NEW DCP- Rates Based on Experience or Competition?

[melilley]

LOL. I am so technologically challenged it's not funny. I just got my first laptop ever two months ago. I still have a "flip phone" and I just signed up for a facebook page to see pics of my ds at a classmate's birthday party! And none of my friends use facebook. I couldn't IMAGINE creating a website!!!! (would love to though!)

Ummmm..... deposit? I hadn't planned on it. Out of the 3 DC's I've used I never had to pay one. Not sure it's "the norm" around here. ? I have decided to charge a half rate holding fee for up to 4 weeks. (and full rate if they needed anything more than that.) I'm worried about scaring people off before they start if they start comparing me to all the other DCs. I know that I am taking my paperwork much more seriously than the ones I'm familiar with in terms of how I worded my handbook, contract, etc. I have gotten so many great ideas from this website that I keep changing/adding to it daily, which is part of the reason why I'm not actively advertising "just yet." I know I can't procrastinate too much longer though.

Would love to see your website! Are there any "Build-your-own-website-for-dummies" sites out there? :confused:

So funny, I just got rid of my flip phone.. I am in the same boat as you! I too am writing my handbook and just when I think it's finished, I see something on this site and I go and change it! I had to finally had to give myself a timeline, I'm going to finish organizing all the paperwork tonight and advertising tomorrow, otherwise I'll never open!

[mamac]

Don't base your rate on getting clients who just want to pay less than a center. I was clueless about what my area rates were when I started and I priced myself way under what made actual financial sense to run the business. I had to do an increase for my current families just to break even and now I am bringing in new clients at what the rate really needs to be. I would have priced it differently from the beginning if I would have had any clue about the amount of work it would take and the quality issue with families who just want something for nothing.

I'm not even sure what my costs will be to operate this daycare. I have NO clue. I checked every DC in my city and took the average and that was my rate. I don't know if that will be enough. What will my operating costs be? I'm on the food program, I have all the toys I need (but that won't stop me for shopping for new things! ) the house is set to go.... In order for me to make what I did before DC, I'd need to charge around what the centers are charging and be at capacity. (and I can't see that happening.) That's why I'm so confused about pricing......

[melilley]

I'm not even sure what my costs will be to operate this daycare. I have NO clue. I checked every DC in my city and took the average and that was my rate. I don't know if that will be enough. What will my operating costs be? I'm on the food program, I have all the toys I need (but that won't stop me for shopping for new things! ) the house is set to go.... In order for me to make what I did before DC, I'd need to charge around what the centers are charging and be at capacity. (and I can't see that happening.) That's why I'm so confused about pricing......

One great piece of advice that I got on here was to make your contract separate so that you can change the rate for different families if you wanted to. So you could advertise for the $160 or a little lower and once you get families in you could always raise the rate for them if you feel that you could get the higher rate. KWIM? I too am having a hard time on deciding what to charge, but if a price isn't written down and set in stone, you can always change it.

[mamac]

and just when I think it's finished, I see something on this site and I go and change it!

No kidding!!!! Argghhhh!!!! I'm getting my new business line installed on Wednesday so that's pretty much my deadline as well. I wanted to make sure I had a separate number because I didn't want to use my cell. I have been on this website into the wee hours of the morning trying to gather as much info as I can. Once I know I have my new number for sure I am turning my papers into the referral agencies and posting flyers and brochures around. Then I'm crossing my fingers....

Congratulations and good luck to you too!

[mamac]

One great piece of advice that I got on here was to make your contract separate so that you can change the rate for different families if you wanted to. So you could advertise for the $160 or a little lower and once you get families in you could always raise the rate for them if you feel that you could get the higher rate. KWIM? I too am having a hard time on deciding what to charge, but if a price isn't written down and set in stone, you can always change it.

That's a good idea. I was actually just trying to redo that part of my paperwork because I have Tuition and Fees as the first part if my handbook. I list all my policies in the handbook which includes all late fees, paid holidays, vacations, etc. My contract is only a two sided sheet that deals strictly with the money aspect (and agreeing to the policies in the handbook). It's my only form with signatures other than transportation, etc. I didn't want an overload of paperwork to keep on hand by keeping a copy of my own policies just to obtain their signature on them.

