Parents don't think I am worth $3... what would you do?

[planet.caravan67]

Hello, I am hoping I can get an answer pretty quick on this since I am unsure what to do.

I was charging a family $32 per day for their then 1 year old, now the child is 2. I was desperate and needed the client badly. They paid for attendance only (if they cancel I don;t get paid) and this child takes at least 4 days of the month off.

All other clients pay $35 per day for days booked, whether they attend or not.

Due to high demand I have decided to tell this family that I have new rates (I do not have a contract with them) and told them $35 per day and payment for days booked. I had a couple clients before them that I was charging $32 and only per attendance and they didn't even think twice and accepted the changes.

This parent is making a big deal out of it, saying they had agreed to $32 in the beginning and weren't expecting the price to change, if any change it should be for less as child is older now. They also said when child gets sick, that's out of their control and shouldn't have to pay. Their child getting sick is also out of my control and it isn't fair for me to have an empty spot sitting because I am saving it for them and not get paid when I could have filled it because there is always someone that wants it.

Now, I really like this child and the parents and I have had disagreements in the past but they always pay on time.
Do any of you give sick days without pay per month? Also may I add I ask parents to book during the weekend days that are needed for the week. No one pays for time off it they book in advance. NO FEE.
I have a few interviews coming up for 1 spot that is becoming available and I know if I have 2 spots then maybe I can fill them.

Anyways what I am basically asking is what would you do? I am going to charge $35 per day, no bargain on that, I am going to ask for pay for days booked, no bargain on that either (sometime either parents just decides they will work from home some days and tell me in the morning they wont be bringing in child) but do any of you give for example 4 sick days per month free? do you recommend I go down this road? I really like the child but the fact that they don't understand where I am coming from regarding the whole pay in advance thing and this is how I make a living and don't think my services are worth a measly $3 more makes me a little upset.

oh by the way I give in the gta just outside Toronto, a few crazies in my area charge $30, a good handful charge $35 and some charge $40 per day for 2 year olds.

[mickyc]

To some a $3 increase a day is significant. How much notice did you give them? Once you say you are making changes do not go back on your word. That is wishy washy. Decide what you are doing and stick to it. If they leave then so be it. You should be getting paid in advance no question!

I started daycare charging $27. I always charged for the spot not by attendance. I slowly increased my fee to $28 after a year/half, to $30. I literally gave 8 months notice for the first fee increase followed by 15 month notice for the second fee increase. All new clients went straight to my $30 a day fee.

I used to take part-time family. They were always switching days and it drove me nuts. I switched the contract to read that they pay for scheduled days and any switch is considered an extra day with an extra fee. They quit switching days pretty quick. I now only take full-time no exceptions.

What you do for 1 family you need to do for all. If you give 1 family 4 sick days off you need to give all. Can you afford to potentially have all of your kids away for 4 days per month? If so then offer it but I imagine your answer is no

[Lee-Bee]

For many $3 a day is a big increase. It isn't their fault they were given the discount when you were desperate...it is what they have budgeted for.

My concern with the sudden increase is that you will lose an over age 2 child. Are you in Ontario where those spots are harder to fill?

All you can do is either stick to your increase and risk losing them or go back to your original price and keep them.

[Artsand crafts]

I made a big change to my contract about a year ago. Families had different contracts, depending on when they enrolled and I wanted to have one contract for all of them and more benefits for me. In the new contract they all had to pay for the space. So they now pay for 49 weeks out of 52 per year regardless of attendance I also added a few more paid days off such as Easter Monday, Christmas Eve, and New Year's eve. There is only 3 weeks un-paid days for my own days off. I also increased their fee from $1 to $5 depending on the family. 4 out of 5 families accepted all the changes (including the family with the $5 increase), but one and they left. I replaced them quickly and I felt that families that stayed really valued me and my program. Do what is best for YOU! I would also be careful on going back on your word, because they may think that everything else could be negotiated. If you're a though cookie it may not be a problem to just say NO every time that they think they could. I gave them over 1.5 months of notice to make the changes effective.

[planet.caravan67]

I gave 1 month notice for the changes

[planet.caravan67]

I made a big change to my contract about a year ago. Families had different contracts, depending on when they enrolled and I wanted to have one contract for all of them and more benefits for me..

This is exactly what I had so I also wanted one contract for everybody. All families agreed without a problem except this one, I guess there always has to be one.

Initially I told this family $160 per week (works out to $32 per day) IF they brought child 5 days per week. if the child didn't come 5 days it would $35 per day. They talked their way into paying $32 per day independent of how many days they would attend, as like I said I was desperate and would rather have made $32 per day than 0 at the time.

