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][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".
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That leaves the owner still making 100% of his normal profit.  Somehow it seems right for her to also be taking a big haircut.  And that assumes that no effort has been made to work out somewhat of a deal with the landlord, who has a strong incentive to not have a tenant leave in the current economic climate.

Why exactly should the parents, many of who may have precarious job positions, be the only ones to be sacrificing here?[/quote]

LOL that you think any daycare is ever making a profit. Seriously lolololol. Huge chains excepted, but seriously, your statement just shows how clueless you are. Just because the monthly bill for you is big doesn’t mean anyone’s getting rich. [/quote]

Of course daycares are making a profit.  How do you think they stay in business if they are not?  And many of the “huge chains” are franchises, meaning that the local owner has to pay an additional fee to corporate.  Even non-franchises have greater central overhead expenses, so I wouldn’t assume that corporate centers necessarily make more than a well run local center.

Even if owners are not “getting rich,” they are owners of profitable businesses that should be expected to share in the pain of the current crisis.  As should their landlords.

It’s crazy that you think the parents, most of whom are also “not rich,” should be the only ones sacrificing here.
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You’re just totally wrong. I’ve directed three well regarded NAEYC accredited centers, and whatever “profit” you think these places are making is non-existent. Sometimes there’s a good year—100% enrollment, all tuition paid on time, maybe a small grant or two—and we could put some in reserves. Others we ended in the red and used those reserves. Most usually we just had exactly as much coming in as going out. [/quote]

You don't say that you are a center director?  I never would have guessed that by the positions you are advocating for.

These are businesses.  They make money or they do not stay in business.  [b]They may choose to distribute the profits each year in the form of salary to the owners (this is particularly true in centers that are organized as "non-profits"),[/b] but that does not mean that they are not profitable businesses that bring in more revenue than they spend.u

My center, which is part of a locally owned chain-let (I'm not sure I would even call it that.  They have expanded to 4 or 5 centers over time.), sent out an email talking about how the business had been in operation for 30 years, had been started by his mother, etc.  These have been profitable businesses that have supported at least two generations of the family.  That has been their main, if not sole, source of income through these years.

From what I know of the family, they are not "rich," but they make a good living through their business.  I don't begrudge them that.  There is no shame in a business making money.

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You clearly don’t understand how these businesses operate. Non-profits don’t have owners. Just stop. [/quote]

I know the non-profit sector well.  They have directors who often pay themselves outside "salaries" that are no different than profits a business owner would make.  To the extent there are uncertainties in how much "extra revenue" (if you want to avoid the term "profit") there is, they can receive a bonus.  Simply look at 990s and see how much of the total revenue is distributed to directors/senior employees in many non-profits.
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