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  #1  
Old 12-19-2012, 03:28 PM
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Default Still Issue With Payment Method

Sooooooo after many conversations and emails going back and forth with DCP about my new formula, they are now saying this.

They said if they have to start paying based on the new formula:

weekly rate x 52 weeks /12= monthly payment

that should they terminate say mid year, that they are actually paying for days that they are not using.???????

I don't understand what more I can explain....here is how I charged in the past.

took the number of weeks in the month and made a monthly invoice, which was also paid monthly...


Sorry to keep asking about this question, but am I missing something here????
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  #2  
Old 12-19-2012, 03:31 PM
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Go ahead and start your gym you wanted! I think it would be much easier then this-

Its not like they are paying for the entire year but is that what they are thinking? Is it one family or all of them?
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Old 12-19-2012, 03:50 PM
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Do what works for you. If this is the payment system you are converting families too, just let them know that this is how it is going to be, there is no negotiations on it. You have explained it as best as possible so at this point, they either except it or they turn in their notice.

You are just too nice most of the time. I dont even have a quarter of the conversations with parents that it sounds like you have. Or maybe it is just your current group that constantly questions everything. I understanding giving a simple explanation but it almost seems like you feel the need to justify every policy and change. You dont have to have a reason.....if that is what you charge, thats what it is, take it or leave it. They dont even have to understand it in order to pay it.
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Old 12-19-2012, 04:20 PM
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lol...... my asst told me that he thinks that this DCM sits behind her computer all day just thinking of ways to torture me.....all the same family....same person actually..........



so being that I need to keep this family because I am losing some next month, I offered to keep them on the same invoice system as i was, because I a tired of explaining it.

BUT they already paid me on the new payment method............So now what do I do??? if it were the old system it would have been $145.00 less this invoice.......

so now do I have to credit that to their next bill?????? OMG I want to shoot myself right now....
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Old 12-19-2012, 04:30 PM
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uuuuuggghhh and so now it seems that this family also wants to "possibly" give notice.......................................................

SO I just tell them sorry I made the offer to continue the old pay structure???
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Old 12-19-2012, 04:39 PM
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uuuuuggghhh and so now it seems that this family also wants to "possibly" give notice.......................................................

SO I just tell them sorry I made the offer to continue the old pay structure???
I would "possibly" give them notice.
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Old 12-19-2012, 04:43 PM
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I would "possibly" give them notice.
crystal I totally would if my honey did not just lose his job and I am losing 3 kids next month.................................


Trust me when I tell you........ the threat of "possibly" leaving is music to my ears and heartache to my wallet....

I have been advertising like no tomorrow since june and NOTHING..............
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Old 12-19-2012, 04:47 PM
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I kind of see what the parent is sayin, but not sure what to do with it....

so if I was charging like before, I would have done this...

weekly rate x 4 weeks in Jan. I would do the same for each and every month. So come March it would be a higher daycare bill because it would change to weekly rate x5.........and so on for the rest of the year.../..some months lower some months higher.....

all payments are due monthly in advance.......

NOw if they were on the new system, they are paying a higher amount each month that has 4 pay periods and a lower amount when there is 5 pay periods the way some see it........ however, it is going to be the same amount charged each month......

If this family pays using the new payment method and they give notice lets say tomorrow, then technically they paid more daycare fees?????


Am I understanding this correctly??????

Last edited by daycare; 12-19-2012 at 04:50 PM.
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Old 12-19-2012, 04:52 PM
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I think that they are making things WAY too difficult because they don't understand. It's like making something simple more complicated.

If they are saying that they would be charged more per year if they left mid year have them show and explain to you in writing how they would pay more. They should have no problem explaining it to you in a way that you can understand their logic. I have a feeling that what they are trying to say is that since the way you were charging before shorted you a few days out of the year and you now decided to incorporate those days into your fee and by thus dividing it by 52 weeks they think that if they should happen to terminate care mid year that they might be paying for extra days that that are already incorporated into the monthly fee that they may not actually had used.

