Explaining Why They Need To Pay For A Day They Are Not Here

[mbullette]

I an currently trying to redo my childcare. When I started I basically took anyone and really didnt turn anyone away. I was not strict and I didn't have many rules. BIGGEST MISTAKE EVER!!! I have one great family and the rest think they run my business. I am in the process of taking control of my childcare and if the families don't like it they can leave.
I charged per hour and now I am going to a weekly rate. I have one family that comes Tuesday-Friday and the baby is 4 months old. Their oldest also comes here during the summer and she is 8. I talked to them about the full time weekly rate and they do not understand why they need to pay for Monday when she is not here. I have tried to explain to them they are paying for the spot whether she is here or not. I am never going to find a family who is just going to come on Monday's.
My question is, How do you explain this to your families so they get it? These people are nice but they just don't get it or maybe I am not explaining it correctly. Any advice would be appreciated.

[blandino]

I explain to them that I have x number of spots, and that in order to reserve your spot, you must be paying for it. Just because they are not coming in Monday's, doesn't mean you have someone else who comes on Mondays, so you would be taking a loss. You pay for the spot, not for the care (as cold as it sounds).

I don't really know how to explain it farther than that, but it sounds like you did.

I recenetly had an interview where the people seemed surprised that they would need to pay while on vacation. I explained it to them, as I am still here providing the care - and regardless of when they are actually in attendance, they still need to pay since I am providing services.

[sunlight]

Sorry to hear you are dealing with having to explain this topic. Been there done that. Still doing that! With perspective families. I charge full time and part time rates only. No hourly, or drop in, or weekly. I let them know that they are buying a "Spot" in the daycare and then I go over what a full time spot is and what a part time spot is. Here is an example: Full time care is anything over 25 hours per week. Part time is anything upto 25 hours a week. I am basing this on a 40 hour work week. You can use whatever hours you would use for part time or full time care. Another Example, If they are here only 3 days a week at 10 hours a day that is considered a full time rate. This also seems to work well with families that aren't quite sure if they need 3 or 4 days a week etc . I stricktly stick to hours in care. And their "Spot" in daycare is theirs no matter what days they use as long as their hours fall between full or part time care.

Hope this makes sense. It seems to work for me.

Good luck! I think your doing the right thing makeing changes!

[Meyou]

I say I have 6 spots for children under 5 each day. They are paying for one of those 6 spots which entitles them up to 50 hours of care per week within my business hours of M-F 7:30-5:30. It also entitles them to childcare, meals, outings and anything else I offer each day regardless of who is here.

I do not do part time care so you can chose to pay for a FT spot (regardless of how often you need it) or chose to look elsewhere for care.

PT care only benefits the parents IMO. I would literally be taking money I could have earned and throwing it out the window by accepting a lesser fee for some families.

[mamac]

Sorry to hear you are dealing with having to explain this topic. Been there done that. Still doing that! With perspective families. I charge full time and part time rates only. No hourly, or drop in, or weekly. I let them know that they are buying a "Spot" in the daycare and then I go over what a full time spot is and what a part time spot is. Here is an example: Full time care is anything over 25 hours per week. Part time is anything upto 25 hours a week. I am basing this on a 40 hour work week. You can use whatever hours you would use for part time or full time care. Another Example, If they are here only 3 days a week at 10 hours a day that is considered a full time rate. This also seems to work well with families that aren't quite sure if they need 3 or 4 days a week etc . I stricktly stick to hours in care. And their "Spot" in daycare is theirs no matter what days they use as long as their hours fall between full or part time care.

Hope this makes sense. It seems to work for me.

Good luck! I think your doing the right thing makeing changes!

I have a question- If you're basing your rates on a 40 hr week and they opt for a FT spot do you charge them for anything over the 40 hrs? Are they, too, allowed 10 hr days as you used in your example of Pters?

I'm getting ready to send my papers into our referral agency and I'm worried that I'm not charging enough or charging too much! I have no idea! I'm right about where other DCs are in my city, but the PT rates are what's getting me. I keep breaking it down different ways. One way I'm way more, the other I'm not. It's driving me crazy!!!

[Blackcat31]

My question is, How do you explain this to your families so they get it? These people are nice but they just don't get it or maybe I am not explaining it correctly. Any advice would be appreciated.

I have a weekly rate for families who attend 5 days per week and a different rate for families who attend 4 days per week.

If you break down the 5 day a week rate, it comes out to be about $30 per day. If you break down the weekly rate for 4 days into a daily rate it works out to be about $33 per day.

It works out well that way for me.

Another route you could go is to let the 4 day a week family know that they are needing to pay weekly because you can't fill the one day per week they don't use and if they don't want to pay for it, that is fine but as soon as another interested family comes along and wants 5 days week that you will give them the space. Full time (5 days a week) trumps 4 days or less.....

Infant space here is in such high demand that I charge one weekly flat rate and whether a family needs me 1 hour a day or 5 days a week, they pay the same.

[laundrymom]

I would give them a rate sheet


Full time care. $135 per week.

4 days. $34 per day.

3 days . $45 per day.

Have them choose a rate.

:-)

[sunlight]

If the family does choose to come 10 hours a day 5 days a week I don't charge more. Just my standard full time rate. Almost all of the families I provide care for are here 5 days a week 10 hours a day. One child is actually here 12 hours a day. He will be turning 5 this spring and I have cared for him since he was 3 months old! Infact, his mom wants to enroll him into kindergarten right down the street so he can continue to come to me for care. She works in the medical field and goes to school, and he isn't any trouble to watch! He really is like a member of my family by now.

My part time rate and full time rate differ by $200 a month. This system has worked for me now for 12 years.

[DaisyMamma]

I explain to them that I have x number of spots, and that in order to reserve your spot, you must be paying for it. Just because they are not coming in Monday's, doesn't mean you have someone else who comes on Mondays, so you would be taking a loss. You pay for the spot, not for the care (as cold as it sounds).

I don't really know how to explain it farther than that, but it sounds like you did.

I recenetly had an interview where the people seemed surprised that they would need to pay while on vacation. I explained it to them, as I am still here providing the care - and regardless of when they are actually in attendance, they still need to pay since I am providing services.

I agree.

I would give them a rate sheet


Full time care. $135 per week.

4 days. $34 per day.

3 days . $45 per day.

Have them choose a rate.

:-)

LOVE IT! LOL. You know what is funny about this? It will actually make them feel like they are getting a "deal" if they choose 5 days :: its really a great way to do it.

[Michael]

All of you are running your OWN business. Many parents do not know what is involved and its almost impossible to make them understand. Ever wonder why someone that has been in the service industry tip so well while others do not? Same thing applies.