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Daycare Center and Family Home Forum>Potential New Client Wants Lower Rate...
SilverSabre25 05:43 PM 03-23-2011
and I know I need to say no. It's almost $100/month cheaper than what I normally charge for a pair of siblings--and $175/month cheaper than I would be getting for two separate kids (meaning not sibs). That's WAY too much for me to agree to. I know it is. I'm such a wuss though that I have a hard time saying no even when I have nothing invested in the client. I'm not desperate for spaces to be filled; these kids would be replacing two that are still here.

I need the backbone. I need to just respond to this email with a "No, I'm sorry."

but it's really hard
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Unregistered 05:56 PM 03-23-2011
I would reply with I'm sorry... but I did give a client a discount of $35 a week and the parent is a HANDFUL!! I regret giving them a discount every week! Not like adding the extra income would help dealing with her but that's $140 less a month I have in my pocket. With the prices of everything going up that extra $ would help.
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jessrlee 06:35 PM 03-23-2011
"So it's ok if I give your children discount care right?" Fewer diaper changes, cheaper snacks, no art materials, no cot, less attention.

If she's totally ok with that then go for it!

* I am sorry that this reply is snarky. But what the heck! I look for discounts with my phone company, or my credit card, not with my child!
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daycare 07:02 PM 03-23-2011
I have a family that kept asking for discounts in the past. I told them while I wish that I could, I had overhead I had to pay, explained into detail. Then broke it down by the hours I worked and showed her that after all was said and done at the end of the day I made $2.50 an hour per child. SHe emailed me back and said thank you for taking the time to explain that to me and I feel horrible for even asking.
At Christmas she gave me a gift of $200.00. I was so shocked
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momatheart 08:47 PM 03-23-2011
I would just say I am sorry but I have my rates as low as I can go and then go into detail like "daycare" did and explain things to her. She probably has no clue to what the break down is per hour.

i had no clue when my son was in daycare had I known what I know now I would have not thought like I did.
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Abigail 12:19 AM 03-24-2011
I agree with others, you should not lower your rate. It would be one thing if you really needed it, but I would continue interviewing. I'm a frugal person and would more than likely try to negotiate and if I really wanted it in the end I would pay. LOL

I would give this person a call back and say you've thought about and will not be able to accommodate her request on a different rate and you have chosen to continue to interview to fill the spots and wish her luck in her search for childcare. Simple as that. I wouldn't use my time to go into details about the breakdown besides stating if your rate (the one you will offer her) is such and such per week that breaks down to such and such per hour. The per hour number isn't so bad when you hear a $2-$3 something instead of a three-digit number. Good luck filling your spots, you can do it!
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countrymom 03:50 AM 03-24-2011
I never waver from my prices, its makes you a)look desperate for children b)makes you wishy washy and that means the parents are going to be looking for more freebies.
i don.t understand why parents want to save on childcare, I wonder if their bosses ask them for pay cuts but to do the same amount of work.
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AfterSchoolMom 04:51 AM 03-24-2011
Every time I've given a discount, the family or child ended up being "challenging". If they ask for it, then they're probably going to ask you to break all of your policies at one point or another. If you don't want to lose them and feel you must discount, maybe offer them $10 off the second child?
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nannyde 05:09 AM 03-24-2011
It's not a good idea to start your relationship devaluing your business. With the current economy there are a lot of daycare options. This parent probably realizes she will have her choice of a lot of low priced child care. She's trying to get the best child care she can of the not so low priced child care so she can pay the low price but have the next level of care for free.

I would just tell them thanks for the offer but you are unable to accomodate their price. If anything changes and they are able to work within your price quotes than please feel free to contact you in the future. It was a pleasure to meet your family and good luck.
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TBird 05:47 AM 03-24-2011
Originally Posted by nannyde:
It's not a good idea to start your relationship devaluing your business. With the current economy there are a lot of daycare options. This parent probably realizes she will have her choice of a lot of low priced child care. She's trying to get the best child care she can of the not so low priced child care so she can pay the low price but have the next level of care for free.

I would just tell them thanks for the offer but you are unable to accomodate their price. If anything changes and they are able to work within your price quotes than please feel free to contact you in the future. It was a pleasure to meet your family and good luck.
I love that explanation! I'm just wondering what we should do if the parents then say that they can accommodate the price...should we believe it??? There are a lot of parents out there that already know they can't afford our services but sign on anyway and wind up stiffing us!!!
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SilverSabre25 06:37 AM 03-24-2011
Ahhh....it's nice to hear that I did the right thing, even though I knew I was to begin with!

I did basically tel her what most of you suggested, that I can't accommodate her request and if anything changes and I still have openings to give me a call back in the future.

She did give me an interesting tidbit--she mentioned that she found another daycare she likes but they aren't willing to go below $215/week...which is to say, only $5 less per week than I quoted her. I was happy to hear this; it tells me that I'm charging about the right amount for my area.

I have offered lower rates to two clients in the past, and they both ended up being awful so I had a bad feeling about it, and anyway, we can't afford that much of a pay cut.

If it weren't for the support and learning I've gleaned from this board, I don't know that I would have had the confidence to stand up for myself and my business.
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Symphony 09:40 AM 03-24-2011
I totally think you did the right thing. I have allowed a rate cut in the past and that family continued to ask for cheaper daycare every single month for the duration of their time here. When I finally hit rock bottom and couldn't go any lower, they started to propose various trades for care. Mom would give me free hair cuts for daycare or dad would fix our cars. Well...my SIL is an amazing stylist and does my hair for free already, and nothing (knock on wood) is wrong with our cars. The kicker is, these two parents were very well off and at the time they finally left they were paying me $50/week! Gimmee a break!

Never start out a business by conceding your prices or your policies!
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busymomof2 10:06 AM 03-24-2011
I regret giving a family a discount ($5day/$25week/$100month). This kid stays the longest and causes me sooooo much hassle. Just yesterday he put a hole in my wall. I only gave the discount because I was just starting my dc and I needed my first kid. NEVER AGAIN!!!!!!
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joelietz 02:24 PM 03-24-2011
I would definately tell the client that there's no way you can lower your price that much; it wouldn't even cover the cost of basic daycare supplies for both kids let alone any extras that might come up. Good on you for sticking up for yourself
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Tags:discount, rate decrease, reduced rates
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