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Setting my family care rate, I have some questions hope someone can help:
1. How do you charge for your part time and full time rate? Should part time rate higher then full time rate?
2. What if I find out my rate is too high, and I adjust my rate little lower, how to let the future parents to notice that i adjusted my rate?
Thx in advance!
I would suggest putting some serious thought into your fees, research other daycares near you etc. It's not like selling a car where "new lower rate" is a selling feature. Dropping your fees signals others that you over priced yourself and found you were not worth it. I would find that as a cautionary sign and I would be weary of signing a contract.
If you are just starting, unless you have strong selling features that justify a higher cost (high degree of related education, direct experience in childcare/daycare, or qualifications and a setup for a specific strand of education Montessori etc) I would not over price yourself to start. Find the local average and start from there. You can slowly increase your fees annually as per your signed contract or some daycare providers will charge the newer incoming families a higher fee. It is up to you how you do it, but starting off I would see it working against you to over price and drop your fees to get people to sign up.
It's not that you aren't worth more, it is that in most areas there are more families looking for care than providers and most families (not all) are looking for the cheapest care they can find as that is what they can afford. So having a higher price means having empty spaces longer. Which is something you need to consider when setting your fees. Can you afford empty spaces for 4, 6, 12 months or do you need them filled quickly for a bit less daily income but potentially more long term income (as you get more consistent pay with a full house).
It is easier to go with the flow in your area regarding your rates when you are just starting out. I do charge higher for part time as the child is breaking up a full time spot, which can't always be filled.
If you have years of childcare training or related experience, then you might justify going slightly higher, or if you offer a niche market like extended hours or all organic food or Montessori setup. It's easier to start out lower and make rate increases once you've built a client base, or increase rates when new families start.
I charge 15% more for part time spaces and require a min of 3 days. That said, I don't typically take part timers and will only permit it under two circumstances. First one being Mom is on mat leave and returning to FT care on a set date. The second situation being for a 4 day a week client.Quote:
1. How do you charge for your part time and full time rate? Should part time rate higher then full time rate?
This means someone coming in new who wants part time, will only be allowed that if it's a 4 day a week contract. By charing 15% more for the 4 days, the lost one day fees are largely recovered. For a client who wants to drop days during mat leave, they must attend and pay for a min of 3 days. If only taking the three days, because the loss in greater having to leave 2 days empty in order for them to be available when mat leave ends, they also have to pay for all stats and public holidays even if they fall on a day that isn't their usual schedule day.
That point is also worth mentioning - for these two situations of allowing part time care, it will only be offered for fixed days. There is no ability to switch days. I do not accept rotating client's on a part time/attendance based pay. Rotating shift clients are required for the full time space they require having for the flexibility of their shifts. Everyone else pays on the days reserved for their child and rotating shift client's are included in that policy.
Don't do this. Don't adjust your rate down. Do your homework before hand and understand what the market rate is for your area. Then figure out if you can provide the service you planned for those profits. i.e. If the going rate in your area is $35 but you want to provide home cooked meals and live in NFLD, then groceries are ridiculously costly there and your profits will be minimal. When you divide that profit by the number of hours you intend being open plus a couple more hours a day for prep, cleaning, etc, you might find for your situation that this isn't a viable option.Quote:
2. What if I find out my rate is too high, and I adjust my rate little lower, how to let the future parents to notice that i adjusted my rate?
You have to have a good understanding of what you local rates are and what your costs are going to be before you set your fees. Doing anything less is madness. If you are over charging then you are going to scare of potential clients. If you are undercharging, you are going to be working for a pittance and in real trouble when you go through a dry spell with 2+ open spaces taking a long time to fill.
In my area, I am top end of the fee scale at $38.00 for full time care. This is a structure, experienced program, fully insured, established rep and program, meals provided, all checks in place, exceeding the daycare regulations. Someone tried to set up charging just $2 more and despite getting interviews, no one signed with her because she was so high compared to local market. Then she dropped her fees to match mine and people laughed at her because she didn't have the same experience with group care, hadn't proven herself in this market, etc. She ended up with the crappy clients that I would never have accepted, who turned up late, paid late, weren't supportive, and they were only willing to pay her rates because they had burned bridges elsewhere in the child care community. Within 6 months she was out of business.
Also - just suppose you get some client's in at the higher rate and then drop your rates to fill the rest. Are you going to reduce the cost to your original clients who have kept you afloat? If so, how will you justify lowering the rate without looking like you were overcharging them for all this time? If you aren't going to lower the rate for existing clients, then how will you feel when they confront you on the difference when they find out? They will find out. Parents build friendships, arrange play dates on weekends, chat among themselves, so you need to be fully transparent in order to be viewed as trustworthy.
Yes I agree with the other posters as it is important to call around first and find what is the going rate in your area especially the daycares that are near you.