Payment Policies

I have to address my payment policies with a client today at pick up. I'm looking for you to confirm that I am more then fair with what I charge and what I don't charge for. I know most of you have a much different fee structure then I do, I'm not looking for critique on how I charge my clients. I just want to make sure I'm being more then fair with my fees. A little confidence boost before I go into this confrontation.

I do not charge for sick time taken by the client or any time the daycare is closed. I give all clients 1 week vacation time at no cost per calendar year. Once a client uses up the 5 days for time off (without being sick) then I charge 1/2 of the regular fees per day they remove their child.

I have a client who has used their 5 days plus and has only given payment for the time their child has attended care, not the extra time off. I hate, as most of us do, dealing with money issues with our clients. So, I'm just looking for that extra little confidence boost going into tonight's conversation.

thanks everyone!

I would have the 5 dates of the days the child was absent listed and then the additional days dck was absent x your half day fee. I always like to put things on paper instead of trying to remember at discussion time. I would use my "gentle reminder" voice with a smile. It could be the client has not kept track and is an honest mistake. Make a copy of the dates and money owed for her to take home. Be confident in your reminder. This is your business and this is your money that is owed. You are already very generous with your clients, so don't back down. Good luck.

I think you're very generous with your time. I offer 5 sick days as well and no charge for daycare closures, with the exception of statutory holidays. One thing you could do, if you don't already is offer bi-weekly receipts with the sick days used and remaining listed on each one. This way, if you don't keep formal attendance, it's easy to go back and show the absences when a dispute arises. Often, people just lose track I think. I've not had any problems with this sort of thing as each client can see with their own eyes what their status is. What you offer is more than fair....definitely!

How do you distinguish between a sick day and a vacation day for the client. Just as the parents who have "sick" days at work will tell the employer they are home sick when they are really entertaining company or cleaning their house or taking a spa day. You may have to streamline things to have 5 days no pay and ALL other days are half fee. The half fee would cover sick, vacation, grandma visiting days, etc. I know you didn't ask for critique but I am really asking a question as to how you clarify the difference with your clients. As I see the dilemma the parent paid when they attended and didn't pay for 5 days off and didn't pay when they were home "sick" which is all legal by your contract. What is the definition of "sick". Sometimes we all feel too sick to go to work.

I don't think this sounds like they're having problems distinguishing between the 2. They've already used their 5 sick days. If I understand correctly, anything above and beyond that is at 50% off. I would imagine there's some notice required for this apples and bananas? It sounds like they have paid nothing for the extra time, which makes me think they probably didn't notice their sick days were already used up.

Not to tell you how to run your business A&B....do you think it might be easier, with future clients, to do away with the 50% rate for additional time? Or at least be absolutely certain that you have strict policies surrounding this (30 days required notice as an example). This way they will never be able to claim a 'sick day' as a vacation day...make sense? Personally, I'd just get rid of it. I've found that most clients are over the moon with the 5 days as many providers offer nothing. Just something to consider :)

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Originally Posted by playfelt

How do you distinguish between a sick day and a vacation day for the client. Just as the parents who have "sick" days at work will tell the employer they are home sick when they are really entertaining company or cleaning their house or taking a spa day. You may have to streamline things to have 5 days no pay and ALL other days are half fee. The half fee would cover sick, vacation, grandma visiting days, etc. I know you didn't ask for critique but I am really asking a question as to how you clarify the difference with your clients. As I see the dilemma the parent paid when they attended and didn't pay for 5 days off and didn't pay when they were home "sick" which is all legal by your contract. What is the definition of "sick". Sometimes we all feel too sick to go to work.

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Thank you Playfelt. Your feedback is appreciated. I guess my answer to your question is very simple. I technically I can't. I guess I would expect my clients to be honest with me in regards to sick so I can let my other clients know. I suppose if a client were to try "calling in sick" on days when gramma wanted to care for the child instead and the child wasn't really sick I would confront the parent if it happened enough times.

Quite honestly, if I suspected this issue I would re policy that client with a 5 day sick only policy and go from there. I suppose I wouldn't really want a client like this as part of my care and would work on edgeing them out or just terminated.

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Originally Posted by cfred

I don't think this sounds like they're having problems distinguishing between the 2. They've already used their 5 sick days. If I understand correctly, anything above and beyond that is at 50% off. I would imagine there's some notice required for this apples and bananas? It sounds like they have paid nothing for the extra time, which makes me think they probably didn't notice their sick days were already used up.

Not to tell you how to run your business A&B....do you think it might be easier, with future clients, to do away with the 50% rate for additional time? Or at least be absolutely certain that you have strict policies surrounding this (30 days required notice as an example). This way they will never be able to claim a 'sick day' as a vacation day...make sense? Personally, I'd just get rid of it. I've found that most clients are over the moon with the 5 days as many providers offer nothing. Just something to consider :)

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Good thought... I may end up changing this down the line.

Let me clarify, when I asked for no critique, I was more concerned about people hijaking the thread with the classic debate... pay for stats, don't pay for stats.

This is all very constructive and I appreciate it.

I tend to agree with everyone else. I would change your policy to just allow for 5 days unpaid regardless if it is holiday time or sick time. I would keep a paper for each family that shows the dates that they use the 5 days.

For myself I charge all days I am open no matter if the child is in care or not. I also charge for stats. The only time that I don't get paid is when I take a sick day or holiday. Makes things much easier to and keeps my pay consistent.

You are being very generous, A&B! I don't offer any unpaid days unless the daycare is closed due to my own vacation or sickness.
Conflicts over money are always uncomfortable so maybe a gentle reminder that most providers don't offer the client unpaid sick days will make things go more smoothly for you.
Good luck!

I offer days without pay as well but I don't bother deciphering whether they were sick or just personal days.

I offer X amount of days and each time a family uses one, I record the date and have the parent initial it. Once the allotted amount of days are used, payment is due like normal.

You are being more than generous and it's too bad that the parent is taking advantage of you. I do wonder if they have just lost track of the numbers though. I would politely inform them that there 5 days have been used and normal pay is due.

I offer a $10 discount if they keep there child home and let me know ahead of time and same for stats. I only give money back if it was me that was sick or had to close for appointments. I send out emails/texts the week payment is due with their final total. If they do not tell me that their child will be out at this time than the total I gave them is what they owe.

Good luck tonight!! Have a copy of a contract on hand for reference if needed :)

So, I ended up sending an email at lunch. I find it so hard to address it with parents at the door while kids are running around. She responded that she completely forgot and apologized,

I love all of the suggestions that you've given me though. Thank you!

Apples and Banana's, I do the same. I send an email during the day so that the parent can read it and my messages get across without other kids or parents interrupting us. I always tell them that we will discuss it in more detail if needed at time of pickup though.

I'm glad this ended well for you :)