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  #1  
Old 06-19-2012, 07:53 AM
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mrsp'slilpeeps mrsp'slilpeeps is offline
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Default I’m Going Broke and I Need Help Revising My Fee's

Currently all of my families except for 2 pay me only when the kids are there for the month.

I clearly cannot afford to do this anymore and I need help with this.

How many days a month/week do you consider to be part time?

How many days a month /week do you consider to be full time?

Im not out to get rich but $180.00 a month is not working anymore.

I am ready to tell these parents that if your child is here over 10 days a month, you need to pay full month payment.

I need help and opinions please.
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  #2  
Old 06-19-2012, 08:02 AM
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If I am open, payment is due. My families all have contracted days...most are m-f. I could care less if they come or not, they have to pay for their contracted days. I could never not know what I had coming in financially each week...that would be way too much of a strain on my family.

We live in very different areas, but I can't imagine only getting paid 180 a month! I charge 275 per week for full time care, and I am only open from 7:30-4:00 each day.

Maybe tell them there is a minimum payment required for a month - regardless of attendance. Can you switch to contracted hours/days so you will know who is coming and when? That way, even if they don't show up you know payment is due.

Sorry you are struggling - it can take a while to figure out how to make this all work!
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  #3  
Old 06-19-2012, 08:11 AM
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I have a family that does not want to pay full day cause daycare is too expensive.

She pays $30 a day for her daughter but will only pay $5 an hour for her son to be here for an hour and a half.

Then when they dont show up she takes that money of off next months pay.
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  #4  
Old 06-19-2012, 08:16 AM
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mrsp'slilpeeps mrsp'slilpeeps is offline
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This is what i charge for monthly fees.

4-5 days a week is considered full time, $650 a month.
2-3 days a week is considered part time, $400 a month.

Is this too much or too low?

My brain is going round in circles!!!
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  #5  
Old 06-19-2012, 08:16 AM
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Quote:
Originally Posted by mrsp'slilpeeps View Post
Currently all of my families except for 2 pay me only when the kids are there for the month.

I clearly cannot afford to do this anymore and I need help with this.

How many days a month/week do you consider to be part time?

How many days a month /week do you consider to be full time?

Im not out to get rich but $180.00 a month is not working anymore.

I am ready to tell these parents that if your child is here over 10 days a month, you need to pay full month payment.

I need help and opinions please.
I consider 4-5 days a week full time. The 4 day rate varies from the 5 day rate though and ONLY full time families "earn" credit/absent days. The 4 day a week families earn 1 day every 8 weeks and the 5 day a week families earn 1 day every 4 weeks. The credit/absent days do NOT accrue.

For part timers (less than 4 days per week) I have a flat rate of $100 per week. That is the minimum amount of time I am willing to do. That $100 buys you 3 days of care (max 9 hours per day) and the days MUST be set days (same days each week).

If you want 3 various days you pay the same rate as my full time 5 days a week families.

Part time families pay the same amount every week with no credit for any absent days.

Those options are the ONLY way to avoid drop in rates which are $45 per day with advance notice and availability is subject to MY schedule and willingness to provide care.
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  #6  
Old 06-19-2012, 08:20 AM
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Quote:
Originally Posted by mrsp'slilpeeps View Post
I have a family that does not want to pay full day cause daycare is too expensive.

She pays $30 a day for her daughter but will only pay $5 an hour for her son to be here for an hour and a half.

Then when they dont show up she takes that money of off next months pay.
No kidding is daycare expensive! But it isn't like you are rolling in the dough by being a child care provider. I would tell her that good quality child care is not expensive....it is priceless!

Why are you allowing her to TELL you what her rates will be? I would never ever allow a client to dictate to me what my rates are or should be.... you need to stop allowing that to happen. I would tell her that she is not paying for his space, she is paying for the availability. I would also tell her you do not offer care on an hourly basis (unless you do). Don't allow a client to run you business.
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  #7  
Old 06-19-2012, 08:34 AM
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No way would I put up with that from a family. I have been in this position, and it is awkward to have to discuss money - but it MUST be changed.

If she takes a vacation, would she deduct some money from her electric bill or her cable bill because she didn't use the service? It is hard to switch your way of thinking about it, but it is a business. She is not allowed to tell you what she will or won't pay. That is just ridiculous!
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  #8  
Old 06-19-2012, 08:36 AM
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Its still me, just on my phone!

She feels that she should only pay for the time that he is here. I don't do hourly for anyone else.

I know that if I redo my contract, she will leave. I won't be too upset cause that's 2 spots I could fill.

I just don't know how to go about this without looking greedy.
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  #9  
Old 06-19-2012, 08:38 AM
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I charge PT 4 days or less $130 week and FT 5 days $140 week. Infants are $150 a week regardless of the hours/days. I did have one school ager at $100 a week this year but he is back to $130 during the summer.

I do allow my parents to choose which 4 days to send their kids since they are only $10 away from a full time fee anyway. I like having them gone 1 day and the $10 is worth it in my opinion.

There is a provider here who charges $25 a day and requires like 14 days per month minimum. That way she knows she will have a set rate minimum per month.

