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Daycare Center and Family Home Forum>Pricing.. payment... policies.. HELP!!!
lflick 05:32 PM 05-16-2013
Good evening! I was hoping to pick some brains per say...
I am new to the in home daycare of my own; however, not new to childcare. I am wondering what you folks charge.... how you charge... if you just do a flat rate per day... or if you offer things like half day, summer rates, before/after school care, and weekend.
I am also wondering how you "enforce" a payment policy. I have a handbook made up and I just started watching 2 girls temporarily (like probably 2 weeks)... In my handbook I listed payment is due on the first day of care for that week. Well I have watched them two days now and have yet to be paid. How does one approach this issue without sounding like it's all about the money?
I am new to the in home daycare of my own; however, not new to childcare. I am wondering what you folks charge.... how you charge... if you just do a flat rate per day... or if you offer things like half day, summer rates, before/after school care, and weekend.
I am also wondering how you "enforce" a payment policy. I have a handbook made up and I just started watching 2 girls temporarily (like probably 2 weeks)... In my handbook I listed payment is due on the first day of care for that week. Well I have watched them two days now and have yet to be paid. How does one approach this issue without sounding like it's all about the money?
Cradle2crayons 05:38 PM 05-16-2013
Originally Posted by lflick:
Good evening! I was hoping to pick some brains per say...
I am new to the in home daycare of my own; however, not new to childcare. I am wondering what you folks charge.... how you charge... if you just do a flat rate per day... or if you offer things like half day, summer rates, before/after school care, and weekend.
I am also wondering how you "enforce" a payment policy. I have a handbook made up and I just started watching 2 girls temporarily (like probably 2 weeks)... In my handbook I listed payment is due on the first day of care for that week. Well I have watched them two days now and have yet to be paid. How does one approach this issue without sounding like it's all about the money?
First thing you did wrong was by accepting the girls into your home without payment. If payment is due on the first day, you open the door and expect payment. If you don't already have a late fee agreement, make one. Very few parents are going to do right if you continue to let them walk over you.Good evening! I was hoping to pick some brains per say...
I am new to the in home daycare of my own; however, not new to childcare. I am wondering what you folks charge.... how you charge... if you just do a flat rate per day... or if you offer things like half day, summer rates, before/after school care, and weekend.
I am also wondering how you "enforce" a payment policy. I have a handbook made up and I just started watching 2 girls temporarily (like probably 2 weeks)... In my handbook I listed payment is due on the first day of care for that week. Well I have watched them two days now and have yet to be paid. How does one approach this issue without sounding like it's all about the money?
That's just it. Childcare is a business. IT IS ABOUT THE MONEY. End of story.
That doesn't mean you don't love the kids. But it does mean you expect payment on day one. I don't ask for payment on Monday at drop off. My parents already know they have an hour after drop off to pay and then their $10 late fee goes into effect. That means if they pay at pick up its their weekly rate plus ten bucks. The next morning if they don't have the rate plus late fee in their hand, they can take their child back home.
melilley 05:54 PM 05-16-2013
I only charge a flat weekly rate and a daily rate with a minimum of two days per week. I just looked at my state's cc&r website to see what other providers were charging (they don't show rates anymore) and also looked on CL to see if anyone posted what they charge for my area. I am in the middle, but am raising my rates for new clients if any of my families should leave. Personally I would never do weekends, I love my weekends off! 
I also decided when I opened that I would have a minimum of 3 full time children and the other 2 could be full or part time.
As for payment, I felt the same way that you do. I had to ask a dad for payment at drop off and felt that he would think that I was just doing it for the money, but I quickly got over it!
I also decided when I opened that I would have a minimum of 3 full time children and the other 2 could be full or part time.As for payment, I felt the same way that you do. I had to ask a dad for payment at drop off and felt that he would think that I was just doing it for the money, but I quickly got over it!
lflick 05:54 PM 05-16-2013
Originally Posted by Cradle2crayons:
First thing you did wrong was by accepting the girls into your home without payment. If payment is due on the first day, you open the door and expect payment. If you don't already have a late fee agreement, make one. Very few parents are going to do right if you continue to let them walk over you.
