negotiating a reduction in fees at DC?

dglvrk2

We send DD to a private, in home daycare.  We pay $250/week for her which is quite typical in the San Francisco area, if not low. This works out to a little over $1000 a month.  We really like the daycare and plan to send our second child (another girl) there after my ML is up.  I'm due in late January and plan to return to work in mid-April of 2014.  DCP is asking for $300/week for DD#2.  She'll be an infant, so I'm not surprised about the increase in rate.  Nevertheless, DH and I are in a bit of sticker shock, knowing daycare will be more than $2200/month for the foreseeable future.  I figured it would save us a few thousand dollars a year to ask if I can pay at a monthly rate ($2200 at the first of the month) rather than a weekly rate.  

Has anyone successfully negotiated this?  Do you have suggestions?  

Thanks!

DiveFrog

With it being an in-home daycare and not a center that would have a more rigid fee structure I say it is very possible to negotiate. I have personally never had to do this, but it NEVER hurts to ask. I would think she would want to work with you since you are a good client and two definite kids for the foreseeable future. I would expect she at least would cut you some type of sibling/multiple child discount the same as most providers offer. The baby might stay $300 but your older child's rate would drop to $200 or something along those lines.

QueSrah

Paying monthly isn't even a reduction in fees - just an altered pay schedule.  I would absolutely offer that, but couched more as streamlining things after the baby comes/three fewer checks to remember per month. 

If you wanted an actual reduction in price, I'd ask if they could offer a sibling discount.  I've seen 10% off the older child's expenses when that's offered.  But for as hard as I've heard it is to find childcare around SF, I'm not sure I'd expect an in-home to jump on that.

ASmallWonder

No, it is a reduction in fees.  $550 (for two kids) x 52 weeks would be $28,600.  Paying $2200 a month for 12 months is $26,400, a decrease of $2200 a year or over $184 a month.  It's worth a try but she very well may not go for it.

aeh72

I see what you're getting out.  It would be a discount if you pay a set amount each month because if you otherwise pay weekly, some months will have 4 weeks and some will have 5.  (One of the large daycare centers was quick to point that out to me when I assumed their "monthly" rate!).

Your provider might already be clued into that, which is why they do a weekly payment plan.  I think it's more reasonable to request a multi-child discount, like x% off for the second child.

dglvrk2

Thanks, Ladies!  I asked and got the fees down to $500/week!!!  That's going to be the biggest price difference in a year. $500/week x 52 weeks = $26,000.  Doing $2200/month x 12 = $26,400.  DCP has everyone pay on a weekly basis, so this works well with her bookkeeping.  She's cool.  I'm paying a little extra for the next few months for potty training, but will be back to normal at the end of the year.  Yeh!!

Mustardseed2007

Oh cool! Good for you on getting the discount! I love asking for a discount and then actually GETTING them. It's just a good feeling.