Discount or No?

[midaycare]

I had an interview with a client who is state pay. She has 2 kids. Good fit.

State pay has worked well for me if I find the right clients. It really helps with the Food Plan, too, because I'm Tier 2 and state pay automatically gives me a Tier 1 child. It's over $2/day difference per child.

But...I'm pretty sure she can't afford my 2 weeks fee, per child, to sign the contract.

What have you guys done in similar situations? Have dcm pay a little each week extra?

[hwichlaz]

My contract with the state includes two weeks' notice regardless of attendance so I don't charge the fee to state pay people. The state only pays for 10 days per year of vacation and holiday pay though...for me or for the families...so if they are state pay and still able to take vacation time, I make them cover the vacation fee. I'm willing to let them spread that out though. If they could afford daycare they wouldn't qualify for subsidy. So, if the state doesn't cover a notice period if the family bails on you, then I'd let them spread it out over a few weeks.

[Cat Herder]

I have never charged an enrollment fee, so would have no problem disregarding it in general.

The problem I see is that with State pay, you won't be paid in advance for services. That would make me strongly reconsider charging the fee.

My very last State pay cost me dearly. If I ever accepted subsidy clients again, I am pretty sure I would charge the fee. IMHO, They are already being given a HUGE amount of financial assistance, I should not also have to subsidize them.

[midaycare]

I have never charged an enrollment fee, so would have no problem disregarding it in general.

The problem I see is that with State pay, you won't be paid in advance for services. That would make me strongly reconsider charging the fee.

My very last State pay cost me dearly. If I ever accepted subsidy clients again, I am pretty sure I would charge the fee. IMHO, They are already being given a HUGE amount of financial assistance, I should not also have to subsidize them.

What happened?

[Blackcat31]

Yes, Cat Herder is correct in that state pay families don't have their tuition paid in advance like others so what I've done is limit the number of state paid kids I have in care at any one time (I currently have 3 spots out of 14 filled with state pay kids) so that all my eggs aren't in one basket.

I also charge them their two weeks fee per child but I give them extra time to have it paid. Normally it needs to be paid in advance of starting care but I give them 30-60 days depending on family size and enrollent status to pay it in full.

I require equal weekly payments with the understanding that should ANY payment be late the entire amount already paid is forfeited and services immediately terminated. IF that should happen (immediate termination) my state will still pay providers the fee for the two week notice so in a way I still get everything other families are obligated to but in a different manner.

Oh, my state also has the reassurance that should a client on state pay not fulfill their payment requirements with the provider the family is "suspended" from use of state funds until they've paid their provider in full.

[midaycare]

Yes, Cat Herder is correct in that state pay families don't have their tuition paid in advance like others so what I've done is limit the number of state paid kids I have in care at any one time (I currently have 3 spots out of 14 filled with state pay kids) so that all my eggs aren't in one basket.

I also charge them their two weeks fee per child but I give them extra time to have it paid. Normally it needs to be paid in advance of starting care but I give them 30-60 days depending on family size and enrollent status to pay it in full.

I require equal weekly payments with the understanding that should ANY payment be late the entire amount already paid is forfeited and services immediately terminated. IF that should happen (immediate termination) my state will still pay providers the fee for the two week notice so in a way I still get everything other families are obligated to but in a different manner.

Oh, my state also has the reassurance that should a client on state pay not fulfill their payment requirements with the provider the family is "suspended" from use of state funds until they've paid their provider in full.

Wow. I need to fond out thr State of Michigan's laws on this. Very helpful, thank you!

[Cat Herder]

What happened?

The family claimed they were having paperwork issues and would be approved by end of week one, local rep confirmed on the phone. I enrolled and billed month one as instructed. No payment.

I contacted rep who assured me it was coming. I continued enrollment, re-billed month one and added month two as instructed. No payment for either.

Then a notice came in the mail (rep would no longer answer or return calls by this time) that all subsidy payments were halted while the budget was under review and my client was placed on a wait list.

I informed the family they would have to begin private pay going forward (I did not even add the previous two months) until issues were worked out. Instead of being remotely grateful for my effort and losses (services, phone calls and endless paperwork), they left angry and entitled.

I never got any form of payment AND they slandered my daycare for being "unchristian". Sounds silly but that accusation can be a death knell in a small town, in the bible belt.

It was just a general administrative cluster. The food program was just as mismanaged. I adapted my program to depend on no local gov (or parents, really) after that. ::

[Alwaysgreener]

Wow. I need to fond out thr State of Michigan's laws on this. Very helpful, thank you!

Did you get the notice that state pay just increased? The email has a link to the updated CDC mannual.
If you need the link I'll post it later.

And I would charge a deposit. You could break it down into payments

[laundrymom]

I have three options for paying the two week deposit.
Lump sum.
Half.
Or one quarter
Per week until it's paid.

[midaycare]

Did you get the notice that state pay just increased? The email has a link to the updated CDC mannual.
If you need the link I'll post it later.

And I would charge a deposit. You could break it down into payments

I did! I won't get rich by any means, but I'll take it. I'm hoping CAFCP raises their rates, too.

[midaycare]

I have three options for paying the two week deposit.
Lump sum.
Half.
Or one quarter
Per week until it's paid.

Not a bad way to do it! I just always never held a spot until I had money in hand.

[Alwaysgreener]

I did! I won't get rich by any means, but I'll take it. I'm hoping CAFCP raises their rates, too.

nope Just got Toms email, Tier one is the same Tier 2 went down by a penny for lunch.

[midaycare]

nope Just got Toms email, Tier one is the same Tier 2 went down by a penny for lunch.

Can I opt for Alaska's rates? Lol

[AmyKidsCo]

BC, I'm so jealous that you can have 14 kids. WI only allows 8, even with additional providers, which really limits our income.

To answer the OP question, I'd let her pay it off over the first month of care.

[midaycare]

BC, I'm so jealous that you can have 14 kids. WI only allows 8, even with additional providers, which really limits our income.

To answer the OP question, I'd let her pay it off over the first month of care.

At least you get 8! MI only allows 6. You can get 12 with an assistant, but you're making as much with 8 as I am with 12 and an assistant.

I can't complain though, I'm making good money.