State-of-the-Art Thinking on Parent Fee Policies - Ideas from the Exchange Panel of 200

Article Link: http://exchangepress.com/article/state-of-the-art-thinking-on-parent-fee-policies-ideas-from-the-exchange-panel-of-200/5009404/

There are two fools in every market; one who asks too little, one who asks too much. - Russian proverb

No one wants to make foolish mistakes when it comes to the tricky business of setting parent fees. It's a difficult balancing act, setting fees high enough to adequately reward staff and low enough to be affordable to families. It's no less difficult setting fee policies that are flexible enough to meet the needs of parents under stress, yet tough enough to protect the center from financial hardship.

To give centers guidance on setting fees and fee policies, we analyzed over 150 fee policies submitted to us by members of the Exchange Panel of 200. In this article we will share some of the best thinking we discovered in these documents.

A Bargain at Twice the Price: Fee Schedules

There is a tremendous variation in the rates early childhood programs charge. In the fee schedules we reviewed, for example, the daily rate for full day care of a four year old ranged from $7.80 to $31.05. These variations reflect regional cost of living factors, staffing levels, competition, family incomes, and outside support.

In our March 1994 issue, our bi-annual ...