If it were me, I would politely but firmly tell her that she is already receiving a very good rate for her child's care - and even if she requires your services for fewer hours every day, your daily rate is not going to change. I would also use the conversation as a springboard to discuss/explain the situation. I would explain that fewer hours do not necessarily mean less work - as you said, you're still prepping a lunch, snacks, etc. It also doesn't translate into lower expenses - you still need to provide a playpen for naptime (even if the child is only attending partial days) you still buy toys suitable for their age, you still have to pay insurance rates for your daycare, etc. I've dealt with a lot of parents who split hairs over the "but he's only there for a few hours hours - why can't I pay half rates ?" question (Answer: because your child's 10 to 3 shift is just as much work as the other kid who comes from 8 to 4) It's a bit of a pet peeve of mine. Just tell her that while you love her little guy, and would like to help her out, a space is a space and it makes more economic sense for you to have a full time child in that space than a part time one. If you have the wiggle room in your program to have a part time child that's awesome - maybe you don't need to terminate/replace this client. But - if you're already "losing" money on this one I'd suggest that you cut your losses. Again - keep things polite and professional - you could just tell her: "I appreciate that your caregiving needs have changed and I no longer feel that I am able to meet your needs. As per our contract I am providing X weeks notice that our care agreement is terminated. Effective date X I will no longer be able to provide care for Baby X" Personally, I don't offer part time care because I want a full time income. You are actually taking a financial loss to help this woman out. If she has any sense of decency at all, pointing these facts out should end her requests for a lower rate. Sadly, if she is quibbling over this kind of stuff I think things will get worse before they get better - you may want to start looking for a new family.