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  #1  
Old 10-18-2019, 10:16 AM
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Default Tiered Tuition Question

I know many of you have tiered tuition based on pick up times. I have been trying to move over to this tuition model but have run into some interesting questions from parents. My question is, how do you explain to parents that it is based on pick up time vs total hours in care?

For example:

Pick up time of 4:00 - $120/week
4:30 - $125/week
5:00 - $130/week

What happens if child A is here from 7am to 4:30 and pays $125 per week for a total of 9.5 hours per day.

Child B is here from 9:00am to 5:00pm and pays $130 per week for a total of 8 hours per day.

How do you explain that child B is here fewer hours per day but pays more per week than child A?
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  #2  
Old 10-18-2019, 11:04 AM
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Originally Posted by Baby Beluga View Post
I know many of you have tiered tuition based on pick up times. I have been trying to move over to this tuition model but have run into some interesting questions from parents. My question is, how do you explain to parents that it is based on pick up time vs total hours in care?

For example:

Pick up time of 4:00 - $120/week
4:30 - $125/week
5:00 - $130/week

What happens if child A is here from 7am to 4:30 and pays $125 per week for a total of 9.5 hours per day.

Child B is here from 9:00am to 5:00pm and pays $130 per week for a total of 8 hours per day.

How do you explain that child B is here fewer hours per day but pays more per week than child A?
I don't count hours in care at all.
I bill only according to pick up time.

Makes it easier. for me.

Family A can drop off at 10:00 and pick up at 5:00 (7 hrs a day) and pay $200 per week
Family B can drop off at 7:00 and pick up at 4:00 (9 hours a day) and pay $170 per week

Once I am at work, I am working. 1 kid or 10 I don't care.

I only care about what time I am off work.
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  #3  
Old 10-18-2019, 11:46 AM
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Originally Posted by Blackcat31 View Post
I don't count hours in care at all.
I bill only according to pick up time.

Makes it easier. for me.

Family A can drop off at 10:00 and pick up at 5:00 (7 hrs a day) and pay $200 per week
Family B can drop off at 7:00 and pick up at 4:00 (9 hours a day) and pay $170 per week

Once I am at work, I am working. 1 kid or 10 I don't care.

I only care about what time I am off work.
If a parent were to ask why the child in care fewer hours pays the least amount of tuition, what would you say them? Just reiterate that it's based on pick up times and not hours in care? And if they continue to question that they aren't a good fit for you?
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  #4  
Old 10-18-2019, 11:50 AM
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I considered it a couple of years ago and this was what I came up with. I revisit the idea every couple of years.

"Tuition rates are based upon the total number of hours available per week and chosen departure time.

To give families more control of their personal budget, *** Childcare and Preschool offers three tuition schedules to choose from.

You may choose which schedule works best for your family upon enrollment and change with a 30-day notice.

Late pick-ups will be billed at $1.00 per minute.

Overtime must be pre-arranged and approved.


A: Departure by 3:30 pm Ė 42.5 Hours - $130.00 week
B: Departure by 4:30 pm Ė 47.5 Hours - $140.00 week
C: Departure by 5:30 pm Ė 52.5 Hours - $150.00 week

* The earliest arrival time is 7:00 am. *
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  #5  
Old 10-18-2019, 12:02 PM
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I would tell them Iím only concerned with pick up time
If they ask about hours I just tell them itís not how I bill
If the push they arenít a good fit, Iíd just say ok.. bye. 😊

Thatís what works for me right now so thatís how I do it
They can take it or leave it
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Old 10-18-2019, 12:18 PM
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"Late afternoon hours are the most labor-intensive hours. Children are tired, hungry and ready to go home for dinner. Earlier pick-up benefits both the children and the provider."

I don't think most understand that the late morning hours arrivals are more of a pain than a gift. I would be more inclined to charge more for after 8 am arrival than 7 am. I won't even accept them in after 9 am. I like starting/finishing breakfast, circle time and art on time. Later arrivals mess that up regularly.

If it benefits our program, it costs less. If it is a drag on our program, it costs more. << I recommend sugar coating that somehow.
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Old 10-18-2019, 01:11 PM
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Quote:
Originally Posted by Cat Herder View Post
"Late afternoon hours are the most labor-intensive hours. Children are tired, hungry and ready to go home for dinner. Earlier pick-up benefits both the children and the provider."

I don't think most understand that the late morning hours arrivals are more of a pain than a gift. I would be more inclined to charge more for after 8 am arrival than 7 am. I won't even accept them in after 9 am. I like starting/finishing breakfast, circle time and art on time. Later arrivals mess that up regularly.


