Part vent and part "help me write a term letter".

I recently changed to tiered rates based on pick up times.
My approach is a bit different since I let families adjust their rate weekly, they just need to commit to a time slot (with it's assigned rate) on Monday mornings when their payment is due. They need to stick to it all week or they WILL get charged $1 per minute in over time fees and be subject to termination ($2 per minute if they arrive after my closing time of 5:15).

I have a dcm who cornered me at pick up today saying she needed to talk to me & come to a compromise.
She & her husband can normally pick up at the earliest rate except there are a few days in the month (1x per week plus a random day in the month) where they need to work late and traffic is a factor. She didn't feel that picking the 5pm rate in those cases was fair, since she would normally be picking up at 4:30 ($25/week difference between 4:30 and 5:00 pick up times.... BUT only $3 per week more than she was paying BEFORE I changed to tiered rates). She was upset that being 1/2 hour late would cost her $30.
She threw vague threats at me like "I don't want to have to find another daycare", "we pay the entire month ahead of time" (they aren't required to), "I don't see why paying an extra $3/week is to my benefit", and a snarky "I'm not sure how you decided these rates".

I stood my ground. Told her these are the options for everyone and I won't do "special" rates for any of my families...it is the way it is. She wouldn't drop it until another parent walked in. She has copped attitude with me in the past about random things as well.

After she left, I thought about the whole ordeal and decided I'm done with her.
I have a waitlist & don't need to deal with this guilt trip crap.

I've had parents ask for discounts before, but never had one insist. There's nothing wrong with ASKING in my opinion, but arguing is a bit insulting.

Help me with how to write this termination letter.
This family has not broken any policies, but I'm not willing to be treated/disrespected in this way.

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ok so i also do tiered rates.

just want to clear up my confusion here, (sorry i am easily confused)

so if they pick a 5pm one day is that their pick up rate for the whole week?

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I sometimes confuse myself!

They need to choose the timeframe that will work for them the entire week. So, because they know they need the extra time at least one day every week, they would need to choose that later time slot/rate.

My fees are all full-time weekly fees (not by the day).

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ok so if I understand this correctly

430 125 week
445 130 week
500 135 week and so on.

so if I need to pick up one day at 500 and the rest of the week at 430 my rate is still 135 week??

if this is the case, I could see why she would be upset. OR you are just going to be working later all that week because of the later time chosen for that one day

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To help clear it up:

4:30 pick up time is $140/week (which was what she wants to pay)
4:45 pick up time is $150/week
5:00 pick up time is $165/week (which is now $3 higher than the OLD full time 9 hour per day rate they were ALL at before)
5:15 pick up time is $185/week.

$1 per minute overtime fee if you pick up after your weekly contracted time slot.
$2 per minute after closing (5:15).

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here is how I do mine. give an example

my rates start at $50 a day for a 430 pick up


430 $50
445 $55
and increse by $5 for every 15 min. I make my families give me their schedule monthly and can only change it with a 30 day advance notice if they choose to decrease their schedule., two week notice if they increase.

so I require the schedule and they put it on their contract

monday 430 $50
Tuesday 500 $60
wedneday 430 $50
thursday 430 $50
Friday 445 $55

then add it all up and this is your weekly rate for the entire month. so $265 week

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so what if i wanted to pick up one day at 5 the next at 530??

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I'm not saying that I don't understand where she's coming from. But what I'm trying to get across to her is that my rates are what they are. I'm not going to adjust them for one family.
If I do that for one family, why wouldn't I do it for all. kwim?
Also, that would become an accounting nightmare for me.

If she wants to pick the 5pm rate and go home and sleep from 4:30-4:59, I don't care as long as she picks up by 5pm.
The purpose of me switching was to know exactly when my day will end- so I could make plans and be sure my kids could be picked up on time from activities. Working less is a bonus, but not a necessity.

Hope that makes sense.

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true...well in that case, i would state a letter keeping it plain and simple.

If you want to keep her I would state this

dcm,

i understand that our new tuition schedule may be a little difficult to understand, however, please pick a time that you would like to pick up and be sure to submit ontime payment.

term letter, I would use the search tab and look for one of BCs famous short sweet and simple to the point letters.

