Rate Change.... I Know There Are Many Threads BUT... Specific

[lflick]

Hi all... I know there are many preexisting threads about rates and what not; however, I have a more specific question/opinion type question... Currently I charge $25 per day per child... My area averages $20-35 per day for in home and higher for a center... I am thinking about changing my rate set up to generate a more steady income... BUT I do not want to discourage clients at the same time.... I got a pm about a rate system that I REALLY liked so... here is my version... rather than 25 per day...

Part time(up to 3 days 30hrs) with 6 allowed sick/vacation days... $90 per week...

Full Time (4-5 days up to 50 hrs) with 10 allowed sick/vacation days..$145.00

PT(up to 3 days 30hrs) weekly regardless of attendance...$75.00

FT(4-5 days up to 50hrs hrs) weekly regardless of attendance...$125.00

I would give a slight break (between 10-15) for sibling discount. I would also continue with my current after school rate.

I entertained these calculations to give parents the option of choosing their rates as part of the contract process....

I have a family, with two children, who have inquired about fall care (they have a student during the summer).... I was to introduce new rates in the fall if I decide to go down this road... how to I explain this to them? Is there any way to get them to sign up... with a holding fee perhaps... as well as to lock in their previous rate? I would really like them to return; however, wish to have a commitment... how would you do this? Word this?


What do you all think? honestly...

[Unregistered]

To me its a little confusing and I think more people are going to choose your lesser rate and then you will lose out on money.

I use to do hourly and charge regardless of attendance. I did not charge if I took the day off (vacation, sickness, personal time).

Now I charge daily and charge regardless of attendace. Once again if I take time off I do not charge. The issue I'm running into with daily is sometimes my income is incrediably high, other times incrediably low. Its to all over the place in my opinion and I've seen some pretty shocked faces on parents on those very high months.


So I think I'm going to totally change again and charge by the month on how many days a week they attend.

5 days a week-$500 a month
4 days a week-$400 a month
3 days a week-$300 a month

Once again no reduction if child isn't in attendance and I've already discounted anytime off I will be taken so I can now take time off and not lose pay.

I think the parents will appreciate the consistency also and they won't be wondering each month how much their bill will be even though its pretty easy to figure out at $25 a day.

[lflick]

To me its a little confusing and I think more people are going to choose your lesser rate and then you will lose out on money.

I use to do hourly and charge regardless of attendance. I did not charge if I took the day off (vacation, sickness, personal time).

Now I charge daily and charge regardless of attendace. Once again if I take time off I do not charge. The issue I'm running into with daily is sometimes my income is incrediably high, other times incrediably low. Its to all over the place in my opinion and I've seen some pretty shocked faces on parents on those very high months.


So I think I'm going to totally change again and charge by the month on how many days a week they attend.

5 days a week-$500 a month
4 days a week-$400 a month
3 days a week-$300 a month

Once again no reduction if child isn't in attendance and I've already discounted anytime off I will be taken so I can now take time off and not lose pay.

I think the parents will appreciate the consistency also and they won't be wondering each month how much their bill will be even though its pretty easy to figure out at $25 a day.

Are you going to require them to pay a once a month payment?

[LaLa1923]

To me its a little confusing and I think more people are going to choose your lesser rate and then you will lose out on money.

I use to do hourly and charge regardless of attendance. I did not charge if I took the day off (vacation, sickness, personal time).

Now I charge daily and charge regardless of attendace. Once again if I take time off I do not charge. The issue I'm running into with daily is sometimes my income is incrediably high, other times incrediably low. Its to all over the place in my opinion and I've seen some pretty shocked faces on parents on those very high months.


So I think I'm going to totally change again and charge by the month on how many days a week they attend.

5 days a week-$500 a month
4 days a week-$400 a month
3 days a week-$300 a month

Once again no reduction if child isn't in attendance and I've already discounted anytime off I will be taken so I can now take time off and not lose pay.

I think the parents will appreciate the consistency also and they won't be wondering each month how much their bill will be even though its pretty easy to figure out at $25 a day.

What about months there are more weeks?

[Play Care]

I don't understand why parents would be shocked on months where their cost is higher. Presumably they are aware they are sending their children in to day care? Especially if you are not charging for your time off (generous) I wouldn't let their "shock" cause me to work for less. I believe it was Tom Copeland who said the goal is to work the least amount of hours for the most amount of pay.

[NeedaVaca]

I don't think I would offer all of those options. It seems like a lot of extra work to keep track of who pays what and gets vaca days, too confusing. I would pick one rate and go with that.

[lflick]

I finally made my mind up as to how I will charge...

I settled on a 5 day, 4 day, 3 day, and 3 variable rate option.... the lesser number of days is of course slightly more costly...... convenience for the parent = headache for me...... so they will be billed accordingly.... I also included a half day rate, in two block offerings, and my after school weekly rate..... I listed that tuition is due regardless of attendance 52 weeks a year. I am nervous but confident more options that allow the parent to chose what works for them will actually be beneficial in the long run. I did not change the rate based on pick up times as even if pick up is at 330 they are still eating lunch and snacks... they are also still present during nap time..... I do contracted hours with the parents and will continue to do so....Thank you for all of your input! I really appreciate it! I brainstormed and wrote down different ideas and I feel this way suits my business best.