If it benefits our program, it costs less. If it is a drag on our program, it costs more. << I recommend sugar coating that somehow.
Exactly! Thank you.
I would much rather everyone be here by 8, possibly 8:30, but even that is pushing it so that our day runs smoothly.
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  #8  
Old 10-18-2019, 01:12 PM
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Quote:
Originally Posted by Blackcat31 View Post
I would tell them Iím only concerned with pick up time
If they ask about hours I just tell them itís not how I bill
If the push they arenít a good fit, Iíd just say ok.. bye. 😊

Thatís what works for me right now so thatís how I do it
They can take it or leave it
Touche
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  #9  
Old 10-18-2019, 01:29 PM
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The morning arrival time does not bother me at all.
I do circle time with whomever is present.
We serve morning snack to kids that are here.
All activities move along at normal pace.
1 kid or 10 kids; makes no difference to me.
If they arrive late it was their time lost not mine.

Most of my parents are really good about arriving when they say they're going to. I have one DCK that schedules a 9am arrival and arrives at all sorts of times.

DCK has missed out on a lot of things over the last few months but like I said, it's not my loss.

Which brings me back to pick up time.
I just want to know when I'm going home.
That's all I need.
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  #10  
Old 10-18-2019, 01:31 PM
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I do a tiered rate . I let people know that each family can have a different weekly rate depending on pick up time , earlier pick up is less. I also let them know that pick up time factors into the decision on whether or not I enroll a family.
If people need different pick up hours depending on the day then I charge the higher rate for the later pick up and the less rate for the other days .
A 4 pm pick up is $30 a day or $150 a week .
A 5 pm pick up is $35 a day or $175 a week .
So if a family needs 4pm three days a
week ( $90) and a 5pm two days ($70) then their weekly rate is $160.
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  #11  
Old 10-18-2019, 02:03 PM
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Originally Posted by Second Home View Post
So if a family needs 4pm three days a
week ( $90) and a 5pm two days ($70) then their weekly rate is $160.
I charge weekly so if that happens here, they get charged the weekly rate for the latest pick up time.

If they only need me until 4 on 2 of the 5 days then they can either pick up their kid at 4 and call it good or they can use that extra hour to do whatever. I don't have time to do that much math.
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  #12  
Old 10-21-2019, 01:57 PM
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Originally Posted by Blackcat31 View Post
I

If they only need me until 4 on 2 of the 5 days then they can either pick up their kid at 4 and call it good or they can use that extra hour to do whatever. I don't have time to do that much math.
I hate math but love earlier pick up more .
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Old 10-21-2019, 02:14 PM
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Originally Posted by Second Home View Post
I hate math but love earlier pick up more .
Me too ....

....what usually happens here most times is the parent that needs later pick up only one or two nights per week doesn't want to pay that higher weekly fee so they miraculously have several family members or friends that can pick up at the earlier time so I still get an earlier pick up and no math.

For those few times it doesn't work out, I end up with a kid a bit later (with additional pay for that week) but still no math.
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  #14  
Old 10-21-2019, 03:40 PM
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I don't discuss anyone else's rate or timeframe, that's confidential information and everyone's contract is unique. Ultimately, that's what I'd say if someone inquired.

I ask what timeframe THEY need and adjust my rate accordingly. Like the others above, later hours costs more here. I start at 7:30 no matter what, so arriving any later than that doesn't affect my day at all... staying later DOES.
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  #15  
Old 10-25-2019, 01:57 PM
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Talking Monthly rates

I charge a weekly rate for fulltime and daily for parttime/per diem . It doesnít not matter the amount of hours they are they are there.... because it is a body I am responsible for. If there is a serious injury, it doesnít matter whether the child was there 5 minutes or 5 hours when the injury happens.... it is still under MY responsibility and MY INSURANCE.

Now I do offer a $100 discount if my fulltime parents pay monthly on the first. ( I pay my entire monthly budget on the second then). All my full timers take advantage of this bonus. They are not allowed to be late even if the first falls on a weekend. But I use PayPal and cashapp so it isnít an issue.

My part timers can receive $10 off per day for paying in advance for the moth with a minimum of ten days. Nurses like this. But some simply pay the fulltime charge just in case they go over on days.

Most of my clients are nurses, cops,attorneys, and two judges... so they like my flexibility in hours so they donít mind paying my monthly fee even if they donít use the whole month. They have sporadic schedules, and call offs.

If you give good, safe, fun care and you are flexible in urgent situations ... they feel they are getting a great value for their dollar. Iím firm on my pick up time but not rigid ... as I use to be a firefighter... so I know about being held over. When they feel you have their backs ( without taking advantage of you)... they will often tip you extremely well. Sometimes I think we forget what parents need daycares for... real and true working hoursand bank holidays lol.... because we are wrapped up in what is easiest for us.
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Old 10-25-2019, 02:06 PM
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Quote:
Originally Posted by Unregistered View Post
I charge a weekly rate for fulltime and daily for parttime/per diem . It doesnít not matter the amount of hours they are they are there.... because it is a body I am responsible for. If there is a serious injury, it doesnít matter whether the child was there 5 minutes or 5 hours when the injury happens.... it is still under MY responsibility and MY INSURANCE.

