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** · 02-01-2008, 09:38 PM

Hi - £4 is probably the higher end of the market in my area - I would say about 40% charge this already. Now I am established I feel that the price I charge reflects the services the children in my care recieve. I have absolutely no problem in justifying that amount.
However! I have been thinking that the changes wont be appliciable to existing clients (except the payrise, which I do every April, and I think Im perfectly within my rights to do this.) because they signed a contract with me expecting one thing - I cant very well say to them Ive changed my mind!!! Just thought Id sound you guys out while Im still thinking the whole thing through.

It does worry me that nurseries might seem more appealing, price wise. Not sure what to do about that though, tbh, because I still need to pay my bills and have a life after all is said and done. Im running a business - not a charity. Its tricky getting it right! Although, having said that, when we were looking for a nursery for our son two years ago - they were charging £850 per month, 8am-6pm. So I dont think Im pricing myself out of the market just yet!!!
Sx

**angeldelight** · 02-01-2008, 10:10 PM

£850 a month at the nursery - wow that is way expensive

My daughters nursery charge £250 for the same times

Wow how on earth do people afford that ?

Angel xx

**berkschick** · 03-01-2008, 12:05 AM

The local nursery here charges £50 a day, 8 -6

I couldnt believe it when one mum came to see me after asking about the nursery!

Love

Debbie

**janet** · 03-01-2008, 12:09 AM

that is really expensive my daughter goes 1 full day and that is £22.00

**berkschick** · 03-01-2008, 08:19 AM

I think it is awful! £50 a day is a lot of money but it means childminders round here are in great demand which is good news for me! I have had 7 phonecalls now just from a free advert on Gumtree and have taken on 2 of them, and am waiting for 3 to get back to me. I couldnt help the others. The going rate for childminders round here is £35+ for a full day which parents are happy to pay because it is still cheaper than the nursery!

One childminder I know charges £4.50 an hour and she is full

Love

Debbie

**angeldelight** · 03-01-2008, 08:21 AM

Wish I could charge £4.50 an hour

Although I know it does differ depending on where you live

We must be poor people in my neck of the woods haha

Angel xx

**chez1373** · 03-01-2008, 08:23 AM

Hi,
I started minding only 3 weeks ago and i charge £4.00 an hour this is normal for my area some charge more! i have 2 children on my book after being registered 6 days so £4.00 isnt that much really i agree its a business not a charity
Im in Derbyshire

chez

**Banana** · 03-01-2008, 08:35 AM

hiya,

I think as long as the contracts are due to be renewed with the existing parents then you can talk about it then. But if they arent due to be renewed then really you cant adjust your prices until it is because the contract holds you to what you agreed also not just the parents. I think the changes are a good benefit to you, obviously if parents are willing to pay £4 an hour then thats great! I would just be as carfeful with your existing parents though, they may not take the changes very well and there is quite a few changes for them to take in at once.

Good luck with it all
x

**Trouble** · 03-01-2008, 08:43 AM

mine struggle to pay 3.00 but there is a school wrap a round club here so we have to be careful.

**LittleMissSparkles** · 03-01-2008, 10:05 AM

the childminder i had for Amy charged £2.50 an hour and she is still the cheapest in the area but an experienced excellent childinder and the nursery she wentto charged £35 per day 8am till 6pm

I charge £3.50 an hour now 8am till 6pm have just changed my fees to one flat rate unless out of hours.

Have revised my policys as well over christmas and informed parents will get them allto sign to say they have seen and understodd new policys when they all come back next week

xxx

**Schnakes** · 03-01-2008, 03:35 PM

Hi Susan - Im glad Im not the only one! I feel like a bit of a meany, but at the same time, Ive got to cut down on the amount of work Im doing because Im running myself ragged!

"if they arent due to be renewed then really you cant adjust your prices until it"
Bannana - When parents sign up with me my paperwork clearly states that by signing the documents they agree to my policies and procedures. One of those has ALWAYS been that I award myself a payrise every April to cover rising overheads. Ive never heard of anyone doing anything different. Is this wrong then? (My parents have never complained before, btw).

Sx

**Lou** · 03-01-2008, 04:51 PM

Originally Posted by Schnakes

Hi Susan - Im glad Im not the only one! I feel like a bit of a meany, but at the same time, Ive got to cut down on the amount of work Im doing because Im running myself ragged!

"if they arent due to be renewed then really you cant adjust your prices until it"
Bannana - When parents sign up with me my paperwork clearly states that by signing the documents they agree to my policies and procedures. One of those has ALWAYS been that I award myself a payrise every April to cover rising overheads. Ive never heard of anyone doing anything different. Is this wrong then? (My parents have never complained before, btw).

Sx

When you sign a contract with parents, you put a date to review it on bottom.

You CANNOT put money up unless the contract is due for review.

Well thats what i was told by NCMA anyway, and its also says in handbook, i will try to find.............

**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