That's just it. Childcare is a business. IT IS ABOUT THE MONEY. End of story.
That doesn't mean you don't love the kids. But it does mean you expect payment on day one. I don't ask for payment on Monday at drop off. My parents already know they have an hour after drop off to pay and then their $10 late fee goes into effect. That means if they pay at pick up its their weekly rate plus ten bucks. The next morning if they don't have the rate plus late fee in their hand, they can take their child back home.
I had spoken with the DCM and had her review and question anything. She didn't have any questions; however, DCD dropped the kids off today and yesterday...First thing you did wrong was by accepting the girls into your home without payment. If payment is due on the first day, you open the door and expect payment. If you don't already have a late fee agreement, make one. Very few parents are going to do right if you continue to let them walk over you.
That's just it. Childcare is a business. IT IS ABOUT THE MONEY. End of story.
That doesn't mean you don't love the kids. But it does mean you expect payment on day one. I don't ask for payment on Monday at drop off. My parents already know they have an hour after drop off to pay and then their $10 late fee goes into effect. That means if they pay at pick up its their weekly rate plus ten bucks. The next morning if they don't have the rate plus late fee in their hand, they can take their child back home.
butterfly 05:55 PM 05-16-2013
Ya know what? I was scared of this very thing when I started too. I was so scared to ask people for money, I asked my husband if he'd be my enforcer of policy. I actually put in my contract that my husband is my business manager and that my clients were to expect to hear from him if there were any payment or policy issues. It gave me someone to pass the buck to until I grew my backbone. Now, I just ask the clients if they brought payment today. I remind them of late payments, etc. My husband did make the contact with the clients at first and it worked well for us. I was so much less stressed, I could focus on the kids and he could do the business stuff. Just a thought.
I do agree with a PP that you have to enforce your policy from day one. It's so hard to get the families to follow your policies when you aren't enforcing them.
To answer your other questions... I charge a weekly fee. It is due on Friday of each week. I will charge a daily rate for dropins only. Full or part time is the same weekly rate. (They are taking up a spot in my daycare, so I charge them the same.) I don't do half day or hourly rates. I don't work weekends or late hours. I work 7:30am - 5:15pm and only during the school year, so I'm closed during the summer. (I don't charge for the summer) I don't do school age care. We have great after school programs in our area that only charge $20 for the whole year, so there is no way that I could compete with that...
It gets easier the longer you do this.
I do agree with a PP that you have to enforce your policy from day one. It's so hard to get the families to follow your policies when you aren't enforcing them.
To answer your other questions... I charge a weekly fee. It is due on Friday of each week. I will charge a daily rate for dropins only. Full or part time is the same weekly rate. (They are taking up a spot in my daycare, so I charge them the same.) I don't do half day or hourly rates. I don't work weekends or late hours. I work 7:30am - 5:15pm and only during the school year, so I'm closed during the summer. (I don't charge for the summer) I don't do school age care. We have great after school programs in our area that only charge $20 for the whole year, so there is no way that I could compete with that...
It gets easier the longer you do this.
momofboys 06:50 PM 05-16-2013
I would send the parents a text tonight noting that their payment was expected on Monday & you let it slide but now they are not able to attend childcare without payment for the remainder of the week & let them know you typically charge a late fee but you will let it slide. If they come without payment tell them they must go get it - NO PAY NO PLAY!
Lyss 07:05 PM 05-16-2013
I agree it is hard at first but you do have to enforce your policy from day one or parents will just keep testing how far they can push it. Since its the first time she's late I would gently remind her. Definitely add something about late fees and how long without payment before you will terminate care.
