Creating Different Rates For Each Family

[Abigail]

As some of you may know I'm almost finished with my handbook! I've got a few things here and there I will work on this week to tweek it up as I want to cover many things the first time around. I also have a general contract that I will follow with the basic rules, but that is for another post. Anyways, I was thinking that I was only going to take full time and my rates were going to be either $125 or $130 a week depending on our neighborhood. Our local child care resource and referral gave us papers that told us the average is $122-$126 in my city so that is where I came up with my rate of either $125 or $130 a week. I don't want to do different prices for difference ages because I don't want to take a pay cut down the road. I also am not offering sibling discounts.

Question 1.
Now that is out of the way, how would I go about charging for part time? Most people here have a 3 day minimum which is $25/day (equal to my $125/week) so they require $75/week for up to about 24 hours of care.

Question 2.
Can I charge $30 a day if it's part time and not require a minimum day or should I require at least two or three days a week commitment?

Question 3.
What if I get a family who works on the other end of town and requires my open-close hours? I'm trying to get at saying if someone was at my 50 hours that I'll be open that I would charge $150 a week instead of $125, but I don't want them to know they could pick up an hour early at $125 a week instead of the $150

Last Question 4.
What does your hourly rate break down to for normal contracted hours? For over time hours? Thank you so much!

[legomom922]

Question 1.
Now that is out of the way, how would I go about charging for part time? Most people here have a 3 day minimum which is $25/day (equal to my $125/week) so they require $75/week for up to about 24 hours of care.

What you could do is have a 2 day min at $35/day and then say if they need more days 3, 4, 5 they get a discount and then its $25/day. I also would not say "up to 24 hrs" or you could get hit with a PT for 12/hrs per day! Just leave that out. I used to say "up to 10 hrs a day", but then a parent challanged me on it and they were late dropping off one day and late picking up, and then could not understand why I hit them with a late fee, because my contract stated "up to" 10 hrs. So that was the first thing I removed!

Question 2.
Can I charge $30 a day if it's part time and not require a minimum day or should I require at least two or three days a week commitment?

I would at least ask for a 2 day commitment! The less the amount of days, the more they pay. If they only wanted 1 day, hek, I would charge $45! You would be just fine asking for $30 or even $35 for 2 days.

Question 3.
What if I get a family who works on the other end of town and requires my open-close hours? I'm trying to get at saying if someone was at my 50 hours that I'll be open that I would charge $150 a week instead of $125, but I don't want them to know they could pick up an hour early at $125 a week instead of the $150

I see no problem there. Consider it OT. Or you can say it's $125/wk with pick up at 4, but if they pick up at 5, there is an extra $5 daily fee.

Last Question 4.
What does your hourly rate break down to for normal contracted hours? For over time hours? Thank you so much!

My OT hrs are $10/hr
My per rate changes depending on how long they are here since I charge by the day. Currently, I get $7/hr

My answers are under your questions, but it didnt turn out right!

[Preschool/daycare teacher]

Question 1: I would charge about $5-$7/day extra for each day of part time care. For example, if your weekly rate was $130, that makes your daily rate $26. If you added an extra $6/day to that to make it worth your time of having PT children, it would make your new daily rate $32.

Question 2: I personally would have a 2 or 3 day/week minimum. We allow some children to come only 1 day/week, and it's a hassle for them (they never get used to being at daycare), and it makes it bad for us too, because they are taking up a spot for only one day week, but it could possibly keep us from taking on another full timer because we would be over capacity for only one day a week. So they'd be paying you say $32/week, when you could have been getting $130. I guess if you never think you'd get up to capacity, this wouldn't be an issue and you'd want to get as much as you can, even from a one day a week spot. We are in this situation right now.

Question 3: I would do like Legomom922 suggested. State your weekly fee, and say anything past your closing time would be an over time fee of $5/day.

Question 4: Our hourly rate is the daily rate divided by 8 hours (anyone under 8 hrs/day pays the hourly rate, which I do NOT recommend! Someone who takes up a spot for say only 4 hours doesn't make it worth the spot a child coming all day could have for a whole lot more. I would personally charge a full day rate, no matter how few hours they attend). Our Daily rate is $6 more a day than the weekly full time rate breaks down to. What I mean is, we take the weekly full time rate and divide it by 5 days, then add an extra $6/day to that. We do not have over time hours. Even if they are late picking up the rate is the same. As of right now we don't have a late pick-up or late payment fee. I again do not recommend!!!!!!! As everyone else already knows, parents take advantage of this *understatement of the year* . Time for a new policy for us too

[Abigail]

Since I don't have any enrolled yet, then how do I go about choosing a "close time" or time that will turn into an extra $5 a day? Should I be telling parents that rate is based on the number of days (instead of hours) and what the hours needed are for those days?

