want to increase fee, help needed

[ziggy]

I was at soft play today and found out an unregistered minder is charging same as me per day (£25). All my mindees do a full day, between 9-10 hours. I dont provide food but i do lots of activities and we go to groups 2/3 times a week, at no extra charge.

So any advice on how much i can increase fees. Am looking at making increase in September.

[tess1981]

When was the last time you had a rise in fees... giving notice if an increase now for September is loads of notice. A letter to all parents explaining a rise in fees of £X will be introduced on X date. It's with regret I have to do this but I need to be able to continue providing the same service I do now and with the cost of living on the up I feel I need to increase fees in order to do this something along that line also mention how long it has been since your last increase it if u never increase yet

[ziggy]

havent increased my daily fee for years. Did increase hourly fee last september. was thinking an increase to £26 per day then increase to £27 per day in April

[mama2three]

I wouldn't do 2 separate rises so closely - If youre happy with £27 then I would go with that all in one go. What do others in our area charge and how does their service compare to yours?

[ziggy]

I wouldn't do 2 separate rises so closely - If youre happy with £27 then I would go with that all in one go. What do others in our area charge and how does their service compare to yours?

I'm now only registered childminder in village, friend in nearby village charges £28 but doesnt get any business lol. But i think if unregistered minders are charging £25 then parents cant complain at me for charging £27. I shall explain about paying tax, ni and insurance which unregistered minders dont

[Blueeyedminder]

I'm now only registered childminder in village, friend in nearby village charges £28 but doesnt get any business lol. But i think if unregistered minders are charging £25 then parents cant complain at me for charging £27. I shall explain about paying tax, ni and insurance which unregistered minders dont

Not to mention that unregistered minders are illegal and uninsured!!

[Maza]

I know an unregistered childminder who charges quite a bit more than me for her hourly rate. It bugged me a lot at first BUT the parents know she is unregistered and really take advantage of it. I have heard another unregistered 'childminder' say the same thing too about her parents.

Do you know what the nurseries in your area charge? I always charge just a tiny bit less than our local nurseries. I don't think a £2 per day increase is too much. At the most they will be paying an extra £10 a week. x

[Simona]

Many CMs find it difficult to increase fees ...especially if they have not done so regularly over the years

Why not put in your contract that 'fees are reviewed each year'? (state the month you will review)...I personally do that each April ..start of the new financial year
If fees rise you give parents one month notice via Newsletter or any other official means...if you feel they can stay at current levels then nothing more needs to be done
If you have a 'fee payment policy' add a paragraph about 'fee review'

If parents are 'forewarned' then they will be no reason to be worried

With the cost of running a small childcare business rising relentlessly it is ...in my view...advisable to keep your business sustainable
Parents need to be aware of why we need to do so.....I would quote 'quality childcare' as the main reason for a small increase
mention all the changes made by the govt, possible training charges, DBS, cost of food and insurance, cost of resources and equipment etc etc...'quality' costs!

We raise objections that the 15 hrs funding hasn't risen for years and years while happily keeping our fees far too low.
A small increase each year is better than a huge dollop all at once.

We know what this govt is doing but also think ahead if we had a new govt...how would you continue to keep your business viable judging by the policies they will introduce?
how will you business remain afloat when the 'free entitlement' is so low?

Cms are not 'waged' as we are self employed but fees must be reasonable to reflect the business we run, time spent on administartion and the duty we have to keep it afloat.

Why not introduce a new fee policy in Sept as we all make changes to reflect the EYFS 2014?
Lastly.....remember that parents get financial help in many ways to pay for their childcare while we have lost all sorts of grants and financial help recently

[Maza]

Also Ziggy, the childminder who charges £28 per day might not be getting business for other reasons, it might not be to do with the fees. x

[Koala]

After many years of not increasing my fees I decided that I should review them every years and do so now in April and raise my daily rate by £1.00 each year.

I would increase by £2 in September like has been mentioned and put in place an annual review every September to allow you to increase without feeling guilty. This make good financial sense.

[smurfette]

Many CMs find it difficult to increase fees ...especially if they have not done so regularly over the years Why not put in your contract that 'fees are reviewed each year'? (state the month you will review)...I personally do that each April ..start of the new financial year If fees rise you give parents one month notice via Newsletter or any other official means...if you feel they can stay at current levels then nothing more needs to be done If you have a 'fee payment policy' add a paragraph about 'fee review' If parents are 'forewarned' then they will be no reason to be worried With the cost of running a small childcare business rising relentlessly it is ...in my view...advisable to keep your business sustainable Parents need to be aware of why we need to do so.....I would quote 'quality childcare' as the main reason for a small increase mention all the changes made by the govt, possible training charges, DBS, cost of food and insurance, cost of resources and equipment etc etc...'quality' costs! We raise objections that the 15 hrs funding hasn't risen for years and years while happily keeping our fees far too low. A small increase each year is better than a huge dollop all at once. We know what this govt is doing but also think ahead if we had a new govt...how would you continue to keep your business viable judging by the policies they will introduce? how will you business remain afloat when the 'free entitlement' is so low? Cms are not 'waged' as we are self employed but fees must be reasonable to reflect the business we run, time spent on administartion and the duty we have to keep it afloat. Why not introduce a new fee policy in Sept as we all make changes to reflect the EYFS 2014? Lastly.....remember that parents get financial help in many ways to pay for their childcare while we have lost all sorts of grants and financial help recently

Good advice Simona thank you I will add this to my contracts

[LauraS]

I review fees every April too, and although I don't necessarily raise fees i always review and include the raise in my newsletter, even if it is zero. I feel that this puts the idea out there that they *might* rise so it won't be such a shock when they do.