I wouldn't let people determine your fees. Do what you need.
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  #10  
Old 06-19-2012, 08:42 AM
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Would one of you be willing to help me word out a letter to pass along to my parents about this fee change?

I would like to do this effective Sept 1st.
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  #11  
Old 06-19-2012, 08:54 AM
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Quote:
Originally Posted by mrsp'slilpeeps View Post
This is what i charge for monthly fees.

4-5 days a week is considered full time, $650 a month.
2-3 days a week is considered part time, $400 a month.

Is this too much or too low?

My brain is going round in circles!!!
Those rates are about average for my area. That being said, your area may have a different average and I don't know enough about your program to know if you should charge above average, kwim?

I would change the bottom bracket to 0-3 days/week is considered part time. If your child is enrolled, you pay for the month, period, whether they're there 1 hour/week or 3 days/week. If they don't want to do that then they can do drop in (if you're willing) under Blackcat's terms (daily rate and subject to availability). As a parent, I would never expect a provider to hold a spot for me without a consistent schedule of attendance and payment.
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  #12  
Old 06-19-2012, 08:59 AM
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Breezy Breezy is offline
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Quote:
Originally Posted by Unregistered View Post
Would one of you be willing to help me word out a letter to pass along to my parents about this fee change?

I would like to do this effective Sept 1st.
BlackCat is fabulous at letters!!
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  #13  
Old 06-19-2012, 09:28 AM
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cheerfuldom cheerfuldom is offline
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whoa hunny! you came to the right place! you need a huge revamp in your charges and policies effective immediately. then replace any families that are not able to abide by the rules.

*all payments in advance, no refunds
*parents pay by the full day regardless of how many hours their child is in care, no hourly fee
*four or five days a week is the full weekly payment and is to be paid regardless of attendance
*part timers provide you with a schedule one month in advance, pay in advance and are not refunded should their child not attend (I do credit towards the future if a child does not come on occasion but dont feel that you have to do that). no drop ins without prior approval

dont feel that you have to justify your policies or prove that you have a good reason for them. you cannot worry about looking greedy or anything like that. forget about that. do what you need to do and if the parent doesnt like it, they can leave. Do you really think any other business out there is worried they will look greedy if they charge a fair rate for their services? I can guarantee that daycare facilities, preschool, and private schools dont care about that.
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  #14  
Old 06-19-2012, 10:24 AM
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RubyBell RubyBell is offline
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Sounds like this woman needs a babysitter and not a daycare provider. Don't let her take advantage of you. ALL daycare centers and experienced daycare providers have policies in place for this very reason. She is preventing you from filling spots with families that will pay you for contracted time instead of only when they choose to bring their kids. There is nothing greedy about this. If you think about it, most of us are working for around $2-$3/hr per kid. Which honestly isn't anywhere near enough to be considered "greedy". If she chooses not to abide by your new policies then let her go. You'll be glad you did.

Good luck
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  #15  
Old 06-19-2012, 10:24 AM
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Quote:
Originally Posted by cheerfuldom View Post
whoa hunny! you came to the right place! you need a huge revamp in your charges and policies effective immediately. then replace any families that are not able to abide by the rules.

*all payments in advance, no refunds
*parents pay by the full day regardless of how many hours their child is in care, no hourly fee
*four or five days a week is the full weekly payment and is to be paid regardless of attendance
*part timers provide you with a schedule one month in advance, pay in advance and are not refunded should their child not attend (I do credit towards the future if a child does not come on occasion but dont feel that you have to do that). no drop ins without prior approval

dont feel that you have to justify your policies or prove that you have a good reason for them. you cannot worry about looking greedy or anything like that. forget about that. do what you need to do and if the parent doesnt like it, they can leave. Do you really think any other business out there is worried they will look greedy if they charge a fair rate for their services? I can guarantee that daycare facilities, preschool, and private schools dont care about that.
You are so absolutely right on! And why should you give that boy who comes 1.5 hrs a spot when some other kid might come for 8 or 9 hours.
I agree to take the above advice. Parents need to pay even if they do not come.
You could keep this family while you start interviewing other families. Make sure all new families get your policies (and have them sign it!) before they start.
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  #16  
Old 06-19-2012, 10:42 AM
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Sugar Magnolia Sugar Magnolia is offline
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Dear parents,
Effective September 1, my rate schedule will be changing. Payments are now due weekly, there is no monthly payment option anymore. If your child attends full time (Monday through Friday), your rate is $ *** per week. For children attending part time, I an now implementing a three (3) day per week minimum, and that rate will be $ xx per week. IMPORTANT CHANGE: Tuituons are now due weekly, in advance. You must pay your tuition on Friday by 6pm for the following week. Unpaid tuituons will incur a $25 late fee on Monday morning, and your child may NOT attend until all tuition and late fees are paid in full. Your weekly tuition ensures your child's spot is available. If you choose not to attend, there are absolutely NO refunds of tuition, nor will any "credit" be given. I will no longer be allowing you to not pay tuition on days your child is not in attendance.

I would ditch monthly payments. I would absolutely require payment in advance. These parents are paying to ensure the spot is available. If they take a day off, too bad and so sad, but they must pay.
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