Charges

[Victoria85]

Hi, I'm new to all this. I've had my registration visit and been cleared, just waiting for certificate to come through. I've had a couple of interested people but they weren't happy with some of my charges.
I was just wondering what other people do in terms of lunch/dinner - do you charge extra? If so, how much? Do you charge for outings/ trips? If so, do you charge full price? Subsidised?
I don't want to put people off but at the same time I am running it as a business and need to make money from it.

TIA
xx

[moggy]

I do all inclusive hourly rate.
This is easy for me to work out for invoices.

It means I do not need to count who ate what meals.
It means I do not have to bother about parents choosing to bring packed lunches to avoid meal fees (I do not want to store lunch boxes and like to have all eating the same meals to avoid lunchbox-envy).

I only do free/cheap outings- woods, toddler groups, parks, beach, library, children & family centre... really no need to pay for much.
I have very low expenses over all, about 27% of gross income, so pretty profitable I feel.

You can control your outgoings to maintain your profitability by cooking simple, filling cheap meals (lentils, beans), avoiding expensive outings (they can have more fun on a simple day out in the woods or picnic at the park than a £££ overcrowded soft-play place or farm park) etc

[BallyH]

For all day children I charge an hourly rate and provide them with a 'lite tea' late afternoon. They bring their own lunchboxes. Like Moggy I try to do a wide range of 'free' local outings, however, I have bought a Safari park pass costing me £75 a year but I do not ask parents to contribute. We go to the safari park almost every week. And I feel it's well worth the expense. They have a soft play area there so I do not go to any other 'paying' play areas. I charge the schoolies a different hourly rate but they contribute £1 towards the 'lite tea'. I call it 'lite tea' so then parents, hopefully, won't expect something like roast dinner for £1. Most nights I break even with the meal if I plan ahead.
However, I think I'm going to really suffer financially when the 30 hours come in as at the moment my LA pay me 55p an hour less than I charge. So I might have to provide lunch/dinner and charge more. I'll wait and see what they offer me.

[AliceK]

I also do an all inclusive hourly rate. If a child is here at a meal time they get the meal. I also include nappies / wipes etc in my hourly rate so the parent really doesn't need to bring anything at all, just the child lol. I don't charge for outings / groups etc either.

xxx

[tess1981]

My rate is a half day and full day rate... However any new parent starting will be getting an hourly rate. I have one child here 8 hours a day and another 10 hours and both on same fee we live and learn. I include all meals snacks etc. If we go out for the day I cover it.. due to being a rural cm everything involves driving and with limited number of seats in car outings do not happen very often...

[Little Dots]

I'll be charging per hour all inclusive meals (I charge slightly more to cover these) with a set tea time so if children here they'll get that meal but didn't want lunch box envy or having to tell parents they can't have certain stuff in lunch boxes, easier to have all kids eating same.
I have someone lined up to start once registered and I have decided to charge a reduced rate whilst lo is at nursery...£2.50 instead of £4. This is because I looked into putting mine in childcare and with 2 it was so expensive but decided that is when I'll do paperwork as I won't have any other kids (i have 2 under 5 of my own) there's only 1 other childminder around here that does it as she's technically not looking after the child so it's more like a retainer. If lo had to be collected from nursery due to illness that would be mums duty not mine & if for other reasons Id just charge full rate.

Which fees aren't they happy with? X

[Jollybones]

I include all food, drink, wipes, playgroups and outings. I'm one of very few in my area though and some days I do wish I didn't supply food especially when its not eaten or I have lots to make

[natlou82]

I am also all inclusive, it's simple and works well for me :-)

[JoRo163]

I do an all inclusive price too. Much easier to work out and very clear to parents what they're paying with no nasty surprises! It's worked out well so far!

[loocyloo]

I used to charge extra for lunch/tea and it became a pain to do as some did, some didn't and some didn't but child ate huge snack!
When I moved I included it in fees and if a child is here at set mealtimes then they are fed!
I include all outings as well. Parents provide nappies and wipes.
I charge hourly.

[Jollybones]

All inclusive hourly rate here too, parents just bring their child and nappies if they remember or need them

[bunyip]

Hi, I'm new to all this. I've had my registration visit and been cleared, just waiting for certificate to come through. I've had a couple of interested people but they weren't happy with some of my charges.
I was just wondering what other people do in terms of lunch/dinner - do you charge extra? If so, how much? Do you charge for outings/ trips? If so, do you charge full price? Subsidised?
I don't want to put people off but at the same time I am running it as a business and need to make money from it.

