New to daycare...Regretting my Rates & Policies

Hey all...just looking for an opinion on my situation...Here goes my long post/venting session:

I just left my corporate job to do home daycare starting April 2011. I posted on kijiji and got 3 kids, 2 are full time, 1 is a part timer (with sketchy hours to boot...half a day one week, 3 full days the next, never the same schedule...)
Being new to daycare and seeing how much competition was out there, I offered my services WITHOUT contract, unpaid sick days, unpaid stat holidays, HOURLY wage @ $3 per hour. My 2 full timers steadly pay $270 bi-weekly, (which works out to 9 hrs per day, 5 days per week) unless they come an hour early etc..1) I regret not signing onto a contract AND charging more. I am finding ourselves losing money due to the food, milk, electricity charges etc. 2) I know it is my own fault for not standing up and mentioning that I DO NOT charge by the half hour...if you are here after 4:15 then it is a full hours charge. But because I have been accepting this treatment in pay for the past 2 months, I dont know what to say without making things awkward between us now.

3) One of my full timers is still coming in running shoes, pants and long sleeved tops. It is now June in Ontario and we are sweating outside on our walks! How do I suggest she pick up some weather appropriate clothing for her daughter? Should this not be any of my concern? Do I let the kid sweat it out due to her parents' lack of attention to the outside temperature while in their air-conditioned office buildings?

To top off all of my complaining about my own mistakes for not correcting this stuff in the beginning...I found out I am pregnant right when I quit my corporate job to start daycare. I am due in October. Luckly my amazing husband is able to come home and stay with the kids when I have my monthy appts, but we have closed for half days two times due to ultrasounds we both wanted to attend. (Parents know my husband and approve 100% of him watching kids while I must go to an appt.) I cant help but feel incredibly guilty whenever I need to take a few hrs off to go to personal appts. For my son, or myself.
What does everybody do with regards to things like this? Do you close down for appts, and if so, are parents okay with this? Right now, only 2 of the 3 kids have any sort of back up care, making these appts even more hard for them to work around. Again I said it has been 2 afternoons in 2 months. Is this too many? (its not like I can help it!)

I can just hear Judy (justthebabysitter) scolding me now for what I have gotten myself into!!
Any and all input is more than welcome!! Thank you so much!

Sorry just had to quickly skim your add as I'm exhusted and need to hit the hay soon, I think you should repost your ad for before and after school for Sept. This is the best time to do it and you will be able to have most of your days to yourself and new born. Maybe have one full timer at a good age to help with bills. You need to up your rates and get contracts going! Fill yor spots then say to your cheap daycare clients "see ya"!

You also need to be extremely bold with your parents and say please provide, sunscreen, and weather approprate attire as well as approprate shoes. If you had a contract you would be able to clearly state breakfast before drop off! There are alot of contract templets on the web you can look at to give you an idea how to get started. Early drop off and pick ups should be a $1.00 a minute extra. I usually don't charge for 10 minutes early as this can happen in the am. But 1/2 to 20 minutes early is just darn right rude if you ask me!

I hope your close to a school! Best of luck and I hope this helps!

Just curious what did you do before?

I can just hear Judy (justthebabysitter) scolding me now for what I have gotten myself into!!
Any and all input is more than welcome!! Thank you so much!

Hahahaha..... funny!

Anyway, it's late but I can't sleep, so I will address a couple of your points. Firstly; this business, like any other, is a fair amount of trial and error, until you find your niche. You will figure out what the best age group is, what policies work or don't work, etc over time. Unfortunately, it means that sometimes you find yourself in a situation that, well, sucks!

1/2. Personally, I would find it tough to raise the rates on parents you already provide care for. You gave them the rate, and it's a little soon to be bumping it up on them, I think. That said, you need to make money and you gotta do what you gotta do. Increase your rates if you feel you must, or just do it for future clientele. I would for sure nip the half-hour/ pay-by-the-minute stuff in the bud. I don't actually charge hourly, I charge monthly for full-timers or daily for part-timers. Common in my area, and what they really pay for is the SPOT, not x number of hours. Parents pick up and drop off at agreed upon times.

