Daycare.com Forum

Go Back   Daycare.com Forum > Main Category > Daycare Center and Family Home Forum

Daycare Center and Family Home Forum Daycare Center and Family Home owners, Directors, Operators and Assistants should post and ask questions here.

Reply
 
Thread Tools Display Modes
  #1  
Old 02-20-2011, 11:13 AM
daymommy's Avatar
daymommy daymommy is offline
Daycare.com Member
 
Join Date: Feb 2011
Posts: 27
Default I Need Some Ideas On How To Charge

Lately I've been thinking that I need to change my rates/the way I charge. Right now I charge $25/day with contracted days (so each family has a set amount they pay each week). I'm open from 6:30am to 5:30pm. This worked when I first started, but now I'm starting to feel taken advantage of. Parents are bringing their kids right at 6:30 and pulling in the driveway at 5:30. It's frustrating because I provide care for our neighbor so I see when she comes home (4:00 at the latest, and a lot of days she gets home at 1 or 2). Occassionally she will have to work an evening, and then Dad picks up, but when she doesn't go in until 11 she still has Dad bring her at 6:30 when he leaves. It's not just them though... I have other parents to come right at 5:30 or later and then tell me about how busy Target was or how Shopko was having some really good sales. We live out of town and are on the way for all my families (they all still have about 1/2 hour commute to work) so I understand that once and awhile they may need to stop for something after work before picking up, but it has gotten to be an everyday occurance with a few of my families.

I know that since I'm charging by the day they are thinking that they are paying for the whole day so they might as well get the most for their money, so I was thinking I should change the way I charge to give them more incentive to come get their kids when they aren't at work. I really didn't expect so much of this problem when I started 2 years ago. When my son was in daycare I couldn't get to him fast enough after work! The most frustrating thing is when the parents who have their kids here for 11 hours every day tell me how lucky I am that I can be home with my kids.

How do some of you guys charge? Any ideas on how I could give them some incentive to pick up their kids? Should I switch to hourly?
Reply With Quote
  #2  
Old 02-20-2011, 11:40 AM
marniewon's Avatar
marniewon marniewon is offline
Daycare.com Member
 
Join Date: Aug 2010
Location: Michigan
Posts: 895
Default

Go to contracted hours for your families. Let's say mom has to be at work at 8am and gets out at 4pm. Add into that commute time (1 hour total per day) and set their hours at 7:30 (or 7:15 if you are feeling generous) to 4:30 or 4:45. You are working for 11 hours per day for these families. You are barely making over $2/hour. You can't get a teenage babysitter for that price.

If they want to go shopping, let them do it on their time, not yours. They can go on their lunch if they need to go. Or give him the more generous time (drive time + 15 minutes there and back) and they can pop into the store in that time.

Mom doesn't work until 11 and yet they get the little one(s) up at 6 to leave with dad??? Poor kids!

I have my families with contracted hours and that allows them for up to 10 hours per day. Anything over that is overtime at a LOT more than $2/hour!
Reply With Quote
  #3  
Old 02-20-2011, 11:49 AM
nannyde's Avatar
nannyde nannyde is offline
All powerful, all knowing daycare whisperer
 
Join Date: Mar 2010
Location: Des Moines
Posts: 7,242
Default

Our rates are calculated differently than most child care homes and Centers. The rates are based upon the total number of hours per day and the departure time. The published rates are based on a maximum of a nine hour day. If you need more than nine hours per please add $5.00/hour to our base rates.

We have a different rate structure for part time. Part time is a minimum of three full working days per week. We do not provide drop in care. We do not offer half day rates.

Full Time Rates (2011) based upon a maximum of nine hours a day and time your child departs from day care:

3:00 p.m. departure $140.00 per week

3:15 p.m. departure $145.00 per week

3:30 p.m. departure $150.00 per week

3:45 p.m. departure $155.00 per week

4:00 p.m. departure $160.00 per week

4:15 p.m. departure $165.00 per week

4:30 p.m. departure $170.00 per week

4:45 p.m. departure $175.00 per week

5:00 p.m. departure $180.00 per week

5:15 p.m. departure $185.00 per week

5:30 p.m. departure $190.00 per week

5:45 p.m. departure $195.00 per week

6:00 p.m. departure $200.00 per week


Part Time Rates

3:00 p.m. departure $34.00 per day

3:15 p.m. departure $35.00 per day

3:30 p.m. departure $36.00 per day

3:45 p.m. departure $37.00 per day

4:00 p.m. departure $38.00 per day

4:15 p.m. departure $39.00 per day

4:30 p.m. departure $40.00 per day

4:45 p.m. departure $41.00 per day

5:00 p.m. departure $42.00 per day

5:15 p.m. departure $43.00 per day

5:30 p.m. departure $44.00 per day

5:45 p.m. departure $45.00 per day

Additional hours beyond nine hours per day billed at $5.00 per hour.

