daycare question?

Question

I hae been a daycare provider for over 5 years and I have kept the same rate for all my children most if not all of the children I have in my care have been coming since they were only a few months old and are now preschool age. I don't want to have to raise my rates but I need to so I have been thinking of going about it in a different way. I was thinking insteed of raising them I would have them pay a flat rate every week even if there day falls on a holiday and I am closed. Right now when we are closed for holidays I lose alot of money what do you think I should do?

I also have the lowest rate in the county keep that in mind

also I have noticed some parents comenting on paying for daycare when their child isn't there. Think of it this way if your child stayed home from daycare with grandma 3 days of the week I would be losing alot of money that I have to make a living of of everyday. If I have 2 children out of daycare for 2 days I won't be able to pay my bills. I have also never closed the daycare in the 5 years I have been in buisness for any reason except major holidays we are even open the 4th of july and labor day so I think I am fair

Answer 1

I have had a day care in my home for the last 2 years and this is how I do it. There is a weekly fee that everyone must pay regardless of their child's attendance. I don't charge for days when I close for vacation or holiday (usually about 2 weeks a year), like for Thanksgiving I closed Thursday and Friday, I only charged for a 3 day week. I do have 5 sick days included where I will not discount the fees if I need to close, but after I've used my 5 days, if I needed to close for illness or personal reasons I would not charge for those days (I've never used more than 5 sick days a year). I have a Parent/ Provider contract that everyone must sign, in addition to a Health Policy, Payment Policy, and Attendance Policy where I outline all the details of what I will or will not allow as far as all those topics are concerned. Basically, the parents are committed in writing to uphold what I see it best for my business and for the children I care for, mine included. I don't have anything outrageous or off the wall in the policies and contracts, but I've learned you have to put even common sense things down in writing or people will take advantage of you. I actually have to make them sign a health policy that states you may not bring your child if they are vomiting, because the minute you don't say that someone will bring their child, and one family I work with has, into my home knowing they had a high fever and had been vomiting before they left the house.

Basically, tell the parents of your policy changes and your rate increase. Chances are you are still going to be the most affordable in your area and their children would still be getting more individual attention than they would in a larger day care setting. If they don't like it, oh well, there are A LOT of other people who are willing to abide by your rules who are looking for quality child care. Also, keep this in mind, most large day care facilities make parents pay 52 weeks a year anyway. You might even want to call around to other places and have that fact ready for any parents that may get irritated with your changes. Then you can tell them for a fact how much money they would be saving even with the changes. Good luck and feel free to email me through Yahoo Answers if I can help in any way.

Answer 2

Thats a toughie. I was a daycare director for a few years and can completely understand how a tuition rate increase can cause some unhappy parents. First, if you charge a flat rate regardless of if you are open, do so also if they are sick. Or you could charge 1/2 price for the days you are closed or they do not come. Also, let them know you will be doing this and be able to justify why they are getting charged. Have them sign off on the pay rate. You could raise your rates. I worked in a corporate childcare center and the company would raise the rates each Sept. They would only raise them $5-10. Parents may be less upset with a weekly increase of $5 than paying for days they do not have care. Weight you options.

Answer 3

Charge a flat rate for either FT 5 days a week or PT 2 -3 days a week, and yes that includes holidays or days you are closed. Also rates normally go down as the child gets older. Make the parents choose a plan, sign a contract and stick to it. You are probably friends with the parents, but you are running a business.

Answer 4

Look into fundraisers and also send out a notice to parent about a rate increase. My daycare does this every year, I don't mine because I love the daycare.

Answer 5

im a mother of 2 and i strongly recommend finding other ways of payments. as a working mother its hearbreaking enough to have to bring them to a daycare let alone it breaks my wallet. i understand that u lose money, but wouldnt u be turning it around and now the parents would be losing money. even if u raise the rate a little for each child, its still better than having people pay when their child isnt even there. on vacation or sick days when i have to lose time and money from work to be home with them it would devastate me to have to pay for that day when i dont even get paid by my job for that day. i love my daycare and they do their prices by age and days and its a little expensive but its reasonable to me because they are carign for my child, but paying for days where they dont take care of my child is just money hungry. Sorry but u asked and im speaking as if i was one of ure customers and for the record i do think that daycares are god sent, but remember its more of a loss for parents.i'd do anything to stay home with my kids and on top of that also save all that money.

Answer 6

Most daycares lower their rates as the child gets older. I have worked in daycare for about 7 years now, and every one that I have worked in , the newborn room was the most expensive. I would definitley look into fundraisers.