Contracted Hours

[AmericanHoney]

I saw the other thread about contracted hours. I am curious as to how contracted hours work and how do you decide on how much to charge? How do you explain contracted hours to your the daycare parents? Are there forms etc? Any help would be great!

[Blackcat31]

I set my base rate (amount I HAVE to have to survive financially) for my earliest pick up (3:00) and added fees for every 30 minutes.

That way, if a parent picked up at 3:00 daily, I wouldn't be taking a loss on my budget.

I presented contracted hours to parents as a way for them to decide how little or how much their daycare costs were. If they were on a tighter budget, they could have family members work out arrangements with them to pick up early in the day.

I highlighted the positives of the parent being in control of their budget and let them choose the contracted times that worked for them.

I was good budget-wise because no matter which time a family choose, I still made enough to meet my own financial needs.

If you are interested in seeing the letter I used to explain/present the new rate scale to parents, let me know.

[Patches]

I set my base rate (amount I HAVE to have to survive financially) for my earliest pick up (3:00) and added fees for every 30 minutes.

That way, if a parent picked up at 3:00 daily, I wouldn't be taking a loss on my budget.

I presented contracted hours to parents as a way for them to decide how little or how much their daycare costs were. If they were on a tighter budget, they could have family members work out arrangements with them to pick up early in the day.

I highlighted the positives of the parent being in control of their budget and let them choose the contracted times that worked for them.

I was good budget-wise because no matter which time a family choose, I still made enough to meet my own financial needs.

If you are interested in seeing the letter I used to explain/present the new rate scale to parents, let me know.

everything she said
For me, when the parents sign the contract, they choose their drop off and pick up times for each day of the week. That's when their weekly rate is determined. And if they ever need to change it they sign a new contract. Late fess start at their contracted pick up time. My earliest pickup time is 3:30. Same as Blackcat, the rate goes up every 30 minutes.

[Blackcat31]

More threads on contracted hours

https://www.daycare.com/forum/tags.php?tag=contracted+hours

[AmericanHoney]

I would definitely love to see your forms/papers. I think I may like to try this as I have already had one parent want there child here the entire time I'm open plus an hr early drop off which would put her child her 12hrs a DAY!
My hrs are 7am-6pm. Not sure what to decide on prices for set amount of hrs. For example you have one family who would need a 7am drop off and 5pm pick up, or a family that needs an 8am drop off and 5:30 drop off. I am in TN, not sure why my name says Ga.:confused:

[Blackcat31]

I would definitely love to see your forms/papers. I think I may like to try this as I have already had one parent want there child here the entire time I'm open plus an hr early drop off which would put her child her 12hrs a DAY!
My hrs are 7am-6pm. Not sure what to decide on prices for set amount of hrs. For example you have one family who would need a 7am drop off and 5pm pick up, or a family that needs an 8am drop off and 5:30 drop off. I am in TN, not sure why my name says Ga.:confused:

I don't care what time a parent comes in the morning. They have to schedule a drop off time but I don't count hours and then set fees according to the number of hours they use. My fees are based on pick up times ONLY.

I open at 7. If a family uses 7-3 they pay the same weekly rate as someone who uses 9-3.

My weekly rate is the fee for full time care with a pick up of 3:00.

I charge weekly so the LATEST pick up time of the week is what dictates the weekly rate a family pays.

PM me your e-mail address and when I get home this afternoon, I will send you some of my paperwork. Rate sheets, explanation letters etc.

I am always happy to help so let me know if you need any other paperwork help.

[countrymom]

I charge by the day but contract hours. This way if they run over their contract hours then they get charged extra. I am open from 7 to 5pm but that doesn't mean I want someones child here all day.

I also found by going with this, I know when kids are being dropped off or picked up and makes my life so much easier and there isn't any surprises. Also, this way no parent can just do whatever they want either. So If I have an emergency I have an idea where to get a hold of them.

[MCC]

I don't care what time a parent comes in the morning. They have to schedule a drop off time but I don't count hours and then set fees according to the number of hours they use. My fees are based on pick up times ONLY.

I open at 7. If a family uses 7-3 they pay the same weekly rate as someone who uses 9-3.

