Should I bring up my own mistake?

Hi, I made a mistake by charging a flat monthly fee for 2 parents a while back. I charge for 20 days but now realize that I'm losing money because there are more than 20 days per month:unsure:. The problem is that, one of the children takes a lot of days off. Some weeks she's only here 3-4 days. The other parent chose to stay with me though we moved and it's very out of their way. What should I do? I don't want to rock any boats because I'm finding it hard to find new kids in my new area, but I also don't want to lose money or sell myself short. Some advice would be much appreciated. I'm just not sure what to do. :unsure:

Do you have contracts with these parents? Do those have end dates? You'll have to decide if you want to make a change to them. If you decided to increase the fee, for whatever reason, you would have to do that. If you think you might lose either kid, maybe you shouldn't rock the boat like you said. Wait until you have a little security with finding new clients. Others might say that loyalty to clients isn't worth it, (I may have said it once or twice myself,) but if you feel it is important to recognize the parent's loyalty, go with your gut. Just make sure all new clients fit with your new realization. You could tell these current parents that you are planning to make a change on XX date in the future if you want to give them a heads-up. But of course, that too is risky.

Your contract (verbal or written) is the agreement you both came to.

Whenever we approach to re-negotiate an agreement, there is risk that other party not willing to change. This true for any situation - fee increase, change hours, anything. You have to decide if risk of parent leaving/not agreeing is bigger than risk of them accepting the change.

I would explain to parent the error and request contracted change is made because you not being paid but if parent can't afford extra fees, even though you working the extra time, they might say no.

What then? Think through all the potential outcomes and then decide.

1. They might refuse change and want to remain on old agreement.
2. They might refuse change and give notice if they feel you are going to resent underpayment.
3. They might agree but resent the change and look for new care.
4. They might agree and feel awful about the short pay and feel guilty and look for new care.
5. They might agree and feel awful and pay new rate immediately.

You know these parent. What do you think their reaction will be?

I do have a daily rate fee which is in both of their contracts- I gave them the flat monthly fee verbally because they both used to pay every 2 weeks but felt the monthly fee was more convenient. I think I should stay quiet for now, until I get a new dck or 2, then I'd feel more comfortable bringing it up. They've both been with me for over a year and I really like the kids. I've had issues with one dc dad not paying on time, but I had him sign a contract about that recently. I've already changed my contract to include calculating the # of days for any new parent paying monthly. If I do start getting bitter- I may bring it up in a couple of months.

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Originally Posted by Fearlessbaby

I do have a daily rate fee which is in both of their contracts- I gave them the flat monthly fee verbally because they both used to pay every 2 weeks but felt the monthly fee was more convenient. I think I should stay quiet for now, until I get a new dck or 2, then I'd feel more comfortable bringing it up. They've both been with me for over a year and I really like the kids. I've had issues with one dc dad not paying on time, but I had him sign a contract about that recently. I've already changed my contract to include calculating the # of days for any new parent paying monthly. If I do start getting bitter- I may bring it up in a couple of months.

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I think if your contract says daily rate and you only gave monthly rate verbally, then that is whole different situation all round.

A written contract always, always, over-rides a verbal agreement which is why, if you ever come to a new agreement it recommended that the changes recorded in writing otherwise old written contract is enforceable.

Since you have a daily rate right in contract, then I would sit down and state you are undercharging them, that the monthly rate you gave verbally was based on working 20 days but in reality it should be higher. Have calendar with you to show parent that really is more than 20 working day each month.

Also, before you sit for conversation, think about how you are going to do a monthly rate.

There are two ways I know of.

Flat rate x (365 days a year - 104 weekend days a year - any unpaid annual leave you take - any unpaid stats days/public days you close) = Flat rate x number days you are actually working. The divide that by 12 gives a monthly rate.

Variable Rate = Based on number of working days for the month. This change sometimes as some month there is more working day. You would need to decide way to notify parent what the rate is each month.