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View Full Version : Changing my Fees/hours Advice Please



Schnakes
02-01-2008, 02:51 PM
Hello,

Just thought I would pick your brains on this one. Over the Christmas period I have decided that I am going to change my working hours, and also the way I do my fees. So for example, I have decided that I no longer want to do a 12 hour day. I want to work from 8am to 6pm, and my out of hours charge is £5p/h. However, I have existing clients that I currently work for outside those hours.

Also, at the moment I charge £3.75 per hour part time, £3.50 per hour full time. From April I have decided to change this to a flat rate fee of £4 per hour. I have also decided that Im going to implemement late fees and raise my weekend fees from standard to £4.50 per hour.

First of all, I am going to implement these changes now for customers looking for childcare, but for my existing customers it wont come in till April.

What I am wondering is - as my existing customers have signed contract under my old terms, do I have to continue that with them?

Sorry that was a bit lengthy!!

Schnakes

Polly2
02-01-2008, 03:08 PM
Hiya

I think you would have to do a contract review with your existing customers stating new fees/terms.

It would be a good idea to do a letter/newsletter stating fees will be going up from April etc then at least parents will be expecting it.

I have not put my fees up yet as I've not been minding all that long so have not got that much experience.

I am sure others will be along soon to give you more advice.

take care

Schnakes
02-01-2008, 03:17 PM
Ive done my payrise before, but nothing this drastic!!

sarah707
02-01-2008, 03:24 PM
Gosh that's quite drastic! It's a good idea to charge everyone the same rate though and much easier for your accounting!

I would suggest you talk to each family individually and give them at least a month's notice of what you intend to do. Really explain it carefully or you run the risk of people not fully understanding and thinking you are trying to get rid of them.

I'd also be prepared for potential opposition as well as maybe losing families if they think they can't afford you any more... have you checked what other people close to you are charging? £4 an hour is quite a lot, depending on where you are... you don't want nurseries getting your business!

Parents will also need to give notice to tax credits to change how much they receive each month, so need to be given time to do that...

Hope this helps... good luck!

LittleMissSparkles
02-01-2008, 03:36 PM
I agree with Sarah, you need to give the parents plenty of notice and perhaps arrange to speak to them all individually to explain the changes to them and iron out any complications at the same time, good luck xxx

Lou
02-01-2008, 04:53 PM
You have been given some great advice by the others.

I would also say you will only be able to do this with existing parents if their contract is due to be reviewed.

If thats the case then i agree with whats been said, make sure you give them plenty of notice, and then if they have any problems they can discuss with you.

Schnakes
02-01-2008, 09:38 PM
Hi - £4 is probably the higher end of the market in my area - I would say about 40% charge this already. Now I am established I feel that the price I charge reflects the services the children in my care recieve. I have absolutely no problem in justifying that amount.
However! I have been thinking that the changes wont be appliciable to existing clients (except the payrise, which I do every April, and I think Im perfectly within my rights to do this.) because they signed a contract with me expecting one thing - I cant very well say to them Ive changed my mind!!! Just thought Id sound you guys out while Im still thinking the whole thing through. :)
It does worry me that nurseries might seem more appealing, price wise. Not sure what to do about that though, tbh, because I still need to pay my bills and have a life after all is said and done. Im running a business - not a charity. Its tricky getting it right! Although, having said that, when we were looking for a nursery for our son two years ago - they were charging £850 per month, 8am-6pm. So I dont think Im pricing myself out of the market just yet!!!
Sx

angeldelight
02-01-2008, 10:10 PM
£850 a month at the nursery - wow that is way expensive

My daughters nursery charge £250 for the same times

Wow how on earth do people afford that ?

Angel xx

berkschick
03-01-2008, 12:05 AM
The local nursery here charges £50 a day, 8 -6 :eek: :eek:

I couldnt believe it when one mum came to see me after asking about the nursery!

Love

Debbie

janet
03-01-2008, 12:09 AM
that is really expensive my daughter goes 1 full day and that is £22.00

berkschick
03-01-2008, 08:19 AM
I think it is awful! £50 a day is a lot of money but it means childminders round here are in great demand which is good news for me! I have had 7 phonecalls now just from a free advert on Gumtree and have taken on 2 of them, and am waiting for 3 to get back to me. I couldnt help the others. The going rate for childminders round here is £35+ for a full day which parents are happy to pay because it is still cheaper than the nursery!