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Well, 5:30 would be 15 minutes past my closing time.
So $30 in late fees and most likely a termination if it happened more than once.

I'm pretty strict and clear with my families about being late.

I don't do daily rates. Weekly options are what my families are given. Which is also pretty common for FT in my area. I'm actually on the lower side for early pick up times in my area. $140 a week is about $30 a week lower than the average cost of daycare in my county. However my later pick up rates ($185) is higher. So, the earlier rates are a huge benefit to families WHO CAN DO IT.
Simply put, if they can't do it the entire week, I will not offer it.

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i dont do daily rates either so to speak..

If you think about it if you take the weekly rate, you can break it down by the day.

My rates are based on the number of days you attend which are based off of the pick up time and that becomes your weekly rate. I don't allow people to attend less than 2 days a week.

so if you attend two days with a 430 pick up then it's $100 week. It stays that way unless you ask to change, which I will allow you to change it 3 times a year.

But your rules are your rules. That just means that instead of getting off the rest of the week earlier, you will have to work later do to the fact that they are paying the later pick up time right?

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Dear DCF,

From our conversation on Friday, it became apparent to me that my rates/hours are no longer compatible with your needs. I thank you using my services and wish the best for you and your family.

The last day I will provide care is 10/xx/15.

Sincerely,

Not Taking Your Crap


She seems like an arguer and I wouldn't give her any fodder or wiggle room to try and "negotiate" her way out of getting termed. Let her go to a center where she'll get open hours and can pick up any time she wants on any day, but she'll be paying twice your rate.

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I wouldn't entertain any more discussion about this. I might add that any further disrespect about your rates could be cause for immediate termination with refund of fees. That saves you from dealing with comments right up until their last day. Because those are always fun

I love your late fees, btw. $1 past contracted, $2 past closing. I am changing mine in January and will be implementing that doubling.

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I do my rates the same way as you, but my parents got smart quick and figured out that if they want to pay the 4:30 pick up rate, but have one day during their week where they work later, they find someone else to pick up. There's no way I would put up with her comments either. I liked the letter someone else posted about how your "rates no longer work" for her and keep it short and sweet. You've got this!

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I don't understand some people. This is a business and we run it the way it works for us. If I went into a business I certainly wouldn't try to negotiate everything and change their rules. If you don't like something about a business you can go elsewhere, why is daycare so much different. Usually everything is spelled out beforehand so it's not as if people are walking into our homes blindly.
What *really* doesn't make sense in this particular case is that it'd only cost her a few dollars more than it was previously, yet she's arguing with you about it. To me it spells disrespect and non-appreciation.

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This sounds like the most fair way to me. I never did tiered rates because keeping track of each day seems confusing to me plus it never occurred to me to do it that way.

Laurel

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I can understand the parent's dilemma. If she could pick up everyday at 4:30 it would cost her $140 a week but since there is one day she needs a 5:00 pickup then she will be paying $165. (if I understand this correctly)

I would ask about this too if I were a parent. It is worth it to ask but I wouldn't be rude. Personally, I would set it up like daycare. Actually I wouldn't do tiered rates at all because I'd rather receive $165 and just be open until 5 p.m. She must be picking up at 4:30 most days anyway so that is an extra $25 a week from this family with only one day till 5.

To me, the issue is more the rudeness. I can absolutely see why if $25 or so off of my previous rate was dangled in front of me it would sting even if I was paying only $3 more than before. This is $25 a week or $100 a month difference.

Just my opinion....don't taze me bro.

Laurel

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Of course she doesn't think it is fair, because it doesn't work for HER

I would definitely terminate for the attitude. She has options. She would only be paying $3 more than she does now, or she can find someone else to pick up on that one day a week and pay quite a bit less. But, she doesn't want to do that. She wants to compromise, but only so it works in her favor. Not quite the definition of compromise Unfortunately for her, her situation is one that may not benefit from your new tutition, unless she makes a compromise. You are offering her the compromise that if she can find a way to have dck picked up by 4:30 EVERYDAY, she gets to save $25 a week. If she can't, then she will pay $3 more per week, because that is just the way the cookie crumbles.

