Contract With Commitment

[daycare]

Ok, so I want some advice on what would be fair. Please don't ask why I am doing this, I have my reasons.

What I want to do is create a contract for an existing family that will require a 6 month commitment. They will be getting a pretty deep discount. Again I have my reasons why I am doing this.

However, I want to make the contract require that they stay for at least 6 months and need to add in a penalty should they term before the 6 month period is over. Some what like what you would sign if your were leasing something. Like an apartment.

I was thinking that I should make the penalty equal to one month of care for terming early. This would actually be the same amount of discount that I am giving them over the 6 months....

Has anyone ever done this and if so how did you do it and do you think that one month tuition is a fair penalty???

[Willow]

I've never heard of anyone doing it, but that doesn't mean you shouldn't if you have your reasons.

I would perhaps word it a little differently though so it doesn't seem like a big black cloud. Maybe present it as an incentive program instead of a lock in with potential penalty?

[daycare]

I've never heard of anyone doing it, but that doesn't mean you shouldn't if you have your reasons.

I would perhaps word it a little differently though so it doesn't seem like a big black cloud. Maybe present it as an incentive program instead of a lock in with potential penalty?

I see your point.... so how would you approach it this way....

What I have figured out is that if they leave before the 6 months, then I am taking a loss. But the way that it works out with some months longer than others, if they stay the full 6 months then I am not taking a big loss.

Thanks willow for your help... I have never done this before.....

[Blackcat31]

Why not say something like;

"The rate of $________ per day/week/month is based upon six months of attendance at ABC Child Care. Should the agreement to attend for 6 months end before XX, 00, 2013, there will be a penalty of $________ per day/week/month for each day/week/month remaining."

....or something like that.....HTH

[daycare]

Why not say something like;

"The rate of $________ per day/week/month is based upon six months of attendance at ABC Child Care. Should the agreement to attend for 6 months end before XX, 00, 2013, there will be a penalty of $________ per day/week/month for each day/week/month remaining."

....or something like that.....HTH

bc....YOU KNOW ME..... I always complicate things...I start to get insecure about my bad english writing skills and then I freeze up........

Thanks so much for your help..... so simple and I could not even think of that...hahah

[melilley]

bc....YOU KNOW ME..... I always complicate things...I start to get insecure about my bad english writing skills and then I freeze up........

Thanks so much for your help..... so simple and I could not even think of that...hahah

bc always knows how to word things! I do the same as you! I know what I want to say, but when I read what I write, it sometimes doesn't make sense or doesn't sound professional...

[daycare]

yes she does......

the worst part is that I went to college for journalism........hahhah

[Willow]

I would pull the notion of a penalty out altogether if I were you.

"daycare's childcare is happy to be announcing a new incentive program! Commit to care for a 6 month period and receive a discount of _____ over the course of those 6 months. To receive this discount there will be a separate contract that will entail all details. I am really excited to be able to offer this as I think it will really benefit most of my families!"

In the details on the 6 month contract stipulate that the discount is not given in a lump sum, that it is spread out over the course of the 6 month period, and that if they don't fulfill the 6 month contract terms the difference in cost will be due upon their premature departure.

Those choosing to opt out of the 6 month contract will continue to be billed at your regular rate.


I think (and hope) the incentive would be enough to get everyone on board so you wouldn't have to worry about charging your regular rate, I'm not sure if you're trying to set it up as a mandatory change or more of a boost to try to avoid turnover...

[daycare]

I would pull the notion of a penalty out altogether if I were you.

"daycare's childcare is happy to be announcing a new incentive program! Commit to care for a 6 month period and receive a discount of _____ over the course of those 6 months. To receive this discount there will be a separate contract that will entail all details. I am really excited to be able to offer this as I think it will really benefit most of my families!"

In the details on the 6 month contract stipulate that the discount is not given in a lump sum, that it is spread out over the course of the 6 month period, and that if they don't fulfill the 6 month contract terms the difference in cost will be due upon their premature departure.

Those choosing to opt out of the 6 month contract will continue to be billed at your regular rate.


I think (and hope) the incentive would be enough to get everyone on board so you wouldn't have to worry about charging your regular rate, I'm not sure if you're trying to set it up as a mandatory change or more of a boost to try to avoid turnover...

I love your idea and your wording....sounds so much for positive.

it is to avoid turn over. Also because my husband lost his job, I am having to jump through hoops to keep some of my families. One moved last week, today being kids last day. Another said that they were going to start looking for daycare closer to home due to some financial changes within their own family. They can't afford my cost.

So When I threw this out to them the families that I offered it to that thought about leaving, jumped on it.... so now I just need to put it all together in writing, but am having a huge headache trying to do so

[littlemissmuffet]

I would pull the notion of a penalty out altogether if I were you.

