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Daycare Center and Family Home Forum>Considering Restructuring...What to do?
AfterSchoolMom 11:58 AM 05-19-2010
Right now I offer three different rates for care - since I only care for school aged kids, I have a before school only rate, and after school only rate, and a rate for both before and after.

I have a great group of kids this year, but I'm losing two of my older ones for next year, so I am really thinking about "downsizing" and going with a smaller group. However, I am also raising my rates a bit. Lately I've been considering how to get by with less money next school year, as the majority of the remaining kids are afternoons only. I think I'd end up making more in the long run if I don't even offer before or after only, but accept only those who need both.

My remaining two families have both indicated that they want to send their children back here next year. However, one is a single parent (I know, I know ) and I know they won't be able to afford the higher rate. I have no other problems with them at all. Is it wrong of me to terminate them because I want to restructure things so that I can make more with less children? How would I even go about telling the parent? I know it should be a "business decision", but I like this family.
MarinaVanessa 12:03 PM 05-19-2010
I don't think it's bad at all, I'd approach her with what you are doing early and let her know that the rate will be going up and that you will only offer (blah, blah, blah) and offer her a choice to stay or go. Then you can write up a notice to all parents to notify them with the actual date of the change. This way she won't feel like you are pushing her out and more like it's her choice to leave.

I find I have better results if I wrote out a notice but explain each change individually so that I can address any concerns one at a time with them. If she asks why you are doing it, be honest and say that the rates/services you have right now are not working out for you financially and you are forced to make changes. Good luck to you!!
AfterSchoolMom 08:40 AM 05-20-2010
That's good advice. Thanks!
Tags:rate increase
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