I'm curious, lets try it (bear with me, I've never figured anything like this and I'm figuring out the numbers as I go) ... in 2013 there will be 258 weekdays and lets say you want to charge $125 per week but based on 52 weeks = $6500 for the year.
Let's divide that by 2 so we can see how much they would pay for 6 months = $3250.
The $3250 should technically cover 129 days (258 days/2)
If a client leaves at the end of June they would have paid for 129 days and received 127 days ... so in essence they are now being shorted 2 days. This is probably what they are complaining about. Of course no one complained when you were being shorted in your pay .

This problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

Example:

$125/5 days a week= $25/day

Jan 23 days = $575
Feb 20 days = $500
Mar 21 days = $525
Apr 22 days = $550
May 21 days = $525
June 20 days = $500
July 23 days = $575
Aug 21 days = $525
Sept 21 days = $550
Oct 23 days = $575
Nov 21 days = $525
Dec 22 days = $550
Total 258 days = $6,475

Your original way might be $125 week x 52 weeks = $6500 which is pretty close to the $6,500 and this way they all pay for exactly the number of weekdays in the month (including paid holidays etc) and if you were to ever close beyond the scope of your PAID days it would be much easier to credit those days towards the following month.

My suggestion to you would be to figure out what your rate is now and break it down to daily and say "EVERYONE PAYS $XX.xx PER DAY ON A MONTHLY BASIS FROM NOW ON" and be done with it.

(phew that was a lot of work).
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  #10  
Old 12-19-2012, 04:57 PM
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Originally Posted by MarinaVanessa View Post
I think that they are making things WAY too difficult because they don't understand. It's like making something simple more complicated.

If they are saying that they would be charged more per year if they left mid year have them show and explain to you in writing how they would pay more. They should have no problem explaining it to you in a way that you can understand their logic. I have a feeling that what they are trying to say is that since the way you were charging before shorted you a few days out of the year and you now decided to incorporate those days into your fee and by thus dividing it by 52 weeks they think that if they should happen to terminate care mid year that they might be paying for extra days that that are already incorporated into the monthly fee that they may not actually had used.

I'm curious, lets try it (bear with me, I've never figured anything like this and I'm figuring out the numbers as I go) ... in 2013 there will be 258 weekdays and lets say you want to charge $125 per week but based on 52 weeks = $6500 for the year.
Let's divide that by 2 so we can see how much they would pay for 6 months = $3250.
The $3250 should technically cover 129 days (258 days/2)
If a client leaves at the end of June they would have paid for 129 days and received 127 days ... so in essence they are now being shorted 2 days. This is probably what they are complaining about. Of course no one complained when you were being shorted in your pay .

This problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

Example:

$125/5 days a week= $25/day

Jan 23 days = $575
Feb 20 days = $500
Mar 21 days = $525
Apr 22 days = $550
May 21 days = $525
June 20 days = $500
July 23 days = $575
Aug 21 days = $525
Sept 21 days = $550
Oct 23 days = $575
Nov 21 days = $525
Dec 22 days = $550
Total 258 days = $6,475

Your original way might be $125 week x 52 weeks = $6500 which is pretty close to the $6,500 and this way they all pay for exactly the number of weekdays in the month (including paid holidays etc) and if you were to ever close beyond the scope of your PAID days it would be much easier to credit those days towards the following month.
this problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

this is exactly how I was doing it, but I did make a few mistakes over the year by not paying attention to the calendar very well and shorted myself... This way there is no sure way that I would short myself.....

I just want to scream right now I am sooooo frustrated... thanks so much for doing this for me.....I really appreciate it
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  #11  
Old 12-19-2012, 05:08 PM
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this problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

this is exactly how I was doing it, but I did make a few mistakes over the year by not paying attention to the calendar very well and shorted myself... This way there is no sure way that I would short myself.....

I just want to scream right now I am sooooo frustrated... thanks so much for doing this for me.....I really appreciate it
In that case if none of your other DCP's are complaining just keep this family on the same schedule that they have been before (like you offered) while your other family's start your new payment plan. For your hassle DCF figure out what their January rate would have been on their original payment plan, then do the same for February and if there is a credit put it towards February and come February charge them the balance only.