In my area weekly fees aren't the norm, rare actually so I have a monthly (which I based of what I wanted to make weekly and going rates for my area) and a daily rate that are due prior to care being provided. All my parents pay on the 1st if not before. I charge a late fee of $10 per day and do not accept children into care after the 5th without payment. I don't do before/after school care but for part timers on the daily rate I offer a "discount" for early pick up. My daily fee is higher so when I give 3pm pick ups a "discount" its really what my monthly fee works out to, so really I'm not losing anything but gaining an early pick up! I got the idea to do that from some members (blackcat and others) here had posted that they do that with weekly fees. I don't do weekend care and I don't charge different in the summer becuase I don't do SA.
In my area weekly fees aren't the norm, rare actually so I have a monthly (which I based of what I wanted to make weekly and going rates for my area) and a daily rate that are due prior to care being provided. All my parents pay on the 1st if not before. I charge a late fee of $10 per day and do not accept children into care after the 5th without payment. I don't do before/after school care but for part timers on the daily rate I offer a "discount" for early pick up. My daily fee is higher so when I give 3pm pick ups a "discount" its really what my monthly fee works out to, so really I'm not losing anything but gaining an early pick up! I got the idea to do that from some members (blackcat and others) here had posted that they do that with weekly fees. I don't do weekend care and I don't charge different in the summer becuase I don't do SA.
rmc20021 08:32 PM 05-16-2013
You will learn as you go as to what works best for you, your family and your business. I think most people start out by accepting whoever they can get, at whatever hours they can get just to get kids in the door. Then as time goes on, they start weeding out the families who don't work for them.
This is my second time around doing daycare and that is exactly what I've done both times. The first time around my daughters were young and I was able to weed through my families over a couple years time to have only girls who were the same ages as my own...it was GREAT.
I've been back into business now for almost 18 months and it's been a struggle getting families with the economy in such rough shape, but I'm just now getting to a position where I feel comfortable and don't feel as though I have to put up with crap from families who don't/can't/won't comply with my policies.
I think in the beginning many of us are afraid of losing the income and just put up with so much and when we get to a point of having more confidence, some of the families are already out of control and it's hard to reign them in to our way of thinking.
I only about a month ago decided to only take full time kids from here on out...I'm full right now, but have 2 part timers and when I find another full time family they will be gone (they are leaving when school gets out...that's another thing, they are sa and I won't be taking any more of them either)
As for fees, I ONLY have a full time and part time fee. 35 hours and up is full time and anything less is part time...but with my plan of only having full time from here on out, that will mean I'll only have one fee to worry about. It just gets too confusing trying to figure out all these different rates to charge different families.
I WOULD like to figure out a rate plan though in order to get families to pick up earlier...but right now, all my families work the exact schedules anyways so it doesn't matter much at this time...just thinking about the future.
This is my second time around doing daycare and that is exactly what I've done both times. The first time around my daughters were young and I was able to weed through my families over a couple years time to have only girls who were the same ages as my own...it was GREAT.
I've been back into business now for almost 18 months and it's been a struggle getting families with the economy in such rough shape, but I'm just now getting to a position where I feel comfortable and don't feel as though I have to put up with crap from families who don't/can't/won't comply with my policies.
I think in the beginning many of us are afraid of losing the income and just put up with so much and when we get to a point of having more confidence, some of the families are already out of control and it's hard to reign them in to our way of thinking.
I only about a month ago decided to only take full time kids from here on out...I'm full right now, but have 2 part timers and when I find another full time family they will be gone (they are leaving when school gets out...that's another thing, they are sa and I won't be taking any more of them either)
As for fees, I ONLY have a full time and part time fee. 35 hours and up is full time and anything less is part time...but with my plan of only having full time from here on out, that will mean I'll only have one fee to worry about. It just gets too confusing trying to figure out all these different rates to charge different families.
I WOULD like to figure out a rate plan though in order to get families to pick up earlier...but right now, all my families work the exact schedules anyways so it doesn't matter much at this time...just thinking about the future.