Daycare Payment Formula Question

[daycare]

So I have decided to change the way that I am charging the parents, using the formula of:

weekly payment x 52 weeks then divide by 12 and this will give you the monthly payment.

I do not close, except for a possible vacation, which seems to average about 4 days a year. I am closed for major holidays, including day before Christmas, the day before New Years...


I have a parent that is challenging me on the new payment formula that I am using saying that there are not actually 52 weeks of care in the year and that now they are having to make an additional payment....

How do I explain in detail this method and that I am not charging extra. I do not charge when I close, but will credit the parents back the difference if and when I do.

I am now starting to question if I am doing this wrong?????? help please

[MamaG]

They get paid an extra pay check when the month has 5 weeks. Everyone does! So if you haven't charged correctly you have been working two weeks a year for free. If they disagree or argue tell them to feel free to go somewhere else for child care.

[Meeko]

No...you are fine. There are 52 weeks in a year.

What calendar is the parent using!

Your formula means even payments over the year unless you credit them back for a few vacation days.

I have had people question it too tho'. They tend to think the monthly fee should be the weekly fee X four.

I've had to actually pull out a calendar to show that some months have 5 Fridays and do they expect me to just go without pay for that Friday???? That usually hushes them up!

[daycare]

Originally Posted by Meeko

No...you are fine. There are 52 weeks in a year.

What calendar is the parent using!

Your formula means even payments over the year unless you credit them back for a few vacation days.

I have had people question it too tho'. They tend to think the monthly fee should be the weekly fee X four.

I've had to actually pull out a calendar to show that some months have 5 Fridays and do they expect me to just go without pay for that Friday???? That usually hushes them up!

lol yes I did actually do that already, so I don't understand what is going on here.

I got the calendar out and showed them exactly how many weeks are in the year.

I think that this parent just loves to push my buttons

[julie]

Why don't you tell her that you realized your math was wrong before and you were actually working two weeks for free the way you were charging before. You had considered charging back pay for those missed weeks, but just thought it was better to start the new year with the new pay system to ensure that you are compensated fairly for every day of care you give. Then silence.

I have the personality that I tend to give it right back when a parent starts giving me action about things like this. I do it in a nice way, but at the same time letting them know it is NOT OK for them to tell me how to run my business or how I charge. If they don't like someone challenging them right back, they can go elsewhere. I have my policies for a reason! Don't let them push your buttons. It will always be something with these types of clients.

[Crazy8]

there are 52 weeks in a year, how are there not 52 weeks of care????

You could give her the 4.3333 formula instead if she's hung up on the 52 weeks thing. Since some months have 4 weeks and others have 5 weeks it averages out to 4.3333.

weekly payment x 4.3333 = monthly payment

should equal the same as weekly payment x 52 / 12.

[daycare]

Originally Posted by julie

Why don't you tell her that you realized your math was wrong before and you were actually working two weeks for free the way you were charging before. You had considered charging back pay for those missed weeks, but just thought it was better to start the new year with the new pay system to ensure that you are compensated fairly for every day of care you give. Then silence.

I have the personality that I tend to give it right back when a parent starts giving me action about things like this. I do it in a nice way, but at the same time letting them know it is NOT OK for them to tell me how to run my business or how I charge. If they don't like someone challenging them right back, they can go elsewhere. I have my policies for a reason! Don't let them push your buttons. It will always be something with these types of clients.

I did charge weekly before, but they have always paid monthly so it's not like I am collecting more....

[julie]

Originally Posted by daycare

I did charge weekly before, but they have always paid monthly so it's not like I am collecting more....

Ah, I guess I misunderstood. So were they just multiplying the weekly rate by 4 weeks to get a monthly rate? I mean, what has changed in the payments that would make them question any changes? Sorry, I have always charged monthly so this is new territory for me.