Struggling With Rates??? Help Please :)

[rhondawarren]

I am legally unlicensed and prefer to keep things small; I do charge less than the centers in my area, but not by much. Keep in mind that the center rates you have include a larger ratio for providers to kids, so I "spin" it with parents by telling them that the kids will get more one-on-one attention with me for the same money.

Your rates a much lower than my area, but you have to go with what your area can tolerate while still being able to afford groceries. Have you tried checking the local craigslist and seeing if you can find other rates for in-home care on there? If nothing else, I think the idea of having the parents provide lunch while you provide the snacks might work.

Good luck!

I actually believe most parents prefer the smaller number of kids going to be under my care vs sending them to a Day Care and being tossed in with a bunch of kids. Atleast that is the feedback that I have gotten from the parents that I have spoken with.

I am going to take a good look at the rates quotes I got vs what I am currently charging and try to come up with something.

[rhondawarren]

Wow! I charge almost $200.00 for infants, $165.00 for for toddlers, and about $145.00 for 3 through 5 years. I am also on the food program and I serve breakfast, lunch, and afternoon snack.

I would:

1. Drop the morning snack unless it's for under two's.
2. Get on the food program if you're not already.
3. Raise your rates by $20.00 per week.
4. Give 10% off the oldest child.

Wow, I wish I could charge that much

What all is involved with getting on the food program? Is that becoming registered??

10% off of the oldest child - I like how you put that. That sounds like a good idea!

[cheeseheadmama]

I actually believe most parents prefer the smaller number of kids going to be under my care vs sending them to a Day Care and being tossed in with a bunch of kids. Atleast that is the feedback that I have gotten from the parents that I have spoken with.

I am going to take a good look at the rates quotes I got vs what I am currently charging and try to come up with something.

I have gotten that feeling as well. Many people are willing to pay for the small ratio with an in-home environment. Lots of pluses, especially with an infant or toddler.

When I was paying for center care several years ago, the rates in this area were $250 for an infant, $225 for toddler and $200 for older kids and that was based solely on the number of kids that each adult could watch. More kids = less pay per kid. We were in one of the more expensive daycares in the area, but "only the best" for our child was what we thought. My 2 year old was in a class with 7 other 2 year olds and we paid $225 a week. Then rates went up drastically and we were paying $240 each week! Once I found out I was pregnant with our second child I realized there was no way we could afford to pay $500+ per week for childcare. That was more than my mortgage, property taxes and vehicle payments combined!

When I opened my own daycare, I decided to charge $200 per week for full time no matter the age to keep it simple. I have never had anyone complain about the rates being too high, except the family that I started with and they got really used to me being over-accommodating. Part-time rates are considerably higher and right now I have all part time kids. Go figure.

[rhondawarren]

Okay so I done some further investigating in my area. I figured I should also check to see what other unlicensed sitters are charging as well so I am not just going off of Day Care rates when making my decision to increase my rates.

So far for just sitters not day cares these are the replies I have gotten:
((I emailed other sitters on craigslist - I know shame on me but ... I needed to see what my competition is charging so I know where to set my rates))

$130/wk per child
$260/Wk for two

$100/Wk each
$200/for both

$150/Wk child
but since I would be enrolling two then they'd give me a weekly rate of $125/each for a total of $250/Wkly rate

This one I really liked ....

She charges $3.00/Hr with a $100/Wk per child minimum. So for her to keep "my two children" from 8am to 5pm the rate would be $270/Wk.
I kind of liked this idea because ... it elminates the parents that think well I can drop them off as many hours as I want during those days since I have a flat rate so here just keep my kid 10, 11, 12 hours They may think twice if there is an hourly fee after the min rate Great idea! ^5 to her ::

So as you can see ....

My full time rate of $100/Wk for the first child and $75/Wk for each additional child and me providing all food is just to low! Im not making enough to make it worth it this way.

