Tiered Tuition Question

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  • Baby Beluga
    Daycare.com Member
    • Aug 2014
    • 3891

    Tiered Tuition Question

    I know many of you have tiered tuition based on pick up times. I have been trying to move over to this tuition model but have run into some interesting questions from parents. My question is, how do you explain to parents that it is based on pick up time vs total hours in care?

    For example:

    Pick up time of 4:00 - $120/week
    4:30 - $125/week
    5:00 - $130/week

    What happens if child A is here from 7am to 4:30 and pays $125 per week for a total of 9.5 hours per day.

    Child B is here from 9:00am to 5:00pm and pays $130 per week for a total of 8 hours per day.

    How do you explain that child B is here fewer hours per day but pays more per week than child A?
  • Blackcat31
    • Oct 2010
    • 36124

    #2
    Originally posted by Baby Beluga
    I know many of you have tiered tuition based on pick up times. I have been trying to move over to this tuition model but have run into some interesting questions from parents. My question is, how do you explain to parents that it is based on pick up time vs total hours in care?

    For example:

    Pick up time of 4:00 - $120/week
    4:30 - $125/week
    5:00 - $130/week

    What happens if child A is here from 7am to 4:30 and pays $125 per week for a total of 9.5 hours per day.

    Child B is here from 9:00am to 5:00pm and pays $130 per week for a total of 8 hours per day.

    How do you explain that child B is here fewer hours per day but pays more per week than child A?
    I don't count hours in care at all.
    I bill only according to pick up time.

    Makes it easier. for me.

    Family A can drop off at 10:00 and pick up at 5:00 (7 hrs a day) and pay $200 per week
    Family B can drop off at 7:00 and pick up at 4:00 (9 hours a day) and pay $170 per week

    Once I am at work, I am working. 1 kid or 10 I don't care.

    I only care about what time I am off work.

    Comment

    • Baby Beluga
      Daycare.com Member
      • Aug 2014
      • 3891

      #3
      Originally posted by Blackcat31
      I don't count hours in care at all.
      I bill only according to pick up time.

      Makes it easier. for me.

      Family A can drop off at 10:00 and pick up at 5:00 (7 hrs a day) and pay $200 per week
      Family B can drop off at 7:00 and pick up at 4:00 (9 hours a day) and pay $170 per week

      Once I am at work, I am working. 1 kid or 10 I don't care.

      I only care about what time I am off work.
      If a parent were to ask why the child in care fewer hours pays the least amount of tuition, what would you say them? Just reiterate that it's based on pick up times and not hours in care? And if they continue to question that they aren't a good fit for you?

      Comment

      • Cat Herder
        Advanced Daycare.com Member
        • Dec 2010
        • 13744

        #4
        I considered it a couple of years ago and this was what I came up with. I revisit the idea every couple of years.

        "Tuition rates are based upon the total number of hours available per week and chosen departure time.

        To give families more control of their personal budget, *** Childcare and Preschool offers three tuition schedules to choose from.

        You may choose which schedule works best for your family upon enrollment and change with a 30-day notice.

        Late pick-ups will be billed at $1.00 per minute.

        Overtime must be pre-arranged and approved.


        A: Departure by 3:30 pm – 42.5 Hours - $130.00 week
        B: Departure by 4:30 pm – 47.5 Hours - $140.00 week
        C: Departure by 5:30 pm – 52.5 Hours - $150.00 week

        * The earliest arrival time is 7:00 am. *
        - Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.

        Comment

        • Blackcat31
          • Oct 2010
          • 36124

          #5
          I would tell them I’m only concerned with pick up time
          If they ask about hours I just tell them it’s not how I bill
          If the push they aren’t a good fit, I’d just say ok.. bye. 😊

          That’s what works for me right now so that’s how I do it
          They can take it or leave it

          Comment

          • Cat Herder
            Advanced Daycare.com Member
            • Dec 2010
            • 13744

            #6
            "Late afternoon hours are the most labor-intensive hours. Children are tired, hungry and ready to go home for dinner. Earlier pick-up benefits both the children and the provider."

            I don't think most understand that the late morning hours arrivals are more of a pain than a gift. I would be more inclined to charge more for after 8 am arrival than 7 am. I won't even accept them in after 9 am. I like starting/finishing breakfast, circle time and art on time. Later arrivals mess that up regularly.

            If it benefits our program, it costs less. If it is a drag on our program, it costs more. << I recommend sugar coating that somehow. ::
            - Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.

            Comment

            • Baby Beluga
              Daycare.com Member
              • Aug 2014
              • 3891

              #7
              Originally posted by Cat Herder
              "Late afternoon hours are the most labor-intensive hours. Children are tired, hungry and ready to go home for dinner. Earlier pick-up benefits both the children and the provider."

              I don't think most understand that the late morning hours arrivals are more of a pain than a gift. I would be more inclined to charge more for after 8 am arrival than 7 am. I won't even accept them in after 9 am. I like starting/finishing breakfast, circle time and art on time. Later arrivals mess that up regularly.


              If it benefits our program, it costs less. If it is a drag on our program, it costs more. << I recommend sugar coating that somehow. ::
              Exactly! Thank you.
              I would much rather everyone be here by 8, possibly 8:30, but even that is pushing it so that our day runs smoothly.