[melilley]

That's a good idea. I was actually just trying to redo that part of my paperwork because I have Tuition and Fees as the first part if my handbook. I list all my policies in the handbook which includes all late fees, paid holidays, vacations, etc. My contract is only a two sided sheet that deals strictly with the money aspect (and agreeing to the policies in the handbook). It's my only form with signatures other than transportation, etc. I didn't want an overload of paperwork to keep on hand by keeping a copy of my own policies just to obtain their signature on them.

I did the same, I had the tuition and fees at the very beginning of my handbook, but then someone suggested to make a separate page, so now I have a separate page that has the money aspect such as rates, payment policies and fees. That way I can just change that one paper if I feel I need to change rates. And for my contract I have a blank spot for what the fee would be so I can just write it in and I also include the contracted hours per day on it. And of course the signatures and a statement of agreeance (I know it's not a word) on it. Michael and someone else helped me with that. It sounds professional too. I could pm it to you if you want, if I can figure out how to do that...

[mamac]

I did the same, I had the tuition and fees at the very beginning of my handbook, but then someone suggested to make a separate page, so now I have a separate page that has the money aspect such as rates, payment policies and fees. That way I can just change that one paper if I feel I need to change rates. And for my contract I have a blank spot for what the fee would be so I can just write it in and I also include the contracted hours per day on it. And of course the signatures and a statement of agreeance (I know it's not a word) on it. Michael and someone else helped me with that. It sounds professional too. I could pm it to you if you want, if I can figure out how to do that...

Sure that would be great. I got mine from somewhere online. One of those free form websites. It's sounds very "legal" but there are areas that I definitely need to change. There is a part at the end that says the contract is good for a year and no changes will be made until end of year unless both parties agree. That pretty much stops me from raising my rates if I desperately need to. Like anyone would agree to that if they didn't need to.

It's funny too because I want my contract to be really professional but my handbook is worded much "friendlier". I think part of me wants it to be easy-reading so there are no questions about my policies and the other part doesn't want to scare people away with it being to "mean". That can wait until they sign the contract.

[EAP]

I'm not even sure what my costs will be to operate this daycare. I have NO clue. I checked every DC in my city and took the average and that was my rate. I don't know if that will be enough. What will my operating costs be? I'm on the food program, I have all the toys I need (but that won't stop me for shopping for new things! ) the house is set to go.... In order for me to make what I did before DC, I'd need to charge around what the centers are charging and be at capacity. (and I can't see that happening.) That's why I'm so confused about pricing......

All of my utilities went up, also the cost for supplies and food, (the food program is only a very small portion of what I actually spend on food). Also you will be working full time and may want to hire a cleaning person/company to help out. I have teachers I pay for extras and hiring a sub so I can have a day off is part of my expenses. And then just getting a pay check for me. Don't feel bad - I also had no clue!! But I figured it out after a few months.

[melilley]

Sure that would be great. I got mine from somewhere online. One of those free form websites. It's sounds very "legal" but there are areas that I definitely need to change. There is a part at the end that says the contract is good for a year and no changes will be made until end of year unless both parties agree. That pretty much stops me from raising my rates if I desperately need to. Like anyone would agree to that if they didn't need to.

It's funny too because I want my contract to be really professional but my handbook is worded much "friendlier". I think part of me wants it to be easy-reading so there are no questions about my policies and the other part doesn't want to scare people away with it being to "mean". That can wait until they sign the contract.

Ok I will try to pm it to you. I have a part in my handbook and contract that says I can make changes to the policies or but I will give a two week notice. My handbook is friendly, but some of it is a little strict, I've learned what to be lenient on and what to be strict on from reading on here! My illness policy is strict and they have to sign and date it. I am an overly friendly person and it's hard for me to be strict, but after reading some things on here, I think I need to find my backbone that everyone keeps talking about.....

[Abigail]

LOL. I am so technologically challenged it's not funny. I just got my first laptop ever two months ago. I still have a "flip phone" and I just signed up for a facebook page to see pics of my ds at a classmate's birthday party! And none of my friends use facebook. I couldn't IMAGINE creating a website!!!! (would love to though!)

