Changing Rate Structure For 2014

[Heidi]

I am doing a little market research with the help of an under-cover operative. I believe my rates are lower than all the centers and most of the "good" family providers around here.

I really only have 4 kids and 4 spaces, because 3 of mine are under 2, and will be for another year.

Currently, I am charging $130 per week for the 3 that come 5 days, and $115 for my 4-day a week kiddo. But, I counted up the hours everyone uses, and I am charging my hardest (5 mo), longest day kid the same as my others, and it doesn't seem right.

Kid 1-M-TH 7:30-5:15, F 7:30-12:15 1 year old. That's 41 hours. $130

Kids 2 M-F, 4 days 7:30-4:45 (usually 4:20, actually), 1 year old. about 37 hours $115

Kid 3 M-F 7-4:50, gone 1 day a week, usually same day, but not always. 40 hours, State pay. State will pay $2.85 per hour, up to 35 hours, but no absent days. Mom pays me $30 per week out of her pocket. Sort of a compromise because then she pays the same every week vs. paying for absent days or holidays out of pocket. So, $99.75 per week plus $30. $129 for 4 days,, but if he's absent for any reason, or I'm closed for a holiday, I don't get paid. This is my only 2 year old.

Kid 4: 7-4:20 5 days a week. Intense baby. $130 per week. Oh, and every other Friday it's until about 4:45.

If I went to contracted care for $3.25 per hour, then everyone except Kid 4's mom would stay pretty close to the same. I'm not sure how I would do #3, though. #4 would end up paying around $150 per week. Seems fair, right? But, she only started in July and it's quite a rate hike in 6 months.

What do you think?

[Rachel]

I think you should decide if you are doing contract hours or open hours or what. I would have them pay for the spot, and none of this "but I don't bring him every other Friday or I pick him up early 2x a week." Either pick hours you are opened, and they can bring any time in those hours (but pay the same every week, even if they leave early), or give each family a rate based on their contract hours, and no discounts for not coming. I think in your case it makes more sense to have opened hours, because your kids are fairly consistent. Or you can charge the full rate for picking up at 5:15, and give a discount for picking up earlier. As far as your state pay, I would keep track of how much you are getting paid for him vs. the others (taking into account if he is sick, etc), and then sit down with the mom if it's really far off and you need more. It might be you are working out okay because if he's there the max hours most weeks, or it might be you are really losing out. You have to look at the numbers to see.

[Scout]

I changed mine from everyone getting free absent days to they can pay $20 less per week and pay regardless of attendance or pay the extra $20 and get 2 weeks free days to use. I wanted to gove myself a raise but, have the parents decide so it looked better in case they thought the rates are too high, the choice ade is their own so, they can not complain! I have not enrolled anyone since who has chosen free days, which is waht I wanted, consistant income while still attracting new families. I have one starting in two weeks tjat I raised my rate $40 per week from my last siblings and she said it was doable so, I am very excited!happyface

[Heidi]

All that writing, and I still wasn't very clear...

I do charge for holidays and absent days. I guess my reall question is should I be charging more for the kiddo that's here the most hours? It seems fair to charge at least a little more. He comes at 7am, which means I have to rush back to the house after getting my kids to the school bus, and then he wants my attention the minute he's in the door. I usually greet him and cuddle for a minute, but then it's keep holding him, or listen to major fussing. My dh leaves for work at 7:30, just as the next kiddo arrives.

Single mom, so no other options when it comes to arrival. She drives 4 miles to get him here and then 11 back (essentially past her house) to get to work. So, I am stuck with the 7 arrival and can live with it. It just seems like maybe I should charge a little extra for the extra time.

[butterfly]

All that writing, and I still wasn't very clear...

I do charge for holidays and absent days. I guess my reall question is should I be charging more for the kiddo that's here the most hours? It seems fair to charge at least a little more. He comes at 7am, which means I have to rush back to the house after getting my kids to the school bus, and then he wants my attention the minute he's in the door. I usually greet him and cuddle for a minute, but then it's keep holding him, or listen to major fussing. My dh leaves for work at 7:30, just as the next kiddo arrives.

Single mom, so no other options when it comes to arrival. She drives 4 miles to get him here and then 11 back (essentially past her house) to get to work. So, I am stuck with the 7 arrival and can live with it. It just seems like maybe I should charge a little extra for the extra time.

How about... stating that a 7:30am opening time would be at $130/week and a 7am opening time is at $150/week. If they find a way to get there later, it's less hours/less work, but if not it's more money.

[Annalee]

I open 6 to 4:30 giving the parents 9 1/2 hrs not to exceed 4:30.....no exceptions. I did this a few yrs ago because it seemed everyone wanted to come from open till close. I love it because the early ones leave by 3:30 and the others don't get here till 8. I do have a couple families that work at the hospital three 12 hr days and they can come from 6 to 4:30 but they only get three days a week for the same price ( a family member picks these children up). All parents pay the same but I contract their time. I love this because I never have all 12 here at the same time but I still get paid full-time for all.

[Unregistered]

My thought, charge the same amount across the board. think it gets confusing with different rates for different families.

As licensed providers, we can only take a certain number of children so parents are paying for a spot. Whether they come 4 days a week or 5, I charge a full time rate. period!

Be firm. I don't know where you live, but $130 a week for those hours seems low to me!