Daycare Issue & My Husband!

[Angelwings36]

I having one of those days!!

So I posted earlier about the dual family I currently have at a rate of $950/month. My regular full time fee is $1300/month so this family is getting a $350/month discount. This is also a teacher family so they do not pay over the summer. In one year I am out $6,800.00 because of the discount and no payment over the summer. This family started with me in January of this year.

I decided I needed to change this as we are having troubles with our finances and could use any extra income we can get at this time.

I told my husband today that I was thinking of giving this family notice on April 1st, 2012 that their rate would increase as follows:

May 1st - $1050/month
June 1st - $1150/month

They would then have two months off for the summer and the rate of $1150/month would continue in September 2012.

My husband told me that it is totally unethical of me to raise their rates, since they only started with me in January. He said it's false advertisement since it looks like I started them in on the lower rate just to up it a few months later. It won't be a few months it will be 5 months before their rate changes for the record and 6 until it hits a $150/month discount instead of $350/month.

I told him I would give them the option to find someone cheaper and fill their spaces but apparently that will ruin my reputation.

I am so hurt right now and angry.

Sometimes I feel so alone. It ****s having no support from my spouse!

[familyschoolcare]

Having the new rate start when they return in Sept. might look better to everyone and a straigh up change might be easeir to inforce. I would require a signed contract and a deposite before saving the spot over the summer.

[daycare]

I am much like you, I feel bad when I do things like this to myself.

Does this family have the whole summer off??

[Angelwings36]

I am much like you, I feel bad when I do things like this to myself.

Does this family have the whole summer off??

Yes they do.

[daycare]

Yes they do.

do they pay you for that time?

[AnythingsPossible]

Having the new rate start when they return in Sept. might look better to everyone and a straigh up change might be easeir to inforce. I would require a signed contract and a deposite before saving the spot over the summer.

I agree with this. While you could use the money now, it would be best to wait until the next school year to raise their rate. Most of my teacher families bring their children part time in the summer. Maybe you could talk to them and see if they would be willing to do that. It may help a little.

[Angelwings36]

No they do not pay over the summer at all.

[daycare]

So will you have filled their spot with another family at that time?

DO you charge a holding fee of any kind?

[wdmmom]

I would give the family notice May 1st of your intention to raise rates effective August 1st. And require they tell you by June 1st if they will terminate or return after the summer.

[Solandia]

No they do not pay over the summer at all.

Then it would be natural to set up your contracts with a beginning & end corresponding with the school year. Perfect, and should be something very familiar & natural to your teacher families.

So, each school year = new contracts, INCLUDING a significant nonrefundable fee to hold the spot. What I did with my teacher families, was require a nonrefunable fee (not deposit, a holding fee) for holding a spot for a fall. Without the holding fee, no guarantee of care for their child. I did 1 full week's worth of care, because that is generally enough for them to be serious about it, and not want to lose that money.

good luck!

Edited to add: Any extra days during the summer (even part time) would be considered 'drop in' care, and at my much higher 'drop in' rate.

[MrsB]

Sorry you feel so alone. I discuss lots of stuff with my hubby, but there is a reason he is my hubby and not my business partner! I can't always expect him to understand where I am coming from because he doesnt deal with all the issues. Do you feel you need your husbands approval to make business decisions or did you want his support and didnt get it?

In this situation you have many options. Here are a couple...

1. You could not raise any rates for this school year. When they come back in the fall tell them the new rates.

2. You could tell them that you can't hold their spot over the summer at no charge.

If I was going to raise my rates, personally I wouldn't increase slowly over a few months. To me that kind of shows that you are not firm in what you want your prices to be. Either raise them or dont.

Stand your ground, and charge what you think you are worth! Not just under what everyone else is charging (within reason).

I am not saying this is you, but I see alot of providers set their prices to get people in the door and then get upset at the parents because they pay those prices, when they feel they should deserve more.

[daycare]

As others are saying.... Hubby is hubby.

When does your summer start? June 1?

Whenever summer starts, I would be giving them the information about new rates at that time and also let them know that there is a holding fee of 1/2 each childs tuition due each moth to hold the spot. Let them decide by X date what they would like to do. I bet you they will find another place to go.

Why wait and waste all of that time just to raise the rates when they return and then run the risk of them leaving. YOu just lost all of that income.

I know this sounds mean, but NO sibling discounts. You didn't ask them to have two kids or three kids, it was their choice. I read on here once someone said when a mom asked them for a discount the provider asked does that mean I get to discount the quality of care for your children?

[Lilbutterflie]

Your husband does bring up a good point. They probably will not be happy about such a big increase within their first six months with you; but YOU have to do what is best for YOU and your family. If you are prepared to lose this family because of it; and if you think they can be replaced by clients who will pay your full rate; then go ahead!

I would definitely start off their notice by reminding this family how much of a discount you started off giving them; PLUS they get the whole summer without needing to pay to hold their spot (I definitely would change that in the future by the way... how is it possible for you to hold their spots for such a long time without having to charge them anything? Any extended time off in my contract means they have to pay half the fees in order to hold their spot- and I only give them 12 consecutive weeks max).

[sharlan]

I agree that it wouldn't be right to raise their rates right away. You made a mistake with your rates and now you have to live with it.

I would notify them on May 1 that the rates for the upcoming year will be $***. I would also notify them that you will not save their space if they take off for the full summer.

[emmajo]

The part of this I"m having trouble with is:
"I decided I needed to change this as we are having troubles with our finances and could use any extra income we can get at this time."
And yet your husband is questioning what you are trying to do to help?
Does he have other, [I]constructive [/I]suggestions for how to help your family's finances?
It's not a huge increase you have in mind, really.