I would turn them away. You are a business. You are losing money giving one of places to her child vs full day client.
To come into your home, make you feel bad when you doing them a favor is not okay. Bill 10 will make daycare more expensive not cheaper. You set your hours and terms and certainly not your client or worse your clients friends! I would e-mail her, tell her you have taken on board all her comments about your hours, your fees. Let her know that you are saddened she feel you just a "babysitter" since her years with you should have shown that you so much more but you are still a business. Let her know that you were already taking a huge hit of $15 a day which is $75 a week, to allocate a place to her child based on your business history but will not waiver late fees since having her take a place and reducing your income, you certainly are not willing to be in a situation of late pick ups without penalty impacting your personal time without compensation.
I would let her know that since it's clear that you no longer meet their needs, you feel it best that she finds someone who can meet the longer hours, for less money where she won't have to pay a late fee and wish her all the best and to take as formal notification from you that her care contract is ending.

































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