Still Issue With Payment Method

[daycare]

Sooooooo after many conversations and emails going back and forth with DCP about my new formula, they are now saying this.

They said if they have to start paying based on the new formula:

weekly rate x 52 weeks /12= monthly payment

that should they terminate say mid year, that they are actually paying for days that they are not using.???????

I don't understand what more I can explain....here is how I charged in the past.

took the number of weeks in the month and made a monthly invoice, which was also paid monthly...


Sorry to keep asking about this question, but am I missing something here????

[Country Kids]

Go ahead and start your gym you wanted! I think it would be much easier then this-

Its not like they are paying for the entire year but is that what they are thinking? Is it one family or all of them?

[cheerfuldom]

Do what works for you. If this is the payment system you are converting families too, just let them know that this is how it is going to be, there is no negotiations on it. You have explained it as best as possible so at this point, they either except it or they turn in their notice.

You are just too nice most of the time. I dont even have a quarter of the conversations with parents that it sounds like you have. Or maybe it is just your current group that constantly questions everything. I understanding giving a simple explanation but it almost seems like you feel the need to justify every policy and change. You dont have to have a reason.....if that is what you charge, thats what it is, take it or leave it. They dont even have to understand it in order to pay it.

[daycare]

...... my asst told me that he thinks that this DCM sits behind her computer all day just thinking of ways to torture me.....all the same family....same person actually..........



so being that I need to keep this family because I am losing some next month, I offered to keep them on the same invoice system as i was, because I a tired of explaining it.

BUT they already paid me on the new payment method............So now what do I do??? if it were the old system it would have been $145.00 less this invoice.......

so now do I have to credit that to their next bill?????? OMG I want to shoot myself right now....

[daycare]

uuuuuggghhh and so now it seems that this family also wants to "possibly" give notice.......................................................

SO I just tell them sorry I made the offer to continue the old pay structure???

[Crystal]

uuuuuggghhh and so now it seems that this family also wants to "possibly" give notice.......................................................

SO I just tell them sorry I made the offer to continue the old pay structure???

I would "possibly" give them notice.

[daycare]

I would "possibly" give them notice.

crystal I totally would if my honey did not just lose his job and I am losing 3 kids next month.................................


Trust me when I tell you........ the threat of "possibly" leaving is music to my ears and heartache to my wallet....

I have been advertising like no tomorrow since june and NOTHING..............

[daycare]

I kind of see what the parent is sayin, but not sure what to do with it....

so if I was charging like before, I would have done this...

weekly rate x 4 weeks in Jan. I would do the same for each and every month. So come March it would be a higher daycare bill because it would change to weekly rate x5.........and so on for the rest of the year.../..some months lower some months higher.....

all payments are due monthly in advance.......

NOw if they were on the new system, they are paying a higher amount each month that has 4 pay periods and a lower amount when there is 5 pay periods the way some see it........ however, it is going to be the same amount charged each month......

If this family pays using the new payment method and they give notice lets say tomorrow, then technically they paid more daycare fees?????


Am I understanding this correctly??????

[MarinaVanessa]

I think that they are making things WAY too difficult because they don't understand. It's like making something simple more complicated.

If they are saying that they would be charged more per year if they left mid year have them show and explain to you in writing how they would pay more. They should have no problem explaining it to you in a way that you can understand their logic. I have a feeling that what they are trying to say is that since the way you were charging before shorted you a few days out of the year and you now decided to incorporate those days into your fee and by thus dividing it by 52 weeks they think that if they should happen to terminate care mid year that they might be paying for extra days that that are already incorporated into the monthly fee that they may not actually had used.

I'm curious, lets try it (bear with me, I've never figured anything like this and I'm figuring out the numbers as I go) ... in 2013 there will be 258 weekdays and lets say you want to charge $125 per week but based on 52 weeks = $6500 for the year.
Let's divide that by 2 so we can see how much they would pay for 6 months = $3250.
The $3250 should technically cover 129 days (258 days/2)
If a client leaves at the end of June they would have paid for 129 days and received 127 days ... so in essence they are now being shorted 2 days. This is probably what they are complaining about. Of course no one complained when you were being shorted in your pay .

This problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

Example:

$125/5 days a week= $25/day

Jan 23 days = $575
Feb 20 days = $500
Mar 21 days = $525
Apr 22 days = $550
May 21 days = $525
June 20 days = $500
July 23 days = $575
Aug 21 days = $525
Sept 21 days = $550
Oct 23 days = $575
Nov 21 days = $525
Dec 22 days = $550
Total 258 days = $6,475

Your original way might be $125 week x 52 weeks = $6500 which is pretty close to the $6,500 and this way they all pay for exactly the number of weekdays in the month (including paid holidays etc) and if you were to ever close beyond the scope of your PAID days it would be much easier to credit those days towards the following month.

My suggestion to you would be to figure out what your rate is now and break it down to daily and say "EVERYONE PAYS $XX.xx PER DAY ON A MONTHLY BASIS FROM NOW ON" and be done with it.

