Help Help Help!!!

[Emma H]

Hi everyone!
Okay so I am dealing with a few issues and really need help. I am a 24 year-old daycare provider and being so young I feel parents really try to take advantage of me SOMETIMES, so before I make some final decisions I wanted to ask you lovely ladies for some advice to ensure what I do will be fair to everyone.

First things first, daycare rates!
I run an all-organic Montessori-French home daycare. I charge $35/day as I live in a condo and not a house. Many parents have hinted that they would rather a house and I explained to them that the reason I choose a condo was because that was what was within my budget until I filled my spots. Now, I let everyone know that I will be moving into a house as soon as my lease is up in September as I have filled my spots. The down fall is that I will have more expenses and my rates need to increase especially since organic food is so expensive in Kitchener-Waterloo. I already had a family ask me for a sibling discount when their new baby comes (they don't want to pay to hold their spot on mat leave for both kids but expect their spot to be held? Is this normal?) There is no way I can afford to charge any less then what I already do.
What do you feel would be a reasonable daily rate? I have an ECE degree as well as being a certified Montessori educator and 10 years of experience being a nanny.

I also give my families 2 weeks ( 10 days mon-fri) free vacation which they don't have to pay. I don't charge for my vacation time and only take one week. I am also only closed for 4 stat holidays and open for the rest but require payment on all of those days even if the child does not attend.

Another thing I have issues with are prolonged pick-ups and drops offs!!!!! Dear lord some of these parents could talk for hours and its so inconsiderate, considering I have other children who are waiting for my care. One mom came for pick-up and played with her child while I was holding her for about 30 mins with a lanyard??????? Really??? I tried to get out of it by saying there is a baby crying for me and I need to go attend to her needs (there really was a baby crying) . Her reply was " Its okay you can go get her we will be fine" I assumed her was going to see herself out. I didn't hear the door shut so I walk out and shes still standing in my hallway .....like why are you still in my home GOODBYE!....I don't want to be rude but what can I say to get out of the conversations? I don't have time for that I have other children and parents waiting for me and I think that's so rude!
I don't mind talking to you for 5 mins about your child's day (I also offered to do daily reports) but good lord these people talk about nonsense like dinners they went on and houses they are looking to buy!

Lastly, what do you all charge for late fees? One family does this to me EVERY WEEK they never ever pay in the morning in the 6months they have been with me, ( I never agreed to this they just made their own rules and their excuse was they didn't have time to stop at the bank over the weekend) they pay when they pick up the child which I am okay with, BUT now they want to drop in after they pick up their child therefore inconveniencing my schedule. They used to come after hours so after 6 pm assuming I will be home waiting for them and have nothing better to do because I don't have kids but I put a stop to that real fast.

Any advice you could give will be so appreciated!

[cfred]

Hey! Welcome to home daycare....these are not uncommon issues. In fact, you sound very much like I did at the beginning. Many of these things you mention can be really hard to deal with while you're still a little green in the field.

I'm not sure what most providers in your area charge. Honestly, $35 sounds a bit low, considering what you offer...but again....I don't know what the norm is in your area. Have you checked that out in the search feature on this site? It's okay to go a bit higher, but, when I was in your shoes, I did so slowly. My first clients came in low, then, as I brought more on, I raised the rate by a dollar or two each time. So, I came in at $39 2.5 years ago and am now at $47. Each time a someone left and a new one came aboard, the price went up a little. In addition, I increase my rates by $1/day each year. This is in the contract and helps me to keep up with the cost of living. You have all the bells and whistles and will be able to command a pretty decent rate...but it might take a little while to build your reference list/reputation and to see what the market can bear. While you may want to start low, for new ones coming in, and once you have a reference list built up, you might want to consider hiking them up a bit.

The condo issue...well...it does make it a harder sell, but if your program is good, then it's good! You've stated that you're looking to move into a house once you can afford it and really, what else can you say? Don't let people dicker down your price because of your home. If your space is good, your program is quality and they're being well cared for, then so what if it's in a condo? One thing that frustrates me is when people come in my daycare/home (usually clipboard mums - I'm sure you've had some already) and pick it apart for the silliest things. On the one hand, it is their child's care and that's of utmost importance. On the other hand, I've often felt that they're looking for a bargaining chip which pisses me off enough to put them on my fake waiting list. This is my HOME! This is my business that I've spent my entire adult life building up. My first house, which I've sunk my life savings into. To walk into someone's little spot in the world and start tearing it down in the spirit of a lower fee...well...they're probably not a client I want anyway.

