Changing my Fees/hours Advice Please

**Schnakes** · 02-01-2008, 02:51 PM

Hello,

Just thought I would pick your brains on this one. Over the Christmas period I have decided that I am going to change my working hours, and also the way I do my fees. So for example, I have decided that I no longer want to do a 12 hour day. I want to work from 8am to 6pm, and my out of hours charge is £5p/h. However, I have existing clients that I currently work for outside those hours.

Also, at the moment I charge £3.75 per hour part time, £3.50 per hour full time. From April I have decided to change this to a flat rate fee of £4 per hour. I have also decided that Im going to implemement late fees and raise my weekend fees from standard to £4.50 per hour.

First of all, I am going to implement these changes now for customers looking for childcare, but for my existing customers it wont come in till April.

What I am wondering is - as my existing customers have signed contract under my old terms, do I have to continue that with them?

Sorry that was a bit lengthy!!

Schnakes

**Polly2** · 02-01-2008, 03:08 PM

Hiya

I think you would have to do a contract review with your existing customers stating new fees/terms.

It would be a good idea to do a letter/newsletter stating fees will be going up from April etc then at least parents will be expecting it.

I have not put my fees up yet as I've not been minding all that long so have not got that much experience.

I am sure others will be along soon to give you more advice.

take care

**Schnakes** · 02-01-2008, 03:17 PM

Ive done my payrise before, but nothing this drastic!!

**sarah707** · 02-01-2008, 03:24 PM

Gosh that's quite drastic! It's a good idea to charge everyone the same rate though and much easier for your accounting!

I would suggest you talk to each family individually and give them at least a month's notice of what you intend to do. Really explain it carefully or you run the risk of people not fully understanding and thinking you are trying to get rid of them.

I'd also be prepared for potential opposition as well as maybe losing families if they think they can't afford you any more... have you checked what other people close to you are charging? £4 an hour is quite a lot, depending on where you are... you don't want nurseries getting your business!

Parents will also need to give notice to tax credits to change how much they receive each month, so need to be given time to do that...

Hope this helps... good luck!

**LittleMissSparkles** · 02-01-2008, 03:36 PM

I agree with Sarah, you need to give the parents plenty of notice and perhaps arrange to speak to them all individually to explain the changes to them and iron out any complications at the same time, good luck xxx

**Lou** · 02-01-2008, 04:53 PM

You have been given some great advice by the others.

I would also say you will only be able to do this with existing parents if their contract is due to be reviewed.

If thats the case then i agree with whats been said, make sure you give them plenty of notice, and then if they have any problems they can discuss with you.

**Schnakes** · 03-01-2008, 07:26 PM

Hmm, thats interesting Lou....the only problem with that is that all my mindees started their contracts at different times of the year, therefore their reviews are due at different times. That would mean that I would be charging my pay rise to some and not to others wouldnt it?

Sx

**Banana** · 03-01-2008, 08:16 PM

Yes what Lou has said is exactly right. As as it stands if you put the prices up in April and the initial contract wasnt due to be renewed in april you are breaching the contract. If all the contracts have different renewal dates then you should not implement them until you have stated a contract review - hence the reson for the section where you state 'contract review date'

So if you put your prices up in april before a renewal date and the parents have signed a contract under terms which arent due to be renewed it is not fair or legal to do so........ that is my understanding. May be worth double checking with NCMA then you know for definate. Worst case scenario is a parent could notice this and then make a complaint. Thats all im trying to point out.

xxx

**Lou** · 03-01-2008, 08:18 PM

Yes thats what i was trying to say.

Thanks Lana.x

**Rubybubbles** · 03-01-2008, 09:05 PM

oh tricky!!

I put my prices up in 2006, but as I live on an RAF camp when people left and new ones started I put the new peoples price up straight away

So for example in April 2006 I had I full time on £3 per hour, then Newbie start and her price at £3.50.

Now they've gone in October when I started my newest 2 my prices are £3.60

I am in the lower end at this childminder in my area charge up to £4.50 per hour but wonder why they are screaming out for mindies duh!

**Banana** · 03-01-2008, 09:26 PM

That ok though Emma.

If you decide to sign a new contract at a new price then thats no problem. Regardless of what your current mindee was being charged at because you will have a review date to implement your increase on the existing contract. Its what the parent agrres to at the time the contract is signed. It doesnt matter if you have an existing contract which is at a lower hourly rate - you can put it up when the review is due and any other contracts are non of the new parents/mindees business.

Am I rambling? lol

x

**Schnakes** · 04-01-2008, 07:38 AM

Okay - thanks Bannana...I had no idea! I just did a contract review in November for one of my clients. Poo!!!

Thanks for the info.

Sx

**Banana** · 04-01-2008, 09:16 AM

No worries.

Just wouldnt want you getting caught in a contract dispute if a parent was to pick up on it at any point.

xx

**Schnakes** · 04-01-2008, 09:36 AM

No worries bannana - sorry if I came accross as snappy, Im just gutted about it because I just wish I had known before.

Not sure what to do about existing contracts now at all, because there is no way I can carry on with the rates Im charging without cutting back on services and business expenditure, which I dont want to do.

Sorry...this is turning into a poor me thread!!

Sx

**ajs** · 11-01-2008, 08:34 AM

hi i haven't read all the answers as i haven't got time baby due any sec
but i put my fees up to £3.75 in septemebr for all but the child who had been coming less than a year and that went up in january.
i wrote to all of the parents in june announcing the rise and not one made any comment other than ok.
one jokingly said she'd have to find a cheaper child minder now and i said go on then but i knew she was teasing (i have had her child 6 years)

i know i am the most expensive childminder in my area but i had been £3.50 for 7 years and quite frankly parents who won't pay it i don't want anyway

**deeb66** · 12-01-2008, 02:02 PM

Hi

I usually increase fees on the anniversay of the original contract every year.

I don't put it up by much just a little and state on the contract that it will be reviewed with rates increased every 12 months.

This does sometimes mean that I have various families paying different rates....but then they all catch up in the end!