3. Politely ask mom and dad for an extra set of clothing for the warmer weather. These goofs are probably dressing her for the temperature at 6:30 am, and forgetting that the day gets warmer. I would straight up tell them that little girl is uncomfortable when you play outside, etc.

4. I don't provide breakfast. I know some providers do, but I don't. Your child should be arriving here dressed, fed and ready for the day. You don't grab them from the crib and bring them over, and then let me deal with it. I would either ask the drop off parent daily "has she had breakfast?" and when it's a constant "no" tell them flat out that you don't serve it, or mention that she seems hungry before snack time in the morning, and perhaps they can give her a little extra in the morning, since by the time she arrives your family has eaten already, so she doesn't get a chance for a little while.

5. Heck, no I wouldn't be ok with them showing up 20 min early!! My hours are my hours, and I would remind this family of when you are "open". If you want to make the point, then I would let them stand there until 7. Whether you say it outright, or pointedly look at your watch and say "oh, sorry I didn't hear you right away I was still getting ready". Either way, I wouldn't allow it to continue either.

6. Congratulations on your pregnancy!! I am also expecting (#4) and due in September. So I am dealing with this issue as well. I also feel bad about taking extra days off, but it has to be done! I am upfront with parents about the need for back-up care (whether I am pregnant or not). I give them as much notice as possible, and I have had other people stay with the kids. I already cleared this with the parents, and I think they would rather I do that than shut down the whole day.

Ultimately the fact is; we need to communicate with parents in this career. It's not always fun or easy, but it's more than necessary. I find that if I am having a tough time discussing something face to face, I do it in print. My monthly newsletter is a great way to remind parents of our hours of operation, or please bring sunscreen and a hat, etc. Or I will post a sign. Once that has been done, it's easier to bring it up, if you still need to.

The fact the parent has not honoured the verbal agreement by doing things like showing up early etc. then this would be a good time to put everything in writing so there are no further misunderstandings. Your contract will develop over a number of years and mostly it will start to contain things that cover an instance where you feel a parent took advantage of you. I would make sure that you have a contract in place for any incoming children and you can ask current parents to sign a more basic contract that spells out their current situation or give them your new contract and tell them that as of whatever date the new contract will be in effect and give them a deadline for returning the contract or you look for new children. The parents are taking advantage of you and need to realize that can't continue indefinitely.

Never Ever sign someone else on without having a contract!!!! If you need some help with writing one out, please PM me.

1) I have never heard of someone charging by the hour for home daycare. I would not charge by the half hour, it would be for the full hour. If they pick up at 4:30, they would still be paying me $3.
I would personally for any newbies have a set rate - find that out by researching your area of providers.

2) Find your backbone NOW. If you don't you'll have more people taking advantage of you, and walking all over you.

3) Do not take kids that do not come prepared for daycare. Tell them to go home and change, and to come back READY.

4) AGAIN -- COME TO DAYCARE READY. That means properly dressed, fed, ready for play, and clean!

5) If you open at 7 a.m. - they should wait until you open your doors. I would have said to her as I open the door: I am not open yet. I open at 7 a.m. Please wait until I open. If they're late, then charge them a late fee. They cannot come into care the next day, unless mommy/daddy has the money in exact cash ready at drop off.

If they cannot respect these SIMPLE rules, then you need to keep the door closed on them. Again, have your backbone. This is YOUR BUSINESS. People MUST respect you.

I have had one woman who did/said the stupidest things - she was with me for ONE month. She had 3 strikes, and was gone.