"daycare's childcare is happy to be announcing a new incentive program! Commit to care for a 6 month period and receive a discount of _____ over the course of those 6 months. To receive this discount there will be a separate contract that will entail all details. I am really excited to be able to offer this as I think it will really benefit most of my families!"

In the details on the 6 month contract stipulate that the discount is not given in a lump sum, that it is spread out over the course of the 6 month period, and that if they don't fulfill the 6 month contract terms the difference in cost will be due upon their premature departure.

Those choosing to opt out of the 6 month contract will continue to be billed at your regular rate.


I think (and hope) the incentive would be enough to get everyone on board so you wouldn't have to worry about charging your regular rate, I'm not sure if you're trying to set it up as a mandatory change or more of a boost to try to avoid turnover...

It sounds like she's making an exception for one current family... not offering this to all or future families?

I disagree with not mentioning a penalty - when it comes to this business we need to be extremely clear and plain in our english about what is expected from our daycare parents. Flowers and rainbows don't work in this business!

[daycare]

It sounds like she's making an exception for one current family... not offering this to all or future families?

I disagree with not mentioning a penalty - when it comes to this business we need to be extremely clear and plain in our english about what is expected from our daycare parents. Flowers and rainbows don't work in this business!

yes it is only for two families... I will not offer this to others or anyone else coming in.......its too much of a headache.....

but with the way that things are right now, i have to try something

[Willow]

It sounds like she's making an exception for one current family... not offering this to all or future families?

I disagree with not mentioning a penalty - when it comes to this business we need to be extremely clear and plain in our english about what is expected from our daycare parents. Flowers and rainbows don't work in this business!

I disagree that wording things in a positive light equates to "flowers and rainbows."

I also disagree that wording things in a positive light doesn't ever work in this business, but to each their own of course.




It's how I run my business and I've yet to have a problem. I've heard plenty of gripe from others who are contracted with providers who operate the opposite though, which has definitely inspired me to do things the way I do.

You catch more flies with honey than vinegar definitely applies to business practice in my experience.

[daycare]

I disagree that wording things in a positive light equates to "flowers and rainbows."

I also disagree that wording things in a positive light doesn't ever work in this business, but to each their own of course.




It's how I run my business and I've yet to have a problem. I've heard plenty of gripe from others who are contracted with providers who operate the opposite though, which has definitely inspired me to do things the way I do.

You catch more flies with honey than vinegar definitely applies to business practice in my experience.

I do have to agree that I like your approach on it... and I know these families well enough to know that they will respond better to your approach than if I were to say do this or there will be a penalty...........

[MarinaVanessa]

What if you offered your "steep" discount on a minimum of 6 months enrollment and if they otherwise cancel ahead of time then they are liable to pay for the full price??

You probably won't like this idea but I personally would feel more comfortable offering a smaller discount and then saving some of the money in my account and offering them a "return" of the rest of the discount amount when they completed their 6 months. Does that make sense?

If my regular rate was $150 for example and I wanted to help out because they had financial problems so I was willing to charge them $75 a week for 6 months (lets say 24 weeks) ... I'd instead offer for them to pay $100 per week and not spend $25 of that amount and keep it in my account. Then at the end of the 6 months I'd return the extra $600 to them. If they canceled the contract before the 6 month contract then they'd get nothing back. At least this way if they terminated beforehand then I'd only have lost $50 per week vs $75 per week.

Then you can even add that they'd have to still pay the remainder of the $100 per week for every week they didn't attend or just up to a month or something.

[daycare]

What if you offered your "steep" discount on a minimum of 6 months enrollment and if they otherwise cancel ahead of time then they are liable to pay for the full price??

You probably won't like this idea but I personally would feel more comfortable offering a smaller discount and then saving some of the money in my account and offering them a "return" of the rest of the discount amount when they completed their 6 months. Does that make sense?

If my regular rate was $150 for example and I wanted to help out because they had financial problems so I was willing to charge them $75 a week for 6 months (lets say 24 weeks) ... I'd instead offer for them to pay $100 per week and not spend $25 of that amount and keep it in my account. Then at the end of the 6 months I'd return the extra $600 to them. If they canceled the contract before the 6 month contract then they'd get nothing back. At least this way if they terminated beforehand then I'd only have lost $50 per week vs $75 per week.

Then you can even add that they'd have to still pay the remainder of the $100 per week for every week they didn't attend or just up to a month or something.

while I love this idea, both families are living pay check to pay check and need to save the money up front as opposed to over the period of the 6 months..

But I might steal that idea for future......thanks MV lets pray I dont have to put it in size 14 font....