Preschool/daycare teacher: how did you come up with your $6 a day? Is this per child or per family? Thanks

[legomom922]

Have a plan in your mind. If someone calls and wants you until 6pm, are you willing to do that? If they want you from 630am-1230pm, do you want that? Have a cheat sheet in front of you with different amounts for different hrs. If somoene wants you from 730-530pm (10 hrs) do you want to do that for same price you would take someone from 9-3pm? Or do you want to charge the 730-530 client a flat per day of $30 up to 430, and then add another $5 to keep them that extra hr? This is all stuff you have to figure out beforehand so you can be prepared when people ask questions. But only you can answer these questions.

[Preschool/daycare teacher]

Since I don't have any enrolled yet, then how do I go about choosing a "close time" or time that will turn into an extra $5 a day? Should I be telling parents that rate is based on the number of days (instead of hours) and what the hours needed are for those days?

Preschool/daycare teacher: how did you come up with your $6 a day? Is this per child or per family? Thanks

I was assuming you already had what time you would close in mind. Do you have any idea what time you would like to close or what time most parents in your area would be able to pick up? I'd set that as your closing time. But I also like your idea of just telling them that their rate will depend on the hours they need care that day and on the number of days that they attend. Maybe you could let them know you are still undecided on some details and then just give them a rough estimate with their PT or FT rate (depending on what they want) and the $5 OT fee added to that, and say it would be no more than $x. If that makes any sense... I would NOT go into detail, explaining that their rate might be less if you decide not to charge them the OT fee .

You asked how I came up with the $6/day? That is for part time children. I just did the math of what the owner charges and saw it was $6 more/day for part timers than full timers. That is per child (I think she gives a small sibling discount, but that may just be for full time families). Side note: I would not advice getting into the mess of a sibling discount. Each child takes up a spot, regardless of whether or not they happen to be related.

[Abigail]

Yup, I've decided no sibling discount, especially in a small in home setting limited to less children than centers. I have a basic plan of action, but since I'm not "open" yet to see what hours my potential clients are wanting makes me uncertain of the exact hours. My basic plan goes from 7:30 am to 5:30 pm. I feel that 5:30 pm is the latest I want to work because my husband only gets weekdays off and if we can't go out until 5:30 pm that is late enough where he just has to sit and wait for me to work. LOL

Most children at our group daycare leave between 3:00 and 4:30 pm which is REALLY nice. If I had families that didn't need me as late I would definitely close earlier. I saw someone on here, it's on another posting did something where they charged more the later they worked. So it was based on when they left, not how many hours they were in care which sounds interesting too. I have lots to think about. I better keep it simple to how many days and what hours they are looking at. I know I need to give the licensor my hours of operation too, so do I give her more hours than I am actually open so I can choose to open earlier and close later and vice versa?

[dEHmom]

Abigail just think, on average, most people work 8- 8.5 hrs a day including their lunch break. So depending where you live factor in the time it's going to take them to travel (15 minutes, half hour, hour), and go from there in terms of a starting point for cost.
If these people are getting charged as an example $30/8 hrs, but have an hours travel time (1/2 hr to work, 1/2 after work) and they are being charged an extra $5, they may just decide it's not worth it. When you are just starting out, unfortunately you want to get a client base going. Build up some valuable references. Doesn't mean taking anyone who is willing to give you money, but it does mean that you might need to start on a lower end. As you start building your business up, you can start changing it up.

Me personally I charge $25/day (regardless of age for same reasons as you), I am flexible on my hours (if they want to drop off at 6am that's fine with me) but they get a 10 hr window. I live in a small town/city so most people commute to Winnipeg which is 1/2 hr to 45 minutes drive with traffic. So I factor that in to the 8 hrs working time. I don't advertise or even give my hours of operation as that could potentially scare away possible clients. That is me personally. HOWEVER, anything over the 10 hrs, OR anything after 6 pm is then $5/10 minutes as this is overtime.

I have competition not only in my city/town, but as well in Winnipeg. Some people travel 20 minutes out of the way to drop their children at my daycare, verses finding a daycare in Winnipeg where they work. But small town daycare availability vs Major City daycares. I have ALOT of competition.

You have to do what you feel is right, and what works in your situation.

[Abigail]

Thank you for all of your advice! I have a lot of competition, but I know I will have a lot to offer too. I know that $25/day is average and have seen some places as I have visited some a have friends who offer child care (Yet, I never discuss rates with my friends who do it and don't even know what they charge. I'm not going to open that bucket of worms ) The ones I did see though were around the $25 a day and I believe I have just as much to offer.

It's really tough deciding all the details, but I will definitely write out a plan of action. I would consider part time and think a three day minimum is good. Maybe I'll just create a really detailed cheat sheet for myself and share it with you when I decide on it. I would be interested in offering drop-in if the spot is available and half days for those in preschool so I better get started on my rate cheat sheet. Thanks everyone.

