For those who charge a full-time rate...

[knoxmomof2]

I tried to search for this and didn't find anything, but I'm not sure if I'm using the right phrasing. I'm wondering about switching my rate structure to where I get paid every week regardless of attendance.

I have been doing this for 2.5 years. I started out charging a weekly rate and then they go daily rate if less than 5 days, but it wasn't a higher rate, just the weekly divided by 5. Last Fall, everyone decided to start taking days off like crazy and I made very little money. When I advertised for my last spot after that, I raised my weekly rate slightly and also raised my daily rate to higher than the prorate. That's been going great, but now that child's schedule has dropped back (even though I made it clear I needed a full-timer) on the weeks her Mom has her.

I didn't agree with charging when they didn't attend early on, HOWEVER... these experiences have made a believer out of me! So... do you have a hard time getting clients with the full time rate, and what is your policy for weeks they are away on vacation, holidays you are closed, your vacation days, etc?

Thanks in advance!

[NoMoreJuice!]

Excerpt from my policy handbook:

Holidays, Vacations, & Closings

The following holidays, we will be closed and tuition will not be reduced for the weeks in which a holiday falls. If a holiday falls on a Saturday or Sunday, we will be closed Friday or Monday, respectively. We have tried to order the list to coincide with most parents' schedules.

New Year's Day Thanksgiving Day
Memorial Day Day after Thanksgiving
Independence Day Christmas Eve
Labor Day Christmas Day

Our personal vacations will be scheduled at least 30 days in advance in order to provide you enough time to make arrangements for your child's care. We do take one paid week of vacation per calendar year. It will be a consecutive 5 days in one week and any other days we take off will be considered unpaid closings.

For certain unforeseen circumstances, we may have to close with very little notice, such as in event of a personal emergency. We hope those events are extremely rare, but we recommend you have a backup childcare provider or relative in place just in case.

After your child has been enrolled in for 6 months, you are entitled to one free week of vacation a year. We ask that you please give us at least 2 week's notice when your vacation will be taken. You must take the vacation all in one calendar week and your child will not be permitted to attend daycare at all during that week. You may "bank" your week to use the following year; please visit with us about your vacation schedule if you have any questions.


Absences

If your child is ill or absent for any reason other than a scheduled vacation, tuition will not be reduced. Tuition is paid for your child's place in our enrollment schedule and will not be adjusted for time missed.

[NoMoreJuice!]

Also, to answer your question about the difficulty of implementing this, I'm always full. I rarely ever have openings, but then I live in a city with plenty of kids. So if someone doesn't like my policy, there are ten more people who will play ball.

You can do contracted days, meaning you can charge a set amount of, say $100 for Monday, Wednesday, and Friday. They would not be allowed to switch or substitute days, and the $100 is due regardless of attendance. The fee is to keep the time spot.

[Blackcat31]

I tried to search for this and didn't find anything, but I'm not sure if I'm using the right phrasing. I'm wondering about switching my rate structure to where I get paid every week regardless of attendance.

I have been doing this for 2.5 years. I started out charging a weekly rate and then they go daily rate if less than 5 days, but it wasn't a higher rate, just the weekly divided by 5. Last Fall, everyone decided to start taking days off like crazy and I made very little money. When I advertised for my last spot after that, I raised my weekly rate slightly and also raised my daily rate to higher than the prorate. That's been going great, but now that child's schedule has dropped back (even though I made it clear I needed a full-timer) on the weeks her Mom has her.

I didn't agree with charging when they didn't attend early on, HOWEVER... these experiences have made a believer out of me! So... do you have a hard time getting clients with the full time rate, and what is your policy for weeks they are away on vacation, holidays you are closed, your vacation days, etc?

Thanks in advance!

I charge based on a 3, 4 or 5 day option.

The rates break down to about a $1 per day difference.

I charge if I am open and don't charge if I am closed. However, this does not apply to holidays. Only to provider vacations and other days I may close.