Overtime must be pre-arranged and approved.

We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.

Discounts: We do not currently offer discounts for sibling groups.

State Funded Clients: We do not accept State Funding at this time.
Reply With Quote
  #4  
Old 02-21-2011, 07:10 AM
littlemissmuffet's Avatar
littlemissmuffet littlemissmuffet is offline
Advanced Daycare.com Member
 
Join Date: Jan 2011
Location: Canada
Posts: 2,081
Default

I like and appreciate the structure that Nan has!

For myself, however, I charge a flat monthly fee per child which is paid on the first of each service month. I am open from 6:30am until 5:30pm. As long as children are dropped off after 6:29am and picked up before 5:31pm I am totally fine with it... I couldn't care less if my parents are off work at 3pm and go grocery shopping or go get their hair done after work... just as long as they are picking up on time! The way I see it, this is my JOB, these are my hours, and to be upset about parents using those hours of operation to their full benefit is absurd... they have paid for my time!
Reply With Quote
  #5  
Old 02-21-2011, 08:36 AM
daymommy's Avatar
daymommy daymommy is offline
Daycare.com Member
 
Join Date: Feb 2011
Posts: 27
Default

In a way I agree with you and I know that is the viewpoint all my parents will have too. Maybe what I need to do is just increase my daily rate to reflect an 11 hour day. When I started my families only had their kids here around 9 hours, 10 hours tops and now most of them are consistently here for 11. Plus since I'm only open for 11 hours I'm worried that limiting to 10 will seem nit picky. It won't solve the problem of my 2 year old standing on the property line crying watching his mom do yard work, but nothings perfect right. I do appreciate hearing how others have their payment policies set up though.

Thanks guys!
Reply With Quote
  #6  
Old 02-21-2011, 10:07 AM
nannyde's Avatar
nannyde nannyde is offline
All powerful, all knowing daycare whisperer
 
Join Date: Mar 2010
Location: Des Moines
Posts: 7,242
Default

Quote:
Originally Posted by littlemissmuffet View Post
I like and appreciate the structure that Nan has!

For myself, however, I charge a flat monthly fee per child which is paid on the first of each service month. I am open from 6:30am until 5:30pm. As long as children are dropped off after 6:29am and picked up before 5:31pm I am totally fine with it... I couldn't care less if my parents are off work at 3pm and go grocery shopping or go get their hair done after work... just as long as they are picking up on time! The way I see it, this is my JOB, these are my hours, and to be upset about parents using those hours of operation to their full benefit is absurd... they have paid for my time!
I can't IMAGINE doing eleven hour days with kids. I know I couldn't manage it so I don't even try. I've known too many providers over the years who offer "business hours" instead of contracted hours for each family and ended up with most or all of the kids the maximum hours possible.

When I first started doing child care I saw the difference between kids who were here nine hours and those who were here longer. I knew inately that it was harder for me, I made less money per hour, and the "extra" hours were almost all awake hours.

I sat down and figured out the difference of just an hour a day more.

45 hours per week X 50 weeks per year is 2250 hours per year.
50 hours per week X 50 weeks per year is 2500 hours per year.
55 hours per week X 50 weeks per year is 2750 hours per year.

when I looked at the difference of the 45 hour week kid and the 55 hour per week kid I was stunned to realize that the difference was nearly over 11 WEEKS per year of time. An extra ten hours of week is the same as eleven weeks of total time the 45 hour a week kid was in my house.

FIVE HUNDRED hours more per year and in most kids cases that was AWAKE time.

I made a decision that I wasn't going to be a part of that. I wasn't going to be involved in a deal where a kid had so MUCH awake time every year here when I knew I could get kids on nine hour days. I've gone to nine hour days since.

