So I have finally updated my contract.....

So after many years at this business, I have finally (in the past year) feel so taken advantage of, that I updated my contarct to include many of the polices that many parents dislike so much. Now I have recently enrolled three new clients that are all on board with the new contract and prices, and I have another that will likely commit this week. I have two that have been around for a while, on old contracts and old rate that I want to update. My plan is to warn them that a new contact is coming out, that they will have time to review it, address any concerns, and then either sign on or move on. There are big changes, and these changes are mostly happening because of these two clients. First of, they will now have to pay for their spot regardless of attendance (right now they only pay when they come, and can have limitless sick days/vacation days....which the one client has now used almost six weeks, here and there since spring, and yes it is a full time spot)however, I will give them one week off sick days, and one week off vacation days. Another rule, there is ZERO tolerance for Early drop offs or Late pick ups...no late fees, no 5 minutes here or there, if you do it, I am done (I have tolerance for snow storms, and traffic problems....but i cant wrap my head around the "I didn't look at the clock" excuse). Also, I have decided that Stat holidays are paid (if your child is regularly scheduled for that day) Finally, I raised my rates $2. I am considering telling these two parents that I will keep them at the old rate until July 1st, because i understand that the new contract might already be a drastic adjustment for them, or should I?
Also, any suggestions on how I word this notice of a new contract? Also, I am taking into account the days they typically attend, and fixing them, so that they do not have the option to come other days. Basically, it forces them to be part time only, they both only come three days a week now any way.
Basically, they have both taken advantage of me this summer, one took almost 6 weeks off since spring, and the other 4 over the summer without prior communication to see if it was "okay" so I dont feel like I owe them full time spots, and I am giving them two months notice, they can look elsewhere is they cant commit to the new contract.
Thoughts?

Go for it! Make sure you have a clause stating that your contract will be updated yearly with one months notice of all changes. I email my new contract out every December with an effective date of January 1st.

Don't keep them on your old rate either! You have to stand up for yourself!

I feel you 100%!!! I also previously ran my daycare like you explained. Didn't charge them for days not in care no matter what the excuse was, no notice was ever given until the morning of. I did this for almost a year. By the end of it, ALL of my 5 families were taking any excuse NOT to bring there kids to daycare to save the $40/day. I got fed up! being nice was...... yes, getting me clients and i was always full, but at the end of the day not being able to pay bills and buy groceries was not worth it!

You have to protect yourself as well. I started to see that if i was able to be open, and i NEVER took days off or couldn't provide care, then why wasn't i getting payed?? I did exactly what you did. Every day paid, no excuses. I don't even offer "free days" at all anymore. why should i pay for someone else vacation when i'm still open and working? Now clients get $10 off normal rate for the days that they take vacation and limited to only 10 days of that discount per year. After that...full rate pay every day. I also changed all policies regarding sick days as clients then would send me sick kids that they didn't want to pay for the day if they had to keep them home. Now.....48hr (2 days) not in attendance (paid) days is mandatory, and i DO send kids home...sometimes an hour after they arrive. Funny enough, after the policy changes and a huge rate increase ($5/day) every one of my clients stayed on as clients, no one left, or even questioned why i was making these changes! This bugged me even more as i could tell they knew they were taking advantage of me and fully knowing that anywhere else these are the norm. I'm happy that most of these clients have aged out of my daycare and new clients obviously didn't bat an eye at my policies. I think what your doing is totally in the right and i'm glad you realized that things had to change :) you will be much happier doing what you do every day knowing that your getting paid regardless.

What i did to let my clients know is that i wrote a letter that included all the changes that would be made to the contract. Price change, days off, sick policy, stat days ect... and gave it to my current clients 6 weeks prior to changes. This was more than enough time to find alternate care and more than my notice period was in my contract to terminate. Out of respect for my clients....even though they had not respected me i felt i was being more than generous. Only one client had an issue with the price increase and of course it was the family that abused the policies the most....they still stayed on as clients....

I always remind myself when i get clients who ask during the interview, and there will always be some who try....... do you give discounts? if i give you notice of vacation well in advance can we have unpaid daycare days for that? do you offer a sibling discount.....ugh the nerve of some people. I usually won't even sign these clients on if these types of questions come up more than once from a potential family during the interview process as its an indication of what type of client they will become...... and before sending them on their way to search else where I say right to them . I wake up in the morning to provide care to your children, I show up to my job just like you 5 days a week, I get no break as you do, I am a chef to 5 kids 4 times a day, I have to have tons patience all day long with everyone (i can't just choose to not talk to my co workers if they or I am in a "mood") , there is no corporate ladder for me to climb to earn more income, I don't get a pension at the end of my career of child care, when your boss is on vacation do you still get paid when you show up to work? and these are only SOME of the reasons I don't do it for nothing.

Good for you! I wouldn't give them "free" unpaid days though-NONE! Why should you lose money? Payment is by enrollment, not by the days they chose to attend. I would increase the rate for the old clients Jan 1/16, not next July. And yes, they should be on set days, not come when they please. I have a fee which is $10 hgher per day for temporary care/varying days of care. Maybe you should add that in too. They can pay FT fees if they want to come and go as they please!

Sounds good!! I think 2 months notice is more than fair and gives them time to look elsewhere if they don't want to sign your new contract.

I also update my contract yearly (if need be) and parents sign a new one every Dec'/Jan. This is in the contract as well.

I do have one family on the old contract they signed 3 years ago but they know of all the new changes. If they were a terrible family and took advantage of me, I'd have no issue asking them to sign with the updated changes. However, they've been wonderful and I have no issues with them so I don't bother. They are most likely leaving next Fall when she goes to kindergarten so I don't see any issues in the future anyways (they already follow all the changes I implemented due to other families)

MsBell...My goodness....how were you even making any money....everyone came and went as they pleased! Good for you...you will notice a HUGE difference...not just in how you have been running your daycare but in your WALLET!

I give NO sick days and NO vacation for free....

Oh my goodness! You were losing a big amount of pay. People can't seem to be normal about anything you give them a dime and they take a hundred dollar bill (literally)! When I first opened I had no idea what the hell I was doing Lol and I did what you did. After two weeks I changed my contract because people started taking vacation days after a week of care. It was risky but I knew I couldn't work for free and surprisingly no one left! If you loose people do not stress and you will see in the end even with the people you may loose, with the new fees and good clients you will break even and when you fill all spots with your new rates and policies start saving for a good VACATION!

I would just do it and with increased rate. Chances are, if they are going to stay with other change, $2 not a big deal. If they are going be upset about drop offs, pick ups and paying for spot, having old rate not going to keep them.

You have restructure your business and they are on board or not. Waiting until July 1st to increase fee just give shopping around time a cheap rate. If they going to shop around, let pay full price while looking.

Thanks so much for all your comments and suggestions! I really started to find myself hating this job, and when I really sat down and thought about it, it was because I felt like I was simply not appreciated, I felt like I was working non stop, yet didnt have much to show for it! I will raise the rates too, and if they want to go, they can go. I am excited to present this new contract, and see what happens.

Good luck...keep us posted. you will be much happier and richer! You will know how much you are going to make as well as how many kids will be coming. You need to get things in order, especially with all the new changes and rules...

I would make it effective jan 2,2016.