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Angelwings36 12:21 PM 02-29-2012
I having one of those days!!

So I posted earlier about the dual family I currently have at a rate of $950/month. My regular full time fee is $1300/month so this family is getting a $350/month discount. This is also a teacher family so they do not pay over the summer. In one year I am out $6,800.00 because of the discount and no payment over the summer. This family started with me in January of this year.

I decided I needed to change this as we are having troubles with our finances and could use any extra income we can get at this time.

I told my husband today that I was thinking of giving this family notice on April 1st, 2012 that their rate would increase as follows:

May 1st - $1050/month
June 1st - $1150/month

They would then have two months off for the summer and the rate of $1150/month would continue in September 2012.

My husband told me that it is totally unethical of me to raise their rates, since they only started with me in January. He said it's false advertisement since it looks like I started them in on the lower rate just to up it a few months later. It won't be a few months it will be 5 months before their rate changes for the record and 6 until it hits a $150/month discount instead of $350/month.

I told him I would give them the option to find someone cheaper and fill their spaces but apparently that will ruin my reputation.

I am so hurt right now and angry.

Sometimes I feel so alone. It sucks having no support from my spouse!
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familyschoolcare 12:25 PM 02-29-2012
Having the new rate start when they return in Sept. might look better to everyone and a straigh up change might be easeir to inforce. I would require a signed contract and a deposite before saving the spot over the summer.
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daycare 12:29 PM 02-29-2012
I am much like you, I feel bad when I do things like this to myself.

Does this family have the whole summer off??
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Angelwings36 12:31 PM 02-29-2012
Originally Posted by daycare:
I am much like you, I feel bad when I do things like this to myself.

Does this family have the whole summer off??
Yes they do.
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daycare 12:32 PM 02-29-2012
Originally Posted by Angelwings36:
Yes they do.
do they pay you for that time?
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AnythingsPossible 12:32 PM 02-29-2012
Originally Posted by familyschoolcare:
Having the new rate start when they return in Sept. might look better to everyone and a straigh up change might be easeir to inforce. I would require a signed contract and a deposite before saving the spot over the summer.
I agree with this. While you could use the money now, it would be best to wait until the next school year to raise their rate. Most of my teacher families bring their children part time in the summer. Maybe you could talk to them and see if they would be willing to do that. It may help a little.
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Angelwings36 12:33 PM 02-29-2012
No they do not pay over the summer at all.
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daycare 12:35 PM 02-29-2012
So will you have filled their spot with another family at that time?

DO you charge a holding fee of any kind?
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wdmmom 12:35 PM 02-29-2012
I would give the family notice May 1st of your intention to raise rates effective August 1st. And require they tell you by June 1st if they will terminate or return after the summer.
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Solandia 12:38 PM 02-29-2012
Originally Posted by Angelwings36:
No they do not pay over the summer at all.
Then it would be natural to set up your contracts with a beginning & end corresponding with the school year. Perfect, and should be something very familiar & natural to your teacher families.

So, each school year = new contracts, INCLUDING a significant nonrefundable fee to hold the spot. What I did with my teacher families, was require a nonrefunable fee (not deposit, a holding fee) for holding a spot for a fall. Without the holding fee, no guarantee of care for their child. I did 1 full week's worth of care, because that is generally enough for them to be serious about it, and not want to lose that money.

good luck!

Edited to add: Any extra days during the summer (even part time) would be considered 'drop in' care, and at my much higher 'drop in' rate.
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MrsB 12:39 PM 02-29-2012
Sorry you feel so alone. I discuss lots of stuff with my hubby, but there is a reason he is my hubby and not my business partner! I can't always expect him to understand where I am coming from because he doesnt deal with all the issues. Do you feel you need your husbands approval to make business decisions or did you want his support and didnt get it?

In this situation you have many options. Here are a couple...

1. You could not raise any rates for this school year. When they come back in the fall tell them the new rates.

2. You could tell them that you can't hold their spot over the summer at no charge.

If I was going to raise my rates, personally I wouldn't increase slowly over a few months. To me that kind of shows that you are not firm in what you want your prices to be. Either raise them or dont.