Organic food - That's a tough one. I opted out of the organic due to the cost, but instead offer a very broad and eclectic menu. I found the organics too much, despite my desire to offer it. If you can find a way to do it while maintaining prices people in your area can afford and still make enough money to make the business viable, then go for it! If you're having to raise your prices so high that it steers potential clients away, then you may wish to reconsider the organics or see where else you can cut back.

So far as a sibling discount....nope. I mean, you can, but I suspect the second child will use just as many supplies, food and equipment and need as much care as the others. The way I look at it is that if a child is taking up a full time space, I require full fees. Your vacation offerings for parents are exactly like mine were in the beginning. I now offer 5 days...that's it...and that's going to be phased out too. It is not our job to subsidize other families' vacations. I found it to be a LOT of money each year and finally decided I couldn't afford it. It IS however a great tool for filling your spaces up, initially, to get the ball rolling.

Parents lingering - I found, in the beginning, that it drove me a little nuts. Then I just turned my thinking around. I have open door policy and it's not at all uncommon to find parents in my play area with the kids, having a good visit. They like it, I enjoy the company and it makes the parents feel more a part of things here. I changed to this format quite a long time ago, and most parents say it's one of the biggest aspects of my care that they appreciate - the openness. Now I just offer them a coffee and include them in the fun. Not everyone likes this, but I've found it to be hugely beneficial.

Good luck with your new biz! Hope this helps a little. I'm sure others will write in with their 2 cents and offer loads more insight to consider.

[Fun&care]

First off, welcome to the wonderful world of home daycare!

I just want to say, people asking for sibling discounts drive me nuts. If you go to the gas station and ask them if you can have a discount because, well, you own TWO cars and not just one, will they give you one? DOUBT IT!!! Dont let people try and make YOU pay for THEIR life choices.

I started out in an apartment and charged lower as well. It did make it harder to find clients, but if you have a solid program and solid space you will probably be fine. I am sure the fact you have your ECE helps a lot!

I was young too when I started. I was 23. Don't let people get to you!

As far as late pick ups, I charge one dollar per minute but if they are late more than 3 times they need to look for alternate care. I also have in my contract "please respect my hours as my time with my family is important to me" which I think really sends the message home.

Good luck!

[Suzie_Homemaker]

Miss EmmaH;

You said : Hi everyone! I already had a family ask me for a sibling discount when their new baby comes (they don't want to pay to hold their spot on mat leave for both kids but expect their spot to be held? Is this normal?

I think it is normal that parents ask but it's not always normal they get it. Parents will always ask for the best deal for them but you don't have to give it.
No sibling discount here. All the babies get the same care and love and food so they all pay the same. Sibling discount is for big centers. If they want the benefits of big center then they can go there. If they want a day home then the rate is set and no discount.
If they are not paying for places to be held then they can't make you hold them. You have bills to pay for your own family. If they wants places, they pay. If they don't pay then they have to crossed fingers and see when the time comes.

You said : I have an ECE degree as well as being a certified Montessori educator and 10 years of experience being a nanny.
Do you mean babysitter? How can you be 24 and have 10 years being nanny. That means you 14 when started? And you also got degree. Doesn't make sense. Maybe you 34?

You said : Another thing I have issues with are prolonged pick-ups and drops offs!!!!! Dear lord some of these parents could talk for hours and its so inconsiderate, considering I have other children who are waiting for my care. One mom came for pick-up and played with her child while I was holding her for about 30 mins with a lanyard??????? Really??? I tried to get out of it by saying there is a baby crying for me and I need to go attend to her needs (there really was a baby crying) . Her reply was " Its okay you can go get her we will be fine" I assumed her was going to see herself out. I didn't hear the door shut so I walk out and shes still standing in my hallway .....like why are you still in my home GOODBYE!....I don't want to be rude but what can I say to get out of the conversations? I don't have time for that I have other children and parents waiting for me and I think that's so rude!
Be firm. When they come, start taking coat off child and then say Bye and turn to go work. If they make to follow ask them if they needed something. Tell them you are busy and can't chat socially but if they need to tell you about their kid then they can.

