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Daycare Center and Family Home Forum>Tell Me What You Think- New Rate Change
Snowmom 01:26 PM 07-29-2015
My goal: I want to work less hours and there's lots of changes in my family needs coming up, so I'm preparing for that.

Currently: my hours are 7:30-5:30 with families contracted for 9 hours max or an additional $5 applies. Which, they all stick to 9 hours for the most part. However, they're all arriving 8:30-5:30 and I want to be done by 5:00, 5:15 at the latest. I know they can all DO that because they all STARTED by saying hours needed were 7:45-4:45 or 8-5.
I currently charge $162 (preschool), $170 (toddler) and $180 (infant-which I rarely even enroll). Most of my current dck are preschool age.

I'd love for you to read below and tell me if you think it would be enough to nudge families into an earlier pick up time, if there are any holes in it and if I sound too much of a B.
THANK YOU!!

My rough draft...

Monday-Friday Options:

1.) 7:30am-4:00pm= $145/week (8.5 hours/day-all meals included if present)
2.) 7:30am-4:30pm= $150/week (9 hours/day-all meals included if present)
3.) 8:00am-5:00pm= $160/week (9 hours/day-lunch and snack included if present)
4.) 8:15am-5:15pm= $175 /week (9 hours/day-lunch and snack included if present)

I am no longer separating my rates into age categories. These rates are for ALL ages. I do not offer a sibling discount. Mealtimes are 7:30-7:59am for breakfast, 11:30am for lunch and 3:50pm for afternoon snack.
When you decide on a timeframe that works best for you, fill out the acceptance form and return it to me no later than XXXX. These will be your new contracted hours. You may arrive anytime at or after your arrival time, but you will incur late fees if you drop off BEFORE or pick up AFTER your contracted time.
The late fees within my operating hours are: $10 per 30 minutes. No credit is given for partial hours and no grace periods are in effect.
As a bonus with option 1 and 2:
You are free to schedule one late pick up time per week in advance (at least 8 hours notice) for a discounted rate of $5 per 30 minutes. Please call or text beforehand, I will need to approve it and verify that I am available.

If you feel your contracted time is not working for you in the future, we can adjust you to a new one.

You will notice that I no longer provide care past 5:15. If you pick up anytime (any day) after 5:15, your account will be assessed $5 per minute. In addition, your contract will be subject to termination.
I realize the late fees sound harsh, but my family needs have changed and as those change, so do my business needs. I will no longer be willing or able to provide late care. Please have a back up person if you are running late (I am NOT that back up person).
However, I will be flexible in inclement weather at my discretion.
All rates and fees are per-child.
Reply
Blackcat31 02:32 PM 07-29-2015
Originally Posted by Snowmom:
My goal: I want to work less hours and there's lots of changes in my family needs coming up, so I'm preparing for that.

Currently: my hours are 7:30-5:30 with families contracted for 9 hours max or an additional $5 applies. Which, they all stick to 9 hours for the most part. However, they're all arriving 8:30-5:30 and I want to be done by 5:00, 5:15 at the latest. I know they can all DO that because they all STARTED by saying hours needed were 7:45-4:45 or 8-5.
I currently charge $162 (preschool), $170 (toddler) and $180 (infant-which I rarely even enroll). Most of my current dck are preschool age.

I'd love for you to read below and tell me if you think it would be enough to nudge families into an earlier pick up time, if there are any holes in it and if I sound too much of a B.
THANK YOU!!

My rough draft...

Monday-Friday Options:

1.) 7:30am-4:00pm= $145/week (8.5 hours/day-all meals included if present)
2.) 7:30am-4:30pm= $150/week (9 hours/day-all meals included if present)
3.) 8:00am-5:00pm= $160/week (9 hours/day-lunch and snack included if present)
4.) 8:15am-5:15pm= $175 /week (9 hours/day-lunch and snack included if present)

I am no longer separating my rates into age categories. These rates are for ALL ages. I do not offer a sibling discount. Mealtimes are 7:30-7:59am for breakfast, 11:30am for lunch and 3:50pm for afternoon snack.
When you decide on a timeframe that works best for you, fill out the acceptance form and return it to me no later than XXXX. These will be your new contracted hours. You may arrive anytime at or after your arrival time, but you will incur late fees if you drop off BEFORE or pick up AFTER your contracted time.
The late fees within my operating hours are: $10 per 30 minutes. No credit is given for partial hours and no grace periods are in effect.
As a bonus with option 1 and 2:
You are free to schedule one late pick up time per week in advance (at least 8 hours notice) for a discounted rate of $5 per 30 minutes. Please call or text beforehand, I will need to approve it and verify that I am available.

