Been grossely undercharging!!!

[Lady Haha]

Hi, just joined the forum and been reading the threads about fees and realised I have been undercharging by alot!!! I am due to put up my fees again in September, so do I increase them by a hefty sum all in one go or not!!!

All my mindees are over the age of four, so no little ones!

At the moment I charge £3.70 ph which hardly any one uses because of the following discounts!

full day care 8am - 6pm = £22.50 mon to fri /£30.00 Saturday

After school 3.15-6pm = £7.00 for whole session

half rate for child absence

parent/child holidays - two free weeks, half rate thereafter (no charge for my hols)

Judging by what others charge, I could be charging £30.00 for full days! All food and drink and outing/entry fees are included in all my fees. The after school session charge I made in direct competition with the after school club ( which has since closed with no alternative in the pipeline).


It would be nice to get a bit more for what I'm doing as expenses have worked out alot more than I thought when I started, especially as I'm having to invest in a 7 seater car soon!

[Pauline]

Hi and welcome.:)

I think sometimes it depends where you live as to your charges. For example in London you can expect to be charging lots more than someone in a Northern inner city.

Another way to judge your fees it to find out what your local nursery charges and go slightly below it, that way parents who are keen to save money will be tempted to your care.

I would certainly change your holiday charges, full fee if they don't attend but you are available is quite acceptable.

As regards increasing your fees you might have to judge that by what you know of the parents, would they accept it or might they try to find alternative care? You would need to give plenty of notice and perhaps be prepared to do it in stages.

Good luck! :)

[PixiePetal]

Your discounts are way too generous!

I have no such discounts.:blush:

I am £4/hr between 9-5 and £5 outside that. 8 to 6 would therefore be £42!

The after school times you say would be £13

Extra for meals and big outings. I provide drinks and snacks, toddler group fee and lots of cuddles etc!!

Obviously this does not take into account where in the country you live and rates around the country will differ.

[singlewiththree]

Have you looked at the www.*************.gov.uk website to see what other childminders in your area are charging?

I would do it in small chunks and any new starters go straight on your new terms.

[sonia ann]

Hi I have only recently joined as well. I was surprised at the different charges .I charge a flat rate of £3.00 per hr all inclusive.I think it varies all over the country but here in Poole the average cost is £3.25 per hr ( according to new published figures ) so I will increase to that figure at my next review.
Sonia

[geraldine72]

it does change all over country when i first started i was way under charging i was £85 for full week. that was in 2004. i just put up my fees in november to £3.50 per hour and £130 full week that includes all outings etc. i give parents a 10% discount when on hols same time as me or same for two weeks of year. i've put these fees up gradually though and gave plenty of notice. the only fee's not been touched yet are after school which are going up soon from £9 to £10.50. we spend alot of that back on the kids and think we're worth it. one local nursery here charges £42 per day whereas i'm £30. so parent's still getting good deal and i've got a big waiting list so parent's must notice this. hope this helps also advice about looking at other minders in your area's fees is good that's what i did.;)

[rickysmiths]

I agree with Jen your discounts are far too generous

I have never given a discount for a full day I just charge an hourly rate it has always worked for me. I charge a slightly higher fee for under 20hrs a week. £4.50 and £5

Before and after schoolers pay the higher hourly rate, I charge from when I leave to fetch the children from school, so for the hours you mention above I would be paid £15.

If I was asked to work a Sat I would charge !1/2 times my normal fee.
If I was asked to work a Bank Holiday it would be 11/2 normal fee and they pay the normal fee if the Bank holiday falls on a contracted day and I don't work

Always charge full fee if they go on holiday and I am working also if the child is off sick.

They don't pay if I am off sick.

I include snacks, breakfast, lunch, dinner, all outings. The only thing I ask the parents to provide is nappies and sun cream.

I think you need to think 'I am not a charity. I am a business'

Could you introduce an increase after the Easter holiday? Do some research
on what is being charged in your area. It doesn't sound as if you go to a Childminder Drop in group. Is there one near you? If there is it is often a good way to find out the trends in your area and it can help fill vacancies.

Good luck.

[rickysmiths]

it does change all over country when i first started i was way under charging i was £85 for full week. that was in 2004. i just put up my fees in november to £3.50 per hour and £130 full week that includes all outings etc. i give parents a 10% discount when on hols same time as me or same for two weeks of year. i've put these fees up gradually though and gave plenty of notice. the only fee's not been touched yet are after school which are going up soon from £9 to £10.50. we spend alot of that back on the kids and think we're worth it. one local nursery here charges £42 per day whereas i'm £30. so parent's still getting good deal and i've got a big waiting list so parent's must notice this. hope this helps also advice about looking at other minders in your area's fees is good that's what i did.;)

Could I ask a question? Do you charge extra if you do a 9 or 10hr day because on the figures you give above you would loose up to £45 a week. or do you charge that way because you do shorter hours ?
I only ask because I have always just charged by the hour and the full timers I get always seem to be 9 or 10 hour days.

[tulip0803]

Hi I charge £3.00 ph no discounts (unless I feel generous:rolleyes: ) advertised. That's the norm here in my area but where I minded 5 years ago this was what I was charging there. It does vary an awful lot around the country.

[chels55]

Before i decided on my prices i looked at the fees of the other childminders in my town on the fis website they were between £3-£4ph so i charged £3.50, before and after school is £5ph if hours are less than 12 per week

[Daftbat]

I charge roughly the same as you except i don't give any free holiday times. I have found over the years that fees are a strange area and whilst i know that i don't charge as much as some others, especially as i don't do food charges etc, i have never had a parent leave me because of the cost of care. In fact its always been apparent that think i am very reasonable. If you get your charges right then you get steady and prolonged business. It sometimes means i am run off my feet since i take on quite a lot of older children but it seems to work for me.