You said :Lastly, what do you all charge for late fees?
$5 for every full or part 5 mins. In the contract. You can't just apply late fees if not in contract. If you have a service provider like cable, power, cell phone, whatever, and they charge you late fees that were not in contact then you would not pay late fee. Same thing

[5 Little Monkeys]

I agree with the other 2 ladies and love their advice!

I was also young when I opened and I'm childless on top of that. For some/most this was the reason they chose/choose me (knew I loved children or why else would I do it) but others (well really just one family) didn't seem to like my advice because what did I know, I have no children. Those type of parents drive me crazy! Lol. I've done Childcare for almost 10 years, have a bit of schooling in it (not full ECE) and I raised my siblings and am a big part of my 4 cousins lives, including the tough stuff. All of this is obviously different than being a parent but I do think I have more experience than a person whose been a mom for 18 months. (Sorry, bit of a rant/vent there! Lol) Dont let your age determine how good you are at your job. There are some 40 year old parents who I wouldn't want looking after children so age really isn't an issue IMO.

Is $35 the norm for your area? Organic Montessori French daycare is AMAZING so I think you should charge on the higher end for your area. Where I live, $35 would likely be the highest you could charge, maybe $40 but might take a bit longer to get clients. I wouldn't offer sibling discounts if I were you. It wasn't your choice to have multiple children so it shouldn't be you that looses money because of it. Also, if they don't want to pay to hold their spot than there is no spot held for them. It is silly for parents to expect that but yes, some think that is normal. In regard to condo....some are much nicer than houses and as long as it's safe and has a play area outside or nearby, I don't see the big deal. A few family members of mine live in condos and most of them are much nicer than my home lol. (I think I just like the newness of them lol)

In regard to vacation days, 10 is a lot IMO. I offer a $10 discount/day that they are gone and tell me ahead of time. When I opened, this was one of my selling points I used to attract clients since a lot in my area don't offer vacation days at all. Eventually I might phase it out but I find it helps parents keep their child home on days off which gives me a break from time to time. I also think one week a year for you is too little but we are all different and we can't always afford more than that and some don't need more than a week to recharge! I take 2 weeks off in the summer, 11 stat days and than sometimes up to another week throughout the year for appointments or holiday.

Prolonged drop offs and pick ups became a problem for me with a couple families. I send out a parent package before meeting parents and part of it now says that drop offs need to be 1-3 minutes tops. Pick up is a bit different as I like that time to talk to parents about their child but sometimes it gets long too as the parent wants to chat about non daycare stuff lol...I don't mind it too much though as it's adult interaction! Ha ha.

I'd have to check my contract to be sure but I think I charge $10 for the first 15 minutes and than full fee's after that. I don't like the $1/minute because I don't want to get into "I was late 5 mins", "no you were late 7 mins" etc. but for some it works great! Make it steep enough that it deters them from thinking "oh I'll just pay the late fee, it's not much" and make it clear that you have a life after work too so if they're going to be late, you need to know! I also have in my contract that consistent late pick ups is a reason I may terminate.

Good luck....and welcome to the page!!

[Emma H]

Suzie homemaker no I didn't mean babysitter I meant what I said "nanny". It takes four years to get a degree so why would I be 34? I worked as a nanny prior to high school, during high school and while I was in university. If you look up the definition of a babysitter and then the definition of a nanny the work that I was expected to do was a lot more then what a babysitter does and outlines the job description of a nanny.

As for the cable provider comment. I know first hand being with rogers that when ever they want to change a price or add anything in they do and it you don't like it oh well. I personally have never paid a rogers bill that I was quoted for and it was ALWAYS more expensive some how. As for the 5 dollar late fee.... it is applied to my contract I never said it wasn't. Considering it is MY business I can add or phase out whatever I want in my contract.

