CMs - advice please re: fee increase or start afresh

[katieskids]

Hi I'm a childminder with 14yrs experience but rubbish with the money side.
I began looking after a boy 4 years ago 2 days a week for a teacher. At the time I explained that I usually charge 1/2 fees during the holidays, she refused as she said she only needed term time only. We agreed on a slightly higher hourly rate.
Fast forward 4 years, add in another sibling & another day a week (gp dropped out) and the rate remains the same. When I met with the parents to discuss taking on the baby it was put to me quite firmly that 'the rate will be the same won't it?' I also had my own baby at the same time but returned to work 7m before mum did, taking back the oldest 1 day a week to give mum chance to bond with her baby.
During this year my dh was made redundant & after a short period at home he set up his own company & works on a contract basis for other businesses (ie no sick pay/holiday pay etc). Money was never an issue before with childminding as I always had a good mix of teacher/all year contracts but now I'm working 3 days for 1 family & 3 days for another leaving me with a space 2 days, which I can't fill. I've turned down 3 enquiries this week where I could have worked all year.
Please help, after 4 years I know I need to raise my fees, but what amount will be acceptable? The rate I'm charging the family is the going rate for full time 48 weeks a year contract & I'm only getting 39 weeks a year paid. I'm thinking 45p but is that too much? My dh (far more business headed than me thinks £1.25!! we've disagreed lots on this)
I'm loyal to the families I care for but when should you put your own family first? In any other job if you need more money you either move on or request more hours from your employer. If a childminder drops one family in preference for another then the parents are devastated & rightly so.

What are are you in?

Its a hard one, I charged higher than all other CM's when I started 5yrs ago and have never had an increase. Now I'm about the same, some are higher, I think I need to do an increase this year but I know a lot of my parents won't be too pleased about it.

Will watch this with interest.

I'm on the hants/berks border. I am on an accredited network and can offer the nursery grant.
My main problem is that having now 2 children from the same family term time only my option of taking on others has been limited too much. I have some holiday work, but this is dependent on how much the other parents need me. Unfortunately given the financial climate grandparents are being used more than before so I'm getting stressy about August. I think last year I earnt gross approx £200 for the month, but my dh was employed and we knew how much was coming in, this year he may have a contract - he may not. I just want to work my hardest & also earn my 'worth'. But is it right for the parents to suffer a large increase just because I didn't change the rate for the last 3 years or because my families circumstances have changed?

You have to put your own family first of course, but be prepared that what the family is paying is probably the max they can afford and they may find another cm or childcare arrangement. However, if you can find replacements at a better rate that will support your family more, then that works out.
I'm a teacher and I pay a normal rate for the area of surrey (£5/hr) for 8 hours/day, 5 days/week. I pay for all holidays except half over the summer (because my school does not follow british terms and summer betweeen dh and I is 10 weeks). The fees are divided up over 12 months so I pay the same every month. I love her and so does my ds. But if she raised the rate, I simply could not afford to keep him there. I'd absolutely understand if she had financial difficulties and needed people who could pay more, though. I'd just not be able to swing it, unfortunately and would find other care.

Thanks StarExpat I understand that the family will find it hard to pay an increase, but in my defence I charge nowhere near the rate you are paying. I was also asked to provide 8 hours care but little by little the time is creeping up (work commitments from dad) & each day this week I will be working an extra 45 mins with 2 of them for no extra pay. They would have to pay more if they went elsewhere as I'm the only minder in the area able to use the nursery grant (a saving of 14hrs every week) & like I said the others are charging my rate for full timers not part timers& all year round.

The extra time used to occur very very rarely & I let it go,but recently there always seems to be some crisis or other & it would be difficult (for me anyway) to start introducing extra charges.

I'm not trying to be awkward but I need to do something as I'm losing sleep trying to do the right thing for everyone!

Its reallt tricky changing things for long term families is'nt it.

If I were you I would tell the mum that you need to do fresh contracts and that you have some things you want to adapt when your going through them. (This will give you a chance to get it all sorted).

I think you can only really up the rate by 50p, 1.25 is too much of a hike.

Do you charge full fee for holidays / sickness during term time? If not, change that.

There is probabyly not another CM in your area that is a low rate and that doesn't charge anything in the holidays, so she may just have to accept the new terms.

I would put out a news letter, that all prices will be increasing by £* and terms and conditions will be amended on such and such a date.

Decide what you want as the new terms and conditions. And Stick to it, as you have turned down clients in favour of these existing families you know you could fill the spaces if they decided to leave, but I very much doubt they would get a deal like you are giving anywhere else.

My conditions state, that term time contracts are £1.50 per hour more than full time contracts.

Or they can pay the lower rate and half rate during the holidays, which ever is the better for them.

But that is the only concessions to them.

Remember this is your business, and you set the rate not them.

If they dont like your rate, they are welcome to find alternative care.

Shoshe please come and hold my hand, I'm a wimp. As Sat2C says it is so much harder changing things for long term families. The contract review is not due until Aug to take effect in Sept so it still doesn't sort out my income problem for Aug.
I will have to advertise my availability for covering the holidays and hope that there will be some takers.
From now on though I will have an annual increase in all new contracts. You live and learn I guess!
Thanks

OK, if your review isn't till August (why does it not in effect till September?)

Are all your reviews at the same time?

We need to help you with a letter stating all the changes in contracts, put it out as soon as possible, stating that it will take effect from Contract review date.

The Families then have lots of time to either get used to it, or leave and you can refill their spaces.

Agree with Shoshe - you need to put out a letter stating all changes in the next month. Then if they are going to leave before September they have time to give you notice and you have time to replace with other children to start when they leave. And remember it is your business and you set the rates. You couldn't negotiate with the garage over the price of your MOT could you?

I sympathis with your position. I had 2 long term families and because I wasn't very good at putting up prices, at the end I was well under the going rate for the area. One family, with 2 children, also dropped down to 2 days a week (and gp had them for the other 2) and I knew it was because cash was tight so I felt really awkward actually saying "because you are doing less than X hours per week my rate is now higher at £X per hour"

I'm a bit that you don't charge for any holidays for teachers. I never expected to find such a rate anywhere... Sorry I misinterpreted that from your OP. As a teacher myself, I never expected to find anyone who wouldn't charge for all of my holidays because there are so many... especially since dh and I often have holidays on different and consecutive weeks since our school terms are vastly different (so, 2.5 weeks october, 3 weeks december, 2 weeks feb, 2.5 weeks April, 1 week May, then from 18th June - 1st September holiday between dh and I).

I still think that if that's the max she can afford, she wont' be able to stay if you up the rates - she may have to consider one of them staying home or something, who knows. But that won't affect you if you have other people interested. I didn't mean to sound negative, just wanted to point out that some people pay as much as they can and can't afford an increase.

Personally, I think you need to do what's best for you. I'd hate to think that I was taking up a space of another child that my cm could be earning more for. I'm sure the family wants what's best for you, too

She should be paying for holidays - at least 50%. One cm I interviewed... who lived in such a dirty place I couldn't bear the thought of being there... charged 80% for teacher holidays... I thought that was fair enough. I feel better paying her in full with the exception of the summer so she's getting a decent amount for ds 12 months of the year. And an extra 45 minutes is as good as an extra hour. If I have a meeting and I'm going to be even 30 minutes late, I bring cash to pay for the extra hour and agree it with her before the day starts (preferably at the start of the week). You shouldn't have to have them 45 extra min without pay!