Reply to If your daycare or childcare provider closed due to coronavirus, are they still requiring you to pay

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Reply to "If your daycare or childcare provider closed due to coronavirus, are they still requiring you to pay"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We've been asked to pay 90% of tuition for April, which we'll do. Hoping that things will become more normal in May.[/quote]

Woah!!!

Seriously, glad you got it like that! Only 10% off? Why even bother?[/quote]

Sounds like that center is still paying their staff and their landlord, and the expenses that they are no longer having while closed (catering, etc) amount to about 10% of the total, so they are doing the right thing by passing those savings on to their clients. The words you are looking for are "thank you".
[/quote]

That leaves the owner still making 100% of his normal profit.[/quote]

Math is not your strong suit, is it? [/quote]

Fine, the owner takes a very slight hit to profit, but that's only if you assume that tuition is the only revenue.

Say tuition is 120 and expenses are 100 -- that would leave 20 as profit.

A 10% reduction in tuition and 10% reduction would leave 108 in revenue and 90 in expenses -- leaving 18 as profit.

So the owner gets to retain 90% of his profit, while customers pay 90% of the normal fee, even though they receive 0% of the normal service.  That strikes you as reasonable? [/quote]

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