TIA
xx

Good points in all the previous posts (and Moggy got in first with the best, not leaving much else to be said. )

You say people were not happy with some of your charges. To what extent? Let's face it, a lot of parents don't seem happy to pay anything. Plenty of CMs have had plenty of parents with 70% of the bill paid by TCs and they're still not happy. IOW, a lot of people believe £1ph is too much to pay.

By "not happy" are they just griping and would still consider your service, or is it a deal-breaker? If so, what is the alternative? If it's a question of cheaper competition in your area, how do you overcome that?

It might be a question of concentrating on the positives. As in, "sure, the baby-farm round the corner is cheaper, but I offer quality" (in which case, be sure you can prove it to a prospective client.) Use testimonials from existing clients about how good you are and stress value for money, rather than just the bottom line.

As suggested, review your trips/outings. Can you do cheaper trips which are just as much fun? For those bigger, occasional, special outings, some CMs have a donations box rather than demanding a charge - or you could do some sort of fund-raiser, like a car boot sale, or sale of produce, or something that might involve the children: coffee morning? cake sale?

It might just boil down to the way you present your fees. Listening to parents at toddler groups, etc. I know the extra charges are one of the biggest complaints people have about childcare settings (especially holiday retainers, but also food, trips, etc.) This is the main reason why I charge none of those things and opt instead for a simple, inclusive fee - the watchword is "transparency".

Mind you, that does bring its own problems. Parents will often search through something like an FIS listing on a 'cheapest first' basis, looking only at the hourly 'headline rate' and not consider the actual cost when they add in all the extras. I often have prospective clients arguing that my hourly rate is more than another CM's, and they're sometimes still arguing after I've pointed out that the other CM will cost them more once they've had to stump up for meals, trips, closures, holidays, etc.

Can you offer value for money in other ways? I'm signed up for Bookstart, Change for Life, local resource centre and play forum, etc. All of which means the families get a steady stream of 'freebies' (books, exercise packs, toys, resources) which cost me nothing.

Can you offer to support parents in saving money from their side? I mean things like accepting childcare vouchers. Sometimes parents aren't aware of these things and if you're the only CM who tells them, or you can reassure them that "I always issue bona fide receipts which are fully compliant to support a tax credits claim" - that tells them you know what you're doing and you're reaching out to help. Consider offering funded provision - though, as mentioned, you need to look carefully if this is sustainable according to the rate paid by your LA.

[k1rstie]

"The watchword is transparency" - Bunyip- - I think we are using the same parent spiel !!!

I also use this work when talking to parents. I explain that my fees may be higher than some locally ( but lower than others too), but at invoice time, there are no surprises, no extra fees, strange charges etc. Most of my parents will have some extra hours/shifts etc, and these will obviously be charged. I will whisper that I charge in arrears, as I do not like to be paid until I have worked, like most other people! (I have never had a problem, but have only part timers, so would not be stitched up to the tune of £1000 or so).

I speak to many parents who are with other childminders/ or who have spoken to childminders. Their gripes are often the same. Often a small misunderstanding regarding a charge will grow into gripe and a niggle and then the parent feels ripped off or taken advantage off.
These GRIPES include - bank holiday payments
Term time only payments
Parents sickness and holiday payments
Childminders sickness and holiday payments
The biggest one - "THE CHILDMINDER DIDNT USED TO CHARGE FOR XY AND Z, BUT NOW DOES, I DO NOT REALLY KNOW WHY."

I explain my transparent fees to all parents, and get them to think about their required hours? Do they work Monday's and Fridays? - how will that work on bank holidays payment wise? Get them to think about holidays, sickness, etc.

The bottom line is, you are self employed. You can charge what you want. parents will either want you or not. But by explaining your fees really well, the parent will not get nasty surprises down the line.

[TinyTinker]

i have an hourly rate - subsidised for siblings. I then charge minimal fee for breakfast, lunch and dinner just to cover costs - but offer them to bring own lunch and have snack instead of dinner etc.

I do not charge for outings and do not go to anywhere that has a fee - but if I did I would ask parents in advance and charge a subsidised fee.