One childminder I know charges £4.50 an hour and she is full :eek:

Love

Debbie

angeldelight
03-01-2008, 08:21 AM
Wish I could charge £4.50 an hour

Although I know it does differ depending on where you live

We must be poor people in my neck of the woods haha

Angel xx

chez1373
03-01-2008, 08:23 AM
Hi,
I started minding only 3 weeks ago and i charge £4.00 an hour this is normal for my area some charge more! i have 2 children on my book after being registered 6 days so £4.00 isnt that much really i agree its a business not a charity
Im in Derbyshire

chez

Banana
03-01-2008, 08:35 AM
hiya,

I think as long as the contracts are due to be renewed with the existing parents then you can talk about it then. But if they arent due to be renewed then really you cant adjust your prices until it is because the contract holds you to what you agreed also not just the parents. I think the changes are a good benefit to you, obviously if parents are willing to pay £4 an hour then thats great! I would just be as carfeful with your existing parents though, they may not take the changes very well and there is quite a few changes for them to take in at once.

Good luck with it all
x

Trouble
03-01-2008, 08:43 AM
mine struggle to pay 3.00 but there is a school wrap a round club here so we have to be careful.

LittleMissSparkles
03-01-2008, 10:05 AM
the childminder i had for Amy charged £2.50 an hour and she is still the cheapest in the area but an experienced excellent childinder and the nursery she wentto charged £35 per day 8am till 6pm

I charge £3.50 an hour now 8am till 6pm have just changed my fees to one flat rate unless out of hours.

Have revised my policys as well over christmas and informed parents will get them allto sign to say they have seen and understodd new policys when they all come back next week


xxx

Schnakes
03-01-2008, 03:35 PM
Hi Susan - Im glad Im not the only one! I feel like a bit of a meany, but at the same time, Ive got to cut down on the amount of work Im doing because Im running myself ragged!

"if they arent due to be renewed then really you cant adjust your prices until it"
Bannana - When parents sign up with me my paperwork clearly states that by signing the documents they agree to my policies and procedures. One of those has ALWAYS been that I award myself a payrise every April to cover rising overheads. Ive never heard of anyone doing anything different. Is this wrong then? (My parents have never complained before, btw).

Sx

Lou
03-01-2008, 04:51 PM
Hi Susan - Im glad Im not the only one! I feel like a bit of a meany, but at the same time, Ive got to cut down on the amount of work Im doing because Im running myself ragged!

"if they arent due to be renewed then really you cant adjust your prices until it"
Bannana - When parents sign up with me my paperwork clearly states that by signing the documents they agree to my policies and procedures. One of those has ALWAYS been that I award myself a payrise every April to cover rising overheads. Ive never heard of anyone doing anything different. Is this wrong then? (My parents have never complained before, btw).

Sx

When you sign a contract with parents, you put a date to review it on bottom.

You CANNOT put money up unless the contract is due for review.

Well thats what i was told by NCMA anyway, and its also says in handbook, i will try to find.............

Schnakes
03-01-2008, 07:26 PM
Hmm, thats interesting Lou....the only problem with that is that all my mindees started their contracts at different times of the year, therefore their reviews are due at different times. That would mean that I would be charging my pay rise to some and not to others wouldnt it?

Sx

Banana
03-01-2008, 08:16 PM
Yes what Lou has said is exactly right. As as it stands if you put the prices up in April and the initial contract wasnt due to be renewed in april you are breaching the contract. If all the contracts have different renewal dates then you should not implement them until you have stated a contract review - hence the reson for the section where you state 'contract review date'

So if you put your prices up in april before a renewal date and the parents have signed a contract under terms which arent due to be renewed it is not fair or legal to do so........ that is my understanding. May be worth double checking with NCMA then you know for definate. Worst case scenario is a parent could notice this and then make a complaint. Thats all im trying to point out.

xxx

Lou
03-01-2008, 08:18 PM
Yes thats what i was trying to say.

Thanks Lana.x

Rubybubbles
03-01-2008, 09:05 PM
oh tricky!!

I put my prices up in 2006, but as I live on an RAF camp when people left and new ones started I put the new peoples price up straight away:cool:

So for example in April 2006 I had I full time on £3 per hour, then Newbie start and her price at £3.50.

