Sibling Discounts

[nannyde]

Ok, thing is, you aren't including the cost of empty spots.

If you've got all the business you can handle already, of course you don't need discounts. If you have spots that need filling, though, isn't it better to get money in hand now (even if you are discounting some) than to hold out for money from the future that may never come?

Additionally, if you are competing with others in the area that do give discounts, then you aren't going to be competitive without them.

There is a reason that many businesses give a 'bulk discount' - they make it up on volume. This is essentially the same principle.

Is it better to have one spot filled at 300/week and an empty spot, or to have 2 spots filled at an average of 275 each (one for 300, second for 250).

If you start getting so much business/interest that you think the discounted spots can be immediately filled by full-paying customers, just explain that you are discontinuing the discount.

You make some good really good points. I have to disagree on this one:

There is a reason that many businesses give a 'bulk discount' - they make it up on volume. This is essentially the same principle.

That doesn't really work in home child care. If the provider had a signed contract for a substantial amount of contracted notice time then possibly. When you have two children from one family filling slots it is a risk to the business when they leave because traditionally they take a large total percentage of the business.

It's not like "goods" sales where you have X amount of inventory of one item and you offer discounts should a buyer come along and take a chunk of it. With child care the inventory IS the weekly slot and the time it takes to fill that slot.

If you are going to give sibling discounts I reccommend requiring a very long notice period. Something along the lines of three calander months notice should two children leave the day care. I only accept notices on Fridays (payday). If the client has three it should be even longer.

If you are going to give a discount make sure it is specifically for the oldest child who has the highest liklihood to leave care as he/she ages. Then make it clear that the regular rate for the other child will go into affect.

Discounts should ALWAYS be tied into notice time. The agreement with the parents should be that you are giving the discount based on their signed agreement that should they leave care that you will receive three calander months notice when one or more of the children are to leave care. Also keep a weekly running tab that is provided to the parents of the cash value of the discount. If you are giving them a 50 dollar a week discount then it should appear on their receipt weekly what the sum TOTAL of that is on a week to week basis. By week five they should see a line that says "Total sibling dicount to date: $250.00. Next week: Total sibling dicount to date:$300.00.

They need to see IN WRITING the amount of the discount and how it adds up so significantly over time. It's good for the provider to see it in writing too so she understands the magnitude of what she is offering.

I'm not one to give discounts because I don't believe the parents really see it as a discount. Your discounted rate IS the rate for them. They don't look at it that way. If you feel you need to do it you need some way to communicate to them and remind yourself what you are doing weekly.

[SilverSabre25]

I don't offer sibling discounts for the same reason I don't charge more for infants--I give the same level of care to everyone, no matter how old or who they are. My rates are reasonable, and far less than a daycare center.

[nancy123]

I, as a parent am so greatful for discounted childcare. I would not be able to pay for it otherwise. I have 3 children(4,2,6months). Our center has different rates for different ages, but if the rates were standard for each child, I pay about $37.50 per day/child, that is with a discount. I am paying $450.00 for 3 children for 4 days. Still very expensive for me, but greatful for that price.

Our centers policy: If you have 3 or more children you get 10% off the 2 lower rates, if you have 2 children you get 20% off the lower rate.

[FrustratedMommy]

sibling discounts

As a parent, I would never expect a discount for siblings. I would be happy to have my kids in the same daycare. All I expect from my provider is that she would take my second child before offering a space to another kid.

Of course I am in Quebec and daycare is subsidized. Although, even if I had both my kids in private daycare, I would not expect a discount. You are legally allowed to offer x number of spaces and you make your budget based on those amount of spaces. You need to keep your annual income at a livable level. It is not like you can take another kid to make up the difference.

[Unregistered]

Sibling discounts

I don't do sibling discounts because of the potential to lose a lot of money by taking on a family with more kids. If I were to take a family with 3 kids and give a discount, then that would leave me with only 3 slots to fill and depending on the amount of a discount given, that could leave me in a bind financially. It's nothing personal, it's business.