Now I do make some exceptions daily but the TOTAL for the week doesn't exceed 45 hours per week per kid. I have had some kids that do four ten hour days and one full day off per week. As long as I'm getting a full week salary and the child is HOME on the day off then I will do that. I just won't participate in any kid being in day care more than 45 hours total per week.

The business model of open hours works for some providers. It just won't work for me. My policy is that the parent going into work last drops off the kid and the parent who gets off first picks up. I give a SIGNIFICANTLY lower rate to the early pick ups so my clients contract for the earliest possible departure time to save money. My average kid is here about 8.5 hours per day.

My kids have about five hours a day of FACE time with their parents. Five hours a day of AWAKE time with a parent seems to be the right mix for what works best for having engaged parents who can manage their kids. I don't want to do eleven hour days because my experience was that parents who have such a small amount of awake time a day with their kids were just more difficult clients to work for in general.

So for me the system works. I don't have kids beyond 45 hours a week and I make a good hourly wage per kid every day.
Reply With Quote
  #7  
Old 02-21-2011, 10:13 AM
nannyde's Avatar
nannyde nannyde is offline
All powerful, all knowing daycare whisperer
 
Join Date: Mar 2010
Location: Des Moines
Posts: 7,242
Default

Quote:
Originally Posted by daymommy View Post
In a way I agree with you and I know that is the viewpoint all my parents will have too. Maybe what I need to do is just increase my daily rate to reflect an 11 hour day. When I started my families only had their kids here around 9 hours, 10 hours tops and now most of them are consistently here for 11. Plus since I'm only open for 11 hours I'm worried that limiting to 10 will seem nit picky. It won't solve the problem of my 2 year old standing on the property line crying watching his mom do yard work, but nothings perfect right. I do appreciate hearing how others have their payment policies set up though.

Thanks guys!
When I started my families only had their kids here around 9 hours, 10 hours tops and now most of them are consistently here for 11.

YES that is what has happened to many providers who offer open hours.

Plus since I'm only open for 11 hours I'm worried that limiting to 10 will seem nit picky.

Well if it's no big deal then it's no big deal. If they don't think it's a big deal for you to do it then they won't think it's a big deal for them to do it. Right?

Believe me it's a big deal. They haven't gone to eleven hours a day because they think it's best for you or their kid. They've gone to eleven hours a day so they have less awake time with their kid per day for the same amount of money. Once you attach money to it then they will either pick up earlier or find another day care that does what you have allowed them to do.

My advise is to set it at contracted times not just a nine hour window. You will have parents dropping off at different times and wanting nine hours from the point of drop off.
Reply With Quote
  #8  
Old 02-21-2011, 11:23 AM
melskids's Avatar
melskids melskids is offline
Advanced Daycare.com Member
 
Join Date: Feb 2010
Posts: 1,767
Default

i like how nan does it.

i have contracted hours. now, i dont care where you are, or what you are doing, you just better be here when your time is up

"technically" i am open until 6, but i dont tell my parents that. if i did, they would all wait until 5:59 to pick their kid up.
Reply With Quote
  #9  
Old 02-21-2011, 02:53 PM
littlemissmuffet's Avatar
littlemissmuffet littlemissmuffet is offline
Advanced Daycare.com Member
 
Join Date: Jan 2011
Location: Canada
Posts: 2,081
Default

Quote:
Originally Posted by nannyde View Post
I can't IMAGINE doing eleven hour days with kids. I know I couldn't manage it so I don't even try. I've known too many providers over the years who offer "business hours" instead of contracted hours for each family and ended up with most or all of the kids the maximum hours possible.

When I first started doing child care I saw the difference between kids who were here nine hours and those who were here longer. I knew inately that it was harder for me, I made less money per hour, and the "extra" hours were almost all awake hours.

I sat down and figured out the difference of just an hour a day more.

45 hours per week X 50 weeks per year is 2250 hours per year.
50 hours per week X 50 weeks per year is 2500 hours per year.
55 hours per week X 50 weeks per year is 2750 hours per year.

when I looked at the difference of the 45 hour week kid and the 55 hour per week kid I was stunned to realize that the difference was nearly over 11 WEEKS per year of time. An extra ten hours of week is the same as eleven weeks of total time the 45 hour a week kid was in my house.

FIVE HUNDRED hours more per year and in most kids cases that was AWAKE time.