Stand your ground, and charge what you think you are worth! Not just under what everyone else is charging (within reason).

I am not saying this is you, but I see alot of providers set their prices to get people in the door and then get upset at the parents because they pay those prices, when they feel they should deserve more.
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daycare 12:45 PM 02-29-2012
As others are saying.... Hubby is hubby.

When does your summer start? June 1?

Whenever summer starts, I would be giving them the information about new rates at that time and also let them know that there is a holding fee of 1/2 each childs tuition due each moth to hold the spot. Let them decide by X date what they would like to do. I bet you they will find another place to go.

Why wait and waste all of that time just to raise the rates when they return and then run the risk of them leaving. YOu just lost all of that income.

I know this sounds mean, but NO sibling discounts. You didn't ask them to have two kids or three kids, it was their choice. I read on here once someone said when a mom asked them for a discount the provider asked does that mean I get to discount the quality of care for your children?
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Lilbutterflie 12:45 PM 02-29-2012
Your husband does bring up a good point. They probably will not be happy about such a big increase within their first six months with you; but YOU have to do what is best for YOU and your family. If you are prepared to lose this family because of it; and if you think they can be replaced by clients who will pay your full rate; then go ahead!

I would definitely start off their notice by reminding this family how much of a discount you started off giving them; PLUS they get the whole summer without needing to pay to hold their spot (I definitely would change that in the future by the way... how is it possible for you to hold their spots for such a long time without having to charge them anything? Any extended time off in my contract means they have to pay half the fees in order to hold their spot- and I only give them 12 consecutive weeks max).
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sharlan 12:59 PM 02-29-2012
I agree that it wouldn't be right to raise their rates right away. You made a mistake with your rates and now you have to live with it.

I would notify them on May 1 that the rates for the upcoming year will be $***. I would also notify them that you will not save their space if they take off for the full summer.
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emmajo 03:44 PM 02-29-2012
The part of this I"m having trouble with is:
"I decided I needed to change this as we are having troubles with our finances and could use any extra income we can get at this time."
And yet your husband is questioning what you are trying to do to help?
Does he have other, [I]constructive [/i]suggestions for how to help your family's finances?
It's not a huge increase you have in mind, really.
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saved4always 04:25 PM 02-29-2012
Originally Posted by familyschoolcare:
Having the new rate start when they return in Sept. might look better to everyone and a straigh up change might be easeir to inforce. I would require a signed contract and a deposite before saving the spot over the summer.
I watch teacher's kids who take off over the summer and I always do my contracts for the school year, August to June. So it would make sense to make a price change when they come back in September for the new school year, as long as you can afford to wait that long.
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cheerfuldom 05:19 PM 02-29-2012
I told my husband to buzz off when it came to big daycare decisions. This is my job. I don't go into his work place and tell him what to do! You are not doing anything unethical. Businesses of all sorts raise prices all the time. Clients decide whether the service is worth the cost or whether they will move on to another business.
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frugalmama4 05:38 PM 02-29-2012
I totally understand the hubby drama! To this day my hubby doesn't know the amount$$$ we were paying a "daycare center" for our four children. And doesn't have a clue what my weekly fees are now that I'm doing home child care. By all means not because I don't talk him...but because he's not interested until he wants to buy/due/or start a new business himself"then it's all lets go over the budget. But that's for another thread.

I agree with most of the comments, you should charge a holding fee during the summer months at least 1/2 of one months tuition for each month out! And maybe word it in your contract that it will be credited towards your year end bill (for me this would be x-mas as I take two vacations a year first one paid 2nd one not billed) I think this will go over well with teachers as during the last two months their out on break and won't need child care. Now I don't think you should increase rates until the new school year starts. Think about your reputation "sorry hubby had a point here" bad business will get around faster then a speeding bullet!

