Daycare.com Forum Daycare 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 12-26-2015, 07:59 PM
Unregistered
Guest
 
Posts: n/a
Default Figuring Out How to Raise Rates Without Hurting a Friend

So long story short, I've been keeping a friends little girls for the past four years. I used to charge $25 per day, per child, and I didn't give a discount for the second child. Mom decided to stay home a year after the second was born, which was great for the girls. However, she didn't love ONLY staying home and wanted to bring in a bit of money. So she took an hourly job where she worked at home. She brought the girls to me around ten to fifteen hours a week and I felt bad for charging her a massive part time rate since she made SO much less now. I know, I know, not my problem, but she's a friend. So I charged $5 an hour for one or the both of the kids. Total. So she was charged the same whether it was one or both girls. She's never taken advantage, only bringing the second when she was desperate. Normally she's in preschool. The issue is that she's expecting in the spring, and I will be keeping the new baby along with the other child. I don't want to charge only $5 an hour for a newborn and a preschooler combined. But I don't think she could swing $10 an hour to cover both kids either. Is there a fair way to do this for both her and me? What do you think I should do? And getting rid of the family isn't an option. They've been very good to me, but I also don't want to do work for free! A newborn is kind of a pain when the next youngest kid is well over two!
Reply With Quote
  #2  
Old 12-26-2015, 08:28 PM
Thriftylady's Avatar
Thriftylady Thriftylady is offline
Daycare.com Member
 
Join Date: Aug 2014
Location: Ohio
Posts: 5,887
Default

Quote:
Originally Posted by Unregistered View Post
So long story short, I've been keeping a friends little girls for the past four years. I used to charge $25 per day, per child, and I didn't give a discount for the second child. Mom decided to stay home a year after the second was born, which was great for the girls. However, she didn't love ONLY staying home and wanted to bring in a bit of money. So she took an hourly job where she worked at home. She brought the girls to me around ten to fifteen hours a week and I felt bad for charging her a massive part time rate since she made SO much less now. I know, I know, not my problem, but she's a friend. So I charged $5 an hour for one or the both of the kids. Total. So she was charged the same whether it was one or both girls. She's never taken advantage, only bringing the second when she was desperate. Normally she's in preschool. The issue is that she's expecting in the spring, and I will be keeping the new baby along with the other child. I don't want to charge only $5 an hour for a newborn and a preschooler combined. But I don't think she could swing $10 an hour to cover both kids either. Is there a fair way to do this for both her and me? What do you think I should do? And getting rid of the family isn't an option. They've been very good to me, but I also don't want to do work for free! A newborn is kind of a pain when the next youngest kid is well over two!
You have to put business first. Let her know that you can't continue to do that on a regular basis. If you WANT do you could do it as drop in when you have space, but not reserve a space for her. She has made the choice to work the job she does, so it isn't really up to you to work the finances out for her.
Reply With Quote
  #3  
Old 12-27-2015, 05:31 AM
finsup's Avatar
finsup finsup is offline
Daycare.com Member
 
Join Date: Jul 2013
Location: Maine
Posts: 1,034
Default

Being that she's a friend,I may just say that after re-doing your budget you've realized you need to make some changes. Then explain what the new rates will be, state its nothing personal and hope they understand. I so get it because I used to have the mentality of "how will they afford this?!" But you know what, that's up to them to work out. Even as a friend, their finances and budgets are their business, no one else's. It's nice of you to be so considerate but you've been giving them a great deal for a while, I can't imagine they would be too surprised to hear the rate goes up with a newborn.
Play with the numbers a bit. You could offer a daily drop in rate, a higher hourly rate, or a part time rate and let them choose what fits their budget best. If you're in a position where you can do that.
Reply With Quote
  #4  
Old 12-27-2015, 08:46 AM
Controlled Chaos's Avatar
Controlled Chaos Controlled Chaos is offline
Daycare.com Member
 
Join Date: Jun 2014
Posts: 2,131
Default

Definitely let her know asap about the new rate so she can plan ahead.

Are you licensed? Sounds like she would qualify for government assistance.