If you feel your contracted time is not working for you in the future, we can adjust you to a new one.

You will notice that I no longer provide care past 5:15. If you pick up anytime (any day) after 5:15, your account will be assessed $5 per minute. In addition, your contract will be subject to termination.
I realize the late fees sound harsh, but my family needs have changed and as those change, so do my business needs. I will no longer be willing or able to provide late care. Please have a back up person if you are running late (I am NOT that back up person).
However, I will be flexible in inclement weather at my discretion.
All rates and fees are per-child.
I like it! I also use pick up time as a starting point for rates.

I work LESS hours and make MORE money so its definitely a win for me!
Allowing parents to choose their pick up time (and rate) is a win for them!

The ONLY word of caution I have however is if you set a start time, it gets to be A LOT of paperwork in billing and A LOT of paperwork for parents who don't arrive at the same time each day or don't know how to be on time for drop off...

I tried for a while but eventually decided that if I am AT work, it doesn't make a difference to me since I went to contracted hours only because I wanted to know when I would be DONE each day. KWIM?

I still require parents to tell me their drop off time and I don't allow them to stray too far before or after the time they gave but I am not a stickler about it. MUCH less stress and concern for me that way. I have pep in the beginning...its the end of the day when I just want parents to be on time.

I also wrote parents a letter like yours telling them of the change but I worded it in a way that it sold the contracted rates to them as a bonus for them and something I did for THEIR benefit so they could save $ if they needed to. (if you are interested in reading the letter I wrote, just let me know, I'm happy to share if it helps. )

Otherwise your rate change/structure look good!
Reply
nanglgrl 04:58 PM 07-29-2015
One thing I would definitely do is increase the amounts..it's only $5 a week for another half hour which I don't think will sway a lot of parents. I want to get off at 3:30 so my lowest rate is the 3:30 pick up, I don't want to get off after 4:30 so I have a huge increase for parents that need to pick up after that. My 3:30 rate for preschoolers is $125, my 4pm rate is $140, my 4:30pm rate is $150 and my 5pm rate is $160. To me there is not much of a difference in me getting off at 4:30 vs. 5:00 so the increase is less but since the parents are paying more tuition in general they opt for 4:30 instead of 5. All but a couple of my clients pick up at 3:30, the others pick up at 3:45 or 4:15 (I give a $5 discount because those 15 minutes are worth it to me).
Reply
nanglgrl 05:00 PM 07-29-2015
Oh and my drop off time is 7:30, they don't get a discount for coming later since I would actually prefer they all arrived at 7:30. I also charge more for infants.
Reply
Snowmom 05:47 PM 07-29-2015
Originally Posted by Blackcat31:
I like it! I also use pick up time as a starting point for rates.

I work LESS hours and make MORE money so its definitely a win for me!
Allowing parents to choose their pick up time (and rate) is a win for them!

The ONLY word of caution I have however is if you set a start time, it gets to be A LOT of paperwork in billing and A LOT of paperwork for parents who don't arrive at the same time each day or don't know how to be on time for drop off...

I tried for a while but eventually decided that if I am AT work, it doesn't make a difference to me since I went to contracted hours only because I wanted to know when I would be DONE each day. KWIM?

I still require parents to tell me their drop off time and I don't allow them to stray too far before or after the time they gave but I am not a stickler about it. MUCH less stress and concern for me that way. I have pep in the beginning...its the end of the day when I just want parents to be on time.

I also wrote parents a letter like yours telling them of the change but I worded it in a way that it sold the contracted rates to them as a bonus for them and something I did for THEIR benefit so they could save $ if they needed to. (if you are interested in reading the letter I wrote, just let me know, I'm happy to share if it helps. )

Otherwise your rate change/structure look good!
Thanks, that totally makes sense and I certainly don't want to create more work for myself.
I would love to hear how you put a spin on that! I always think I sound too pushy.
Thanks Blackcat!
Reply
Snowmom 05:53 PM 07-29-2015
Originally Posted by nanglgrl:
One thing I would definitely do is increase the amounts..it's only $5 a week for another half hour which I don't think will sway a lot of parents. I want to get off at 3:30 so my lowest rate is the 3:30 pick up, I don't want to get off after 4:30 so I have a huge increase for parents that need to pick up after that. My 3:30 rate for preschoolers is $125, my 4pm rate is $140, my 4:30pm rate is $150 and my 5pm rate is $160. To me there is not much of a difference in me getting off at 4:30 vs. 5:00 so the increase is less but since the parents are paying more tuition in general they opt for 4:30 instead of 5. All but a couple of my clients pick up at 3:30, the others pick up at 3:45 or 4:15 (I give a $5 discount because those 15 minutes are worth it to me).