The attittude would piss me off, though. She can find a new daycare according to her, and you have a wait list. Write that letter up and send it! (The pp who said the new fee schedule is not working for her sounded good. Even though it is not meant to work for HER, but for YOU!) Good luck!

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This is why I don't do the tier method...it confuses the heckouttame. All that registered in my (feebly inadequate) mind was the $3 difference.

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I understand everyone's point of view, I really do.
I also appreciate the opposing viewpoints.

Here's the nitty gritty with this particular family though:
Previously, I had a standard flat rate which included 9 hours of care within my operating hours. What was happening, is that everyone signed up stating one set of hours (theirs was 7:45-4:45).
But, like all my other parents, they'd let their child sleep in as late as possible, then bring them in by 8:30, so they could pick up as late as possible (closing previously at 5:30).

I hated this. My choices were either change everyone to contracted times during my open-close, or let THEM chose which timeframes would work and give them the option to lower their rates IF they consistently picked up early. I didn't want to just close at 5pm and call it day- I wanted to give the families that truly needed later pick times the option to have it...but they'd be paying a premium for it.
So, I changed my closing time by 15 minutes and gave everyone a set of options, making it clear that there is NO grace period- if you chose a 4:30 pick up time, make sure you are picking up before 4:30. This rate is SOOOO much lower than my competitors who charge flat rates based on age.
This particular family's drop off & pick up were previously all over the place- not really EVER consistent.
I understand that in a way I'm dangling the carrot in front of them- but that's not really a bad thing, since they obviously want to take advantage of it. They can essentially be at a rate that's almost identical to what they were previously paying ($3 more weekly- which apparently was insulting to her to raise it that much?) and have a guaranteed later pick up time... I still have kids until 5pm most days, so I don't care (and 5pm is still 30 minutes earlier than I was getting done with before).
So, if they want to take advantage of it, but can't do it consistently, why is that my problem? I'm not trying to be snarky. I just don't understand why they should get the bonus lower rate if they can only fulfill the bonus hours 3-4 times per week, when everyone else would fulfill it 5 days per week.

I'm not saying this method is perfect, but it's taken 30 minutes-1 hour off my day so far. I give them the opportunity to change it weekly, so I think that's being flexible to a degree. It's all nice and tidy on my sign in sheet; they write their pick up time right next to their child's name on Mondays and sign in and out every day.

I do not want to break it down by day. For many reasons. So, it's not an option.

This mom has thrown temper tantrums about so many other things, even if I was willing to do special for a family, I wouldn't in her case.

I do like the short and to the point term approach and I'm willing/able to stand my ground. I'm just a little wishy washy when it comes to what happens AFTER the term. Do you just simply state "it's non-negotiable" or do you back up your termination with "why" when you're challenged by a parent about it? Which will definitely happen in this parent's case.

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You don't have to defend your plan to anyone. I think, if anything, you are giving them MORE choice in what they pay each week/month, so they should not be complaining. I see no problem with them asking, but to be rude and aggressive and threaten you with leaving...um, no. Help them out and let them leave, by terming them. Short and sweet..."Due to our recent conversation, I have decided to terminate our contract. Thank you for your business and best of luck to you and your family!" Or something like that.

If you want to give them the option, then be firm. "My tuition is non-negotiable, so either keep a pick up time of 5 and pay XX rate, or find a way to pick up dck early and go with 4:30 as your pick up time at XX rate. If that will not work for you, please supply your written two notice and dck's last day will be XX."

The attitude would bug me, so I would term. Btw, your tuition is very fair, imo. She is either going to pay an extra $12 a month, or she will find a way to pick up at 4:30 and save $100 a month. That is a very fair compromise, imo. (not sure if you allow them to set their time week to week, but if they need to work late sometimes, maybe they could plan to work late two or three nights during the same week and pay the higher amount for that week, but pay the lesser amount for the other 3 weeks and pick up at 4:30. Not sure if you allow them to change the time each week, but if so, that could be a way for them to still save some money, but also get the time they need to get extra work stuff done. Regardless, I would still term)

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It's actually much easier than it appears. I set this up at enrollment and they are required to keep the same consistent schedule throughout their contract. I will allow up to 3 changed per year but after that I charge an additional fee to allow them to change it. So far no one has changed it one time. I like getting off early so I can spend time with my family and since o need assistants, I like the fact that they can get off earlier which means I save money.
It's a win all the way around. But everyone needs to be comfortable with how they run their business, so I understand this doesn't work for everyone.