My weekly rate is the fee for full time care with a pick up of 3:00.

I charge weekly so the LATEST pick up time of the week is what dictates the weekly rate a family pays.

PM me your e-mail address and when I get home this afternoon, I will send you some of my paperwork. Rate sheets, explanation letters etc.

I am always happy to help so let me know if you need any other paperwork help.

When you switched to contracted hours, did you increase your rate for the later pick ups? Or lower the rate for the 3:00 pick up? For example:

My rate is $280. If I went to contracted hours would you suggest I make the earliest pick up $280, and then raise it from there, or make the earliest pick up $260 (or so) and then raise to reach $280 for the latest pick up?

[Blackcat31]

When you switched to contracted hours, did you increase your rate for the later pick ups? Or lower the rate for the 3:00 pick up? For example:

My rate is $280. If I went to contracted hours would you suggest I make the earliest pick up $280, and then raise it from there, or make the earliest pick up $260 (or so) and then raise to reach $280 for the latest pick up?

I made my earliest pick up time my regular weekly rate.

In your case, make your 3:00 pick up time $280 and add from there. I know providers who add fees by the hour, by the half hour and by 15 minutes so handle that part in whatever way works for you. I chose to go every 30 minutes.

Same thing applies to your rate scale. If you don't think your current parents would take kindly to having to pay a lot more (especially if you have a lot of 5:00 pick ups) so you could use 4:00 as your base rate.

It all depends on what you feel is the best marketing move for your business.

If it's hard to find kids and you really don't want to risk losing anyone, compromise. Find a middle ground, but IMHO your base rate really shouldn't cover more than 8.5 - 9 hours of care at the VERY most.

[AmericanHoney]

$280 how do you get parents to pay that kind of money???
I set a weekly rate for my first family (starts tomorrow).
Do you typically get better pay with contracted hours?
I am not certified so I can only have 4 children unrelated right now.

Blackcat I will PM you now.

[MCC]

$280 how do you get parents to pay that kind of money???
I set a weekly rate for my first family (starts tomorrow).
Do you typically get better pay with contracted hours?
I am not certified so I can only have 4 children unrelated right now.

Blackcat I will PM you now.

I live in Washington DC area, so that is why my rates are so high. The average rates around me are $220-350.


Blackcat- Thank you so much! I am seriously going to consider switching to contracted hours.

[jenboo]

I don't care what time a parent comes in the morning. They have to schedule a drop off time but I don't count hours and then set fees according to the number of hours they use. My fees are based on pick up times ONLY.

I open at 7. If a family uses 7-3 they pay the same weekly rate as someone who uses 9-3.

My weekly rate is the fee for full time care with a pick up of 3:00.

I charge weekly so the LATEST pick up time of the week is what dictates the weekly rate a family pays.

PM me your e-mail address and when I get home this afternoon, I will send you some of my paperwork. Rate sheets, explanation letters etc.

I am always happy to help so let me know if you need any other paperwork help.

Can you send me the info too please?? I would love to start doing it this way in the future. Ill send you a PM.
Thanks BC!

[cara041083]

I charge a flat rate per week for 9 hours a day, 5 days a week. Anything out side of that 9 hours a day, I charge a 15.00 hourly fee. I still get paid the flat rate no matter how many days they are here or not here. If they take the spot the pay for it. The only thing extra I charge is for over the 9 hours, or late fees. I have learned the hard way that parents willl bring their kids at open and pick up at close (even if its 15 hours a day) unless you make them pay for it!

[TwinKristi]

I charge a daily rate based on their hours/days of need. I charge $45/day for FT, $50/day for less than 4 days and $55 for just 1 day but that rarely happens here. As long as they come more than 4hrs than it's the full rate. Less than 4hrs (also hasn't happened) is charged at a lower rate. I just tell parents up front that I work on the hours they need. If they work 7:30-1:30 than I watch the child 7:15 to 1:45 or what not depending on their commute. But I don't just open at 7am and have the kids here til I close at 6pm.

[melilley]

I have contracted hours and on my contract, the parents have to write down the hours they need care. I only allow up to 10 hours a day. I have a set weekly and daily rate.