I would be super honest and super firm. "I have been charging the least amount possible for x amount of time but I can no longer afford to continue care for your current rate. As of ----date your rate will be ---$ per child. Thank you for understanding I have to do what's best for my family. I hope to continue caring for you children for a long time, but if you can't afford the new rate, I understand it isn't personal. We must both do what is best for our families. please give me at 2 weeks notice if you choose to leave for cheaper care. "

Some will say this is too wordy and it might be, but friends sometimes get a few extra words
Reply With Quote
  #5  
Old 12-27-2015, 11:36 AM
childcaremom's Avatar
childcaremom childcaremom is offline
Advanced Daycare.com Member
 
Join Date: May 2013
Posts: 2,969
Default

Quote:
Originally Posted by Controlled Chaos View Post
Definitely let her know asap about the new rate so she can plan ahead.

Are you licensed? Sounds like she would qualify for government assistance.

I would be super honest and super firm. "I have been charging the least amount possible for x amount of time but I can no longer afford to continue care for your current rate. As of ----date your rate will be ---$ per child. Thank you for understanding I have to do what's best for my family. I hope to continue caring for you children for a long time, but if you can't afford the new rate, I understand it isn't personal. We must both do what is best for our families. please give me at 2 weeks notice if you choose to leave for cheaper care. "

Some will say this is too wordy and it might be, but friends sometimes get a few extra words


I like the wording of this. It is polite but firm and gives you both the option to do what you need to do, without repercussions for the friendship.

I am sure your friend will understand.
Reply With Quote
  #6  
Old 12-27-2015, 08:53 PM
Preschool/daycare teacher's Avatar
Preschool/daycare teacher Preschool/daycare teacher is offline
Daycare.com Member
 
Join Date: Jan 2010
Location: N/A
Posts: 635
Default

Actually, for a good friend, I think I'd talk to her in person about it. I feel like they deserve that much. When she asks you to also watch the baby, just matter of factly and very nicely say something like, "Oh yes, I would love to! I would need to charge a little more since she's an infant and will be here as often as dcg". And then quote however much you want to charge. I'm sure she doesn't expect you not to charge any extra for her new baby, or I might begin to doubt how good a friend she was. Like the other posters have said, it's up to her to decide if the extra childcare costs is worth it to keep doing what she's doing. And I'm almost positive she wouldn't find a cheaper deal where a provider would hold a spot for three kids at the price of one kid, especially for so few hours each week. I imagine she will gladly pay a little more for baby, and completely understand the need to charge for the second child. $10/hour for both kids sounds beyond fair to me
Reply With Quote
  #7  
Old 12-28-2015, 11:36 AM
Ariana's Avatar
Ariana Ariana is offline
Advanced Daycare.com Member
 
Join Date: Jun 2011
Posts: 8,970
Default

So she can't afford to pay you more for childcare but she can afford to have more children?!! I'm sorry but it sounds like she needs to plan for her own financial future. This really is not your problem. She is probably having more kids because of the cheap labor she is getting.

Agree with the above firm response to her. I also agree that it should be spoken about in person with her. I know that can be difficult but you could just say something like "I need to discuss my rates with you....I will send you an email this evening with more specifics...but just to let you know rates will be increasing" and then email her the details.
Reply With Quote
  #8  
Old 12-28-2015, 12:08 PM
laundrymom's Avatar
laundrymom laundrymom is offline
Advanced Daycare.com Member
 
Join Date: Nov 2010
Posts: 4,222
Default

I would just tell her that your rates have gone up and that they are ::x,y,z.
Then leave it in her court.
She got pregnant. You didn't.
Reply With Quote
Reply

Tags
friends as clients, rate increase

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not 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
Awareness and Need Support! Product of a Daycare New Members - Welcome to the Daycare.com Forum! 3 12-31-2015 01:46 AM
How Soon Is Too Soon To Raise Rates?? Tdhmom Daycare Center and Family Home Forum 9 09-02-2013 11:33 AM
Raise Rates Yearly? Or Lower When They're Older? LaLa1923 Daycare Center and Family Home Forum 20 05-07-2013 01:41 PM
How Much To Raise Rates? Unregistered Daycare Center and Family Home Forum 8 03-12-2013 01:25 PM
When Should I Raise Rates? EchoMom Daycare Center and Family Home Forum 0 06-29-2012 08:54 AM


All times are GMT -7. The time now is 04:18 PM.



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