I am not sure you can raise the rates right away but I do think you can nip this 15 mi9n and 30 minute option in the bud and I think you can get the hours straightened out.
I think the best thing to do is to right a newsletter. tell the parents what you guys have been doing in daycare, include a cute picture or two and then make a heading BOLDED and underlined saying
REMINDERS
The daycare hours are 7 am - ??. Please do not arrive early because I need that time to prepare for the day and get my own children ready, etc. Please do not ring the bell or arrive any sooner than my opening hours because I cannot open the doors any earlier.

The weather outside is fickle. The mornings are still cool but the afternoons are often hot and humid. Please ensure that you send something to keep the child warm in the mornings (i.e a light coat or long sleeve shirt) and also clothes for the hot afternoon (i.e tshirts, shorts, hats and suncreen). This will help us transition throughout the day without anyone being too hot or cold.

Also....please note that payment has to be on the hour. I have been flexible letting parents only pay for 30 minutes or 15 minutes of care but it is becoming too difficult to track and turning into a headache. Please note that anything past the hour will be charged as a full hour. Hopefully this will streamline payment and pickup times.

Thanks so much for your attention to these matters.

:D:laugh: lol...that is along the lines of what I would write and do......again...also include a few pics in your newsletter of their kids having fun at daycare to lessen any backlash

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Originally Posted by Play and Learn

Never Ever sign someone else on without having a contract!!!! If you need some help with writing one out, please PM me.

1) I have never heard of someone charging by the hour for home daycare. I would not charge by the half hour, it would be for the full hour. If they pick up at 4:30, they would still be paying me $3.
I would personally for any newbies have a set rate - find that out by researching your area of providers.

2) Find your backbone NOW. If you don't you'll have more people taking advantage of you, and walking all over you.

3) Do not take kids that do not come prepared for daycare. Tell them to go home and change, and to come back READY.

4) AGAIN -- COME TO DAYCARE READY. That means properly dressed, fed, ready for play, and clean!

5) If you open at 7 a.m. - they should wait until you open your doors. I would have said to her as I open the door: I am not open yet. I open at 7 a.m. Please wait until I open. If they're late, then charge them a late fee. They cannot come into care the next day, unless mommy/daddy has the money in exact cash ready at drop off.

If they cannot respect these SIMPLE rules, then you need to keep the door closed on them. Again, have your backbone. This is YOUR BUSINESS. People MUST respect you.

I have had one woman who did/said the stupidest things - she was with me for ONE month. She had 3 strikes, and was gone.

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I like all your points !! :yes:

Sorry to hear about the problems you are having, but you do have lots of options available. I agree that you may not be able to raise your rates just yet, but there is no reason why you cannot get them to sign a contract now. You can just say that as you're learning about this business you're realizing some things that are necessary. If they don't want to sign, they get rid of them. There is always people looking for care. Don't ever rush into finding someone, they will come. And don't ever negotiate on your contract either. Your hours and rates are firm and final.

I think most providers don't provide a breakfast, and I make this very clear. Now I do have two that arrive at 7am and usually they have eaten, but on the occassions that they haven't their mother has packed a breakfast for them to eat when they arrive and that is fine by me. But, you have to have an agreement in place with your parents. Remember although you develop a love for these children, this is still a business arrangement.

As for having to take time off for appointments, I explain right to parents right from the first interview that I don't have the luxuery of a child care center with multiple people working there that can cover me for appointments. So from time to time it's going to happen, they need to understand this or else find something else. If possible I try to schedule my appointments as late in the day as possible, so that they just have an early pick-up.

I wish you the best of luck. Just remember you have to do what is right for yourself, your family and your business. Don't let parents dictate the terms here.

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Originally Posted by zen39

Remember although you develop a love for these children, this is still a business arrangement. (...) Don't let parents dictate the terms here.

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VERY IMPORTANT right here. Again, it's YOUR Business.

Thanks for the advice, I will take it into consideration. To answer your question, I was a banker before I left for daycare land. Tossed the boring career to be with my son, and loving my decision everyday!! Even with all the stress/problems. But I am learning as I go!!

