In the last Dollars and Sense post, I mentioned the long list of things I learned from my child’s Kids Day Out provider. If you are interested in how others handle things like snow days and such things, then you’ll definitely be interested in reading: And You Thought MY Makeup Policy was Severe!
A Piano Policy Tip from Day Care – $5 a Day!
I mentioned that looking at how other professions handle business issues professionally can assist us in finding reason and the courage to operate our piano studio in a similarly professional way. So today, I want to share with you some wording that comes from a local day-care provider. This provider has a most beautiful website, and an excellent policy complete with a solid agreement to terms. She is most professional in all she does!
Late Payments
I love how she words the handling of late payments:
Late payments – Of course I understand if a parent accidentally forgets a paycheck; however because this is my job and income, please understand that a $5.00 late fee will be added for each day my payment is late. Personal check or cash will be accepted for payment, but if a check is returned for any reason and I incur any bank charges from the return of your check, those charges will be added to the following week’s daycare fee. Non-payment or consistent late payments is cause for termination immediately without 2 weeks notice.
Lessons Learned From Great Wording
Here are the lessons I take from her excellent wording:
- She speaks to the customer personally. The policy document is not sterile and uncaring, so readers continue to feel loved and cared for even when she has a firm policy.
- She acknowledges the fear that parents have (that of forgetting their paycheck and incurring a late fee). This helps parents realize that she is an understanding human who knows what real life is really like!
- She reminds her clients that this is her job. I don’t always know why it’s necessary, but parents have to be reminded that teaching piano is your profession and they need to remember that instead of thinking of you as the dear, kind-hearted individual who is teaching (or in her case, caring for) their children.
- She is firm, direct, and specific about what will happen if no payment occurs. She will give them no more than 2 weeks to get her a check.
- She is not afraid to ask for $5 a day! I’ll bet she only has to implement this one time before a family remembers forever!
Now, even if you think this is more firm or expensive than you’d like to be, one look at her website would make you answer this question, “Am I still interested in her providing care for my children?” with a resounding “Absolutely!” You know why? Because the appearance of her website is professional: clean, beautiful, organized, etc. She demonstrates in pictures and wording that she cares for children over and above what you would expect in a daycare. (I haven’t shared her site because of location privacy.)
Another thing to remember is that her prices are not low (I’ve been talking with her about this), so she only attracts families that are serious about good care. She also informed me that she rarely has to use this policy about the late payments because she is extremely careful who she allows to be in her daycare. I’m sure she spends time interviewing and getting to know the families before accepting them.
Thoughts?
READ MORE:
- And You Though MY Make Up Policy was Severe!
- Attend the “Best Stress-free Business Practices” from Your Home
- How to Move to a No Make Ups Piano Policy
My daughter’s old dance group used to charge $5.00 for each week it’s late. I have thought about doing the $15.00 late fee after it’s late (I give a 3 day grace period after due date with no penalty, then it’s the $15 late fee) then adding $5.00 a week after that, but I think I like the $5.00 a day after that. I have one particular family that has no problem paying the $15.00 late fee every month. They just decide to wait a week before paying me. Perhaps adding that $5.00 a day on top of it, would make them think twice. Too late for this year as my studio policy/registrations already went out, but definitely something to think about next year. Or I may just put add an addendum to the policy that went out and start it in the Fall. Hmmm…
I love her late payment wording. It’s concise, direct, and still pleasant! My policy for the fall already went out, and it currently stipulates a $25 late fee after the 7th of the month. After reading this and Jennifer’s comment, I may add an addendum as well so I can incorporate the $5 per day fee!
I started charging a $5 late fee when I don’t receive checks the first week of the month. It helps me with my accounting (otherwise I wasn’t being able to cash checks until the middle to the end of the month) and helps the parents realize it’s important for them to get the tuition in on time. The only problem i’ve had with it is when a student for some reason doesn’t have a lesson till the second week of the month, the parents feel like they shouldn’t have to pay the fee, because they didn’t have a lesson that week.
I also have a late fee policy. $30 late fee after 7 days. I also now have Square (I can take payments by debit/credit card on the spot by just plugging card reader into my iPhone if they forget their checkbook), and charge the 2.75 percent Square usage fee as the “late fee.” I hardly ever have to implement this policy!
I love this! I love the wording and may use the spirit of it in my own policy for sure! I’ve already planned to add a late fee this year, because I am getting payments every single week of the month, even though they are due the first week, no later than the 10th. I’m also changing it due the last week of the previous month no later than the 1st, so I’m paid for the month before I start the month of lessons. I definitely am going to some late fee though. Thanks for sharing this!