In the meantime hussle for new clients and once you replace the other 3 that are leaving (preferably with kids that are not siblings ) continue looking for another child and when you get interest for that 4th spot (as in they want to sign up) offer the current client your preffered payment options (on board with everyone else) and if they hesitate hand them an already prepared notice of termination and thank them for their patrionage (spelling?). It's either pay your way or get to movin sista!
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Old 12-19-2012, 05:21 PM
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DC,

Sorry hubby lost his job! Was this the brand new one he started? If you need anything please pm me.

I charge a daily rate and bill at the end of the month (works out fine for me). You could just charge a daily rate (however days a month they are there) and bill it at the beginning of the month. It would actually be kinda like MV had worked out.
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Old 12-19-2012, 05:49 PM
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DC,

Sorry hubby lost his job! Was this the brand new one he started? If you need anything please pm me.

I charge a daily rate and bill at the end of the month (works out fine for me). You could just charge a daily rate (however days a month they are there) and bill it at the beginning of the month. It would actually be kinda like MV had worked out.
yes it was the one he just started........ My husband fell ill during finals that started two weeks ago. It is part of his contract with the hospital that he pass a competency test every 3 months..

Well my husband was so sick in bed he didn't have a lot of time to study....he passed all of them but one with flying colors......he fell one point short.....................we are sooooooooo sad.... BUT we will be ok....I hoarded all the extra money he made because we knew that he could be let go for any reason........

Glad that I did, but still does not make things any better as he now has no job again........ what a blow to take right before christmas
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Old 12-19-2012, 06:46 PM
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wow that does seem way too confusing for me. I charge the families by the day, its so much easier this way. I also find that when the parents see the large total they freak out, so its easier for them to see the smaller total than the large one.
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Old 12-19-2012, 07:07 PM
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wow that does seem way too confusing for me. I charge the families by the day, its so much easier this way. I also find that when the parents see the large total they freak out, so its easier for them to see the smaller total than the large one.
lol its actually quite simple, but the parent is making it harder to understand than it really is.....

MV just got down to the full details of it in a different way, but her way still is correct.....

I am not sure what to do right now..... they said they possibly want to leave, I think that I am just going to do that...
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Old 12-19-2012, 09:25 PM
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the daycare parent is "sort of" right in their thinking - they are basically paying "extra" each month for the months with 5 weeks. I think if you had charged a flat monthly fee from the start there would be no question but they apparently are not happy with your changes and are making things difficult.

You say you are down kids, so I'm just curious, why pick now to rock the boat and change your rate structure??? Of course its your business and you can do it however you want but I think I would just leave it be right now.

As long as my parents are paying in advance and on time I don't care if they pay me 1, 2, 4 or 5 weeks at a time. Whatever works based on how they are paid. I just ask that they pick a method and stick with it. I only have 4-5 families so its not that hard to keep track of.
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Old 12-20-2012, 03:36 AM
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I think you need to start calling your rate a flat monthly fee instead of trying to explain this complicated formula to them.

I would prepare something that compares the old and the new. From my understanding the YEARLY price for both billings are the same.

So...old rate = the chart MarinaVanessa posted was good but highlight the yearly total.

New rate = Rate x 52 weeks - yearly rate/12 = monthly rate. (again highlight the yearly rate)

Both year rates should be the same and the parent then is choosing to argue about your terms rather than the price being more.

This isn't complicated to understand...I really think this lady is just giving you a hard time.
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Old 12-20-2012, 06:54 AM
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the daycare parent is "sort of" right in their thinking - they are basically paying "extra" each month for the months with 5 weeks. I think if you had charged a flat monthly fee from the start there would be no question but they apparently are not happy with your changes and are making things difficult.

You say you are down kids, so I'm just curious, why pick now to rock the boat and change your rate structure??? Of course its your business and you can do it however you want but I think I would just leave it be right now.

As long as my parents are paying in advance and on time I don't care if they pay me 1, 2, 4 or 5 weeks at a time. Whatever works based on how they are paid. I just ask that they pick a method and stick with it. I only have 4-5 families so its not that hard to keep track of.
I have to agree too. I have people (who are professionals) but get paid every other week so they pay me then, then I have some who pay me every week. Its so much easier for me.

do you have in your contract that they have to pay you regardless if they attend or if they are on vacation. I'm not sure if I would ever do this year payment thing.
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Old 12-28-2012, 12:29 PM
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back to this thread again with some more questions.....

