Hourly Rate & Discounts

[handeme]

I currently charge £3.50 per hourly the charge in my area is between £3.50-£4.25.

As an incentive to fill a full time place I rarther foolishly offered a discount on my fees. After working money out my hourly rate is only £3.22 and I can't really afford to keep charging so little.

I was thinking of not increasing my hourly rate but reducing the discount to £3.40 an hour.

Do you think its cheeky increasing my fees so soon after mindee starting with me, he startec in March. I was going to say increase fees from Sept/Nov time or shall I wait till Jan?

C x

[Louise0208]

im confused

why not charge everyone the same (3.50) per hour, that way theres no discounts and it make invoice day easier to handle .....owt for an easy life here

[The Juggler]

did you tell them you were offering them a discount when you set the fee? If so you could say that due to rising costs you will need to remove the introductory discount from October (give them a few months notice) and that from then the fee will be at normal rate fees.

I tend not to do hourly rate discounts if I offer one at all. I would rather work out full monthly fee and maybe knock £10 off.

[cupcake22]

I dont do hourly rates.I charge for full days. if parents wish to drop off late or pick up early that is up to them. I couldnt be bothered with parents arguing over what time they dropped off & picked up. I dont do discounts either With price of everyhing rising by the week.

Cupcake22

[handeme]

I was thinking of cancelling the discount all together but just feklt it was quite a rise in costs from the £3.22 they are paying up to the £3.50 per hour I charge everyone else.

I did it because I know how expensive full time childcare can be and I know them but I regret it now.

I am doing to because we spend a lot of time out and about and if I dont raise my costs with the increasing bills everyone is facing I will have to reduce our outings, which is something I dont want to do.

Just out of interest how much would you all charge for a full time place (9 hours a day, 5 days a week)?

C x

[rickysmiths]

I charge £5ph so 9 hours a day would be £45 per day £225 per week. No discounts for full days I work it out on my hourly rate.

It does mean that in theory I might get less if someone wanted 8-4 rather than 7-6 but I have always thought it a fairer way to charge.

It also means I know exactly when a child is arriving and leaving where as for a day rate they could use any time in the designated day. IFSWIM

[handeme]

I am more that happy to charge my full £3.50 per hour but do you think the rise in price from £3.22 to £3.50 is a big jump?

c x

[cupcake22]

I was thinking of cancelling the discount all together but just feklt it was quite a rise in costs from the £3.22 they are paying up to the £3.50 per hour I charge everyone else.

I did it because I know how expensive full time childcare can be and I know them but I regret it now.

I am doing to because we spend a lot of time out and about and if I dont raise my costs with the increasing bills everyone is facing I will have to reduce our outings, which is something I dont want to do.

Just out of interest how much would you all charge for a full time place (9 hours a day, 5 days a week)?

C x

I charge £170 for a full week 8am-6pm. Part time I charge £37 per day 8am 6pm. I normally dont work o/side these hours however it is on my contact that parents pay £5 per hour or part of an hour b/4 8am of after 6pm. This certainly stops early drop offs or late pick ups lol.

Cupcake22

[rickysmiths]

I am more that happy to charge my full £3.50 per hour but do you think the rise in price from £3.22 to £3.50 is a big jump?

c x

It would be just under a 10% increase. i think it depends how long the Contract has been in place at £.22 and how long it will be before you increase your prices again.

I review my fees annually. I don't always increase them, since I moved house 7 years ago I have increased my fees once when I moved to reflect the rates for the area and twice since one being this January. In that time I have gone from £3.75ph to £5.ph just to give you an idea.

[miffy]

I'd do away with the discount altogether from September and charge the £3.50 ph as this is what you charge everyone else and is the lowest end of the charges range in your area.

Miffy xx

[handeme]

I have only been minding since March so have not altered or changed fees at all, so the rise in fees will have been after working for 6 months.

Do you think its too soon or should I delay to end of the year?

c x

[FussyElmo]

If its for the people who are using you for 45 hours a week then that is a £12.60 a week increase or £50.40 if you increase it to £3.50.


You know your parents is that a big increase for them?

[handeme]

No mum has just got a new job with a BIG wage increase. I was thinking of putting at the bottom of my letter if they have any problems paying as a result of the increase just to let me know (i would rarther keep my mindee than out my fees up)

c x

[miffy]

I was thinking of putting at the bottom of my letter if they have any problems paying as a result of the increase just to let me know (i would rarther keep my mindee than out my fees up)

c x

I wouldn't put that in a letter - it's like asking them to say they have a problem.

Why don't you talk to her first and see if you can guage her reaction - would she find childcare cheaper elsewhere?

Miffy xx

[handeme]

I am the cheapest in our area and getting rid of the discount still makes me one of the cheapest.

c x

[funemnx]

When it comes to prices rises, I never discuss it with parents 1st or explain myself. Shops and other businesses don't. I usually put something like 'Rates are changing to *** in line with current childminding practice'. No one has ever said they weren't happy with it!

[teacake2]

Why don't you stagger the increase to bring it into line with your rate, I did this the last time I increased as I was increasing by 25p in total, the parents wouldn't notice the rise as much that way?
Teacake2

[handeme]

Good thinking.

c x

[snufflepuff]

I was going to suggest staggering the increase too. Maybe go up to £3.30 or £3.40 from September, which will be 6 months in to the contract then to £3.50 in March after one year.