My thoughts-

What happens if you increase their rate? and then the same week/month loose one of your other families? Not trying to come down on you but, I live by this rule...God provides for me...not my DCF's

I personally try to always remember why I decided to open a home child in the first place.

To spend time w/my our children
To live w/out public assistance
Financial Freedom
To be able to due Gods work on a much bigger scale!
To provide quality child care for other families.
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Crazy8 05:56 PM 02-29-2012
Originally Posted by wdmmom:
I would give the family notice May 1st of your intention to raise rates effective August 1st. And require they tell you by June 1st if they will terminate or return after the summer.
I think this suggestion is a really good one.

I understand your point but I kind of agree with your husband on this. You set the rates when they started with you in January, I think it is too soon to raise them and I think a tiered increase like that makes it sound like you know your new rates are high (even thought they are probably very competitive). If they decide to leave and let you know by June 1st you can replace them for the whole summer and gain more money than you would by having them at the increased rate for May & June and then taking the entire summer off.
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wahmof3 06:51 PM 02-29-2012
You have gotten a lot of good feedback on this

A lot of both side of the fence, kwim? I think you really need to read what these people have posted and really go with what your gut is telling you. Make an informed, professional decision.

With that said, I have all teachers kids except 1 family (and she is a student). So I learned the hard way not to give "breaks". I offer a BIG sibling discount. Where I lose $50 a week on 1 family ouch! And to top it off: I was charging her a DAILY RATE!! So when school was closed or kids were sick; I didn't get paid.

My 2nd family is only 4 days per week & same thing I charged her a daily rate. Hurt my checking account like you wouldn't believe!

Starting this year I went to a pay for space rate with both of these families. I DID NOT increase their rate I just made it a more consistent income.

I do not charge for summer, because I can replace their kids w/ SA if need be. But I will quote them a daily rate for some extra income & I have their kids 1-2 days per week.

I'm happy w/ my current set up. I will be making 2 changes NEXT contract signing: 1. give my self some paid personal days & 2. make contracts valid from August-June

Good-luck!!
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Angelwings36 02:41 PM 03-01-2012
Thanks everyone for taking the time to reply to my post, sorry I didn't respond earlier...things have been CRAZY busy lately.

I think I am going to wait to raise this families rate until September (the new school year). I wasn't really sure as to when or how I was going to go about it at this time but it was something I have been really contemplating. I also need to figure out what to do about the two summer months...I don't know how well it would go over if I told this family now that they would have to pay a percentage over the summer months as I already told them they would get the two months payment free.

I was very rushed when I signed this family on back in December. I didn't want to take a dual family and didn't want to take any more teacher families because of the summer month issues but I had 4 spaces to fill (DAMN PREGNANCIES LOL) and the heat was on so I bit.

I guess I was most upset with my husband as I was looking for some support in the situation and I felt all he did was criticize the decision I was trying to make.
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daycare 02:49 PM 03-01-2012
Originally Posted by Angelwings36:
Thanks everyone for taking the time to reply to my post, sorry I didn't respond earlier...things have been CRAZY busy lately.

I think I am going to wait to raise this families rate until September (the new school year). I wasn't really sure as to when or how I was going to go about it at this time but it was something I have been really contemplating. I also need to figure out what to do about the two summer months...I don't know how well it would go over if I told this family now that they would have to pay a percentage over the summer months as I already told them they would get the two months payment free.

I was very rushed when I signed this family on back in December. I didn't want to take a dual family and didn't want to take any more teacher families because of the summer month issues but I had 4 spaces to fill (DAMN PREGNANCIES LOL) and the heat was on so I bit.

I guess I was most upset with my husband as I was looking for some support in the situation and I felt all he did was criticize the decision I was trying to make.
things change and people understand that..

All you have to say is due to changes out of my control_______________

Or after much thought, the following changes must be made to continue for our daycare to run successfully_______________


I am sure there are others on here that can really give you some good words to use to be able to make the necessary changes..

sweetie, you are never stuck in something. You own this company and have every right to make changes in a professional manner as you see fit
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Tags:husband, husband - helping out
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