No way is wrong its up to what works for you.:thumbsup:

[Saranotts]

I charge roughly the same as you except i don't give any free holiday times. I have found over the years that fees are a strange area and whilst i know that i don't charge as much as some others, especially as i don't do food charges etc, i have never had a parent leave me because of the cost of care. In fact its always been apparent that think i am very reasonable. If you get your charges right then you get steady and prolonged business. It sometimes means i am run off my feet since i take on quite a lot of older children but it seems to work for me.

No way is wrong its up to what works for you.:thumbsup:

I also charge roughly the same (except the discount for a 10 hour day) and I do think it depends on the area and you do need to check this first. I also think it is better to put your fees up by small amounts as otherwise it is a shock to parents and they might start to question, especially at times like these whether they could get a better deal elsewhere.

You can always charge new contracts a higher rate and without the discounts.

Sara

[Lady Haha]

Hi, thank you all so much for all the replies! I should have made it more clear though that it really is only school children I care for and the full days are school holidays. It really does make a difference.

apologies in advance for lack of pound sign, there isn't one on my laptop!

There are holiday clubs in the area that charge as little as 15 per day, so my 22.50 is quite a jump up from that. I do take the children out and about every single day though, whereas the holiday clubs only take them out once a week and charge extra for that. I think I will increase to 25 per day and explain to the parents that outings every day do cost alot especially with older children (no under threes to get in for nothing!)

However, I will be taking on board a few more of your comments about holidays! I will keep offering the two free weeks, but full rate after that, not half rate like I have been charging. One of my customers told me on the Friday before half term that her son would only be coming for two days of the half term when he is contracted for five. She was a bit peeved that I charged her half rate for those days as she hadn't given me enough notice, even though she still had three days of her free holiday left! But in retrospect, I should have charged her full rate for so little notice!

And finally, the after school session! I feel abit mean here, as three of the children I care for came from the after school club while it was still open. The parents approached me and were won over by the fact that I charge 7 per session whereas the afterschool club charged 7.50..........but, the afterschool club has closed down now and there is only one other childminder that picks up from this school......I have been inundated with queries, but I am full up now. This does mean I can pretty much charge what I like for that session now for the parents I already have as there is no where else for them to go, but it kind of feels a bit mean and taking advantage! What do you think? Charging hourly would take it up to 11.10.

I suppose if I do lose a couple of children, I would make up the money through the price increases on the others and I wouldn't need the 7 seater:laughing:

[Mollymop]

Hi ya,

I don't have any discounts at all. If i did I would not be earning much at all.
£7 per session for after school is very cheap.
What do others charge in your area? Do they have the same discounts?

[DCS]

Discount:eek: ? whats that?

[Lady Haha]

Found out that one of the other childminders that pick up from the same school charges 5.25 for 3.15-5pm:eek: , so I am not that cheap after all!!!

[angeldelight]

Found out that one of the other childminders that pick up from the same school charges 5.25 for 3.15-5pm:eek: , so I am not that cheap after all!!!


So does that mean you are going to be sticking to the prices that you already charge ?

Angel xx

[Saranotts]

WOW... I think putting your after school session up from £7 to over £11 :eek: is too much and I know, if I was a parent and especially with times being so hard, I would be very upset and would immediately be looking at other options. I have been hesitating about putting it up 50p a session:blush: .

You certainly don't want to find yourself looking at buying a bike instead of that 7 seater!

Good luck, I know its tough getting it right.

Sara

[Lady Haha]

WOW... I think putting your after school session up from £7 to over £11 :eek: is too much and I know, if I was a parent and especially with times being so hard, I would be very upset and would immediately be looking at other options. I have been hesitating about putting it up 50p a session:blush: .

You certainly don't want to find yourself looking at buying a bike instead of that 7 seater!

Good luck, I know its tough getting it right.

Sara

Thanks for that! I think I just got a bit carried away reading how much other people charge, but that doesn't take into account other minders near me!!! Also, I am always going to be in competition with much cheaper out of school care which isn't as good as me:littleangel: , but some parents don't have a choice and need to go for the cheapest option.

I was thinking this morning as I walked five of my mindees to school and how I have six to pick up and this week we have and will be been walking 80% of the time because I have so many and can't get them all in the car. This can only be a good thing surely!!! All my parents are really nice people who constantly tell me how much their chldren love coming here etc and although they get it wrong sometimes on holiday notice and paying midweek instead of Monday etc, they never ever complain about my actual work and always back all my decisions! So I'm very lucky!

Slapped wrist for being tempted by the pound signs!

I will keep my fees as they are, just do a small increase in September which they are expecting anyway. The only thing I am going to really change now is my holiday/sickness policy so that I will no longer be offering free weeks or half rates, as this just makes it easier all round, no having to keep records of holidays parents have taken, no getting in a huff cos not enough notice been given and no panicking when I am short on wages sometime! And also I won't do this until contracts are due for review and tell parents NOW that it will be included so they have ages to think about it!

I am a happy and relaxed bunny now!:)

[Saranotts]

I'm pleased you've got things sorted. I know, I sometimes look and think WOW at what other areas charge but I also know I would just go out of business if I tried it here.

I like yourself am starting to realise that it is a business and I have been too soft in some areas and so am gradually learning and putting it right but I do think it takes time and its best to use the softly, softly approach.

Once again glad you have got it sorted.

Sara

p.s. Beware that naughty tempting £ you know you will only spend it on more toys anyway.:laughing:

[Lady Haha]

p.s. Beware that naughty tempting £ you know you will only spend it on more toys anyway.:laughing:


:laughing: :laughing: :laughing:

How true is that!!!!