Now I do offer a $100 discount if my fulltime parents pay monthly on the first. ( I pay my entire monthly budget on the second then). All my full timers take advantage of this bonus. They are not allowed to be late even if the first falls on a weekend. But I use PayPal and cashapp so it isnít an issue.

My part timers can receive $10 off per day for paying in advance for the moth with a minimum of ten days. Nurses like this. But some simply pay the fulltime charge just in case they go over on days.

Most of my clients are nurses, cops,attorneys, and two judges... so they like my flexibility in hours so they donít mind paying my monthly fee even if they donít use the whole month. They have sporadic schedules, and call offs.

If you give good, safe, fun care and you are flexible in urgent situations ... they feel they are getting a great value for their dollar. Iím firm on my pick up time but not rigid ... as I use to be a firefighter... so I know about being held over. When they feel you have their backs ( without taking advantage of you)... they will often tip you extremely well. Sometimes I think we forget what parents need daycares for... real and true working hoursand bank holidays lol.... because we are wrapped up in what is easiest for us.
????
I'm in it for me 100%.
Otherwise, I wouldn't be doing this. It's a job. A business. If it's not treated as such, then it's purpose has no use to me.
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Old 10-25-2019, 02:14 PM
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Originally Posted by Unregistered View Post
I’m firm on my pick up time but not rigid ... as I use to be a firefighter... so I know about being held over. When they feel you have their backs ( without taking advantage of you)... they will often tip you extremely well. Sometimes I think we forget what parents need daycares for... real and true working hoursand bank holidays lol.... because we are wrapped up in what is easiest for us.
I am still a firefighter and I made sure there was someone available to pick up my kids if there was a chance of being held over. That is a burden for family, not a business. As a parent, that was my responsibility. The job came 2nd.
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Old 10-25-2019, 02:35 PM
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Originally Posted by Unregistered View Post
I charge a weekly rate for fulltime and daily for parttime/per diem . It doesnít not matter the amount of hours they are they are there.... because it is a body I am responsible for. If there is a serious injury, it doesnít matter whether the child was there 5 minutes or 5 hours when the injury happens.... it is still under MY responsibility and MY INSURANCE.

Now I do offer a $100 discount if my fulltime parents pay monthly on the first. ( I pay my entire monthly budget on the second then). All my full timers take advantage of this bonus. They are not allowed to be late even if the first falls on a weekend. But I use PayPal and cashapp so it isnít an issue.

My part timers can receive $10 off per day for paying in advance for the moth with a minimum of ten days. Nurses like this. But some simply pay the fulltime charge just in case they go over on days.

Most of my clients are nurses, cops,attorneys, and two judges... so they like my flexibility in hours so they donít mind paying my monthly fee even if they donít use the whole month. They have sporadic schedules, and call offs.

If you give good, safe, fun care and you are flexible in urgent situations ... they feel they are getting a great value for their dollar. Iím firm on my pick up time but not rigid ... as I use to be a firefighter... so I know about being held over. When they feel you have their backs ( without taking advantage of you)... they will often tip you extremely well. Sometimes I think we forget what parents need daycares for... real and true working hoursand bank holidays lol.... because we are wrapped up in what is easiest for us.
It's great that YOU have YOUR business set up to work for YOU.

Personally, I don't "have their backs" in regards to my clients. They aren't my friends and aren't part of my posse.

I do however, have their children 5 days/40+ hours a week.

Providing the services we agreed upon is my only obligation.

I don't extend my hours and don't discount my rates or my services unless it works for ME.
My clients don't take advantage of me because I don't give them the opportunity to.

There is no one-size-fits-all way of operating.
We aren't all here for the same reasons and some of us are more business than family but no matter the one thing that is true for everyone is that we all need to do what works for us. Both personally and individually.
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Old 10-28-2019, 10:32 AM
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Wondering to those who have changed to this tier pick up rates...how many parents suddenly could get their child earlier when less tuition is involved?
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Old 10-28-2019, 10:36 AM
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Wondering to those who have changed to this tier pick up rates...how many parents suddenly could get their child earlier when less tuition is involved?
ALL of them.
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Old 10-28-2019, 10:37 AM
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ALL of them.
Lol!!
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Old 10-28-2019, 11:00 AM
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Yes, all did.

Years ago when I implemented the tiered rate structure, I had a mom who tried arguing with me about it. The issue was she could pick up at the earlier rate/time a couple days a week but needed a later time for the rest. The post is in here somewhere.
Ultimately, I am like BC, I don't want to do the math to adjust 12 rates down to daily timeframes. It's all or nothing. They want the perk of the earlier rate, they make it work, not me.
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  #23  
Old 10-28-2019, 11:25 AM
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I raised my tuition rates by $2/day for next year. As soon as I did, I had a mom ask if she could increase her child's hours here by an hour each day.

So I told her sure, for an extra $3/day on top of the current rate increase. She suddenly decided she might not need the extra hour each day!

So, yes, parents will adjust their schedule to benefit their pocketbooks.
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