Parents don't think I am worth $3... what would you do?

[planet.caravan67]

Hello, I am hoping I can get an answer pretty quick on this since I am unsure what to do.

I was charging a family $32 per day for their then 1 year old, now the child is 2. I was desperate and needed the client badly. They paid for attendance only (if they cancel I don;t get paid) and this child takes at least 4 days of the month off.

All other clients pay $35 per day for days booked, whether they attend or not.

Due to high demand I have decided to tell this family that I have new rates (I do not have a contract with them) and told them $35 per day and payment for days booked. I had a couple clients before them that I was charging $32 and only per attendance and they didn't even think twice and accepted the changes.

This parent is making a big deal out of it, saying they had agreed to $32 in the beginning and weren't expecting the price to change, if any change it should be for less as child is older now. They also said when child gets sick, that's out of their control and shouldn't have to pay. Their child getting sick is also out of my control and it isn't fair for me to have an empty spot sitting because I am saving it for them and not get paid when I could have filled it because there is always someone that wants it.

Now, I really like this child and the parents and I have had disagreements in the past but they always pay on time.
Do any of you give sick days without pay per month? Also may I add I ask parents to book during the weekend days that are needed for the week. No one pays for time off it they book in advance. NO FEE.
I have a few interviews coming up for 1 spot that is becoming available and I know if I have 2 spots then maybe I can fill them.

Anyways what I am basically asking is what would you do? I am going to charge $35 per day, no bargain on that, I am going to ask for pay for days booked, no bargain on that either (sometime either parents just decides they will work from home some days and tell me in the morning they wont be bringing in child) but do any of you give for example 4 sick days per month free? do you recommend I go down this road? I really like the child but the fact that they don't understand where I am coming from regarding the whole pay in advance thing and this is how I make a living and don't think my services are worth a measly $3 more makes me a little upset.

oh by the way I give in the gta just outside Toronto, a few crazies in my area charge $30, a good handful charge $35 and some charge $40 per day for 2 year olds.

[mickyc]

To some a $3 increase a day is significant. How much notice did you give them? Once you say you are making changes do not go back on your word. That is wishy washy. Decide what you are doing and stick to it. If they leave then so be it. You should be getting paid in advance no question!

I started daycare charging $27. I always charged for the spot not by attendance. I slowly increased my fee to $28 after a year/half, to $30. I literally gave 8 months notice for the first fee increase followed by 15 month notice for the second fee increase. All new clients went straight to my $30 a day fee.

I used to take part-time family. They were always switching days and it drove me nuts. I switched the contract to read that they pay for scheduled days and any switch is considered an extra day with an extra fee. They quit switching days pretty quick. I now only take full-time no exceptions.

What you do for 1 family you need to do for all. If you give 1 family 4 sick days off you need to give all. Can you afford to potentially have all of your kids away for 4 days per month? If so then offer it but I imagine your answer is no

[Lee-Bee]

For many $3 a day is a big increase. It isn't their fault they were given the discount when you were desperate...it is what they have budgeted for.

My concern with the sudden increase is that you will lose an over age 2 child. Are you in Ontario where those spots are harder to fill?

All you can do is either stick to your increase and risk losing them or go back to your original price and keep them.

[Artsand crafts]

I made a big change to my contract about a year ago. Families had different contracts, depending on when they enrolled and I wanted to have one contract for all of them and more benefits for me. In the new contract they all had to pay for the space. So they now pay for 49 weeks out of 52 per year regardless of attendance I also added a few more paid days off such as Easter Monday, Christmas Eve, and New Year's eve. There is only 3 weeks un-paid days for my own days off. I also increased their fee from $1 to $5 depending on the family. 4 out of 5 families accepted all the changes (including the family with the $5 increase), but one and they left. I replaced them quickly and I felt that families that stayed really valued me and my program. Do what is best for YOU! I would also be careful on going back on your word, because they may think that everything else could be negotiated. If you're a though cookie it may not be a problem to just say NO every time that they think they could. I gave them over 1.5 months of notice to make the changes effective.