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I agree with Laurel. As a parent I would also be irked at paying $25 more a week for 1/2 an hour one day. Obviously, you're not willing to budge, so it sounds like you just want to term (just because she asked?). Sounds like you made up your mind.

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I switched to tiered rates this year (similar to how you made your rates). I had two families start at the later pick up, then they changed to the earlier pick up by changing their work schedules and arranging for other pick up people to come. I had another family that started at the earlier pick up, but after a couple of weeks realized they needed to change to the later pick up because there was one day they were not sure someone could pick up by the earlier time and didn't want to pay the higher late pick up fee. So I agree with you, that it is possible if they really wanted the earlier pick up time, it is all up to the parents in my opinion.

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She's not paying 25 more a week, she is paying $3 more a week. She is just not saving 25 a week, since she can't find a way to pick up at 430 on that one random day a week. That is her problem, not the OPs. Time to put on her big girl panties and figure out a way to make it happen if the savings is important to her or find a different daycare.

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I'm really surprised at the number of posters who are questioning the OPs policy/rate structure. A common theme on this board is that it's important to enforce your policies no matter what they are.

Basically what it comes down to is the policy is in place and the parent can either make it work or she can't. I'd be miffed too if a parent decided it was up to me to work my schedule around hers so that she could save some money. No thanks.

I'd term, too. Short and sweet. No reason, no negotiation.

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True but at the same time it's rather confusing to understand and if that's the case it makes it hard to help.

But policies can make you or break you and if we could help someone out that may have a policy that isn't fair it would be nice of us to let them know.

By no means am I saying her policies aren't fair I think they are fair, I just think it's a little hard to
Understand, which may be causing this mom to be angry.

Either way the parent signed the contract so it's up to the provider to enforce it. And your right we should help her to enforce it

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I agree that it is your rate and policies, and you get to set them. But to me, letting them decide each week almost lets them think they can argue it KWIM? I suppose that for some parents it would work great, but some just want to nickle and dime us and apparently you have one of those and that is what she thinks she can do with your structure. You may just have to put her on a flat rate (of your choosing) to get past this issue with her.

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short, sweet and to the point

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Commenting on bolded part:

Yes, it is a common theme of this board. As providers it is sooooo important that we have a backbone and can stand up for ourselves with parents that are trying to take advantage. But, I don't think that we should just blindly agree with each other. I think what other posters and I were saying was just that we can see the parent's perspective in this case. Obviously the parent shouldn't have copped an attitude and I would have an issue with that as well.

I simply just don't agree with her policy. I also structure my rates similiarly and haven't had this specific issue come up, but I don't think it makes sense to charge $25 for 1/2 an hour per week. That IS what she's doing based on her new rate structure. The old rate structure no longer applies and seems irrelevant. Obviously this is OP's decision and it seems like she's made it.

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The way I am understanding it... the new rate is only $3 more than her previous rate. She is paying for an extra 30 mins each day. So $25 for the extra time per week (2.5 hours). I am also thinking this is a relatively newish change.

I am also understanding that this issue is not about the rate change or how much they pay but the fact that these parents think that the amount they pay IS up for negotiation and were downright rude about it. I think the time for questions and comments was when the rate change was implemented, not down the road when you are trying to save a few bucks. I am guessing op's had issues with them in the past.

I agree, everyone has different perspectives. It's one of the reasons I like coming here, to hear all angles because it IS helpful to hear all sides. And yes, perhaps because rates change each week it makes it more susceptible to hearing complaints and/or requests for cutting dcps breaks.

However, I think it was rude of this dcm to even ask for a discount and ruder still to be argumentative about it. This is a business, these are the rates. If she doesn't like the policies and rates, fine, but hand in your notice and look for care elsewhere. Why agree to something and then argue it later? I don't like working with dcps like this and won't.