Parents choose ONE option (3, 4 or 5 days) and that is their rate. (I adjust according to pick up times but that's a whole other thread )

On 500 different pieces of paper (my contract, my handbook, my schedule forms, my invoices etc) it says "RATES ARE BASED ON ENROLLMENT NOT ATTENDANCE"
So parents know they pay the same each week regardless of their child's attendance.

If they need more days than the option they choose, I will allow them to do so but with an additional fee added. I do not allow families that use 3 or 4 days per week to swap days. They can add additional days but not swap or trade days.

Hope that helps.

[smltwngrl920]

For my private pay, I do weekly rates (that are based on hours)
PT - 24.9 hours or less and thats one rate
FT - 25 hours or more up to 40.

Some may say well, if my child is here only 5 hours, why am I paying the same as someone whose child is here 20 hours.. Because it's easier for me to keep track with everyone.

[NightOwl]

Rates are based on enrollment, not attendance, as BC said. When they sign a contract, I hold them to it. There are no credits for absences, no matter what the reason, including illnesses, snow days, vacations, national holidays, etc. They pay the same every single week, 51 weeks annually. (After they've been enrolled for one full year, I give them one free week to use for vacation. But the child has to actually be absent during that week. They can't just bring the child for free that week.) I take a week of vacation annually and it is a paid vacation. All of this is clearly laid out in the contract, so there's no hassle later.

If the child is part time, the same rules apply. They must use the same days consistently, I don't "switch" days during holiday weeks so they can get their same number of days (a common request), they pay for those days regardless of holidays/vacations/illnesses, etc., 51 weeks annually. And for part time, it's significantly higher than a prorated week day. I charge $130 for ft, $35 daily for pt. This makes pt much less desirable and encourages them to take that ft spot, especially if they need 3 or more days weekly.

If you do this, give them notice. At least 2 to 4 weeks. So they have time to decide if they want to stay or find alternative care. My bet is they'll stay. They've been getting the better end of the deal for over 2 years now, but you need to make money on a dependable basis, not on a what's good for the client basis. And if any decide to leave, there's more where they came from. Just stick to your policies and don't negotiate prices. You're worth it, so get paid for what you do!

[DaveA]

My rates are for the enrollment, not for attendance. I don't do PT rates, so it is a flat fee for the week. Families get a week's vacation per year. Otherwise, if I am open they owe regardless of if they are there or not.

Like N said, as long as you give a few week's notice, you probably won't have much of a problem with DCPs. The ones who do kick up a fuss will find out it's pretty common when they start calling other providers.

[Controlled Chaos]

Like you, I didn't charge when children didn't come for my first 2 years in business It was awful, I got resentful, stressed, broke...etc

I have been charging flat rates for a year now and everyone was fine with the switch. I am mean, they were bummed , but they all understood. I state it frankly, its the business standard. If they want to be guaranteed a space, they have to pay for it.

[knoxmomof2]

Thanks ladies!! This definitely sounds like the way I need to go.

[Annalee]

Thanks ladies!! This definitely sounds like the way I need to go.

Charging 52 weeks a yr alleviates any questions from clients about pay EVER! I am closing early a day this month for graduation....taking extra days around Memorial Day for vacations and I don't get asked about pay. When I started this years ago, I got asked every holiday with the old clients but the new clients just know to pay! happyface

[NeedaVaca]

Charging 52 weeks a yr alleviates any questions from clients about pay EVER! I am closing early a day this month for graduation....taking extra days around Memorial Day for vacations and I don't get asked about pay. When I started this years ago, I got asked every holiday with the old clients but the new clients just know to pay! happyface

I do the same. I get paid 52 weeks per year, I get paid holidays, 2 weeks vacation and 5 personal days! Never had a parent bat an eye, never lost a client over this. I need my time off

[Annalee]

I do the same. I get paid 52 weeks per year, I get paid holidays, 2 weeks vacation and 5 personal days! Never had a parent bat an eye, never lost a client over this. I need my time off

happyface