Hourly rate or daily rate?

[Marz283]

I am hoping to start childminding in September (fingers crossed ofsted get my registration application processed by then) and I was wondering how people charge, whether they have an hourly rate or a full/half day rate? There was mixed opinion amongst all the people on the courses I have been on. An hourly rate seems fairest for parents but the other childminders near me have a full day/half day rate.

Thanks.

[moggy]

There will always be fans of each method.

I do an hourly rate as I find it easy to calculate and parents know exactly where they are with it. It also means that they contract only the hours they actually need (rather than leaving child with you for whole 'session' just to get their money's worth).

[natlou82]

I started out doing a daily rate but have now changed to hourly. I chose daily initially as I wanted a simple system but Moggy is right what happens is that parents take full advantage and use all of the hrs available rather than what they actually need. For example one of my parents finishes work at 4pm but child stays till 6. If that parent was paying hourly you can guarantee they would be paying for the additional time they don't need. I now do an hourly fee with a minimum of 3 hours for full day clients and minimum of 2 hours after school.

[emma_lubylu]

I have been through every method possible of charging fees!
Hourly, daily, weekly, with meals, without meals

I would say hourly, but if you do charge daily, minimize the hours! When I started out I had a daily rate and didn't minimize and ended up loosing out on money, as natlou82 said, parent will take advantage. I would also say steer away from half days (My own opinion) just charge by the hour.

Do what is going to be best for you and what you think will work best for your business.

Good luck!

[smurfette]

I have in the past always charged hourly and do still for existing clients but for new ones I have changed to daily.. Yes I know parents will use the full session but whAt has happened is I have parents not dropping Til 9 (which yes I do love!) and picking up at 5, so they are paying only for 8 hours whereas I am open for 9.5 hours so I am losing out quite a bit of money each week! Will let you know how it goes!

[hummingbird2014]

I have charged by the day I find it easier than by the hour as having my own child she takes a full time space so trying to find people who can 'slot' in is difficult especially when someone only wants 4 hours say 10-2 u then need to fill before and after. However, parents do leave children for the session but then again try pay for it and in happy with that as this is what I would do anyway. I also find parent know where they are up to. Hope this helps xx

[Maza]

What put me off charging by the hour was the cut off points. So, for example, if a parent turns up at 8, but doesn't leave until 8.15 - do you charge from 8 or 8.15? I would say 8, but I know a childminder who had a fall out with parents over this, so do be clear in your contracts. The same for home time, if a parent pays until 6 but turns up at 6.07, OR says they will be there at 6 but turn up at 5.50,... You will need to co-ordinate clocks/watches.

I have always done a daily rate and to be honest I haven't had parents take advantage as they have genuinely needed the hours. However, I did realise that some families were put off contacting me because they didn't need the full hours and didn't want to pay for them, quite rightly. So now, I advertise my daily rate but ask parents to contact me for my hourly rates if they don't need the whole day. I then set my hourly rate according to the hours they need - the fewer hours the higher the rate. Also, I provide meals and snacks, so if they are going to be here during meal or snack time then that is reflected in the price too.
You can always alter what you do once you get started (either each time you take on a new client or when you do contract reviews) so don't stress. A lot of this job is trial and error and adapting to fit the current market. x

[Marz283]

Thanks for the replies. I think I'm going to go for a daily rate but then do an hourly rate for those that are not wanting full days (but by request like you suggest Maza). I have been using a childminder myself until recently and it bothered me a little that I was dropping my little boy off later and picking him up earlier than the other children there but still paying the same daily rate. Although I know I am running a business, I would prefer not to cause any feelings of ill feeling by charging unfairly, or what can be seen as unfairly by parents.