Its All About The Money.... (Just My Opinion)

[Sugar Magnolia]

Just a thought.......

If I don't watch TV for a month, never switch on the cable box once, it would be nice if I had no bill that month.

If I didn't drive my car for a month, it would be great if I had no insurance bill for the month. I wasn't out driving, so I am creating no risk for the insurance company.

If I did not place or receive any calls on my land line......you get the picture.

I get your point Mr. Sir. I just wish all services were billed on a "usage" basis. Unfortunately, our economy is primarily service based. Child care is a service, not a retail store.

Sure, if I don't drive my car, I don't have to buy gas. Gas is a consumable/retail product, the insurance is not. So if I wish to own my car and have it registered, I have to pay my insurance bill.
,.
Even energy is a consumable product, based on usage. If I choose to use little or no power, my bill goes down. But if I didn't charge parents for the spot, instead charged purely on attendance, my power bill doesn't go down because two or three kids aren't there......I'm still running the AC all day. And the bill is still due. KWIM?

[Leigh]

I understand what you are saying, Mr Sir Husband. Here's the thing: I determined how much money I needed to make per slot, per year. I explain this to parents: your child's spot is worth $XXXX per year. I you can pay a flat weekly rate to meet this yearly cost, or you can pay a higher rate for just when you use my services. They understand it. They prefer having a set rate so that they always know what their daycare bill will be. I'm not getting paid for nothing when their kids are not here, I'm letting them pay it out in a way that works well for them.

If the parents didn't pay that flat rate, they'd pay a higher rate to cover those costs of mine (that don't change much when their kids are not here) for the days that they did use. They're paying the same either way.

I don't get any complaints from parents about paying this flat rate, and it's what I did when I used daycare services for my own child. I felt that my provider deserved paid time off (just like I got at my job), and that she, like I, deserved a break every now and then. Maybe that is why it was so easy for me to implement the policies that I did.

[Unregistered]

Once you have been in child care for five years. Ten years. Will you say the same thing?

And the analogy is faulty. A more viable analogy would be comparing to the lease for an apartment. The apartment is there for your use. It is there whether you are home or out shopping or at work or on vacation. You pay for it whether you are at home or out shopping or at work or on vacation.
Now let's say you do think about going on vacation. Perhaps you should not do that - because your apartment will be sitting there. You will have to pay for it. And you will not be using it. Oh no. I think you should not go on vacation

[Unregistered]

Oh, and in five years or ten years, I think you will prolly not be in child care if you follow your business model.

[MOM OF 4]

The parents are not paying for an item. They are paying for a service/spot.

Example: you get insurance. You NEVER need to use it, but you pay a premium for it every year even though you may never need to actually file a claim. Insurance is a business too, but they insure for the “what if” and not a tangible product. You don’t get to say “Well I didn’t use my insurance for June, so I’ll cancel my policy and then if I need to use it, I’ll pay for it” That’s just not how services should work. Products and services are two different things, and that is why they are charged differently. Does that help explain why some providers book spaces?

Other examples: Phone service
You pay a monthly fee.
You get NO calls today nor do you make any. Is Verizon going to prorate you? No. You still pay your monthly fee. They don’t care if you EVER use the phone, they just make the service available to you, and that’s why you get charged.
Same with internet, cable and everything else.

[daycare]

so here is my take on how you are running your business vs PAY per slot like I run mine.

Now correct me if I am wrong, but it sounds like maybe your clients don't have consistent schedules and don't all need full time care? It sounds like they just ask for care as they need it and that works for them.

I have 19 kids enrolled in my program. 14 each day. Most are full time, some are part time. Of the 19 enrolled, only 3 of them don't need consistent care and have flexible schedules, otherwise they need the care 5 days a week. NO way in the world could they drop a schedule each week on a drop in basis, I would not be able to guarantee them a spot. They are paying for security of always having a spot.

I charge based on slot for many reasons. I buy food for the week for your child, I still am charged that money if your kid is here or not, same with curriculum, supplies and insurance. I don't get a break when your kid is not here. I have staff I have to pay too.

The only time that I do give a break is when you go on vacation for 5 consecutive days and give me a 14day advance notice, then I won't purchase those things for your child for that week and I will pass on a small discount.

Running a program like mine, I would never be able to operate successfully without being able to forecast the budget every single month.

I think it's just a difference in what type of services you offer.

