Should I reduce my hourly rate?

[acorns]

I've recently seen a lovely family who wanted to book me for 3 days per week providing flexible working requests were agreed by the parents employers. Just been contacted by mum who said they have to book LO into a nursery (cheaper than me) as their flexible working requests have been turned down. I would have loved to have taken the little one on and am now deciding if I ought to reduce my price a bit to make it more affordable for them, but concerned that someone could contact me and pay my normal rate. My usual rate is the same or slightly less than other CM's in my area and most other CM are fairly full where as I have no mindees at the moment and am thinking some money is better than none!:confused:

[Rain or Shine]

I do not have any children currently either.

I have put am ad in the local advertiser with an offer of cheap care for children whilst parents complete their christams shopping. Its only a festive offer, 1st till 24th Dec and working till 8pm if they like for a flat out rate with no over time charge. hoping this may keep some people on if they use me.

Also maybe putting an ad out in the new year with 25% discount on prices for the first month to see if that encourages people.

Good luck x

[Lincsminder]

I've recently seen a lovely family who wanted to book me for 3 days per week providing flexible working requests were agreed by the parents employers. Just been contacted by mum who said they have to book LO into a nursery (cheaper than me) as their flexible working requests have been turned down. I would have loved to have taken the little one on and am now deciding if I ought to reduce my price a bit to make it more affordable for them, but concerned that someone could contact me and pay my normal rate. My usual rate is the same or slightly less than other CM's in my area and most other CM are fairly full where as I have no mindees at the moment and am thinking some money is better than none!:confused:

Sometimes they think it is cheaper but it isnt alway the case. Say I had child 40 hours a week at 3.50 per hour thats £140 and at 46 weeks (i have 4-6 weeks unpaid holiday) it works out at £6640per year.
Then there is a nursery who charge £3.25 an hour so £130 a week but charge for 52 weeks which is £6760. Also there maybe extra charges such as meals, where as I am all inclusive.

[Mouse]

It's a tough situation to be in.

Do you know how much the nursery charges? Have they got an actual figure, or are they just assuming it will be cheaper? How old is the lo? Wll they be getting any of the funded hours at nursery? Will they have to pay a registration fee?

I would contact the parents and try to find out all these things, then see if you can come to some sort of compromise. It might be that when they look into the total cost of nursery, it isn't that much cheaper. Then, if you want to give a discount, why not do it for a limited time? You could do a 10% reduction for the first month, or something like that. I'd be wary of giving a permanent discount becasue you might come to regret it at a later date.

[Rubybubbles]

depends really! I am £4 an hour but dropped to £3.50 per hour for a family with 2 full time children:) £7 per hour (for the 2 children) for me is good and I couldn't afford to turn away 46 hours a week on it!

[snufflepuff]

I think if I had no children on the books i'd reduce my fees a bit, it would be better than having no money coming in at all, unless of course you can afford to hold out for someone else.

[hayleychildcare]

i charged 4 per hour for the last year. but i had hardley no parents coming back after the first visit.
So in the last summer holidays i put my price down to 3.50 per hour and im now full.

[buzzy bee]

I have to say I would probably do it. But then I get in trouble with my OH because he says I'm too nice and need to think more business-like. I just try and accomodate people because they're all working mums just like me and I know what it's like. Plus I'd rather have less money than none at all!

[The Juggler]

I've never done that but perhaps work out the monthly fee and take a wee bit off that (round it down), that way the number of hours, or overtime is not affected and I feel more in control.

[miffy]

Tricky one but before you decide check out whether the nursery is actually cheaper than you and also whether parents can claim tax credits.

It's tempting to reduce your rate but think if you did and then they turned up in a new car or told you they'd booked an exotic holiday abroad would you be slightly narked?

Miffy xx

[acorns]

Tricky one but before you decide check out whether the nursery is actually cheaper than you and also whether parents can claim tax credits.

It's tempting to reduce your rate but think if you did and then they turned up in a new car or told you they'd booked an exotic holiday abroad would you be slightly narked?

Miffy xx

mmm thanks for your replies, i've slept on it and I definately would be narked if it became clear they could afford my normal rate. So i think my question is answered. An initial discount is a good idea though, maybe would help parents when just going back to work. Hope it won't be long before someone else comes along, previous mindess were charged at my normal rate and never had anyone questioning it so I think it's set right, but being in London I know it is expensive. I couldn't afford myself :)

[Minstrel]

I'd also be mindful that they had decided to go with the nursery for other reasons and were just making a polite excuse for not choosing me. But then I have no confidence.