              Comment

              • Baby Beluga
                Daycare.com Member
                • Aug 2014
                • 3891

                #8
                Originally posted by Blackcat31
                I would tell them I’m only concerned with pick up time
                If they ask about hours I just tell them it’s not how I bill
                If the push they aren’t a good fit, I’d just say ok.. bye. 😊

                That’s what works for me right now so that’s how I do it
                They can take it or leave it
                Touche

                Comment

                • Blackcat31
                  • Oct 2010
                  • 36124

                  #9
                  The morning arrival time does not bother me at all.
                  I do circle time with whomever is present.
                  We serve morning snack to kids that are here.
                  All activities move along at normal pace.
                  1 kid or 10 kids; makes no difference to me.
                  If they arrive late it was their time lost not mine.

                  Most of my parents are really good about arriving when they say they're going to. I have one DCK that schedules a 9am arrival and arrives at all sorts of times.

                  DCK has missed out on a lot of things over the last few months but like I said, it's not my loss.

                  Which brings me back to pick up time.
                  I just want to know when I'm going home.
                  That's all I need.

                  Comment

                  • Second Home
                    Daycare.com Member
                    • Jan 2014
                    • 1567

                    #10
                    I do a tiered rate . I let people know that each family can have a different weekly rate depending on pick up time , earlier pick up is less. I also let them know that pick up time factors into the decision on whether or not I enroll a family.
                    If people need different pick up hours depending on the day then I charge the higher rate for the later pick up and the less rate for the other days .
                    A 4 pm pick up is $30 a day or $150 a week .
                    A 5 pm pick up is $35 a day or $175 a week .
                    So if a family needs 4pm three days a
                    week ( $90) and a 5pm two days ($70) then their weekly rate is $160.

                    Comment

                    • Blackcat31
                      • Oct 2010
                      • 36124

                      #11
                      Originally posted by Second Home
                      So if a family needs 4pm three days a
                      week ( $90) and a 5pm two days ($70) then their weekly rate is $160.
                      I charge weekly so if that happens here, they get charged the weekly rate for the latest pick up time.

                      If they only need me until 4 on 2 of the 5 days then they can either pick up their kid at 4 and call it good or they can use that extra hour to do whatever. I don't have time to do that much math.

                      Comment

                      • Second Home
                        Daycare.com Member
                        • Jan 2014
                        • 1567

                        #12
                        Originally posted by Blackcat31
                        I

                        If they only need me until 4 on 2 of the 5 days then they can either pick up their kid at 4 and call it good or they can use that extra hour to do whatever. I don't have time to do that much math.
                        I hate math but love earlier pick up more .

                        Comment

                        • Blackcat31
                          • Oct 2010
                          • 36124

                          #13
                          Originally posted by Second Home
                          I hate math but love earlier pick up more .
                          Me too happyface....

                          ....what usually happens here most times is the parent that needs later pick up only one or two nights per week doesn't want to pay that higher weekly fee so they miraculously have several family members or friends that can pick up at the earlier time so I still get an earlier pick up and no math. ::

                          For those few times it doesn't work out, I end up with a kid a bit later (with additional pay for that week) but still no math.

                          Comment

                          • Snowmom
                            Daycare.com Member
                            • Jan 2015
                            • 1689

                            #14
                            I don't discuss anyone else's rate or timeframe, that's confidential information and everyone's contract is unique. Ultimately, that's what I'd say if someone inquired.

                            I ask what timeframe THEY need and adjust my rate accordingly. Like the others above, later hours costs more here. I start at 7:30 no matter what, so arriving any later than that doesn't affect my day at all... staying later DOES.

                            Comment

                            • Unregistered

                              #15
                              Monthly rates

                              I charge a weekly rate for fulltime and daily for parttime/per diem . It doesn’t not matter the amount of hours they are they are there.... because it is a body I am responsible for. If there is a serious injury, it doesn’t matter whether the child was there 5 minutes or 5 hours when the injury happens.... it is still under MY responsibility and MY INSURANCE.

                              Now I do offer a $100 discount if my fulltime parents pay monthly on the first. ( I pay my entire monthly budget on the second then). All my full timers take advantage of this bonus. They are not allowed to be late even if the first falls on a weekend. But I use PayPal and cashapp so it isn’t an issue.

                              My part timers can receive $10 off per day for paying in advance for the moth with a minimum of ten days. Nurses like this. But some simply pay the fulltime charge just in case they go over on days.

                              Most of my clients are nurses, cops,attorneys, and two judges... so they like my flexibility in hours so they don’t mind paying my monthly fee even if they don’t use the whole month. They have sporadic schedules, and call offs.

                              If you give good, safe, fun care and you are flexible in urgent situations ... they feel they are getting a great value for their dollar. I’m firm on my pick up time but not rigid ... as I use to be a firefighter... so I know about being held over. When they feel you have their backs ( without taking advantage of you)... they will often tip you extremely well. Sometimes I think we forget what parents need daycares for... real and true working hoursand bank holidays .... because we are wrapped up in what is easiest for us.

                              Comment

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