Now they've gone in October when I started my newest 2 my prices are £3.60

I am in the lower end at this childminder in my area charge up to £4.50 per hour but wonder why they are screaming out for mindies duh!;)

Banana
03-01-2008, 09:26 PM
That ok though Emma.

If you decide to sign a new contract at a new price then thats no problem. Regardless of what your current mindee was being charged at because you will have a review date to implement your increase on the existing contract. Its what the parent agrres to at the time the contract is signed. It doesnt matter if you have an existing contract which is at a lower hourly rate - you can put it up when the review is due and any other contracts are non of the new parents/mindees business.

Am I rambling? lol

x

Schnakes
04-01-2008, 07:38 AM
Okay - thanks Bannana...I had no idea! I just did a contract review in November for one of my clients. Poo!!!

Thanks for the info.

Sx

Banana
04-01-2008, 09:16 AM
No worries.

Just wouldnt want you getting caught in a contract dispute if a parent was to pick up on it at any point.

xx

Schnakes
04-01-2008, 09:36 AM
No worries bannana - sorry if I came accross as snappy, Im just gutted about it because I just wish I had known before. :(

Not sure what to do about existing contracts now at all, because there is no way I can carry on with the rates Im charging without cutting back on services and business expenditure, which I dont want to do.

Sorry...this is turning into a poor me thread!!

Sx

Rubybubbles
04-01-2008, 02:28 PM
No worries bannana - sorry if I came accross as snappy, Im just gutted about it because I just wish I had known before. :(

Not sure what to do about existing contracts now at all, because there is no way I can carry on with the rates Im charging without cutting back on services and business expenditure, which I dont want to do.

Sorry...this is turning into a poor me thread!!

Sx

no ask away it good to find out this kind of thing, I had no idea you could only change on contract review (I'm just soft so do it like said as cheats way out!!)

If you don't ask you don't know - someone else may be wondering the same thing:D

LittleMissSparkles
04-01-2008, 03:31 PM
i have changed my rate to the same fee for everyone between the hours of 8am and 6pm, I gave them all more than a months notice in writing and have updated my portfolio and my policies etc at the same time.


xxx

Schnakes
04-01-2008, 03:45 PM
Did you do that as part of your contracted review Susan?

Just curious...:)

Sx

berkschick
04-01-2008, 03:48 PM
Just realised Schnakes, you are quite close to me! I am in Lower Earley.

You are right, Childminders round here are charging £4.00 more or less as an average and the nurserys are £50 a day!!

Im charging £3.50 an hour with meals as extra but I am newly registered and was worried nobody would want me lol

Love

Debbie

LittleMissSparkles
04-01-2008, 03:53 PM
Did you do that as part of your contracted review Susan?

Just curious...:)

Sx



no just decided it was less confusing all round to charge one rate and its in line with other minders in area. Gave parents more than a months notice of the changes and no one has complained, there was only 2 parents on lower rate anyway and one of them had just re done contract as shed changd her hours at work, the other one will not be charged new rate till april but i can live with that as had only just done contracts with her....


xxx

LittleMissSparkles
04-01-2008, 04:00 PM
Did you do that as part of your contracted review Susan?

Just curious...:)

Sx

.....................

Sarsar3NCH
04-01-2008, 04:28 PM
I have been thinking about this subject too as I was under the same impression as Schnakes that as long as parents are given notice I could change rates each april.

Is it possible to write somewhere on NCMA contract that fees are reviewable each April? I don't like the idea of staggering a rate crease ti fit in with contract dates, I would prefer to charge everyone the same

Sarah

LittleMissSparkles
04-01-2008, 04:31 PM
I am going to put the review date as the next date i will increase my fees so for me will be January 09 now or sooner should parents require shorter review date. Then there is no escape ... hahaha

Schnakes
04-01-2008, 07:03 PM
Berkschick - Lower Earley...I only know one minder over that way...are there many of you over there? You cant move for childminders where I am!! Tsk!!