[planet.caravan67]

I gave 1 month notice for the changes

[planet.caravan67]

I made a big change to my contract about a year ago. Families had different contracts, depending on when they enrolled and I wanted to have one contract for all of them and more benefits for me..

This is exactly what I had so I also wanted one contract for everybody. All families agreed without a problem except this one, I guess there always has to be one.

Initially I told this family $160 per week (works out to $32 per day) IF they brought child 5 days per week. if the child didn't come 5 days it would $35 per day. They talked their way into paying $32 per day independent of how many days they would attend, as like I said I was desperate and would rather have made $32 per day than 0 at the time.

They also told me 5 days a week for the little one and 5 days a week after school for the older one. The little one I usually see 4 days sometimes 5 and the older one I haven't seen in 2 months. Every weekend I ask if the older one will be coming they say she will next week and she never shows up. I have also asked if they want to reduce the amount of days they need care for and they always say no so I am saving a full time spot really deep inside me knowing it probably wont be full time which in my opinion is unfair. Hence why I want pay for days booked, they have the option of only booking 4 or 3 days but at least then I know for sure that I can fill the other days.

This is why I decided to ask for pay for days booked because more often than I'd like I am left with an empty spot and no pay.

I am in Ontario so that part of losing a customer when I have one leaving in 2 weeks (all in good terms, I couldn't provide the care this child needed and mom completely understood) makes me a little worried, however as I mentioned I have 3 interviews next week so I am hopig that I will fill 1 and possibly 2 spots if I need.

I am going to stick to my guns on this one, I feel like I deserve the extra pay and some more security in terms of payment I receive. No one else is getting a deal, they aren't any more special than anyone else. Other people had an even better deal and understood and agreed to my changes.

[planet.caravan67]

THANK YOU ALL FOR YOUR INPUT
I am just a little nervous of losing the income all together this is why I was unsure on what to do but I am now more confident.

This is just my second year doing this, I still have a lot to learn it seems

[Busy ECE mommy]

I get that a $3/day increase can be a big deal for some, but I personally think you are selling yourself short. I'm in Halton, and the going preschool rate is $45 a day and $50 for under 2 years.
Get all clients on a contract that specifies everything. Fees are based on enrollment, not on days attended. Don't give away free sick days. Their spot is being held open for the illness. I think your fee increase is reasonable. My contract says I can change policies at any point during the year. I gave families about 6 weeks notice when I raised rates for 2016. If they won't sign it, then interview, and find a new client.

[5 Little Monkeys]

I get that it's extra money but really, it's only $30 extra a pay period. A months notice is plenty IMO. I wouldn't give more than 3 months notice as this is your livelihood and only you know how much you need to charge to make a decent profit. They can either accept it or find another daycare. From the prices I've heard in your area, you will likely find plenty of families willing to pay the $35!!

I've had parents (well, one) complain about paying for days their child is sick and I was just blunt about it. I told her that I understood her frustration but the fact is, it is her child so it is her that has to pay for it, not me. I can't afford to not get paid for everyone's sick days. I give a reduction on stats and parents holidays and take my days off unpaid. That I budget for, but there is no way to budget for kids sick days.

Going forward, whether with them or a new family, have a contract though! It will help you in the long run

[crafty]

I agree with all the others. You need to stick to your guns and do what's best for your business. However, I just want to put out there that I never increase the fees with current clients. I increased my fees once since I opened my daycare and I only charge the new fees to new clients. The reason I do this is because I personally don't feel it's fair to up my fees with current clients. Daycare is a big part of a family's budgeting but I don't disagree with any provider doing it either. However all my clients have the same contract. I don't have different rules for everyone. It's important to me that everyone knows they are treated exactly the same. I have no preferred clients haha. (Even if I do personally haha) Every year I make modifications to it and they must sign the new version but I don"t have the fees in there. So maybe this is something you can compromise on with this family. Getting them to agree on the new rules so it's fair for all your clients and they can keep their old fees as long as they agree to respect your new policy ... Juts a suggestion.