I made a decision that I wasn't going to be a part of that. I wasn't going to be involved in a deal where a kid had so MUCH awake time every year here when I knew I could get kids on nine hour days. I've gone to nine hour days since.

Now I do make some exceptions daily but the TOTAL for the week doesn't exceed 45 hours per week per kid. I have had some kids that do four ten hour days and one full day off per week. As long as I'm getting a full week salary and the child is HOME on the day off then I will do that. I just won't participate in any kid being in day care more than 45 hours total per week.

The business model of open hours works for some providers. It just won't work for me. My policy is that the parent going into work last drops off the kid and the parent who gets off first picks up. I give a SIGNIFICANTLY lower rate to the early pick ups so my clients contract for the earliest possible departure time to save money. My average kid is here about 8.5 hours per day.

My kids have about five hours a day of FACE time with their parents. Five hours a day of AWAKE time with a parent seems to be the right mix for what works best for having engaged parents who can manage their kids. I don't want to do eleven hour days because my experience was that parents who have such a small amount of awake time a day with their kids were just more difficult clients to work for in general.

So for me the system works. I don't have kids beyond 45 hours a week and I make a good hourly wage per kid every day.
That makes total sense! There's some really shocking numbers in there, thank you for breaking that down!!
In my case, none of my parents abuse my hours of operation. They drop the kids off just before work, and usually pick them up when their office is closed. There is the odd time mom goes to get her hair done, or dad goes and pick up groceries before coming to get little Johnny, but they always ask... I laugh and tell them they've paid for my time for the month, as long as they are here before clsing time I really don't mind. No parent in ten years has ever taken advantage... thankfully so, I guess... because it sounds like a lot of parents out there will and do! On average, my kiddos are here 45 hours a week... I am open 11 hours a day to accomidate varying drop-off/pick-up times.

If I found I was having this issue, I would look into a system like yours Nan.
Reply With Quote
  #10  
Old 02-21-2011, 04:44 PM
JenNJ's Avatar
JenNJ JenNJ is offline
Advanced Daycare.com Member
 
Join Date: Jun 2010
Location: Burbank
Posts: 1,203
Default

I am fortunate to have parents who do want to spend AWAKE time with their children and many work very close to my home so this has not been an issue.

However, I once took on a child and all was well and good in the first year. Then the parents hit a rough spot and separated. Suddenly, the child went from 8 hours in care to 10.5 hours in care bc the parents were no longer working as a team. Since then, I revised my contract to reflect that longer hours in care = a higher weekly rate. I don't say anything, I just make a mental note of it and charge them a MUCH higher rate than a typical family here pays.
Reply With Quote
  #11  
Old 02-22-2011, 06:20 AM
dEHmom's Avatar
dEHmom dEHmom is offline
Advanced Daycare.com Member
 
Join Date: Dec 2010
Location: Canada EH
Posts: 2,355
Default

I considered this, using nan's as a template and adjusted the rates accordingly for my area. I think the higher rates will scare off potential clients. But it's also an incentive for parents to leave earlier. I haven't officially made this yet. But am considering, and if I do go through with it, this will be how I will do it. I jumped up by more at supper hour.


3:00 p.m. departure $100.00 per week

3:30 p.m. departure $105.00 per week

4:00 p.m. departure $110.00 per week

4:30 p.m. departure $115.00 per week

5:00 p.m. departure $120.00 per week

5:30 p.m. departure $130.00 per week

5:45 p.m. departure $135.00 per week

6:00 p.m. departure $140.00 per week


Part Time Rates

3:00 p.m. departure $21.00 per day

3:30 p.m. departure $23.00 per day

4:00 p.m. departure $25.00 per day

4:30 p.m. departure $28.00 per day

5:00 p.m. departure $30.00 per day

5:30 p.m. departure $35.00 per day

6:00 p.m. departure $40.00 per day
Reply With Quote
  #12  
Old 02-22-2011, 08:14 AM
Autismworld's Avatar
Autismworld Autismworld is offline
Daycare.com Member
 
Join Date: Feb 2011
Posts: 41
Default

Quote:
Originally Posted by nannyde View Post
So for me the system works. I don't have kids beyond 45 hours a week and I make a good hourly wage per kid every day.
I have most of my kids nearly 10 hours a day. If I had a limit of 45 hours a week I wouldn't have a business left. When I interview with parents I get their hours of work and then we discuss travel time. Most of my parents work 8.5 hours a day and have commutes of easily 30+ minutes one way to work and back.