Just thought Id share my results of my investigation today

[Sunchimes]

Mrs B, I have never called around for prices.


I had my granddaughter do it for me. (no smiley faces on quick reply so just imagine the big grinning one here.) And by the way, she called 3 and only one would give her any information. ;-)

[Sunchimes]

I want to throw in some info here. It isn't really relevant to your question, but since you are new, it's info you might find useful. I wish someone had told me when I started.

Learn about you income tax rules. They are completely 100% different for day cares. We get tax breaks that other home businesses don't get. It is vital that you know these--because few tax preparers know them. Mine is a CPA and she didn't know.

Keep detailed records of the hours kids are in your care each day.

Keep detailed records of the time you spend doing day care things in your house (cleaning, laundry, etc) after the kids are gone. Even some forum time counts.

Keep detailed records of the meals you feed. If Billy eats breakfast, lunch, 2 snacks, mark it on an attendance/meal sheet. At tax time, you get meal deductions--I think this year is was 66¢ per snack and $1.53 or something for lunch. But, in case of audit, you have to be able to prove what days you had kids and who ate what meal.

Learn about your time/space ratio. It will save you a bundle at tax time. Go to the taxes forum here and read backwards through the posts. Tom Copeland is our resident tax expert. He specializes in day care tax law and there isn't much about it that he doesn't know. Get his books if you can. Read his blog...http://www.tomcopelandblog.com. Go back through old blog posts. I'm serious. I didn't know this stuff until months after I started, and because I've owned businesses all of my life, I am compulsive about recording stuff and saving receipts. I was lucky in that because I could re-create almost everything. For example, did you know that you can deduct a portion of the paper towels you buy, even if you use them for your family too? Tom's books explain that.

I'm sure others can add things that would be helpful.

[CheekyChick]

Wow, I wish I could charge that much

What all is involved with getting on the food program? Is that becoming registered??

10% off of the oldest child - I like how you put that. That sounds like a good idea!

I live in an area that charges anywhere from $600.00 to $1,100.00 for infants. It really is a lot of money, but having the staff to accomodate the wee ones is very expensive.

Yes. You always give your discount to the eldest child because they (usually) have a lower rate.

I would google USDA Food Program in your city to get more info on how to sign up. It's a GREAT deal.

[CheekyChick]

She charges $3.00/Hr with a $100/Wk per child minimum. So for her to keep "my two children" from 8am to 5pm the rate would be $270/Wk.

I kind of liked this idea because ... it elminates the parents that think well I can drop them off as many hours as I want during those days since I have a flat rate so here just keep my kid 10, 11, 12 hours They may think twice if there is an hourly fee after the min rate Great idea! ^5 to her ::

On the flip side, if the child is sick, on vacation, grandparents in town, etc. - you will NOT get paid. Flat rate works great because you get paid whether they show or don't show.

[MrsB]

This one I really liked ....

She charges $3.00/Hr with a $100/Wk per child minimum. So for her to keep "my two children" from 8am to 5pm the rate would be $270/Wk.
I kind of liked this idea because ... it elminates the parents that think well I can drop them off as many hours as I want during those days since I have a flat rate so here just keep my kid 10, 11, 12 hours They may think twice if there is an hourly fee after the min rate Great idea! ^5 to her ::

I definately see the benefit of this. If you like this style check out nannyde's rate scale. The rate is based on their scheduled go pick up time. So the sooner your pick up the lower the weekly rate.

Let me go find the link! *cue elevetor music* .........

[MrsB]

https://www.daycare.com/forum/showthread.php?t=14481&highlight=overtime

https://www.daycare.com/nannyde/quality-time-vs-quantity-time.htm

[rhondawarren]

What are your hours? Is there a reason why you have to serve breakfast at all? Unless kids are coming at some crazy hour, I think parents should just get up a few minutes earlier and do breakfast themselves. My kids get here beginning at 7:30 and I dont serve breakfast.

