After school TTO 1hr a day - I'm in a pickle!

**chocolate.chip** · 25-06-2014, 07:53 PM

I took on 2 siblings last september - they were my first mindees, I was desperate to start childminding so I offered that I'll charge my hourly rate - £9 for both of them and no charge for school holidays-rookie mistake. They're lovely children, very easy to look after and get on great with other mindees, also they go to the same school as my kids so figured out I'm doing the school run anyway so may as well have 2 extras and get paid for it. Now, one year on and I'm realising that I'm selling myself short massively and loosing quite a lot of money. After school clubs are charging over 3xhigher flat fee regardless of how many hours the child needs and other childminders are charging minimum 2hrs fee. I feel SOOO bad cos I know i have to raise the fees.
I'm happy not to be paid for school holidays but no idea how to approach raising the fees. I don't want parents to feel like I take the micky by going too high. I thought of raising fees to £10 but realistically I should go to £15. Its still cheaper than any other childminder that I know but it's a big price jump for the parents! What would you do and how would you break the news to the parents? I'm dreading it!!

**chocolate.chip** · 25-06-2014, 07:58 PM

Also thought of offering them before school care with breakfast as at the moment they go to breakfast club. Would it be better if i said £10 for after school + match breakfast club prices if they want it or £15 for after school only. That would give them more options or am I overcomplicating it?

**Merlot** · 25-06-2014, 08:01 PM

Hi Chocolate chip. I did the same thing when I started childminding. I took on a child for 1 hour after school at my then rate of £3.50. I didn't have LO's during the day so I couldn't do anything that day due to having to be back at school for the end of the day for £3.50 even though I had my child (could have got my parents to collect my child). This is a perfect opportunity for you to raise your prices for the new school term in September. Tell parents you are charging a minimum fee for after school care. I now charge £4 per hour but charge a minimum of 2 hours after school. I didn't want a set fee and say I'd work until 6pm from 3.30pm as most parents wouldn't bother to collect if they finished work at 4.30! So most do 2 hours 3.30-5.30 paying £8 plus their tea meal. I would charge £10 if it was 3.30-6pm plus their tea and after 6 my rates increase anyway.

Put a letter together explaining you are increasing your charges to help cover inflation rises especially in fuel, food, vehicle costs and VAT. Most parents get a pay rise so don't feel bad! Good luck!

**Merlot** · 25-06-2014, 08:05 PM

Originally Posted by chocolate.chip

Also thought of offering them before school care with breakfast as at the moment they go to breakfast club. Would it be better if i said £10 for after school + match breakfast club prices if they want it or £15 for after school only. That would give them more options or am I overcomplicating it?

What are the breakfast club charges? My school charge 20p for half an hour. I charge £5 for that hour and include breakfast. If someone wants me from 8.30-9am I tell them to ring the school as they'd save themselves £4.80! I can't compete with that! Don't sell yourself short if your breakfast club don't charge much. I would rather go without the hassle of the paperwork and responsibility and not have the children.

What does everyone else charge in your area?

**chocolate.chip** · 25-06-2014, 08:12 PM

I think breakfast club charges £3, other childminders charge hourly fee which is around £4.50

**Merlot** · 25-06-2014, 08:15 PM

Originally Posted by chocolate.chip

I think breakfast club charges £3, other childminders charge hourly fee which is around £4.50

I would talk to your local childminders and check what they charge and stick to something that suits you. Look at the thread I started Term Time Only Contracts. I have asked people what they charge. I have just put another reply on there too x

**Merlot** · 25-06-2014, 08:16 PM

http://www.childmindinghelp.co.uk/fo...contracts.html

**chocolate.chip** · 25-06-2014, 08:23 PM

Thanks Merlot. I completely agree and I wouldn't think twice about what to charge if it was a new enquiry but I've had them for a year and the price jump is the only thing that I'm worried about

**Merlot** · 25-06-2014, 08:41 PM

What are you charging per child per hour?

**bunyip** · 26-06-2014, 10:02 AM

OK - you did something you now regret and want to fix it. Fair enough (I've been there, done that, and bought several T-shirts for my troubles.

)

I think you should ask yourself how badly you want to go through the whole process all over again. Think about what you want to do along the lines of "will I find myself regretting this all over again within a few months?" That doesn't mean you should let it drift and make no decisions. Just be aware that there are various possible outcomes, and there's only so much you can control. All change involves risk, but it helps to be fore-warned of which way it might go, so you can make sensible decisions and be prepared for whatever might follow in consequence.

If you're going to offer a compromise, offer one you will still be happy with a year or so down the line. A limited price rise that leaves the parent miffed and leaves you wondering why you still bother probably isn't a great solution for anybody. If you're going to go the whole hog, and go for your realistic £15 (or whatever it is you're really worth) then accept that mum isn't going to be dancing in the street waving her knickers in the air about it (though it would be an interesting spectacle and I'd appreciate a video if she does.

) So you may lose the client and be sure you won't regret losing them if that's the outcome. A big jump will always be painful but, as you say, you'd still be offering something they can't get anywhere else for less.

I would tend to explain it in the following terms:-

It's closer to (but still less than) anything they can expect to pay for a comparable service.
Positive: you're still holding off and not charging for the holidays.
Now you have other clients, you cannot be fair on everybody by continuing the low fee you started with. In effect: why should new clients be 'subsidising' the continuation of this low fee?

Do be aware they might give notice - you need to be content with the possibility if you're going for a price rise, and be able to deal with the consequences. This is one of the inherent dangers within that age-old CMs' refrain "but I'm losing money". Most CMs reckon they're "losing money" when what's really happening is they're just not maximising their profit potential (it might be the same funfair, but it's a different ride.) If the client decides to leave, that's when you're losing money for real.