I need to do what works for everyone, and 45 hour weeks would not work in my area.
Reply With Quote
  #13  
Old 01-07-2016, 08:37 AM
MsLolla
Guest
 
Posts: n/a
Default Owner

Quote:
Originally Posted by nannyde View Post
Our rates are calculated differently than most child care homes and Centers. The rates are based upon the total number of hours per day and the departure time. The published rates are based on a maximum of a nine hour day. If you need more than nine hours per please add $5.00/hour to our base rates.

We have a different rate structure for part time. Part time is a minimum of three full working days per week. We do not provide drop in care. We do not offer half day rates.

Full Time Rates (2011) based upon a maximum of nine hours a day and time your child departs from day care:

3:00 p.m. departure $140.00 per week

3:15 p.m. departure $145.00 per week

3:30 p.m. departure $150.00 per week

3:45 p.m. departure $155.00 per week

4:00 p.m. departure $160.00 per week

4:15 p.m. departure $165.00 per week

4:30 p.m. departure $170.00 per week

4:45 p.m. departure $175.00 per week

5:00 p.m. departure $180.00 per week

5:15 p.m. departure $185.00 per week

5:30 p.m. departure $190.00 per week

5:45 p.m. departure $195.00 per week

6:00 p.m. departure $200.00 per week


Part Time Rates

3:00 p.m. departure $34.00 per day

3:15 p.m. departure $35.00 per day

3:30 p.m. departure $36.00 per day

3:45 p.m. departure $37.00 per day

4:00 p.m. departure $38.00 per day

4:15 p.m. departure $39.00 per day

4:30 p.m. departure $40.00 per day

4:45 p.m. departure $41.00 per day

5:00 p.m. departure $42.00 per day

5:15 p.m. departure $43.00 per day

5:30 p.m. departure $44.00 per day

5:45 p.m. departure $45.00 per day

Additional hours beyond nine hours per day billed at $5.00 per hour.

Overtime must be pre-arranged and approved.

We do not raise rates on current attending children at any time unless the child's schedule changes to a higher number of hours per day or a later departure.

Discounts: We do not currently offer discounts for sibling groups.

State Funded Clients: We do not accept State Funding at this time.
I like your structured breakdown based on the 9 hour max but what is your earliest start time? Thanks.
Reply With Quote
  #14  
Old 01-07-2016, 09:13 AM
LysesKids's Avatar
LysesKids LysesKids is online now
Daycare.com Member
 
Join Date: May 2014
Location: Tennessee
Posts: 2,762
Default

Quote:
Originally Posted by Autismworld View Post
I have most of my kids nearly 10 hours a day. If I had a limit of 45 hours a week I wouldn't have a business left. When I interview with parents I get their hours of work and then we discuss travel time. Most of my parents work 8.5 hours a day and have commutes of easily 30+ minutes one way to work and back.

I need to do what works for everyone, and 45 hour weeks would not work in my area.
I do a 50 hr week for the same reason... thankfully it's one parent drops the other picks up; in the rare instance they need over 10 hrs day I adjust rate up a notch
Reply With Quote
  #15  
Old 01-07-2016, 09:14 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 16,964
Default

Quote:
Originally Posted by LysesKids View Post
I do a 50 hr week for the same reason... thankfully it's one parent drops the other picks up; in the rare instance they need over 10 hrs day I adjust rate up a notch
You just replied to a post from 2011
Reply With Quote
Reply

Tags
rate increase, rate quote, rate sample, rates

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
What Would You Charge For This? small_steps Daycare Center and Family Home Forum 7 07-20-2016 12:46 PM
What Should I Charge? Bizzymom1111 Daycare Center and Family Home Forum 15 11-30-2010 06:47 PM
What Would you Charge in this Situation? MN Mom Daycare Center and Family Home Forum 18 10-19-2010 10:07 AM
Toddler Halloween Party Ideas SilverSabre25 Daycare Center and Family Home Forum 10 10-04-2010 02:44 PM
Fundraising Ideas? vpierce2 Daycare Center and Family Home Forum 5 09-27-2009 10:01 AM


All times are GMT -7. The time now is 11:45 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming