees and costs you will never make a dime.

Never allow parents to dictate price. Parent feedback is super useful when you are trying to meet needs but when it comes to income YOU as the business owner need to set your rates to meet your financial needs.

[Meeko]

Of course parents aren't going to like the idea of a flat rate. They want to pay as little as possible! Don't ask them what they think is fair. To them, $5 a week is "fair".

But do these same parents only expect to pay for cable when they actually watching TV? You can't get part-time cable.

Do they expect to tell their landlord that as they'll be out of town next week, they expect to pay less rent?

Many, many things are paid for at a flat rate...regardless of use. There is no reason for your business to be any different. You need to know exactly how much money you have coming in.

For some reason, many parents think that daycare should be a form of charity, or at least deeply discounted, just because they need it. That providers should work for peanuts because "they love kids". I am not sure why they think this way. So many people love their jobs and do it well...but expect a good wage for doing so! We should be no different.

[storybookending]

The center I worked at only offered after school care as there wasn’t enough of a demand for before school care. The after school rates were billed monthly in advance $195 a month for full time (5 days a week) and $150 a month of part time (4 days a week or less). There was a drop in rate of $20 a day but held no guarantee of a spot being available. They operate directly in the elementary schools from the time school is out (2:35-3:15 depending on the school) until 6PM. Another center I know charges $11 a day for after care for similar hours. No school days are $30 a day in addition to what they pay for after care if they need it and is also open to kids not in the after care program and this is located st the center (YMCA). Full day care includes two snacks but children must bring lunch. After care includes one snack.

[Second Home]

I charge a flat weekly fee for before / after school care whether the child is here or not .
On snow days or school closings there is an additional fee IF I have room to take the child . There is no guarantee for a spot during school vacations or early releases , first to reserve the spot is accepted .