Yes, you might be able to get past this with future clients, as Thriftylady suggested. Just putting in their set rate with set hours and not allowing any changes. I like Daycare's suggestion of allowing a certain number of changes and then charging for changes going forward. But that doesn't sound like it works for op. So I would term and let this dcf go somewhere where they have the options they need and op has the clients that can work with her rates and system AND respect her.

Honestly, it sounds like dcp was looking at the fact that they *might* be saving $25/week *if* they could pick up earlier and *if* they didn't have to potentially work later. But they can't schedule that way so they can't save money. That's why they are upset, imho. Because they have to pay to secure care that they don't know if they need or not. It's like drop in care and it should come at a premium price.

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This is a good point. I was just surprised at the comments/arguments regarding her rate structure when (at least the way I read it) the OP was just asking for advice on how to terminate this client's contract.

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Bolded:
I completely understand why you changed your policies! I LOVE my tiered rates. Most of my kiddos are gone by 4:15, which is great!

The second bolded part:
This would be the reason that I would term. I don't do special for families who act crazy either. Knowing this, I don't blame you a bit.

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I 100% agree with Snowmom enforcing and following her tiered rate structure.

I think the confusion lies with the fact that families can choose a new rate EACH week. I have weekly rates too and if a family needs a later pick up ONLY 1 time a week, it's THEIR responsibility to either find someone else to pick up at their earlier time like Indoorvoice said OR they can simply pay the higher rate.

It's really that simple. I don't care that the later pick up is only needed once in a while. NOT MY PROBLEM.

If DCM does not like it, then find another program.

I would NOT budge one bit on this.

As a matter of fact if you do, it will be the beginning of the end with this family because you will be expected to always budge when they have a "unique" situation. We aren't paid to deal with the stress and confusion of tailoring rates to fit every family...we are only obligated to set rates that work for our own family.

If this were a family of mine, they'd be paying the higher rate ALL year for that one day because I don't allow them to switch back and forth each week.

IMHO, that IS the compromise and a fair one too.

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This is what I would write.

I might also consider adding a clause that should they pick up late at ANY time during the final two weeks of care that termination will be immediate and no refunds will be issued but that is only if you think the family will do this purposely during the last two weeks... many termed families are awful during the last two weeks so it's good to have that covered before hand sometimes.


Dear DCM

This is written notice of cancellation of the child care services contract.

It has become clear that my program is not a good fit for your family's budget, therefore I feel it is best to terminate the contract so that you are able to find services that better meet your financial needs.

This decision is not personal in anyway and was made with the both your family's and the child care business's best interests in mine.
It is non-negotiable and not open to further discussion

Thank you

Provider.

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That is what I got from it too. They are mad because they want the savings, but they don't want to find a way to pick up at the required time.

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Snowmom,

You have to do what will work best for you....really. Just because I might do it differently doesn't mean a lack of support for you sticking to your new policy. You said yourself that you appreciated both the comments of those who agreed with your policy and those who didn't. That makes sense to me.

Personally if I had a dilemma I would definitely 'want' an opposing viewpoint as long as it was stated nicely. I think it helps to know the pros and cons of what other providers think. I'd be lying if I said I didn't make some business decisions that I wasn't happy with later. So differing ideas/solutions are a good thing, in my opinion.

In the end we have to do what we are comfortable with. That is what is so cool about having our own business.

Laurel

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It’s pretty much that simple. I thought her policy was very clear and easy to understand.

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Thank you Blackcat & Hunnibee, this helped and I ended up terming without any room for negotiations.

Thanks Laurel, I appreciate that and it's totally cool.

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I hope if I run into a situation similar to this I'll have backbone enough to stand strong like you and so many others on this board. We always have to do what works for us, our own families and our business. Too many times I've let dcfs walk all over me and that never leaves a provider feeling good about themselves.

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Glad your term went well!

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Glad your term went well.

I think the majority of daycares charge on your latest pick up time - no matter if they work on contracted hours, the tiered structure or just open to close. Basically that is what you are doing - if there is even once or twice a week that you pick up at 5pm then you pay till 5pm for the week. I wouldn't even allow that to change from week to week so you are more flexible than I would be!

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