[Unregistered]

Do you guys go by weekly for payment or by monthly?

I'm in a child development class and, I am just researching a part of my assignment to "run" my own daycare. I am just wondering, what would be the standard average cost of one child per day. As well as if there's more then one sibling that is a stable client. What kind of costs could I do that parents would consider being reasonable, without discounts of any form.
Thank you for reading this.

[abcdaycaremom]

I charge a flat rate per child. That parent can use up to 43 hour per week during my posted hours. No discounts as I have limited space available. Even daycare assistance does not give a family different rates due to amount of children in a family one rate one child.

[shelby]

I do give discounted rates... I feel that it is a plus when parents are looking for daycare.

I was just told by my sis in law that the going rate for 2 in this area ( which i am new to..) is 120 a week for two.. and people still think that it is high...

What! I have a interview for my first kids since opening in this area and I told her my rates and my discount rate for both of her little ones and she was happy with it... some parents can be very funny.

[Unregistered]

I don't give sibling discounts. Hurts my bottom line. I tell parents to get a nanny that will be cheaper than daycare for 2 and they can come home to dinner and laundry done. As far as I am concerned I am putting more of my eggs/income in one basket and if stuff goes south I am out double the money. Not worth it.

The only discount I give is 10% for paying a month at a time. I raise my rates lsightly every year for new kids coming on board. 3/4 of my parents pay a month at a time now. So I can pay most of my bills at the beginning of the month. It is great for budgeting purposes. That works great when you have parents that are pregnant that are planning way out. When you tell them the rate range and then that they get a 10% discount for paying a month at a time they have time to save up for that. Plus it helps weed out the broke parents, you get more stable parents that don't jerk you around with pay and take their kids to the doc when they are sick, take off work when they are sick etc.

I consider it a test too

[jenheu2006]

I work 4 hours shifts 5 days a week. I have two kids one 5 and 4. I drop them off and four hours later pick them up if I am not working they are not at "School". They daycare director realized it and cut my payment in half for both kids since they arent there all day. Which I dont do just for the "Discount" I would do it even if I paid full price. I do not expect a discount, I understand I havebills and so do you. Maybe do a incentive like if they are on time with payments for 3 months straight then they get 10% their next payment. But only for the consistent parents who are on time with their payments. No pay No discount.

[Unregistered]

I am child care provider. My rate is $125/week /9hours per day.
I have a parent that will bring their third child here and they're asking for a discount I don't know what to give them. This would be the first time that they're asking for discount. The oldest is school age.

[Blackcat31]

I am child care provider. My rate is $125/week /9hours per day.
I have a parent that will bring their third child here and they're asking for a discount I don't know what to give them. This would be the first time that they're asking for discount. The oldest is school age.

Siblings don't receive discounted care so I don't discount their rates either.

If you are limited on the number of spaces you can fill, I would not give a discount at all.

If you do end up giving a discount, I'd make sure it's not very much as the parent will always find a way to say you need to discount other services as well. Also make sure you specify the discount is ONLY when BOTH kids attend and that it's for the older child NOT the younger one.

School age children in my opinion are A LOT more work than any other age.

[Josiegirl]

100% agree with BC's answer. I used to give discounts, ooohhhh think of the money I lost. Good news is I stopped offering that a few years ago. It's a good thing because I have lots of siblings in my dc. Why should *I* lose out on my income because dcps add on to their family? As BC said, you give the same care to all. I have 6 slots I need to keep filled and they're all FT full pay slots.
In your case, I would deny it. People don't give discounts for other things if you have larger families. :confused:

[Meeko]

"Dear Provider,
I want YOU to take a pay cut to compensate for ME having another child.
Parent."

...Umm...NO!!!!!

If parents want to save money, the sacrifice needs to come from THEIR bank account...not mine!

[happymom]

When I was shopping around here (Utah) most places did not offer a siblings discount. The places that did charged much more to begin with that the discount only kept them competitive with other daycares.