So as I stated before the DCP had some issues with the fact that I have changed to new flat monthly payments.

I spent a lot of time talking wit the DCP about it and have even offered a small discount to just put an end to it. the holidays came and I have not heard a word about it until yesterday when all of the parents were due to return their new 2013 contracts...

the parent returned their contract with the payment method that they said they had a huge issue with and refused to sign it before.

So now I am sitting here itching my head thinking ok so do they agree to the new payment arrangements despite all the previous conversations that we had which they clearly stated that they did NOT agree to the new 2013 terms?? Are they thinking that my last offer I made to them is what they are agreeing to???? It is not in writing and it is not what they signed.......

Do I talk to them and just make sure that we are all on the same page or do I just say nothing and continue to charge them the way that the new contract they just signed states??? I just really want to end this, but don't want to rock the boat. I don't want to have to revisit this conversation again with the parents when they get their bill for the month of February in a few weeks.

suggestions......(hope I am not confusing everyone)

Last edited by daycare; 12-28-2012 at 12:32 PM.
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Old 12-28-2012, 01:14 PM
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back to this thread again with some more questions.....

So as I stated before the DCP had some issues with the fact that I have changed to new flat monthly payments.

I spent a lot of time talking wit the DCP about it and have even offered a small discount to just put an end to it. the holidays came and I have not heard a word about it until yesterday when all of the parents were due to return their new 2013 contracts...

the parent returned their contract with the payment method that they said they had a huge issue with and refused to sign it before.

So now I am sitting here itching my head thinking ok so do they agree to the new payment arrangements despite all the previous conversations that we had which they clearly stated that they did NOT agree to the new 2013 terms?? Are they thinking that my last offer I made to them is what they are agreeing to???? It is not in writing and it is not what they signed.......

Do I talk to them and just make sure that we are all on the same page or do I just say nothing and continue to charge them the way that the new contract they just signed states??? I just really want to end this, but don't want to rock the boat. I don't want to have to revisit this conversation again with the parents when they get their bill for the month of February in a few weeks.

suggestions......(hope I am not confusing everyone)
You take care of the child. Not the parents.

They signed a contract. Now they must abide by it. Don't ask them if they actually meant it etc.. just hold them to it like all other clients.

I get the feeling they figured out they were just being difficult. Or...someone close to them let them know they were being (fill in whatever you like here).
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Old 12-28-2012, 01:21 PM
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thanks meeko for responding.

I did think that I should just let it go, they had 30 days to read the new terms/contract. I guess part of me is wondering why they returned it after I just offered them a small discount. I am sure that they will raise questions about it next bill and I just want it straightened out right now. KWIM???
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Old 12-28-2012, 01:53 PM
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thanks meeko for responding.

I did think that I should just let it go, they had 30 days to read the new terms/contract. I guess part of me is wondering why they returned it after I just offered them a small discount. I am sure that they will raise questions about it next bill and I just want it straightened out right now. KWIM???
Just leave things as they are for now and have a contract with your discount ready for them just in case. Next month when you invoice them they'll raise any questions if they assumed that you were going to go by what you discussed and not the contract that they signed.

Then you can just say "Oh, ok. Well since you signed the contract I just thought that you were now comfortable with it. I'll have a new contract ready for you later today with our new terms." Then you can adjust the invoice. . Don't people ever read what they sign?
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Old 12-28-2012, 04:56 PM
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Just leave things as they are for now and have a contract with your discount ready for them just in case. Next month when you invoice them they'll raise any questions if they assumed that you were going to go by what you discussed and not the contract that they signed.

Then you can just say "Oh, ok. Well since you signed the contract I just thought that you were now comfortable with it. I'll have a new contract ready for you later today with our new terms." Then you can adjust the invoice. . Don't people ever read what they sign?
lol I hear ya. I think what got me was that this DCP just had a huge issue about it and then all of a sudden signs it and brings it back.....

I do as you suggest and just leave it for now...Ill have the other one ready to go....
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