Example, my husband owns a crossfit gym. YOu can pay $125 a month and go every single day or one day. You can also pay $20 a day and only for that day. It's up to the customers ability to pay and needs.

[SignMeUp]

Example, my husband owns a crossfit gym. YOu can pay $125 a month and go every single day or one day. You can also pay $20 a day and only for that day. It's up to the customers ability to pay and needs.

And for the $20 a day, if they only use one hour, then they pay less than $1 for that day. Right? ::

[daycare]

And for the $20 a day, if they only use one hour, then they pay less than $1 for that day. Right? ::

!!!!!

[craftymissbeth]

I don't sell a product that can be sold to unlimited numbers of customers. I sell a limited quantity membership. I only have 6 memberships available. It's an exclusive club to bring your child here. You can use as much or as little of the membership you've paid for, but the membership price is the same regardless.

I'm a single parent household with only one income. I do not charge for any days I'm closed, but if a parent chooses not to take advantage of the days I'm open that's their choice.

How do you propose being profitable while still allowing clients to do what you're saying? What you're suggesting might work for a two income household where the other income is more than what's needed for survival, but IMO this is my business and I'm in it for profit.

*Disclaimer: my goal of having a profitable business in no way correlates it the live I have for my dck's.

[Mister Sir Husband]

I can definitely see where some of you are going with this, and I agree. Charging only when kids are here would be less profitable. My actual point was to explain why parents drop off when they have a day off, and a possible solution to prevent it.

It can be controlled though. Say you charge 125 a week. Kid isn't there Monday so now its 100. He isn't there Tuesday either so now it's 75. Cap it at 75 and that's what they owe regardless of attendance the rest of the week. This way you have a guaranteed income for all the spots and parents have incentive to keep kids on days off.

[daycare]

I can definitely see where some of you are going with this, and I agree. Charging only when kids are here would be less profitable. My actual point was to explain why parents drop off when they have a day off, and a possible solution to prevent it.

It can be controlled though. Say you charge 125 a week. Kid isn't there Monday so now its 100. He isn't there Tuesday either so now it's 75. Cap it at 75 and that's what they owe regardless of attendance the rest of the week. This way you have a guaranteed income for all the spots and parents have incentive to keep kids on days off.

Or just turn the other cheek and have a good day no matter who's there for what reason or not!!!

[hope]

I can definitely see where some of you are going with this, and I agree. Charging only when kids are here would be less profitable. My actual point was to explain why parents drop off when they have a day off, and a possible solution to prevent it.

It can be controlled though. Say you charge 125 a week. Kid isn't there Monday so now its 100. He isn't there Tuesday either so now it's 75. Cap it at 75 and that's what they owe regardless of attendance the rest of the week. This way you have a guaranteed income for all the spots and parents have incentive to keep kids on days off.

A parents incentive to keep their own child home should be that they are their children and they love them and want to spend some time with them. It also angers many of us when we hear that parents put their kids to bed at 6:30 at night. We see what these children need and it's time with their parents. A parent should want that. ..we shouldn't have to provide incentive for them to do that.

[NeedaVaca]

I can definitely see where some of you are going with this, and I agree. Charging only when kids are here would be less profitable. My actual point was to explain why parents drop off when they have a day off, and a possible solution to prevent it.

It can be controlled though. Say you charge 125 a week. Kid isn't there Monday so now its 100. He isn't there Tuesday either so now it's 75. Cap it at 75 and that's what they owe regardless of attendance the rest of the week. This way you have a guaranteed income for all the spots and parents have incentive to keep kids on days off.

How many DCK's do you watch?

[Blackcat31]

parents have incentive to keep kids on days off.

Its not MY job to give parents an incentive to spend time with their child.

If they value that $25 more then the time with their child there is nothing I can do to change that.

So instead I will pocket that $25 and let the parent suffer their regets (if they do) on their own.

[NightOwl]

A parents incentive to keep their own child home should be that they are their children and they love them and want to spend some time with them. It also angers many of us when we hear that parents put their kids to bed at 6:30 at night. We see what these children need and it's time with their parents. A parent should want that. ..we shouldn't have to provide incentive for them to do that.

This. I have one dcb 15 months who I feel like I am basically raising. He's here from 7am until 530ish. When dad picks up, he always, ALWAYS comments about dcb looking sleepy (even when he took a second late afternoon nap) and "let's get you fed and in bed". He's in bed no later than 7pm, even if his second nap was 3 to 5pm.