How to let parent know...

[Tippy Toes]

I'm increasing fees...

I charge a lady £3.50 a day (4 days a wk) to pick her daughter up from school and have been doing this from September 09. Almost immediately after signing contracts I realised that I had given this lady a very good deal and felt like I was picking her daughter up for free!!!

I only have her daughter for 1 hour but dont feel like it is worth the hassle for only £3.50, the hour I have her I usually have another 3 babies under 2 and another 2 after schoolers.

So anyway Ive decided to increase fee but am a bit nervous about given her the letter advising of the increase...Ive done 2 letters one saying I am charging for a minimum of 2 hours (£7) starting September and another one stating Im charging a minimum of 1 and a half hours (£5.25) starting September - I have written 2 letters and not sure what I should increase to???

This lady can be very argumentative when it comes to fees, even though she only pays me £3.50! And she begrudges paying me in the hols!

So my questions are - would you increase fee? How much would you increase to? and how would you justify your reasons to an argumentative lady??

I am giving her plenty of notice as will not implement increase until September?

Thanks everyone

[singlewiththree]

Do you charge her then the school pick up rate even during the school holidays? I wouldn't charge as the child isn't at school so therefore you aren't required to pick up.

What time do your other after schoolies stay with you is it 1 1/2hr or 2?

[Ripeberry]

Most people have a minimum of hours per week (Mine is 4hrs) and some have a flat fee for dropping off £4 or £5 per child per day and then a flat fee for the after school, but that's where it gets complicated as some charge a flat fee between the hours of 3.15 and lets say 6pm at about £10 and others do the same as you an hourly fee.
So the best thing to do is to say that you are doing set fees only for before and after school, but then you might find the parent will want to get her monies worth and keep the child there until the end of your working day.
If she does not like it, then its up to her, good luck :)

[Goatgirl]

Hi :),
I do a minimum charge of £6 for isolated drop off or pick ups, although my hourly rate is usually £3.75. It is more hassle, a space is taken up for the morning or afternoon slot and there's nothing wrong with charging this higher rate.
As the Mum in question is being given loads of notice and is able to look for alternative care if she doesn't want to pay, I'd charge the higher price in your position.
You don't have to justify your charges, but if you want to, the above reasons are more than adequate I think... You could point out some childminders would charge a minimum number of hours too! This is your business and you can charge whatever you like, so she's been lucky to find someone willing to charge so little for so long.

Good luck - hope it goes well :)

[messyplay]

i wouldnt wait until september i'd make the change for the new tax year in april

[Polly2]

As to how to handle it - I would just give her the letter, you don't have to explain yourself its your business. If she confronts you use the reasons the other ladies have given and don't back down.

She may find someone else but it sounds like she is more trouble than worth :rolleyes:

[Tippy Toes]

Thanks for all the replies, very helpful. I have trying to find the courage to up my fees for some time.

So would you charge anything during the half terms?

[Polly2]

I think I would do a termtime only contract and not charge for school hols. If you have been charging up til now then maybe this will soften the blow :)

[manjay]

Thanks for all the replies, very helpful. I have trying to find the courage to up my fees for some time.

So would you charge anything during the half terms?

I charge a minimum of 2 hours a day. I go to the school every day with my own children so I am there anyway. My term time contracts pay half retainer to keep the space through the school holidays.

I think you are being more than generous giving that much notice. What's the worst that could happen? She would find someone else! Would that be a great loss to you?

[lovemyprams]

I charge a min of 2 hours too.

If she's not happy with the increase then let her go elsewhere. Im sure she wouldnt get it as cheap as you anyway. It would be no loss to you and is it really worth it for just £3.50 when you deduct cost of snack, poss petrol to collect.

I agree with others - why are you waiting until September. If you dont do it sooner rather than later you with resent picking up the child.

[Tippy Toes]

I charge a minimum of 2 hours a day. I go to the school every day with my own children so I am there anyway. My term time contracts pay half retainer to keep the space through the school holidays.

I think you are being more than generous giving that much notice. What's the worst that could happen? She would find someone else! Would that be a great loss to you?

Thanks Manjay you have made me feel more confident about increasing my fees! Like you have said its not a great loss to me as I would probably terminate the contract if the child wasn't so sweet. Also glad someone charges half to keep space during hols, thought I was the only one! :blush:

X

[Tippy Toes]

I charge a min of 2 hours too.

If she's not happy with the increase then let her go elsewhere. Im sure she wouldnt get it as cheap as you anyway. It would be no loss to you and is it really worth it for just £3.50 when you deduct cost of snack, poss petrol to collect.

I agree with others - why are you waiting until September. If you dont do it sooner rather than later you with resent picking up the child.

The only reason I was going to wait until September was to give her plenty of notice to look for alternative childcare (if she wanted) and also justify my reasons more? You know sort of 'Ive only charged you £3.50 a day for the past yr?' Its not like a sudden increase, she has time to think about it and get use to the idea?

Sometimes I think it may just be me being a bit too soft and generous! :blush:

[JJAY]

Hi
Are you going to be increasing the charges for the other two children you have after school, or do they already pay different fees. If the paretns spoke to each other about fees, she wouldn't be happy if she was paying more.
I tend to charge a flat rate for the first hour, usually £5, then any hours after this are charged at a lower rate. Everyones different though. Your idea of charging for a minimum amount of hours is fine too, but be prepared to have the child until the last minute.

[teacake2]

I am wondering about an increase as well, but I am such a coward when it comes to anything to do with money, I know I am running a business and I know that I am worth the increase, it would still put me behind some other childminders in my area, but it is very difficult isn't it.:( :( :(
Teacake2

[Goatgirl]

Thanks for all the replies, very helpful. I have trying to find the courage to up my fees for some time.

So would you charge anything during the half terms?


I personaly like to have lots of time off in the holidays, so I work on the day I'm contracted for and others depending who/how many would like to send their children and how much I need the money/ time off :D!
So I don't charge a retainer through hols for term time only contracts. I think if i did want to work them but parents didn't need me and i was getting enquiries for year round places I couldn't take on because of this: THEN I might charge it, as I'd be losing out otherwise. But that's just me and I don't feel right charging for when I'm not available.
Mind you, if this mum has already agreed to pay hols in her contract, why is she complaining about it now...?!

Also... 4 weeks notice is plenty for a price change IMO :) I'd just bite the bullet now!

[The Juggler]

i wouldnt wait until september i'd make the change for the new tax year in april

I'm a bit of a chicken though and to be fair as a parent I'd not be happy about a fees rise before my annual review date - unless I'd seen a fees policy and specifically been made aware of a fees rise on xxx date each year.:(