Hi,
I've recently been asked what I would charge if my hours changed from 8:30-3:30 to 12:30-4:00. These are my 2 full time kids that I currently charge $55 a day. A contract was signed for full time hours. Thoughts?
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Hi,
I've recently been asked what I would charge if my hours changed from 8:30-3:30 to 12:30-4:00. These are my 2 full time kids that I currently charge $55 a day. A contract was signed for full time hours. Thoughts?
If they're still getting fed lunch, I wouldn't change my fees.
Here's the thing...once a parent wants a change then the old contract is basically null and void and you get to write up a new contract with new fees and rules etc.
Personally, I would NOT move two FT kids down to PT unless I REALLY wanted to and could afford to do it. It always seems okay to do it at first but a few months down the line you will likely grow to resent the loss in income. Remember, this is for TWO kids!! Even IF you only reduced their rates $10 a day PER kid that is $100 a WEEK.
Are you willing to lose out on $5200 a YEAR in income???
And, even IF I accepted a change like this they would have to come AFTER lunch. There is no way a half-day kid should be getting lunch (that YOU pay for) for less than full time fees.
Personally, I would say NO but that's me. I am a firm believer that there is always someone else who is ready and willing to take the spot(s) when a child leaves.
You need to remember that the parent does know and IS aware that they have leverage over you. The parent assumes you WILL do it because they know that TWO kids is a large income loss and they assume you will let them go PT because you are too desperate to lose out on two full time income spots. This is why I will NOT take siblings. Two kids from the same family is 40% of my income and therefore it is harder to let them go if you NEED that income. And don't be fooled - the parents realize this too and often use it against you to their own advantage.
Thanks Judy. I guess I am worried about getting 2 more full time kids that's why I was debating it. I just recently lost 1 full time kid (learned the hard way not to deal with family). I definitely need the income.
I get that you need the income, BUT......if you terminated and went a whole MONTH without filling their spots then that is an income loss of $2200. That is only HALF what you would lose over a year with these kids. So, basically, even if you went TWO months without filling the spot you would lose nothing more than if you kept them.Quote:
Originally Posted by Playkids
The difference is that if you keep them and discount them (and remember, my calculations were ONLY at a decrease of $10 a day per kid - chances are your actual decrease WILL be more than that. Therefore you are likely losing MORE than the $5200 I stated above in a year) then you are earning at least $5000 LESS Every...Single....Ye ar they are in care. If they stay a few years before you know it you have lost ten or fifteen THOUSAND dollars.
A quick story.....I once did something like this for really nice family who was also my very first daycare family. I had them in care for FIVE years. I had both their kids. Long story short....it all ended nasty when I needed to give them a fee increase after they had FIVE years of SPECIAL and lower fees because they were on a special schedule.
The end of the story is that I lost $28,000 in income over FIVE years by keeping them.
Trust me, cut your loses now, fill the spots and move on. Learn by MY mistakes - that's why I am here, on this forum - to teach other providers how to be better business women.
Judy you are amazing !!
[QUOTE=This is why I will NOT take siblings. Two kids from the same family is 40% of my income and therefore it is harder to let them go if you NEED that income. And don't be fooled - the parents realize this too and often use it against you to their own advantage.[/QUOTE]
I totally get what you are saying, but I am curious...how do you go about not taking siblings? I mean, if you have a child already in your care who has a new baby brother or sister and the parents want to start him/her with you when they go back to work, do you turn them down? How?
I do take siblings but only one set at a time. With one year maternity leaves, the mom needs to leave the older child in care full time ie no loss of income to me to guarantee her the two spaces assuming I know I will have them such as to start over summer when I have one leaving. Also since I only take kids till they start school, by the time mom does the year of mat leave the older child often only has one year left before needing to move on to other care anyways so better to start them at a new home that takes kindergarten kids or mom gives me the baby and puts older child in preschool which then transfers over to the school age program.
What I probably would tell the mom that wants to change her hours is that you are unable to do it because of the loss in income explaining that what they are booking is one of your five spaces in your daycare and how many hours they attend is irrelevant. I would likely give them care from now till January and advertise for new full time kids for January. If mom does change her hours but agrees to the full time fee do not belive that she will stay. She will be looking for something cheaper and will jump ship as soon as she finds it so better to just hang onto them at whatever they will pay till you can fill the spaces yourself.
If you take kindergarten kids and your area has half day school you might have the option of getting someone needing care in the morning but not the afternoon but unlikely at this point in the year and you really don't want the lunchtime switchover every day.