You are all so right. Its my business and my new livlihood. I need to get my stuff together and have all my parents sign a contract, and to the ones that I already have on board, their rates will not change until Jan 2012. And i will provide them many months notice. Here on out, any new kids I take will have an increased SET RATE and a signed contract!! :) Thanks everybody!

Atta girl! And don't feel bad, like I said earlier; one of the trickiest parts of this business is figuring this all out, on the fly. On a side note, exactly what Spixie typed up is how I would say it!! :)

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Originally Posted by KingstonMom

I can just hear Judy (justthebabysitter) scolding me now for what I have gotten myself into!!
Any and all input is more than welcome!! Thank you so much!

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Ah, live and learn.;)

I see providers all the time advertise on Kijiji offering fees far lower than experienced providers. There is a reason the experienced providers have the fees they do - because they understand the COST of running a daycare and the responsibilities that go along with it.

You are not alone. If I had a dollar for every provider who started out like you despite my nice contact to them via email off their Kijiji ads telling them their rates are too low I could quit daycare and buy myself a nice island in the Caribbean!

Here's the thing - now you know what NOT to do. You can't change the past but you CAN change the future.

I would write up a contract and hand it to EVERY parent. Include your fees (that are INCREASED) and that they pay for ALL stats, civics, THEIR sick days etc etc. And you hand it to them with a nice little cover letter that states (in a professional manner) that they are to sign and return the contract by a specific date and failure to do so implies that they do not agree with the new terms and you have the right to fill their spot.

The intent of the cover letter is to imply that the new terms are NOT negotiable.

Now, there WILL be other providers (and parents) who are gonna come on here (I have not read the entire thread) and say that you can't do this. That YOU are now changing the rules. Well, you ARE changing the rules - that's what being SELF-employed means. Furthermore, when you operate without a contract there are essentially NO rules. Now you are making some.

Also, parents research the daycare market when they first seek out care. They are fully aware there are providers out there (most) who operate with contracts, late fees, paid stats and civics etc etc. But instead parents (in your case and other low-balled fees and lax policy providers) CHOSE to go with you and your lack of contract etc. Sorry, but when you chose a low fee OVER experience and a contract then this is what you get - a change down the road you might not be happy with.

Contracts are GOOD things. They protect the provider AND the parent. My contracts all renew for every family on Jan 1st of every year. And I expect every parent to abide by the contract for that period - as do I!

Type up a contract and send it out. Just do it.

You WILL likely lose a client or two. But you have to remember that the reason you attracted them in the first place was because they wanted a lax provider who didn't have a clue or a backbone to ensure they followed their end of the bargain. So, if you can not afford to lose someone financially, advertise, fill the spot with a new family UNDER YOUR NEW CONTRACT and then give notice.

If you need any help you know where to find me.:p

Judy- good point!

Your business= your rules

I would totally start a contract sooner than later but wait to raise rates for your current clients (if you take on any more kids- I would charge them a higher fee)

We all make mistakes and like almost everyone has said it isn't too late to start making changes.

It took me a long time to develop a contract / handbook that works well for me. Our handbooks and contracts develop over time as our needs and wants from our business changes.

I am always leary on making changes for current families because you always run the risk of them walking away. However, with that being said, putting the verbal agreement you have into writing is a great idea. Also include clauses for increasing your fees, termination clauses so that your families need to give you notice, etc. There are many of us that can help you develop a contract that will work for you.

For future families, charge the rate you would like from the beginning, make the changes that you would like, etc.

Your daycare business will grow as your learn and grow, there will be hiccups along the way, keep your head high. As far as making mistakes, even after 16 years of home daycare I still make mistakes. Some times silly ones that I shake my head over ;)

I have amended my contract quite a few times in the last 18 years. If there is something that I feel isn't working I just type out an amendment and give it to the parents. I have never had anyone leave because if it either.

If any of your current clients complain about the contract say are you looking for "Cheap Daycare" or "Quality Care" becuase thats what I provide! Good Luck!