Help with charging part time fee...

[Rachael]

Okay - this is just my view and I know different providers in my own area do this differently than I would.

I charge based on days reserved for a child regardless of their attendance. Since this is my income and I have to have a level of control over it. I cannot fill empty days I've reserved for someone on a short notice/short term basis.

In the example you have given, I would have to have a FT place available for them to ensure I am not over my numbers on any given day. This means reserving every week day for their child because the revolving shifts mean they might be here on any of the days I am open. For me, I would have to charge them for that FT place - and yes, my policy normally means they go elsewhere because they don't want to pay for 5 days availability when they are using 1-4 days even though those one to four days constantly change. It would be impossible for me to find another client to slot into their unwanted/un-used days when they aren't consistent in either numbers or actual days so if I didn't charge for all 5, then that would be a direct loss to my income which I can't absorb.

This will all come down to if you, like me, need all your places filled every day.

If you have some flexibility financially, or never intend having your provincial max., then you have more flexibility for arrangements like shift workers need.

I do know some providers locally who offer an arrangement as you've proposed. A weekly fee for a minimum number of days and on the weeks they need more, they pay the extra.

i.e. if they had an arrangement for min of 3 days a week, then when they only needed one or two days care, they would still pay for all three.

Some providers will permit the child to attend all three days even if the parent isn't scheduled to work them all. Others wouldn't permit attendance on all three days when not needed by the parent. They would view the 3 days fees for less than 3 days work that week, as compensation for never being able to fill the other two days and never getting a full time income from that full time place.

When the shift pattern for these clients requires for more than 3 days care, the parents have to pay for extra for the fourth and fifth day.

No - don't allow a credit system of her paying 3 days, using two and so having one "banked" paid day for when she needs more. I know it sounds fairer but you have to consider that by taking this particular client, you will lose money in the long term vs waiting for a client who actually needs and pays for all 5 days. For one, it will be horrific to keep track of and is open to all manner of abuse if the parents count is different to yours. But also, the client needs to understand that you financially lose by taking them on. Effectively, these banked over payment days would mean you were only being paid on an attendance only basis and would increase your losses even more.

There are a handful of providers here who only charge on attendance not days used.

These are typically those working under the counter and not giving receipts so they feel less able to enforce rules, or they are new to the business and haven't yet fully realized how much shift workers cost in terms of lost income. Those who continue to operate on an fees-for-attendance basis, often close/fail within 12-18 months.

Here, our market is saturated with providers. We are a small province which despite the rest of the country thinking cost of living is low, actually have the highest taxes and huge living costs. Often young families move here from Alberta thinking is will be cheaper but they return back our West when they see our low salaries and high living costs. They just can't make it.

Anyone with two children or more, tends to consider opening their own day care, as an alternative to returning to work and so day homes are constantly popping up. I explain all this because of the saturation, many new day cares who to date have only experienced parenthood and not worked with a group of children, think they are being competitive by offering attendance only fees. Initially, they are, but it's not maintainable. What it does create is an expectation from shift workers - and they are right - someone locally will only charge them for the days they use. Until all providers stop this madness, then parents will continue to expect that this is negotiable.

What tends to be the lightbulb moment for these providers, is Christmas. That is a rude awakening to many. Grandparents arrive from other Provinces in December and most clients leave their children in the care of these grandparents who are desperate for time with their grandchildren for the duration of their visit. Most grandparents visit for 2-4 weeks (depending on if they are retired) and if a provider is only charging on attendance, this is an opportunity for clients to have a massive saving in their household expenses. Lots of extra family funds for the clients to pay for the expense of Christmas but not one single present under your tree for your family when Decembers income is nil.

Also - if you permitted these banked days credits, then, when this child is off sick, those days too would have been paid for and not used. Although we all do our best to contain the spread of germs, I think most of us have experienced times when something has hit the entire day care. Suppose your business goes down with chicken pox or stomach flu and all the children are out sick. It doesn't happen often but there are times it does. If you are permitting banked days and your client has paid her min. of three, then those days too will be credited for future use. This all has the net effect of them not paying when their child is sick, is on vacation, during a stat holiday, or when free care is available from family members!