They also told me 5 days a week for the little one and 5 days a week after school for the older one. The little one I usually see 4 days sometimes 5 and the older one I haven't seen in 2 months. Every weekend I ask if the older one will be coming they say she will next week and she never shows up. I have also asked if they want to reduce the amount of days they need care for and they always say no so I am saving a full time spot really deep inside me knowing it probably wont be full time which in my opinion is unfair. Hence why I want pay for days booked, they have the option of only booking 4 or 3 days but at least then I know for sure that I can fill the other days.

This is why I decided to ask for pay for days booked because more often than I'd like I am left with an empty spot and no pay.

I am in Ontario so that part of losing a customer when I have one leaving in 2 weeks (all in good terms, I couldn't provide the care this child needed and mom completely understood) makes me a little worried, however as I mentioned I have 3 interviews next week so I am hopig that I will fill 1 and possibly 2 spots if I need.

I am going to stick to my guns on this one, I feel like I deserve the extra pay and some more security in terms of payment I receive. No one else is getting a deal, they aren't any more special than anyone else. Other people had an even better deal and understood and agreed to my changes.

[planet.caravan67]

THANK YOU ALL FOR YOUR INPUT
I am just a little nervous of losing the income all together this is why I was unsure on what to do but I am now more confident.

This is just my second year doing this, I still have a lot to learn it seems

[Busy ECE mommy]

I get that a $3/day increase can be a big deal for some, but I personally think you are selling yourself short. I'm in Halton, and the going preschool rate is $45 a day and $50 for under 2 years.
Get all clients on a contract that specifies everything. Fees are based on enrollment, not on days attended. Don't give away free sick days. Their spot is being held open for the illness. I think your fee increase is reasonable. My contract says I can change policies at any point during the year. I gave families about 6 weeks notice when I raised rates for 2016. If they won't sign it, then interview, and find a new client.

[5 Little Monkeys]

I get that it's extra money but really, it's only $30 extra a pay period. A months notice is plenty IMO. I wouldn't give more than 3 months notice as this is your livelihood and only you know how much you need to charge to make a decent profit. They can either accept it or find another daycare. From the prices I've heard in your area, you will likely find plenty of families willing to pay the $35!!

I've had parents (well, one) complain about paying for days their child is sick and I was just blunt about it. I told her that I understood her frustration but the fact is, it is her child so it is her that has to pay for it, not me. I can't afford to not get paid for everyone's sick days. I give a reduction on stats and parents holidays and take my days off unpaid. That I budget for, but there is no way to budget for kids sick days.

Going forward, whether with them or a new family, have a contract though! It will help you in the long run :)

[crafty]

I agree with all the others. You need to stick to your guns and do what's best for your business. However, I just want to put out there that I never increase the fees with current clients. I increased my fees once since I opened my daycare and I only charge the new fees to new clients. The reason I do this is because I personally don't feel it's fair to up my fees with current clients. Daycare is a big part of a family's budgeting but I don't disagree with any provider doing it either. However all my clients have the same contract. I don't have different rules for everyone. It's important to me that everyone knows they are treated exactly the same. I have no preferred clients haha. (Even if I do personally haha) Every year I make modifications to it and they must sign the new version but I don"t have the fees in there. So maybe this is something you can compromise on with this family. Getting them to agree on the new rules so it's fair for all your clients and they can keep their old fees as long as they agree to respect your new policy ... Juts a suggestion.

[5 Little Monkeys]

I'm the same as you crafty, I only increase my fees for new families. It's just what I find fair and works for me. I do have a mom who going on mat leave and will be sending the baby after that. They have had 4 years at their current fee but when baby starts, it will be the new, higher fee and they knew this months ago and had the option to say no

[bright sparks]

I think it is great for a parent to be able to budget for the duration of their child's enrollment at daycare knowing that the rate won't increase. This is more than fair to the parent and at the caregivers expense in my opinion. Cost of living increases, minimum wage increases, so it's not "fair" on a parent that the cost of childcare doesn't increase, because the cost of providing childcare DOES increase and that means we make less money. Someone who quabbles at $3 a day needs to check themselves. I understand living on the breadline, but having done daycare in Halton for a number of years, she is also getting childcare at an absolute steal as it is. Good luck finding quality care for less than $45 a day in Burlington or Oakville. Even more the closer you get to Toronto. Each to their own, but I think for the most part, home daycare providers sell themselves short, make a number of self sacrifices in the name of fairness to parents, and in turn are the only ones who suffer. They are looking after their best interests and so should we.

