Setting your rates is an important part of running your own business. It's essential to decide your rates before marketing your setting to families. You'll need to clearly and confidently communicate your rates to families when they enquire. For this reason, and to avoid confusion, we recommend you keep the structure of your rates simple.
Setting your rates is about getting a balance between the income your want make and making your setting attract and affordable for families.
Here are some top tips for setting your rates:
If you're not sure where to start, research the rates of childminders in your area. For example, you could look at local profiles on www.childcare.co.uk or at childminder listings on your Local Authority's Family Information Service website.
Remember to consider the quality and range of services you offer. Do you offer services that other providers don't offer, for example home-cooked meals, a large outdoor play area or nursery drop off and pick ups?
Know what you need to earn. Factor in the number of children you want to care for and the expenses you'll incur (for example travel and petrol, food, nappies, and tax bill).
Don't forget to include tiney's 12% or 8% service fee in your rates. For example, if you want to earn £7 per hour, the rate you give to parents is £7.84 per hour. If you're on 8% it will be £7.56 per hour.
Whilst we strongly encourage you to set your rates and apply these to all families, you can change your rates in the future. If you're struggling to fill your places, you may need to consider lowering your rates to broaden the pool of prospective families. Later down the line, you can always revise them.
If you haven't already completed your tiney rates card already (which happens after you've successfully registered with tiney), you'll be required to do this before setting up your first customer contract. We'll ask for information about your:
Daily rate (this offers families a discount for longer days in your care)
Late pick up and out of hours charges
Paid and unpaid holiday, if you're open all year round - this impacts how we calculate your families' monthly invoices