I was worried if the rates would be significant enough. I may have gotten caught up with trying to have the rates make sense to people (instead of just me). I know I will have one family choose my earliest rates, so I also didn't want to make it too low. Kind of a conundrum to me.
Reply
spedmommy4 07:34 PM 07-29-2015
Originally Posted by nanglgrl:
One thing I would definitely do is increase the amounts..it's only $5 a week for another half hour which I don't think will sway a lot of parents. I want to get off at 3:30 so my lowest rate is the 3:30 pick up, I don't want to get off after 4:30 so I have a huge increase for parents that need to pick up after that. My 3:30 rate for preschoolers is $125, my 4pm rate is $140, my 4:30pm rate is $150 and my 5pm rate is $160. To me there is not much of a difference in me getting off at 4:30 vs. 5:00 so the increase is less but since the parents are paying more tuition in general they opt for 4:30 instead of 5. All but a couple of my clients pick up at 3:30, the others pick up at 3:45 or 4:15 (I give a $5 discount because those 15 minutes are worth it to me).
We must have workaholics here in California because I restructured my rates and just about everyone opts for latest and highest cost option. ( and I don't live in a rich area)
Reply
nanglgrl 11:13 PM 07-29-2015
Originally Posted by spedmommy4:
We must have workaholics here in California because I restructured my rates and just about everyone opts for latest and highest cost option. ( and I don't live in a rich area)
I'm in Iowa and all of my clients work within 20 miles of my house which at the most is a 30 minute drive lol..not sure what part of CA you're from but when I was there last winter it took a LONG time to drive 20 miles! I don't know how people do it every day!
I didn't try to gently explain my my rates are how they are, I just tell parents that because if my childrens' schedules I prefer to close as close to 3:30 as possible. Generally one parent drops off and the other picks up or they get the help of grandma, friends, aunts or uncles. Currently I'm full BUT I know that things can and will change and that might mean me either closing later or making less money..I'm hoping it will be a while before I encounter that problem again.
Reply
midaycare 08:15 AM 07-30-2015
Originally Posted by Blackcat31:
I like it! I also use pick up time as a starting point for rates.

I work LESS hours and make MORE money so its definitely a win for me!
Allowing parents to choose their pick up time (and rate) is a win for them!

The ONLY word of caution I have however is if you set a start time, it gets to be A LOT of paperwork in billing and A LOT of paperwork for parents who don't arrive at the same time each day or don't know how to be on time for drop off...

I tried for a while but eventually decided that if I am AT work, it doesn't make a difference to me since I went to contracted hours only because I wanted to know when I would be DONE each day. KWIM?

I still require parents to tell me their drop off time and I don't allow them to stray too far before or after the time they gave but I am not a stickler about it. MUCH less stress and concern for me that way. I have pep in the beginning...its the end of the day when I just want parents to be on time.

I also wrote parents a letter like yours telling them of the change but I worded it in a way that it sold the contracted rates to them as a bonus for them and something I did for THEIR benefit so they could save $ if they needed to. (if you are interested in reading the letter I wrote, just let me know, I'm happy to share if it helps. )

Otherwise your rate change/structure look good!
Blackcat do you mind sharing this letter with me, too? I tried this before and it didn't work, but I have a few new parents now ... Maybe it's time to try again.
Reply
rosieteddy 12:16 PM 07-30-2015
Why not simplify.Send a letter-Parents starting week of-------my new hours will be 8-5;15 Mon -Friday.Tuition will be $145.00 8-4 or $175.00 8-5;15.Our meal schedule will change as well.All children should eat a full breakfast at home before arrival.We will serve a breakfast snack(milk,fruit grain )at 9;45 lunch at 1215 and afternoon snack at 4pm. Iwould not offer them extra time or days. I charged a 10.00 fee for every 15 min late.I found if you charge to little they didnt care. I did give one freebie a year to each family.I always felt simple better,Seems like they barely read what I sent.You could post letter on your board or where coats are hung as a reminder.
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