[dEHmom]

Another thing is, I also do the 75/week charge for part timers. Because some people figure part time can be 1 day this week, 3 days next week, 1/2 days for 5 days this week, and so on. But that isn't fair, they are mostly casuals if they do it that way. and it is nearly impossible to try and find someone to fill in the empty places that way. So I normally am 125/wk FT and 75/wk PT. there's a difference of 50 dollars for the week, and honestly, it's a little more of a push to make them go full time. Even if it sounds bad, this is my business, my income, and it's not necessarily fair to say to someone, you're out so I can make more money. If they come in understanding this, it changes everything.

[kidkair]

Nannyde has a great system for charging parents on a sliding scale. She charges them based on pick up time. That kind of system would help you out with charging more for those who are going to be there more. She also has an extra fee for those needing more than 9 hours of care in one day. I'm currently considering changing over to this way myself.

[nannyde]

Nannyde has a great system for charging parents on a sliding scale. She charges them based on pick up time. That kind of system would help you out with charging more for those who are going to be there more. She also has an extra fee for those needing more than 9 hours of care in one day. I'm currently considering changing over to this way myself.

http://www.nanshouse.com/fees.htm

My friend that owns two centers has switched to a version of this and it has markedly reduced her staff hours because the parents are picking up earlier

[momma2girls]

I would definately make a min. of a 3 day/week- then what I do with parttimers- I charge them $30.00 per child, per day.

[Abigail]

http://www.nanshouse.com/fees.htm

My friend that owns two centers has switched to a version of this and it has markedly reduced her staff hours because the parents are picking up earlier

Thank you for the link! Do you open at 6:00 am to leave at the 3:00 pm 9 hour limit? What is your over time fees if they sign up for like a 4:00 pm pickup but always show up late?....is your overtime fee higher than the $5 per fifteen minutes to have the parents pay more in general just to be sure? Lastly, is the $135 average rates in your area and is 3:00 a standard pickup time? That seems so early for a home daycare. I would love to be done at 3:00 everyday!

[nannyde]

Thank you for the link! Do you open at 6:00 am to leave at the 3:00 pm 9 hour limit? What is your over time fees if they sign up for like a 4:00 pm pickup but always show up late?....is your overtime fee higher than the $5 per fifteen minutes to have the parents pay more in general just to be sure? Lastly, is the $135 average rates in your area and is 3:00 a standard pickup time? That seems so early for a home daycare. I would love to be done at 3:00 everyday!

Do you open at 6:00 am to leave at the 3:00 pm 9 hour limit? I open when my first client needs me so that varies from day to day. My current kid that leaves at 3:15 comes at 8 a.m. (usually the early departures have short days too) Last parent who oges into work brings kid... first parent who gets off work comes get kid.

What is your over time fees if they sign up for like a 4:00 pm pickup but always show up late?.... I don't charge anything on the first few incidences but after that I tell them they must contract for the later more expensive pick up times. That means they pay that EVERY week. That usually gets them to picking up their kid on time. Here's my policy on being late:

Late pick ups: Don't do it.

.is your overtime fee higher than the $5 per fifteen minutes to have the parents pay more in general just to be sure? The scheduled overtime is five dollars an hour for anything over nine hours. That's different than the late fee. If they tell me they need extra hours or time it's just five bucks an hour paid upfront. I do this for them a bit now and then when one of the parents who drops or picks up is out of town. I like making the extra money but I don't allow it to go past when my Staff Assistant is scheduled. They have to get here before she leaves.

Lastly, is the $135 average rates in your area Right now the standard in my area is about 115 I think. It's dropped over the last two years substantially because we have a really huge increase of providers. In my area there are over 100 within two miles of my house. Funny thing I never see them when I go outside on our hike every day.

I haven't heard of any provider I know in my area ever getting 135 a week even before the recession hit. The Center down the street now offers infant care at 177 BUT most of their kids are State Funded and State pays 155. So my rates mid departure times is higher than the Centers.

and is 3:00 a standard pickup time? That seems so early for a home daycare. I would love to be done at 3:00 everyday
Oh I would love to too BUT I make a lot more casholla if they stay later so I can't wish extra money away. My average kid leaves at four thirty. My average kid is here about 8 hours a day. Even when they hire you for that early of an out eventually it gets later as they go along. Usually their pay increases lead them into positions that need to be worked into the later afernoon.

When you do the graduated scale what you find is that most folks who REALLY want into your care will figure a way to get the three pick up. They just get in the door at the lowest rate. Then when they get further along in their careers their boss wants them different hours and they start asking for a later time to depart. This is how I get my raises. They just look on the payscale and KNOW what their price will be if they switch schedules. No fuss no muss. My average kid leaves at four thirty. Three days a week we are done by five. Two days a week we are done by five forty five.