Ummmm..... deposit? I hadn't planned on it. Out of the 3 DC's I've used I never had to pay one. Not sure it's "the norm" around here. ? I have decided to charge a half rate holding fee for up to 4 weeks. (and full rate if they needed anything more than that.) I'm worried about scaring people off before they start if they start comparing me to all the other DCs. I know that I am taking my paperwork much more seriously than the ones I'm familiar with in terms of how I worded my handbook, contract, etc. I have gotten so many great ideas from this website that I keep changing/adding to it daily, which is part of the reason why I'm not actively advertising "just yet." I know I can't procrastinate too much longer though.

Would love to see your website! Are there any "Build-your-own-website-for-dummies" sites out there? :confused:

If you're just opening it does not make any sense when you have all your spots available to charge a holding fee. A holding fee to hold their spot? A parent will just wait it out until the need you and save the money. If you only had one infant spot available and someone wanted it next month or something that would make sense, but not in general. Get where I am coming from? I charge a 1-time enrollment fee PER CHILD for $50 and it's non-refundable and due the day they sign the contract which is prior to starting my daycare.

[melilley]

If you're just opening it does not make any sense when you have all your spots available to charge a holding fee. A holding fee to hold their spot? A parent will just wait it out until the need you and save the money. If you only had one infant spot available and someone wanted it next month or something that would make sense, but not in general. Get where I am coming from? I charge a 1-time enrollment fee PER CHILD for $50 and it's non-refundable and due the day they sign the contract which is prior to starting my daycare.

What do you think about charging a deposit, but the deposit covers the first and last week of care? I am just opening and that's what I thought I would do, it's kind of like a holding fee I think. I'm going to charge that, but they have a 2 week time limit to start. I know we're just starting out, but what if (in my dreams...) you fill up fast and you need that one last family but aren't sure if they are going to start and another one comes along but the first family doesn't show then if you don't have a deposit or fee then you may miss out. Am I making sense? Would it make sense to do that? Sorry, I'm new to this and keep going around and around...any advice is appreciated! Oh and I can only have 6 including my son at any one time.

[mamac]

If you're just opening it does not make any sense when you have all your spots available to charge a holding fee. A holding fee to hold their spot? A parent will just wait it out until the need you and save the money. If you only had one infant spot available and someone wanted it next month or something that would make sense, but not in general. Get where I am coming from? I charge a 1-time enrollment fee PER CHILD for $50 and it's non-refundable and due the day they sign the contract which is prior to starting my daycare.

I put that in there mainly for the moms-to-be. And because I'll hopefully at some point be full or almost full to where I will need to hold a spot and I won't have to amend my policies at a later date.

What if they interviewed on a Fri and wanted to start Mon? Would you still charge? I understand a deposit if it's more than a few days or a week or more. It's not like you'd really be out any money if they didn't show and I just wouldn't take any excuses for them not showing. No show = no care, right? Or would you refund after they began care?? :confused:

[LK5kids]

I'm just starting out, too. I charge about average for my area. It's a little lower than I would like to charge because I'm very experienced in child care and have degrees in early childhood education, but I am just starting out with my own child care and I'm young (which I feel like some people tend to associate with inexperienced).
My plan (in a nutshell) is to get some good families, get a good reputation in the community, and raise my rates for new clients ntil I'm getting what I think I deserve.
By the way, congrats and good luck!

This is my situation and plan also.

[Blackcat31]

If you're just opening it does not make any sense when you have all your spots available to charge a holding fee. A holding fee to hold their spot? A parent will just wait it out until the need you and save the money. If you only had one infant spot available and someone wanted it next month or something that would make sense, but not in general. Get where I am coming from? I charge a 1-time enrollment fee PER CHILD for $50 and it's non-refundable and due the day they sign the contract which is prior to starting my daycare.

I disagree. It is ALWAYS good business practice IMHO to charge a holding fee whether your spaces are available or not.

I advertise and interview at ALL times regardless of whether I have a space open or not.

In this business things change on a daily basis and I hvae never advertised that I do or don't have open spaces. Even when I just started out.

If the family is not looking to start immediately, charging a holding fee would still be something I recommend doing.

As far as enrollment fees, I have never charged one and have no plans of ever doing so.

I think deposits, enrollment fees and holding fees are specific to different areas and to each individual provider.

[Holiday Park]

Blackcat, so if you advertise when there is no space, and some one wants to interview , do you offer to put them on a wait list? What do you tell them? Is this mainly to keep up with exposure with your business in case some one who has seen it before and needs care again, becomes more interested in your program.