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cinders
06-05-2012, 02:54 AM
Hi, I am just starting up a daycare in my home, and need some advice.
I am currently charging 35 per day, but don't know what to charge for the 2nd child of the same family. I live in St Catharines, does anyone have any advice :) I am so afraid of over charging, thanks!

Inspired by Reggio
06-05-2012, 06:14 AM
Welcome to the Board and congratulations on your new endeavor.

IMO it does not cost any LESS to care for siblings than it does for two unrelated children - they both occupy a space, they both eat, they both engage in program supplies and so forth and they are both WORK to take care of ;) So while in the beginning it might seem 'beneficial' to offer care to siblings because two of your spaces are filled instantly the fact is when the relationship ENDS they make up 2/5 of your income which you are suddenly without until you replace their spaces - that is A LARGE LOSS IN INCOME which IMO makes siblings a 'financial liability' in that regards which IMO means no 'discounts' ... plus IMO offering bulk shopping discount implies our 'fees' are marked up like Walmart or Costco so that we can put ourselves 'on sale' kwim? If you went to a Lawyer, Dentist, Accountant or other professional do you think they give 'family discounts' on their service if both you and your sibling sign up as clients - nope they thank you for your 'referral' in some way sure - but not with an ongoing financial discount?

Personally my fees are based on the SPACE being occupied within my program since my income is capped at the 5 SPACES I am allowed to have occupied at any one time - therefore you pay for the space regardless of being 'related' or not... others might have varied logic on their choices for setting fees though - this is just mine ;)

Dreamalittledream
06-05-2012, 06:20 AM
Agreed; don't do it. This is my first year operating and I offered a 1/2 price for siblings rate. Never again. A space is a space.

Bookworm
06-05-2012, 07:05 AM
Cinders, I live in St. Catharines too! I personally do not offer sibling discounts. I charge my full time rate for both kids. I have siblings in my daycare and they both pay the full amount for their spots. I do not think your price is unreasonable for this area (I wish more people in the Niagara Region had prices in this range), and you should just tell parents you don't offer discounts as you are only allowed so many children.

michellesmunchkins
06-05-2012, 07:14 AM
Agree with Reggio!! I too offered a sibling discount and it was a huge hit in income and then when they left it was a pain to fill both spaces. I no longer offer discounts of any kind. A space is a space and you pay the same rate regardless. Be prepared though as families will try their best to barter and then not choose you because someone down the street will offer a discount. Money seems to be the deciding factor in daycare lately (at least in my area).

Play and Learn
06-05-2012, 07:23 AM
No discounts - it's exactly what Reggio stated. You are limited to a number of children, and they each have to pay a price for being in your care. Why should siblings get a discount when other families don't? You still have to buy the same amount of supplies/food for these children.

If a parent asks why? Then you simply just state that, or what really hits them is when you state, well, then your children will have to share supplies and food. I cannot afford to give them EACH a serving. That puts them into perspective! lol

apples and bananas
06-05-2012, 08:09 AM
I used to have my children in daycare in St Catharines before I moved and I did receive a sibling discount. I don't personally offer them, but I think it depends on what other people are doing in your area. You need to stay competitive, but also feel good about the money you're making. I hate taking on siblings, but it's almost impossible not to. Some day's I feel like I should charge more as they are a much bigger risk financially.

cinders
06-05-2012, 12:40 PM
Thanks Ashleigh, if you don't mind me asking, is your rate pretty close to mine?
I used to do daycare about 10 years ago and things have changed alot.
Thanks for your help!

cinders
06-05-2012, 12:42 PM
LOL, good idea! Way too funny!

Momof4
06-05-2012, 06:02 PM
If you really want to get your daycare up and running you may want to offer a small sibling discount. It's really difficult to get started and sometimes you do what you have to do to get those first 5 clients. That being said, in my first year I allowed a sibling discount, but now that I'm established I would never to it again. I agree with the posters who mentioned that it still costs the same to feed all the children so why should you take the cut?

jec
06-05-2012, 06:06 PM
I think Reggio is right as well. It's great to fill those spots but when both leave at the same time, it's leaving you with 2 spots to fill and a large chunk of money out of your pocket until you find the right families to fill them.
I know it's tough to get those first clients but if you can hold out, I would.
I personally don't offer a discount either for the same reasons that Reggio said.

chandra
06-14-2012, 10:08 AM
Right now I give a sibling discount of 8$ off per day but I think that was a mistake because you need to make money and the sibling takes a spot.

Cadillac
06-14-2012, 01:18 PM
I did the sibling discount thing and I regret it all the way. Don't do it

sunnydays
06-14-2012, 02:09 PM
I don't do a discount for siblings either, but I remember considering it in the beginning. I thought at the time that siblings would be better because when they go on vacation, 2 kids would be gone instead of one, when they leave for the day, 2 kids gone again, and (where I was really dillusional), I thought that if one was home sick, they would both stay home. Boy was I wrong! I have siblings (thank goodness I didn't offer a discount) who are always here...if one is sick, the other comes...if one has an appointment, the other is here, the parents take vacation days without the kids and they are the first to arrive and last to leave! The only time they are away is when I am closed for my vacation or occasionally they do take a family holiday and they are both gone. But definitely there is a risk that if they both leave the daycare, I have 2 spots to fill at once and I wouldn't really want to start 2 new kids at once.

bright sparks
06-14-2012, 06:26 PM
I have 2 sets of siblings as both sets of parents started with one child, went on mat leave and came back with both kids. It is a greater financial liability so I add an additional clause in my contract. My notice period for people leaving is 2 weeks. For siblings it is increased to 4 weeks to give me more time to fill the spots. I still only ask for a 2 week deposit so as not to discourage parents from signing up if they have some financial restrictions doing so because obviously a 4 week deposit for 2 children would be the best part of $2k.

I do not offer a sibling discount as like most others have said, I have 5 spots and its actually much more beneficial for me to not take siblings on at all to reduce liability and 5 spots is 5 children regardless of whether they are related or not.

monkeymama
06-15-2012, 07:56 PM
I offered a sibling discount to my very first family who I still have and regret it. Everyone since them pays full price. By the time I pay for food and supplies, I am making little to nothing from this family. It almost makes me resent them and its not their fault I agreed to it which is why I wont again in the future.

Momof4
06-15-2012, 07:59 PM
akpayne, have you thought of giving the parents of the sibling family a letter stating that you have done some thinking and realized now that you have learned more about running your daycare that you must raise their rates? You don't have to raise them as much as the full fees (unfortunately) but you could think about raising them $5 or $10 a day, depending on what you decide to bring them more in range with your rates. We would be happy to help you with wording for a letter if you need us.

monkeymama
06-15-2012, 09:04 PM
thanks Momof4 I have been doing alot of thinking about it; im in the process of making some changes to my contract and think I will address this with them as well once I get all changes in place. Even a small increase like you mentioned will make the relationship alot more beneficial I think.

Monday 2 Friday Mama
08-01-2012, 03:55 PM
What an awesome explanation - brilliantly simple (always good when explaining matters to parents) I too have wrestled with the temptation to accomodate the cheapies who are looking for a "family rate" My explanation to date has been that "I simply do not have the profit margins to offer reduced rates for siblings" but I like your answer better. I may use it in my upcoming interviews - thanks !