Right now all my kids come from about 8am to 6:30p. I offer breakfast because my children are homeschooled and they get up at different times. When my kids eat ... the babysitting kids want to eat. So I just ended up serving breakfast too. If that makes sense ...

[rhondawarren]

https://www.daycare.com/forum/showth...light=overtime

https://www.daycare.com/nannyde/qual...ntity-time.htm

Thanks! I will check this out! My only problem is ... I have my parents pay in advance. So they pay for the week ahead of time. Therefore ... figuring out what they owe would have to be paid on the next week I guess ... :confused:

[Blackcat31]

Thanks! I will check this out! My only problem is ... I have my parents pay in advance. So they pay for the week ahead of time. Therefore ... figuring out what they owe would have to be paid on the next week I guess ... :confused:

Almost ALL providers are pay in advance. You figure out the parents bill by working from the schedule they give. If they say they are coming every day from 8-6:30 then you bill for those hours/days and if the parents come at 7:00 for pick-up, you attach a late fee as they were suppose to be there at 6:30.

If the parents don't drop off until 9:00 but were scheduled to be there at 8:00, they are still charged for that hour (from 8-9) because they were scheduled, you were up and ready to care for them and if they choose to be late, that is their problem not yours.

The trick is to get your parents to give you a SET schedule that tells you the exact hours they need each day and how many days per week. That is the time they are pre-buying. If they choose to not use all the time they paid for, that is tough. If they use MORE time than they paid for, you charge a late fee.

It is rather simple once you figure it all out.

[rhondawarren]

Almost ALL providers are pay in advance. You figure out the parents bill by working from the schedule they give. If they say they are coming every day from 8-6:30 then you bill for those hours/days and if the parents come at 7:00 for pick-up, you attach a late fee as they were suppose to be there at 6:30.

If the parents don't drop off until 9:00 but were scheduled to be there at 8:00, they are still charged for that hour (from 8-9) because they were scheduled, you were up and ready to care for them and if they choose to be late, that is their problem not yours.

The trick is to get your parents to give you a SET schedule that tells you the exact hours they need each day and how many days per week. That is the time they are pre-buying. If they choose to not use all the time they paid for, that is tough. If they use MORE time than they paid for, you charge a late fee.

It is rather simple once you figure it all out.

Makes perfect sense! So lets say I charg them for their hours they choose in advance. Then they actually stay later and I want to charge by the hour adter their scheduled time, then would I just have them pay the overage that they owe for the week before that next week when they are paying for the next week in advance.

[Blackcat31]

Makes perfect sense! So lets say I charg them for their hours they choose in advance. Then they actually stay later and I want to charge by the hour adter their scheduled time, then would I just have them pay the overage that they owe for the week before that next week when they are paying for the next week in advance.

Late fees are due at the time of pick up. So let's say a family is 15 minutes late. I charge $1 per minute after their scheduled pick up time so I would have them pay $15 in cash when they pick up. I don't just let them be late though with no notice. If they have traffic problems, I expect them to call and let me know.

Sometimes I need to be somewhere and I cannot allow them to be late so they will have to make alternate arrangements for someone else to pick up but otherwise they pay ALL late fees each at pick up.

Don't just let them be late 3 days in one week and simply add the late fees to the next billing....that allows for them to take advantage of you and that is just rude and disrespectful.

My parents all give me a written schedule with payment on Fridays for the upcoming week. So today I will be collecting times and days along with payment from all my parents. If they don't pay today and want to do it Monday, they have a late fee added on Monday because payments are all due on Fridays. I also do not EVER let a parent drop off on Monday morning and say they will pay at pick up time. NEVER ever provide care without payment in full.

So if a family is late on Tuesday, don't let them just pay their late at the end of week. The late fee for Tuesday should be paid on Tuesday at pick up time and the regular bill should be due on whatever day you normally have it due.

Does that make sense? (Didn't realize I wrote so much...LOL!!)