Fee increase - parents not happy. Please help!

[CTL03]

Hi everyone,
I've been childminding for 2 years now and I have had one set of girls (sisters) with me from day one.
When I first started I offered £4 an hour plus 10% discount for siblings (a LOT less than the current average for the area)
In Sept 2011 I increased my fees to £4.25 due to high outgoing costs etc but still kept the 10% discount.
I'm still making a loss and so for every new starter (although not many) I've increased my fees to £4.50 and taken away the discount.
My mindee childrens parents has offered my services to their next door neighbour and because she only wanted X amount of hours I've had to increase her fees as it doesn't match my minimum contracted numbers despite taking up two places.

I DONT charge when any of the children are not being looked after (i.e. at preschool, school, nursery etc).

The next door neighbour is happy with the increased fee and no discount.

Yesterday I had an email from the first mindees parents asking for a dramatic decrease of hours as her and her neighbour are going to look after each others childrens.

I responded back saying the decrease was fine but I'd have to increase the fees from £4.25 to £4.50 and take away the 10% discount.
(One girl is now at school full time and one is at nursery for 2.5 hours a day anyway)

Needless to say this went down like a brick. I'm having a meeting with the parents TODAY and I don't know how to broach the subject as I'm not good with confrontation.
Please help!

[Daftbat]

I think you just need to state your case clearly and be business like about it.

We are not doing this for a hobby afterall and you are free to charge as you see fit so long as you give the appropriate notice for any changes.

Fees are a difficult area (or can be) and no one size fits all!

I have never offered a sibling discount as I don't see the point - a place is a place afterall. I must admit though that I don't tend to change hourly rates for existing customers - I sometimes insist on a minimum charge for the month/week. I tend to take my rates up with new contracts - I like things simple and I hate the thought of increasing fees by 10p per hour etc each year which I know some child minders do.

Not sure if I have helped but basically write everything down and then you can be clear with your argument and be business like and you should be able to sort things out.:thumbsup:

[sarah707]

Personally I wouldn't increase a child's fees because their hours went down - I would look to fill the gap with another part time child - but as that's a decision you have made then you need to consider your options based around what you have already said.

You have 2 ways to go here - either as Daftbat says and stick to your guns OR explain to parents that you cannot care for the children for less hours as it is not sustainable for your business and you have no alternative but to give notice.

I suppose it depends on whether there is demand for childcare in your area. Are you getting calls at the moment?

good luck x

[CTL03]

Thanks for your responses.

I'd prefer to stick to my guns. I think it's easier to work out fees if every mindee is on the same payment.

Not really having calls at the moment, hence why it's a tricky situation, especially seeing as the next door neighbour is starting in Sept. I just feel like I'm going to get ganged up on as clearly the neighbours talk and help each other out.

Unfortunately I can't get a child for the 2.5 hours that two of the girls (one starting in Sept) are out of the setting.

Confusing!

[mrs c]

I charge 50p per hour more for anyone wanting under 20 hours per week, but this is something I state to all parents right at the beginning when they first come to visit, and we go through the contract. I always make them aware of the charge should they require less hours and I would not introduce an increase like this just because they have reduced my hours. I have had a parent reduce the number of hours and they were not too happy that the cost per hour increased because they went from 21 to 14 hours. When I reminded them of our initial discussions they remembered and accepted the increase.

[dobby]

With every new child that I had in the first two years of mindig I learnt a new lesson :) Nowaday I have a written terms and conditions that is the same for all parents - so as you say no confusion! Those are my terms and that is that. As others have said you are running a business not a charity.

Good luck and try to keep smiling throughout the meeting. I always find that an acknowledgement that childcare costs are an important factor (i.e. acknowleding you are not trying to "rip them off" for the fun of it) can help diffuse things too x

[Goatgirl]

Hi :),
I think they want their cake and eat it too, which is fine and understandable, but the other side of that coin is that you need to make a living from your small business :rolleyes:

I would write out a breakdown of your former and newly proposed fees including things like 'time at another setting = 0% x £hourly rate', drop offs = zero charge', etc so that they can see what a good deal they have been and still will be getting. I would also remind them that you charge x amount below the average for the area, though your service is as good or better. They're looking for a bargain and may have forgotten what you have done for them and that you need to charge fees according to the number of places you have and needing to earn a living from those :thumbsup:

Keep it cheerful but very firm. "I'm afraid that's just not possible". Also make sure when you are face to face that you agree to nothing less than you are prepared for before the meeting (that's my downfall!), if you feel yourself wavering say NO, or if you really must, that you'll do some sums and consider it but can't make any promises: "after all I do have bills to pay like everyone else" (in a cheery voice ;). Be strong. You have done lots for them already and as you say, now that they are 'in it together' kind of thing, you need to set the bar of how things are going to be.

Should all be fine if the competition is more expensive than you: where else are they going to go?!

Good luck with it, let us know how it all goes :)

best wishes,
Wendy :)

[AliceK]

I charge more per hour for part-time children than I do for FT children. I have an A4 sheet which outlines the basics of my terms and it is clearly written on there.
It is your business and so your rules. This parent can't expect to have their cake and eat it, they are reducing your income and you can bet they are doing reciprocal care for each other and not paying the other person so she will still be reducing her costs even if she has to pay you a little more.
Stick to your guns and if she wants something and you are not sure, tell her you will have to get back to her about it.

xxxx

[The Juggler]

hon, I would increase my fees too as I have a minimum number of hours per day and a higher rate for less than x hours per day.

Explain it to the parent exactly as you have here. Tell her you increased your rate over a year ago but have no implemented that increase for her as yet as she was full time.

However, if she is going part time you will need to implement the fee increase to cover costs.:thumbsup:

[CTL03]

Thanks everyone for all your help!
I wasn't too sure if I was being too unreasonable (some parents make you feel like that).
I'll be sure to come back on tomorrow and let you all know how I got on.

[miffy]

Good luck with the meeting - hope you can sort something out that suits everyone.

Miffy xx

[Goatgirl]

good luck! :thumbsup:

[lorettacritchet]

OMG I have this same issue! Trying to explain to parents why necessary.

ps didn't think it was allowed for other people to look after i.e. neighbour kids? thought you had to be registered or someting?

[Dragonfly]

You can Lorettacritchet think its for 2 hours or less.