Quote:
Originally Posted by janejenkins1
I have a parent who is wanting to reduce my fees down from £3.50 per hour to £3.00 and £2.00 respectively for her two children. Also wants me to work full time in school hols whereas one only comes before and after school. Works out that I lose £110 a month but will be working full time for less money!
Any resolutions or advice on how to deal with this one would be great as in 7 years of childminding I have never had a situation like this.
Thanks,
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Do you explain to parents the costs when you first start?
and get then to sign a contract?
also do you state in the contract that fees will be reviewed at least annually (or more if needed) to keep up with costs etc
If so, you can draw her attention to it, and if (as it sounds you do not want to reduce) explain that you treat everyone equally and you do not offer different rates to different families.
Tell her that your costs are spiraling i.e. heating, insurance, books, courses, resources, maintenance of toys, premises and all that extra work you are required to do to cover the eyfs i.e. photographs, portfolios etc and that you were just about to increase your fees to cover the costs, but perhaps after speaking to her and wanting to help out as best you can ( and for the sake of the children), you will defer the increase for 6 months, but cannot hold it back any longer and put this in writing.
I think the best thing is always to have put this across when parents are enquiring/starting so everyone knows where they stand and try and keep it on a professional level. Start with a new method that gets parents to sign a new contract each year with current (possibly increased prices) and anything new that you feel they ought to know.
If you feel (as you sound you do) that you do not want to lower your prices as overheads are going up, not down, explain nicely that you can not afford to do so. The parent will then have the option of paying up or trying to find another chlldminder who will accept such low prices. In that case, you will have space for another child.
You could also suggest that the mother asks her employer if they give childcare vouchers (single mothers often have 80% of their child care paid for), if they are a working married mother they can go through their employer and opt to pay through a childcare scheme such as Childcare vouchers ( google them) or Busy Bee. This arrangement takes fees directly from their salary minus tax (quite a saving) and transfers it to your account a month in advance. I find this method works well parents use Childcare account (but there are others) and at 17.5% less on their payment, you'd both be happy as you'll be receiving the original amount you charge.
Talk to your Childminder advisor and see if she can help you sort this out. After speaking to the childminder advisor, you could even explain that after speaking to her, you advisor thought your fees were very reasonable/too low for sustainability and does not recognise you profession etc.
If you are unhappy with any loss of revenue, you may get to the point where you feel your relationship with the parent is not what it should be and perhaps then, it would be fairer for her to go to another childminder who is willing to accept her proposed terms.
Leave it a few days before speaking to the parent, or wait until she brings the subject up and perhaps then explain that you have looked at your costs and unfortunately you are unable to offer lower prices. You don't have to go into why - it's your business and that's what you think is best. If you do not use your business head, you may not cover your overheads and decide childminding is no longer for you, if you are paid so little and are not being recognised for it. In my area childminders are few and far between.
parent wanting to reduce fees
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