Is it better to charge daily or monthly?

[Cocoon]

Hi girls,


I did some calculation and found out that I'm $124 short if I carry on charging monthly. I advertise my fee daily and parents know this but until the end of this year I'm loosing $124(in total between my 3 clients).

I have two families who will be starting in July and in October. When I told them about my rate I gave them my daily fee and told them it makes $1.083 monthly and put it on the contract. But I didn't realised in the long run I won't be getting $50 a day. I know it is stupid of me and I don't know what was I thinking. And the worst thing is I studied economics :o

So my question is is it better for us to charge daily or monthly. As I've stated in the long run I won't be getting $50 a day which I thought I would be getting.

Thanks in advance ladies.

[michellesmunchkins]

Wow $50/day that's awesome. We can't get anything close to that here. Sorry, just awesome to see someone getting paid more of what we deserve for the job that we do :)

I charge a daily fee. Families pay regardless of attendance (although they fight it every time lol) unless I close. If I take a day off or go on vacation they don't pay. I also allow each family to take 2 weeks unpaid vacation. That will change soon too as its a crazy loss in income each year.

I find that people never budget for paying monthly or even bi-weekly and I got frustrated with them saying stuff like " i can give you this much until next pay and blah blah" Since changing to weekly it seems that most are able to pay in full and budget properly. I still fight and have to 'remind' most of them that daycare is not free and they do need to pay me though lol

[Crayola kiddies]

Not sure where you are but I'm in ottawa ... I think most of us here charge weekly or biweekly .... So my daily rate is $40 for full time and so that's 400/biweekly. Everyday is paid doing it that way. One family wanted to pay semi monthly and I said no .... It's too confusing! I have a friend that is a care provider in Calgary and she charges monthly as I understand that is the norm there and what she did was charge as if each month was 31 days and that way she doesn't work for free.

[jazmic]

I charge a daily fee as well but I get paid monthly. So when I do up my invoice, I count the number of days in the month and send the invoice for that amount. Otherwise, you end up coming up short. I had also made the mistake of putting X mount per month in the contract, but my client (who I now really like!!) was like "so we'll count the days each month?" And I thought, Of course!! That's how it should be. Hope that helps. :)

[Play and Learn]

Just south of Ottawa, and we all do it as a daily fee, and charge for the week. So any new clients coming on is $40/day.

[Inspired by Reggio]

I have a weekly rate if your are full time and a higher daily rate if you are part time ... my clients options are to pay weekly, bi-weekly or monthly in advance of care ... but I make sure I get paid for ALL days regardless!

So if you were a monthly client you would pay more in the months that have 5 weeks than you would pay in the months that have 4 weeks in them.

[sunnydays]

I do exactly what Reggio does. I have a daily rate and parents have the option of paying bi-weekly or monthly. All of my current parents pay monthly so I just add up the days of care in each month and provide them with that and they make out their cheques according to that...most of them have given me post-dated cheques. Perhaps you could let your new clients know that what you meant by $1080 was that that is an average month's fees, but here is the list of all the months in the year with the amount of fees for each month according to the number of days in the month.

[Dreamalittledream]

Me too; rate is daily, due weekly, or bi-weekly...cash or cheque.

[apples and bananas]

I have a daily fee and I charge weekly. They pay me for that week, or they don't come back for the next one.

[Mamma_Mia]

I have a daily fee and I charge weekly. They pay me for that week, or they don't come back for the next one.

I'm the same $35 a day = $175 a week to be paid on Friday of that week.
I had one family who would short me a day or two....notice the word HAD. They got the door....my current family accidently shorted me $40 ONCE and when I mentioned it to them they were willing to drive 20min to give me the money at 9pm!

[playfelt]

I am paid on Monday for the week ($35x5 - to be $40 in Sept for new families). It is due on Monday, Tuesday it is due with a late fee and on Wednesday - no money no care. No money by Friday and obviously no care for three days and I put my ads up to replace. I think I have only had two over the years that ended up taking their child through the drivethrough ATM Wednesday morning after being refused care and then returning with child and money plus two days of late fees. No one has ever gotten to Friday.

[fruitloop]

I'm paid on the first of every month. I'd rather get paid once, have to go to the bank once, etc. I budget my money for the month. Monthly fees are pretty much the norm here (just outside of Calgary).

[Momof4]

I charge weekly too, $32/day so $160/week for 49 weeks per year, except for the 3 weeks I'm closed for my holidays. I get paid for stat days, sick days or missed days for any reason, full weekly pay no matter what. If I have part time children they pay $35/day for every day they attend, but if they have booked a day and don't come to daycare for any reason they still have to pay.

I have some families who pay weekly and some families who pay every two weeks. By doing it this way, one amount no matter what there are never any questions.