So How Did You Come Up With Your Rate And Policies?

[Provider_Manda]

I have read a lot on here lately about other provider's rates, pay schedules and just how they run their own business. I was wondering if it took most of you provider's years before you had it in a good working order ?

I charge $25/day for infant/toddler and $20/day for preschool/schoolager. If I get a child on and off the bus and only for a total of 2 hours I charge just $3/hr for that child. (I done that to help out the sibling family I have)

I do not charge for hoildays, they do not pay while they are on vacation or have a day off, nor do I charge while I am on vacation.

The more I have read here, the more it seems to me that I am pretty much watching kids free!! Im not sure I could fix it now since I would prolly lose all my private pay. And for a friend instead of paying weekly, Im allowing her biweekly. So am I going about this all wrong? I thought I knew what I was doing, but when I comes down to it..I have no idea really how to run a successful business.. I have been a home daycare provider for 14 months now..so maybe its b/c Im still "new".

[Cat Herder]

By screwing up really badly...over and over and over.... ::

I had to start over in a whole new house once because I was charging $35 a week. That was what the state paid, so I assumed it was fair. I did not know it was for people on subsidy who were to pay the rest. Oh, yeah... that was me at 23 years old. I bet you can tell how much the local providers loved me then.

On the flip side, they were the most appreciative parents I have ever had.

Daycare providers were a secretive group, they hid their info like the smart kids guarding their math test.

[Blackcat31]

I have read a lot on here lately about other provider's rates, pay schedules and just how they run their own business. I was wondering if it took most of you provider's years before you had it in a good working order ?

Sadly I have to say yes, it took me years to figure out how to get things in good working order.

I charge $25/day for infant/toddler and $20/day for preschool/schoolager. If I get a child on and off the bus and only for a total of 2 hours I charge just $3/hr for that child. (I done that to help out the sibling family I have)

I don't give discounts for ANY of the millions of different situations parents have going on with THEIR children. I have X amount of space available. If someone wants it, they pay the same as everyone else.

I do not charge for hoildays, they do not pay while they are on vacation or have a day off, nor do I charge while I am on vacation.

I never used to charge for vacations but I do now. I am VERY conservative though in what holidays and vacations I charge for and still give the parents more time off (free of charge) than time I have off (paid) so I feel very comfortable in how I handle that aspect.

The more I have read here, the more it seems to me that I am pretty much watching kids free!! Im not sure I could fix it now since I would prolly lose all my private pay. And for a friend instead of paying weekly, Im allowing her biweekly. So am I going about this all wrong? I thought I knew what I was doing, but when I comes down to it..I have no idea really how to run a successful business.. I have been a home daycare provider for 14 months now..so maybe its b/c Im still "new".

Being new definitely has it's downside and yes, you have to get walked on a few times before you figure out that it isn't going to happen any more but only YOU can stop it...kwim? I have inadvertantly provided my fair share of free too.

If you need any advice or help, you are always welcome to PM me and I can offer what I got. I don't know everything and I am always a work in progress too but I can share little tips and tricks I have learned the hard way through the years.

[nanglgrl]

I have read a lot on here lately about other provider's rates, pay schedules and just how they run their own business. I was wondering if it took most of you provider's years before you had it in a good working order ?

I charge $25/day for infant/toddler and $20/day for preschool/schoolager. If I get a child on and off the bus and only for a total of 2 hours I charge just $3/hr for that child. (I done that to help out the sibling family I have)

I do not charge for holidays, they do not pay while they are on vacation or have a day off, nor do I charge while I am on vacation.

The more I have read here, the more it seems to me that I am pretty much watching kids free!! Im not sure I could fix it now since I would prolly lose all my private pay. And for a friend instead of paying weekly, Im allowing her biweekly. So am I going about this all wrong? I thought I knew what I was doing, but when I comes down to it..I have no idea really how to run a successful business.. I have been a home daycare provider for 14 months now..so maybe its b/c Im still "new".