Kudos to you for sticking to your guns. I would interview to fill the spot to be honest. I know you said she was a great parent because she pays on time, but you actually said there have been a number of issues aside from this that you have had to deal with and I don't think that just paying on time constitutes as a good parent. She should do that anyway. This is supposed to be a collaborative agreement and it doesn't quite sound like that from the little info you have given. If you can replace this child then I would do so.

[5 Little Monkeys]

For myself, the max time a child would be with me is 4 years. If they have another child in that time than I'd consider raising it for the next child if need be to match the highest fee I am charging others. However, just like in any other profession, you eventually cap out and reach your maximum wage. For my area, I'm there already so I don't see an increase in my fee anytime soon.

However, this provider in her area, sounds like she still has some leeway for a raise! :)

[bright sparks]

For myself, the max time a child would be with me is 4 years. If they have another child in that time than I'd consider raising it for the next child if need be to match the highest fee I am charging others. However, just like in any other profession, you eventually cap out and reach your maximum wage. For my area, I'm there already so I don't see an increase in my fee anytime soon.

However, this provider in her area, sounds like she still has some leeway for a raise! :)

I don't think home daycare rates can be compared to all professions incomes. Inflation drives those rates up on an annual basis, even minimum wage jobs. Home daycares cost has to stay competative within the area and needs to be maintained within a window of affordability as it is a daily living cost. Majority but obviously not all other professions tend to be in industries where you have the choice of hiring those services or purchasing that product, or at the very least they are occasional expenses versus home daycare being an almost daily cost like a mortgage and utilities. Even those go up annually with the exception of a fixed rate mortgage. I don't think there are actually very many professions that cap out if you look into it. It's just that some will have a much slower rate of increase than others depending on the many variables. How many other professions can you actually think of who have not had a rate increase in the last 5 to 10 years? 3-5 years or even 1-3 years? I am racking my brain and I can't think of any.

[5 Little Monkeys]

Yes, I know quite a few that have capped already. Some capped quite young even. Lots of trades (plumbers, electricians, welders etc), teachers, ECE's, retail and service industries(managemen t positions, not min wage positions). When I worked healthcare, quite a few of those positions, especially management were at the top of their pay scale as well. After awhile, raises became less often and for many, eventually stop.

I'm sure different companies, especially private, are different though. Some offer more benefits instead of raises for example. I can't speak from first hand knowledge on all these positions but only from what friends and family have mentioned. Maximum wages definitely happen though!

[bright sparks]

Yes, I know quite a few that have capped already. Some capped quite young even. Lots of trades (plumbers, electricians, welders etc), teachers, ECE's, retail and service industries. When I worked healthcare, quite a few of those positions, especially management were at the top of their pay scale as well. After awhile, raises became less often and for many, eventually stop.

I'm sure different companies, especially private, are different though. Some offer more benefits instead of raises for example. I can't speak from first hand knowledge on all these positions but only from what friends and family have mentioned. Maximum wages definitely happen though!

That's interesting. I think it might differ depending on province though. My husband is a trade and journeys person in Ontario but covers North America. His industry across the country have not capped...unless they are smaller business' but that's always the case generally where income level is lower. We know so many trades people...it's an immigration thing and again, most are actually paid above labour market value as a result of a huge shortage of trades people in this country. Retail at least in Ontario, is nearly always minimum wage, so there is always a rate increase as the government increases it. I worked healthcare too and annual pay rises occurred across the board, both in public and private sector. The more qualified, the greater the pay increase. Again, I am sure it differs in different provinces but I can speak for sure about trades as I know multiple people who have come to Ontario, SK, NS, AB and Vancouver, unless your talking about the minority being in remote/rural areas or in over saturated areas so then it is relative. Statistically, pay increases occur in average across the board, very few positions/industries have reached their maximum without any increase incentive for years like some daycare providers. Yes that manager may not make more than his 80K a year, but may instead receive an increase in car allowance or bonus. Not always dollars per hour, but still an increase of earnings somewhere along the line. If I can't put my rate up by $3 an hour because I price myself out of the areas going rate, then I can't take little incentives such is paid vacation in it's place because if it was the norm for my area I would already be doing it.

[5 Little Monkeys]

Yup, some will cap and some won't. It's not black and white across the board.

I think hdc's cap quickly because most start out at the higher end, to keep competitive with others in their area. A few will start out $5 less to get clients but I'd say within 1-3 years, they raise the fee with experience. Childcare is just something that rarely changes and that's well known. If someone needs/wants raises often, than Childcare definitely wouldn't be an option for them IMO.

There are ways we can help alleviate our income (paid vacation, paid sick days, cut out lunch programs, parents pay for anything extra etc) but I don't think a raise, even every 5 years, is a reasonable expectation for most areas