(phew that was a lot of work).

[daycare]

I think that they are making things WAY too difficult because they don't understand. It's like making something simple more complicated.

If they are saying that they would be charged more per year if they left mid year have them show and explain to you in writing how they would pay more. They should have no problem explaining it to you in a way that you can understand their logic. I have a feeling that what they are trying to say is that since the way you were charging before shorted you a few days out of the year and you now decided to incorporate those days into your fee and by thus dividing it by 52 weeks they think that if they should happen to terminate care mid year that they might be paying for extra days that that are already incorporated into the monthly fee that they may not actually had used.

I'm curious, lets try it (bear with me, I've never figured anything like this and I'm figuring out the numbers as I go) ... in 2013 there will be 258 weekdays and lets say you want to charge $125 per week but based on 52 weeks = $6500 for the year.
Let's divide that by 2 so we can see how much they would pay for 6 months = $3250.
The $3250 should technically cover 129 days (258 days/2)
If a client leaves at the end of June they would have paid for 129 days and received 127 days ... so in essence they are now being shorted 2 days. This is probably what they are complaining about. Of course no one complained when you were being shorted in your pay .

This problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

Example:

$125/5 days a week= $25/day

Jan 23 days = $575
Feb 20 days = $500
Mar 21 days = $525
Apr 22 days = $550
May 21 days = $525
June 20 days = $500
July 23 days = $575
Aug 21 days = $525
Sept 21 days = $550
Oct 23 days = $575
Nov 21 days = $525
Dec 22 days = $550
Total 258 days = $6,475

Your original way might be $125 week x 52 weeks = $6500 which is pretty close to the $6,500 and this way they all pay for exactly the number of weekdays in the month (including paid holidays etc) and if you were to ever close beyond the scope of your PAID days it would be much easier to credit those days towards the following month.

this problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

this is exactly how I was doing it, but I did make a few mistakes over the year by not paying attention to the calendar very well and shorted myself... This way there is no sure way that I would short myself.....

I just want to scream right now I am sooooo frustrated... thanks so much for doing this for me.....I really appreciate it

[MarinaVanessa]

this problem is one of the reasons why I don't charge monthly. If I were to ever charge monthly I would figure out how much I wanted to charge weekly, divide that by 5 days per week and then invoice parents by the number of weekdays in that month.

this is exactly how I was doing it, but I did make a few mistakes over the year by not paying attention to the calendar very well and shorted myself... This way there is no sure way that I would short myself.....

I just want to scream right now I am sooooo frustrated... thanks so much for doing this for me.....I really appreciate it

In that case if none of your other DCP's are complaining just keep this family on the same schedule that they have been before (like you offered) while your other family's start your new payment plan. For your hassle DCF figure out what their January rate would have been on their original payment plan, then do the same for February and if there is a credit put it towards February and come February charge them the balance only.

In the meantime hussle for new clients and once you replace the other 3 that are leaving (preferably with kids that are not siblings ) continue looking for another child and when you get interest for that 4th spot (as in they want to sign up) offer the current client your preffered payment options (on board with everyone else) and if they hesitate hand them an already prepared notice of termination and thank them for their patrionage (spelling?). It's either pay your way or get to movin sista!

[Country Kids]

DC,

Sorry hubby lost his job! Was this the brand new one he started? If you need anything please pm me.

I charge a daily rate and bill at the end of the month (works out fine for me). You could just charge a daily rate (however days a month they are there) and bill it at the beginning of the month. It would actually be kinda like MV had worked out.

[daycare]

DC,

Sorry hubby lost his job! Was this the brand new one he started? If you need anything please pm me.

I charge a daily rate and bill at the end of the month (works out fine for me). You could just charge a daily rate (however days a month they are there) and bill it at the beginning of the month. It would actually be kinda like MV had worked out.

yes it was the one he just started........ My husband fell ill during finals that started two weeks ago. It is part of his contract with the hospital that he pass a competency test every 3 months..

Well my husband was so sick in bed he didn't have a lot of time to study....he passed all of them but one with flying colors......he fell one point short.....................we are sooooooooo sad.... BUT we will be ok....I hoarded all the extra money he made because we knew that he could be let go for any reason........

Glad that I did, but still does not make things any better as he now has no job again........ what a blow to take right before christmas

[countrymom]

wow that does seem way too confusing for me. I charge the families by the day, its so much easier this way. I also find that when the parents see the large total they freak out, so its easier for them to see the smaller total than the large one.

[daycare]

wow that does seem way too confusing for me. I charge the families by the day, its so much easier this way. I also find that when the parents see the large total they freak out, so its easier for them to see the smaller total than the large one.

its actually quite simple, but the parent is making it harder to understand than it really is.....

MV just got down to the full details of it in a different way, but her way still is correct.....

I am not sure what to do right now..... they said they possibly want to leave, I think that I am just going to do that...