There is no perfect way to run a daycare. If your happy with what you charge and not getting paid on holidays, sick days, vacations, etc. then that's fine.
I got my contracts/policies from this CD:

http://www.barnesandnoble.com/w/family-child-care-contracts-and-policies-third-edition-tom-copeland-jd/1111243029

and then spiced it up and made it personal with my experiences and the contracts/policies/ideas of other providers (thanks again Blackcat!).
You might be surprised about loosing clients. In 10 years I've never lost a client due to a change in my policies or rates (I don't do it that often though).
If you want to know what providers do in general to see if you match up the best thing to do would be to call providers in your area and ask. Also check with your local Child Care Resource and Referral office as they often do surveys about pricing.
I charge the same for all ages because they pay for a slot and I only have so many available and because where younger children can take more energy into making sure they are happy and don't get hurt older children eat more, often take more mental energy and generally use more supplies.
I have a minimum of $75 a week (under 20 hours) so if I got them on and off the bus every day for an hour before and after school every day they would still pay $75..it wouldn't be worth my time/the hassle to do it for $30 a week.
I charge $125 a week if they leave at or before 3:30 pm (open at 7:30 am) $145.00 a week if they stay until 4:30 pm and $155 a week if they stay until 5:30 pm. I like doing it this way because now most of my parents find a way to pick up at 3:30 so they can save a little money and I get off earlier and am able to make appointments, etc. without having to take time off and lose money.
As far as paid time off I take 10 holidays a year besides those days they don't pay if I'm gone but they always pay if their gone. They don't get any "free" sick or vacation days. My logic is that if I go on vacation I can plan on not making any money that week and they don't have to pay me and the provider who they have watching their child in my absence. If they go on vacation they can plan on paying me. When I started I gave people 2 weeks of free vacation a year and they didn't have to pay for sick days. I quickly changed that when the whole crew (except me and my family) got the flu the same week around Christmas and I was without a paycheck that week. I also found that most of my clients would take their vacations in the summer months around the same time and again...no pay for me.
One thing I would definitely change if I were you is how/when they pay. It seems a lot of providers are going to the "pay before you play" method. Clients pay on Monday or Friday for the next week of care. I changed to doing it this way a while back and it has been so much easier. If someone doesn't pay me by drop off of the first day of care they can't come back unless they have money in hand. When I first started doing it I had a few current clients that couldn't afford to pay for the previous week and the next week at once so they paid a little more each week until they were paying a week in advance. KWIM?

[lovemykidstoo]

When I first started, I basically went off the ideas that the woman that took care of my son had.

I charged $25 per day at the time for the hours of 7:30 - 5:30. I also gave the family 2 weeks worth of free days. If they came 4 days a week, then I gave them 8 days. I don't do this anymore. I now charge $35 a day. They pay the same per week no matter if their child is here or not. Unless I am on vacation or sickness.

I didn't charge for holidays either. Now they pay for all holidays if their day normally falls on that day now.

I don't charge for my days off because I figure if they're working then they have to find someone else for care and I don't think it's fair that they pay me and that other person, thereby paying double because I'm on vacation.

I also collect bi-weekly. I normally only go to the bank every other week anyway and that way it's less likely that I will lose their checks.
Finally after 12 years, I have it how I want it

[Brooksie]

I have an amazing mentor who has been running a very successful FCC for 25 years. She let me have a copy of her contract and policies, and she has pretty much covered and thought of everything. I feel extremely lucky to have that from the beginning so I don't screw myself for the first few years. ::

[Provider_Manda]

There is no perfect way to run a daycare. If your happy with what you charge and not getting paid on holidays, sick days, vacations, etc. then that's fine.
I got my contracts/policies from this CD:

http://www.barnesandnoble.com/w/family-child-care-contracts-and-policies-third-edition-tom-copeland-jd/1111243029