[Lee-Bee]

Are you having trouble filling spots? If so I would change your approach as it sounds like you are telling interviewing families that you plan to move to a house. If I were to hear this in an interview (or before signing a contract) I would run. The last thing I want when I find a daycare is a major change. Leave this info out, sell your current condo to them (give reasons why it DOES work for your daycare) and then after they sign up and you confirm a move tell them, they will have a bond with you and will be more willing to follow you.

As for the nanny/babysitting. Saying 10yrs of nannying typically implies you worked 10yrs as a full time nanny. To most being a nanny means a Mon-Fri 8-5. Most teenagers are in school, not working as a nanny so it causes a bit of confusion. I worked many years a nanny, during school breaks and part time when in university.

Be confident and firm in your policies so parents see you stand by them. If you look unsure they will push to get their way (some not all). Sell your age to families...being younger can mean more energy etc. I'm not saying it's true there are plenty of people out there wayyyy older than me that have wayyy more energy but if your young age is giving them a bit of concern just spin it in your favor...just because the parents are older than you doesn't mean they know more, have more experience, or have any reason to get their way so be confident and firm.

I don't know how you pull off organic, Montessori on $35 a day! both cost a 'normal' daycare a lot more'. If that is a lower price for your area keep in mind that you attract different clientele if you are at the low range for your area versus the high rage for your area. Being at the higher end takes longer to fill spots but is sometimes worth it!

As for late fees, I think you mean they are paying late, not late pick ups right? YES, if it's in your contract then charge them. It will soon get their act in gear. If you don't charge them, don't make it clear they are breaking the contract then they have no reason to pay on time. Let them know now what to expect, a late fee with next late payment, and a notice of termination if they pay late 3 more times (or what ever your policies state). You will need to be upfront and make this known BEFORE they are late again...as they have come to learn there is no late penalty.

[Emma H]

For the rest of you awesome ladies thank you so much for all your help! I totally agree that ten days vacation is way to much but it is a great selling point. In the new year I will be changing my contract to 5 days only. The rates within my area are 35,37,40 one home daycare charged 55, so I was thinking of doing 40 per day for infants and as soon as they turn 2 to charge 37 or 38 per day. Does this sound good? I live in the Kitchener-Waterloo area. A house is desperately needed for my own sanity as well....When I transition a new infant and start trying to get them use to a playpen.....there is screaming for about 2-4 weeks....listening to that in a one bedroom condo really gets to you....and its not fair to the other kids who can't fall asleep because of a crying baby....I really want to set up a nursery room for the babies to make it as comfortable as I can....Another thing is that my whole apartment is daycare even my bedroom! I really just need my own space so at the end of the day I can leave the basement with daycare behind for the evening....I have spent ALOT of money on my business...The toys I buy are all made from wood (brands like Melissa and Doug, Hape etc.) so it was very expensive and when people tell me we love your daycare but we don't like that its in a apartment is such a shame to loose clients for that reason.....I really want to do gardening with the kids so they can get a sense of nature and learn where food comes from.....Planting organic food is very inexpensive and this will cut down A LOT of costs especially for foods like cucumber...non organic 99 cents organic 4.50 lol

[Snowmom]

I also offer organic foods and my rates reflect that. However, I make it clear to my parents (and have raised my rates based on organic prices in the past) that my grocery expenses require me to charge more than others in my area.
I've found that in the last 7 years of being licensed, this was a huge selling point for me (I also use organic cleaning supplies).
BUT, I do not purchase ALL organic foods. Definitely organic milk and all the "dirty dozen" foods. Then, I use my best judgement when it comes to canned, dry goods and cheeses. Depending on what I'm using it for. I also bake most of my breads.
All that (and a food program) keeps my expenses more manageable.
But, I am in Northern US, so I'm sure your expenses differ from mine!

As you get more seasoned with how to deal with parent issues, you will grow more bold in dealing with people who won't adhere to your policies. I've found that just being honest is the best approach. If you lose parents because of that... well, they weren't worthy of you!

[Emma H]

There are MANY nannies that work part-time hours. I have worked 8-5 when I did online classes and have done part-time hours. You don't have to work a full-time schedule to be a nanny. I don't understand why that is even being brought as it has nothing to do with my questions. Full-time or part-time its is all experience.