Raising Rates For After-School?

[cheeseheadmama]

I hope some one can give me a little guidance about an issue regarding raising my rates.

I have been providing daycare for a family for almost 2.5 years. They have 2 girls (ages 4 & 7) and until recently I have let them "drive" the relationship. We agreed in the beginning that since our families were friends previously, we were adult enough to function without a written agreement (which I now know was a BIG mistake). They have needed part time care of 28 hours per week (or less) and I have been charging them $5 per hour per child, however, they do not pay if their kids are not here (sick, vacation, schedule change, etc.). After some bad experiences this summer with not being given any notification of time off, I decided that we needed an agreement/contract to get this in writing so I stopped getting taken advantage of. I sent them the agreement via email on Aug 4 and made it valid starting with the school year Sept 1. After many attempts to get the signed agreement back from them they are now telling me that they are not willing to pay the new higher rate for their school age child who is only here a total of 8 hours each week. Due to the limited hours she is here, I decided to charge a flat fee of $15 each day for the after school care, rather than the $10 they were expecting. The rates for their younger daughter remained the same. Overall, their weekly rate went up $20 and it is the first time I have increased my rates since they started with me.

Is $15 out of line for in-home after-school care? (center after school care around here is about $7.50/hour but does not offer part-time care fee reduction) Since it has been 7 weeks since I sent them the agreement I do NOT want to change my position but just need to know if I am being reasonable or not. How firmly do I stand my ground?

Please help!

[mac60]

I think the rates totally depend on the area. Here, I just lost a family because I was going to charge them $55 per week for 2 kids after school care. They said it was too much. The centers would of charged $75 or $90 for 2 after schoolers. Some people just want care for basically nothing.

[Meyou]

$15-$20 is the going rate here for afterschool. $25 if you have them before school as well. Most after school providers around here transport to and from school either by car or walking for that price.

I'm charging $20/day next Sept when a DCK aged out. He lives in our school district and his sister will be here so they're happy to pay $20 for 230-530 and one morning a week to keep him here.

[MommieNana4]

No you are not being unreasonable. They have had it GREAT for almost 2.5 years. I am glad that you are now going with a contract...always the best even with friends. Stand firm!

[Unregistered]

What do the parents think is going to happen? Do they plan to continue sending her and paying what they want? As a parent, I would never think I could do that.

I think $15/day sounds like a deal, although I agree with the pp that it really depends on the area. It sounds like you've done your research and that it's not out of line for your area and a better deal than after school care. I would enforce it, I think their reaction is ridiculous. If you do it though, I would be prepared to lose them both and the friendship (sounds like it's already deteriorated).

[familyschoolcare]

I charge $100 a week for school aged care on school days, worded just like that it is not before and after care it is care on school days so do not ask for a discount B/C Johnny will only be here for 2 hours a day.

Are you picking the child up from school?
Are you feeding them an afternoon snack?
Do you help with homework? Do you supply pencils ect?

These are all services that cost money.

[wdmmom]

Depends on the total number hours they are using per week.

Where I am, elementary children don't get out of school until 3:55pm. A walk, drive or bus ride would take 10-20 minutes. For an hour and 15 minutes of care 4 days per week & every Wednesday is an early out so it'd be 2 hours. I would charge $35 a week.

They're getting a deal and if they don't want to sign your agreement, you need to decide when their last day is. Plain and simple.

[cheerfuldom]

yes give them a time limit to sign the agreement! I would give one week....they are stalling and bullying you by holding that contract hostage!

[momma2girls]

I do not take school aged before and after school any longer- you have to definately make it worth it to do it. I didn't charge near enough!!
You have extra children, coming in waking up everyone. I felt I had to find them something to do every min. while they were here. They were very LOUD, always bringing in sicknesses, and giving it to everyone else. Then you have to figure in, what if school gets out early, late starts, no school, snow days, and on and on----

[TBird]

I think the rates totally depend on the area. Here, I just lost a family because I was going to charge them $55 per week for 2 kids after school care. They said it was too much. The centers would of charged $75 or $90 for 2 after schoolers. Some people just want care for basically nothing.

UM....YES!!! Same thing happened here. Local After School program charged $136 per week for two kids. I was gonna charge my neighbors $95 per week. It was too much AND our boys were supposed to play together on the weekends. She had her hubby call me (who I hadn't even been dealing with) and I told him that I would go down on the price but whatever they decided, let's still have the boys be friends & play together. Haven't heard from them SINCE. :confused:

I don't even think I'm gonna do SA's until I have my assistant....I don't need the school age DRAMA!!!

[cheeseheadmama]

Thank you to everyone for your guidance. I stuck to my guns and sent them a very professional letter stating that I was not taking anything less, they owed me for back pay and I would be sad to see them go but they needed to do what was right for their family. They were trying to bully me into taking less money because they were expecting me to cave but they were disappointed.

A sign of my victory was the mom stopping here to apologize in person and make sure there weren't any hurt feelings. So not only did I get them to agree to the increase, I got them to say they were sorry about not doing it sooner.