and then spiced it up and made it personal with my experiences and the contracts/policies/ideas of other providers (thanks again Blackcat!).
You might be surprised about loosing clients. In 10 years I've never lost a client due to a change in my policies or rates (I don't do it that often though).
If you want to know what providers do in general to see if you match up the best thing to do would be to call providers in your area and ask. Also check with your local Child Care Resource and Referral office as they often do surveys about pricing.
I charge the same for all ages because they pay for a slot and I only have so many available and because where younger children can take more energy into making sure they are happy and don't get hurt older children eat more, often take more mental energy and generally use more supplies.
I have a minimum of $75 a week (under 20 hours) so if I got them on and off the bus every day for an hour before and after school every day they would still pay $75..it wouldn't be worth my time/the hassle to do it for $30 a week.
I charge $125 a week if they leave at or before 3:30 pm (open at 7:30 am) $145.00 a week if they stay until 4:30 pm and $155 a week if they stay until 5:30 pm. I like doing it this way because now most of my parents find a way to pick up at 3:30 so they can save a little money and I get off earlier and am able to make appointments, etc. without having to take time off and lose money.
As far as paid time off I take 10 holidays a year besides those days they don't pay if I'm gone but they always pay if their gone. They don't get any "free" sick or vacation days. My logic is that if I go on vacation I can plan on not making any money that week and they don't have to pay me and the provider who they have watching their child in my absence. If they go on vacation they can plan on paying me. When I started I gave people 2 weeks of free vacation a year and they didn't have to pay for sick days. I quickly changed that when the whole crew (except me and my family) got the flu the same week around Christmas and I was without a paycheck that week. I also found that most of my clients would take their vacations in the summer months around the same time and again...no pay for me.
One thing I would definitely change if I were you is how/when they pay. It seems a lot of providers are going to the "pay before you play" method. Clients pay on Monday or Friday for the next week of care. I changed to doing it this way a while back and it has been so much easier. If someone doesn't pay me by drop off of the first day of care they can't come back unless they have money in hand. When I first started doing it I had a few current clients that couldn't afford to pay for the previous week and the next week at once so they paid a little more each week until they were paying a week in advance. KWIM?

But if I done it like this wouldn't I have to change how I charge ? I have some that come 2 days a week and some come 3 days. I tell them there is a 2 day min. But have yet to grow a back bone and never charged it. I am trying to hold off till the new year and start mmkids and do billing through there, as of right now they just know how much I charge and pay it..they don't get it on paper...just a reciept.

[nanglgrl]

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But if I done it like this wouldn't I have to change how I charge ? I have some that come 2 days a week and some come 3 days. I tell them there is a 2 day min. But have yet to grow a back bone and never charged it. I am trying to hold off till the new year and start mmkids and do billing through there, as of right now they just know how much I charge and pay it..they don't get it on paper...just a reciept.

You would. You would charge $75 a week if they need care less than 20 hours and $125-$155 a week if they are there more. I don't bill my clients weekly. They have the same rate each week. They choose their hours when they sign their contract and if they want to change it in the future I have to agree to the change. They can't go from being a part time to a full time just because. I actually only allow a few part timers because I find they are often the most difficult (you don't have them enough to get them adjusted to your routine). I recently had a newer full time parent tell me that they were thinking of cutting back some hours and going to part time because her husband works less in the winter, I told her I didn't have any part time slots available and she decided to keep her spot and pay full time. I currently have a child that is here 8am-12:30 pm every day and I charge $125.00 for those hours.
I don't give weekly receipts. It's the parents responsibility to keep track of that if they wish. If a parent wants to buy a receipt book, fill out the information and have me sign it each week I'm fine with that but I try to spend my time taking care of stuff for the children and not performing meaningless tasks to placate parents. At the end of the year I give them a W-10 form that tells them how much they've paid that year and my employer identification number.
Another thing to think of...when you charge more for infants and less for older children you are actually giving yourself a pay cut the longer you care for a child. In most jobs you get raises the longer your employed for a company not the other way around.

[DaisyMamma]

When I had to make some major changes to my rates and policies I had another provider on here share a nice letter with me stating that some changes needed to be made, etc. I included my policies with it and required it to be signed and returned. After that I was sure to follow through with all the policies and late fees, etc.
It worked great.
I can share these policies with you and the letter. PM me your email address.

When I started out I did the same as you. Didn't charge when kids weren't here. Parents would cancel the same day and not pay for it. I depended on that income and so that didn't work for me. Having parents pay in advance helps with that. It took a while to get everything running the way I like.
Having all of your policies take effect after the first of the year is a nice goal. It gives you time to prepare your families. Let them know about all of the changes well in advance to getting it all in writing. Let them know that the way you are running things isn't working. You want to be successfull and continue caring for their kids. and in order to do that you need to make these changes