Sara and Schnakes...it makes absolutely no sense to me to stagger the fees according to review dates.
I was talking about this with Mr S who, as a manager, deals with recruiting people. (I know its not quite the same, but hey!) He was saying that as it is clearly stated on my contracts that the fee review will be implemented April 1st he doesnt see how it can be breach of contract, as thats what the parents have signed up to. From his own company, they do a yearly increase of a minimum of 2.5%. Contracts are not re-issued everytime his employees get a payrise.

Banana - not having a go at you here....just at life in general! :)

Sx

Lou
04-01-2008, 07:07 PM
I think if you decide that you will put your fees up on each yr at a certain time, ie jan or april then just write that date as the contract review.

solves the problem in the future.

you dont have to review contracts at differnet times, for example next time you take someone on just explain that you will sit and review contract In Jan next yr, if they want to review it before then thats fine, but explain you will review it again in Jan.

I know its frustrating but i cant help thinking you are thinking its more comlplicated than it is.

Schnakes
04-01-2008, 07:24 PM
"I know its frustrating but i cant help thinking you are thinking its more comlplicated than it is."

Lou - thats what Mr S is ALWAYS telling me!! It doesnt matter if its doing paperwork or taking a jar out of the cupboard! Heh!


Yeah - for new contracts I will definately always use the same review date, Im just sulking about my existing customers!!
Another question (sorry!!) - I usually use the same contract sheet for reviews and note any changes in the additional comments box. Is this right, or should I be filling in a whole new form if there needs to be alterations?

Sx

Lou
04-01-2008, 07:26 PM
If nothing changes i just leave it, if something major changes like price i write out a new one.

If the hours change, then i just note that down.

Everyone does things differently though x

Schnakes
04-01-2008, 07:30 PM
Okay, thanks...lots to mull over tonight!

Sx

berkschick
04-01-2008, 07:56 PM
Thanks for bringing this up, as I have just started I had decided that each January I would put up my fees anyway. Luckily both contracts have only just started so it all fits in. Its made me realise that any other contracts I sign between now and December should have the review date of 1/1/9 on them.

Schnakes, there are a fair few childminders round here but they all seem busy so hopefully thats good news for me!

Love


Debbie

Schnakes
04-01-2008, 08:27 PM
I just re-read one of my earlier posts...I just noticed I wrote:

Sara and Schnakes...it makes absolutely no sense to me to stagger the fees according to review dates.


Must be going mad....I AM Schnakes!!! ha!!!:laughing: I meant Susan!

Sx

LittleMissSparkles
04-01-2008, 08:29 PM
I just re-read one of my earlier posts...I just noticed I wrote:

Sara and Schnakes...it makes absolutely no sense to me to stagger the fees according to review dates.


Must be going mad....I AM Schnakes!!! ha!!!:laughing: I meant Susan!

Sx


LOL i thought you did!!! :laughing:

Lou
04-01-2008, 08:30 PM
You have to be going mad to do this job!!!!

Schnakes
04-01-2008, 09:00 PM
Yes....it helps pass the time!! :D

buildingblocks
11-01-2008, 08:07 AM
I think as long as the contracts are due to be renewed with the existing parents then you can talk about it then. But if they arent due to be renewed then really you cant adjust your prices until it is because the contract holds you to what you agreed also not just the parents. x

I renew contracts annualy in April adn usually do my fees then. But to be honest so long as you give them whatever your notice period is in my case 2 weeks but I know some have 4 weeks you can implement any changes (well I think so). So long as you give them the notice in writing and put the changes onto their contracts and get them to sign they agree. All you are doin gin effect is cancelling the existing contract and starting a new one.

The important bit is to make sure you write it on the contract.

ajs
11-01-2008, 08:34 AM
hi i haven't read all the answers as i haven't got time baby due any sec
but i put my fees up to £3.75 in septemebr for all but the child who had been coming less than a year and that went up in january.
i wrote to all of the parents in june announcing the rise and not one made any comment other than ok.
one jokingly said she'd have to find a cheaper child minder now and i said go on then but i knew she was teasing (i have had her child 6 years)

i know i am the most expensive childminder in my area but i had been £3.50 for 7 years and quite frankly parents who won't pay it i don't want anyway

deeb66
12-01-2008, 02:02 PM
Hi

I usually increase fees on the anniversay of the original contract every year.

I don't put it up by much just a little and state on the contract that it will be reviewed with rates increased every 12 months.

This does sometimes mean that I have various families paying different rates....but then they all catch up in the end!