Explanation of fees?

Hello! I am tossing around the idea of adding a paragraph to my (already wordy and fairly lengthy, LoL) parent handbook that explains exactly WHAT the fees that parents pay are going to.
As in; explain the extra costs involved with running a daycare from home, and that only a portion of it goes into my pocket.
Do any of you do this? Part of me thinks it's not a great idea, but a larger part of me is feeling frustrated that people seem to think that the fees make me a rich woman!!
Nobody considers the extra food, the extra water/sewage/electricity/gas (because we are home and using the house ALL DAY and most of the evening), the supplies for crafts and activities, the cost of replacing/adding new toys, the added cost of cleaning supplies and extra steam cleans on the carpet, etc.
Good thing all those are write offs, eventually. But let's face it, few of us make money hand-over-fist in this business.
Is it just something we put up and shut up about??

Are families questioning you on your rates? That would not be polite, especially if your rate is the average for your area.

I live in a high rate area, but this also means that my rent etc is also more, parents do not see this... they only see the dollar amount on the chq they write every month.

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Originally Posted by mom-in-alberta

Is it just something we put up and shut up about??

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this. Yes.

I empathize with the frustration at the misconception about the profit in Childcare - if people really stopped to THINK they would realize there is NO PROFIT in Childcare otherwise big business would be all over it ;)

I personally would not put it in my handbook however admit that I do educate clients when the comment about differences in fees to make sure to ASK what that fee is getting you ...what kind of budget for food? For program supplies? Are field trips included in few or extra and so forth ... to get them reflecting that YES there is expenses involved in providing this and some invest more into the program so therefore need to charge more to make it a viable business model ;)

Plus we also educate online and with our families and community - one person at a time with each client we successfully impress with our professionalism and dedication to our programs to help them see what we do as valuable and an investment and something we do not to get rich but because we want to be home with our own and this allowed us a viable option to do that!!!

I have this on my website in my FAQ section. That's the only place it is and it's not really discussed.

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Originally Posted by fruitloop

I have this on my website in my FAQ section. That's the only place it is and it's not really discussed.

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Really? What did you write?

I've never been questioned about this. Although I do see eyes widen when they get their receipts at the end of the year.

I've actually mentioned to the Mom of the little boy who eats 3 servings of food daily that I certainly don't make any profit from them. It would be nice if somebody cut and paste something for some ideas. Fruitloop, I'd like it if you could do that too.

No, nobody is outright questioning. (And that would be red-flagged, for me!!)
But I would like to slip something in, fairly discreetly, just to make parents aware. I just wonder how many parents grumble about the cost of daycare (which I freely admit is too much for me to be paying!!) but never actually break it down, to the hours that we work (minus costs) and determine how much they are paying us.

I don't think you need too much explanation. Yes, of course we pay for the food, craft, insurance, etc but first of all it is your business. As we all know business has to bring profit. I believe you did not open the day home just to help out parents and have fun. You work hard for that money. You feed kids, you play with them, you talk to them, you are there for them when they cranky and it is all for 10-11 hours a day. Most parent make more then $20 per hour while you make only around $50 a day. So, just relax and don't let it bother to you.

I understand where you are coming from. I hear a lot of people comment on how expensive daycare is. Even some of my own friends who know how much effort and money goes into my daycare, they still make comments of it's over priced.
Try to let it roll off your back. I wouldn't address it either as you will have people questioning your handbook. It's just something people like to do- complain about how expensive things are...and then go shopping on a credit card-lol ;)

This is what's on my website...

What is included in your fees?
Your fees pay for quality childcare, whole grain and organic (when possible) foods, weekly crafts, and a safe, fun, nurturing environment for your child. They pay for all supplies used in the daycare such as cleaning supplies, food, paper products, craft supplies, toys, lots of repairs and wear and tear, parties and special events, water, gas, electric, sewer and more. Your childcare fees provide my income including taxes and CPP to which I pay into.

Oh that's worded great fruitloop, without being 'in your face'. I want to borrow a little of that please? I'm already drafting a letter to give to my dcparents in the fall when I raise my rates and this is good stuff!

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Originally Posted by Momof4

Oh that's worded great fruitloop, without being 'in your face'. I want to borrow a little of that please? I'm already drafting a letter to give to my dcparents in the fall when I raise my rates and this is good stuff!

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Yup, for sure!

I don't have to and I never will explain my fees. It is non of their business. It is actually very rude.

If you are not happy with my fees you are more then welcome to go and look elsewhere simple. I will tell you something, the more you explain the more they will ask. They don't have to know more then what they suppost to know. I don't ask them extra when they receive bonus or a pay rise.

I don't have parents' hand book. I tell them what I want from them at the interview and I have a very simple contract. If any of my families object to "my rules" I have no problem saying it on their face and if they question me I will tell them it is not working. I learned that If I'm happy people around me are happy too. :)

Hope it helps.
Cocoon

I agree with Cocoon to a point and wouldn't have it included on my website or in my ad but nobody has ever questioned me about my rates. To be honest, my rates are at the low end of the scale and I actually tell parents in an interview that my rent is lower than most because I've been in my apartment for a long time. But I feed the children a lot of organic foods, all home cooked and they can see all the painting and crafting that is done and posted on my walls and sent home, so they know I'm spending a lot of money in those two areas. But food costs keep rising so that's why I'm raising my rates this year.

I don't think that parents are that stupid as to not understand expenses. Sure, they might not understand ALL the expenses because, as in any job, it's kind of a you have to have BTDT to truly get it. But I think most of them understand that it DOES cost us money to operate.

I think, as is usually the case, it's all in your demeanor with parents. I make sure the parents KNOW I run a quality program and they never, ever question my fees. I have some of the highest home daycare fees in my city and no parent ever questions it. I think great parents realize that great care comes at a cost and that it is not daycare that is expensive - it is kids who are expensive.

I have this on my site and in my handout.

"
I realize the financial burden child care places on parents, and hope parents understand that, as a business, child care places financial burdens on the provider. These include but are not limited to groceries, utilities, insurance, toys, equipment, as well as wear and tear on the home. I also have a financial responsibility to my family."

Thanks gals. I still don't know if I will throw a paragraph in or not...
But if I do, I really like the wording you used Fruitloop, and I may use the general idea, if that's okay? Not word for word, though!
:D

If you do put something in be careful what you say or how you say it in the sense that other than the food, craft supplies and paper products we pretty much pay what parents pay. Yes our utilities are more cause we use the lights and have the heat and air on all day but not as much as you might think compared to a working family that turns them down during the day. In other words not enough to put in your paperwork without sounding like a whiner, lol.

Rather than remind parents cause yes they know what the money is for putting something about how the fees that you collect from parents is your source of income and that from your income you provide nutritious snacks and meals that meet the food guide, provide learning resources, craft supples ....list whatever you want but include it wity your payment section so it is there but not dwelt on. Then go on to say something to the effect of therefore it is imperitive for the program to continue that payments be made on time etc.