when I have a child/parent visit I observe the child in my setting to check they 'fit' but more than that I am checking the parents to ensure I can have a proper business relationship with them. I think going into a meeting with the view that you are interviewing the parent is a healthy perspective since any problems you encounter with the child will only be resolved with the parents full support. On the basis of what you have said I would suggest that this parent is not right for your setting, and I question whether she could stipulate her terms in that manner to a nursery. She appears to have a history of childcare where she dictates the terms, and the relationships don't appear to be productive, long lasting or meaningful. Even if you were able to iron out these kinks - I don't know that she sounds that she would be terribly supportive if any problems with the child arose - and if it ended badly I wouldn't put it past her to be making your life difficult afterwards.
I do agree though that honesty is the best way to go, say that you have very clear business terms that have worked time and again. That you are not comfortable with the changes that she is trying to make to the terms, and therefore you don't feel that you can work together. But that you wish her well in finding alternative care.
Don't feel for one moment guilty for her feelings on this one - its clear as day that she has shown little regard for your feelings.
triangle sandwiches are better than square ones...
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