[ziggy]

well, well, well, mother who uses unregistered minder has just called me asking if i have 2 places in october/november. I have a pregnant mummy so i may well have places. They are coming to see me next thursday. When I asked why she isnt going back to other 'minder' she replied that lady is looking after sick relative.

I've decided I will charge her £30 per day per child, if she was paying unregistered/uninsured minder £25 i feel I am worth the extra

[bunyip]

Many CMs find it difficult to increase fees ...especially if they have not done so regularly over the years

Why not put in your contract that 'fees are reviewed each year'? (state the month you will review)...
................................

If parents are 'forewarned' then they will be no reason to be worried
.............................

With the cost of running a small childcare business rising relentlessly it is ...in my view...advisable to keep your business sustainable
.............................................

We raise objections that the 15 hrs funding hasn't risen for years and years while happily keeping our fees far too low.

......................................

Cms are not 'waged' as we are self employed but fees must be reasonable to reflect the business we run, time spent on administartion and the duty we have to keep it afloat.


Lastly.....remember that parents get financial help in many ways to pay for their childcare while we have lost all sorts of grants and financial help recently

I could hardly agree more with you, Simona. (Btw, hope my edits haven't decontextualised your excellent post.)

I posted only last week that we are collectively shooting ourselves in the foot. We depress our own fees then wonder why the LAs pay us a minimum for funded care (if only they were paying us for care, but they argue they are paying us for "education" which they go on to decree cannot possibly be delivered to children outside of nursery hours and school terms. )

In this caring business, I see so many people who are amazing at caring but seem not to have the first idea when it comes to business. It seems to go something like this......

The new CM sets up in business as a self-employed person. Any other business or self-employed person would do a simple equation to figure out what they charge, viz: required profit - total expenses = fee. (Cue meerkat sucking teeth and saying "simples" in an irritating manner.) And then make a final decision as to whether the market will stand this fee, and if not, is this really a viable, sustainable business to be in?

Required profit = whatever you regard as sufficient recompense for your time, skills, experience, training, blah-di-blah-di-blah. I'd add that a normal self-employed person would factor in time worked when the lo's are not present (admin, planning, etc.) and 'down-time' when the service is not available or not being used. Most self-employed people have figured out they need to eat, pay bills, etc. even when they or their clients are on holiday (hence, your average plumber isn't to be found sending out invoices to cover their hols just before they take a week off at Butlins.)

Expenses = what it costs to run the business. (Cue annoying meerkat again; Bunyip to be seen in background stalking it with high-powered sniper rifle.)

So..........................any ideas why the vast majority of CMs don't do this????? Any idea why the newly self employed CM, free to make her/his own decisions immediately looks around and says, "what's everybody else charge, cos I just wanna be the same as everyone else." Then the next thing they think is, "hey, I'm self employed, which is entirely different from being employed but I still feel entitled to what the employed people get, cos they're getting it and I'm not, so I'm gonna act like I'm entitled to and" - in short, P-off their entire client base by charging extra for the CM's holiday, the clients' holiday, and every meal, drink or raisin the lo dares to digest.

Maybe it's because most CMs have made the decision to go into childcare (for 'personal' reasons, whatever) and are well and truly committed to the journey before they've done the math and considered the little matter of whether it is really sustainable.

I guess if we have an excuse for not regarding ourselves as truly self employed, it's that the LA's don't treat us like we are. I know plenty of self employed people who do work for the LA, but not of them are paid like the LAs pay for childcare. Self-employed businesses tell the LAs what they charge to do a job or fulfil a contract or offer a tender. So why are we the only ones being told by the LAs what they'll pay us, when they commission us to provide funded childcare? Someone pray tell.

I'll be interested to see what the effect of the proposed 'tax-free childcare' legislation has, if it manages to get through parliamentary process before the next sham election. Will CMs factor in the increased disposable income generated for their clients and have the courage to make a sensible business decision to increase fees? (which the Capitalists in Whitehall could hardly complain about, given their faith in supply and demand - or does the Thatcher-adoring Cameron belief you can 'buck the market' after all?) Or will we still be too obsessed with following the herd? ("Hey, I'm independent and make my own decisions............ so what's everyone else doing?" Will we still be such excellent carers that we continue to collectively undermine all our businesses?

[bunyip]

well, well, well, mother who uses unregistered minder has just called me asking if i have 2 places in october/november. I have a pregnant mummy so i may well have places. They are coming to see me next thursday. When I asked why she isnt going back to other 'minder' she replied that lady is looking after sick relative.

I've decided I will charge her £30 per day per child, if she was paying unregistered/uninsured minder £25 i feel I am worth the extra

.............and the rest.

[ziggy]

just realised i cant have baby till end of january as cant have 2 babies