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Daycare Providers Need to get Paid Too Collecting for your Services

05/04/2011 by Local Child Care Marketing

[youtube]http://www.youtube.com/watch?v=qkMMfk5Oy9Q&feature=youtu.be[/youtube]

One of the major issues that daycare providers must content with is collection problems.  With the more traditional methods such as using cash or checks, parents are sometimes late and occasionally write checks that bounce.  To combat late payments and bounced checks, many providers turned to using payment coupon books or automatic processes such as automatic withdrawals, PayPal, or credit card.

Checks or Check

Before the advent of many of the automated processes, the only way for a customer to pay daycare providers was with cash or a check.  Unfortunately, this created all kinds of collection problems.  A receipt had to be generated to show payment, the parent might struggle with on-time payments, or they might even write checks that had insufficient payments, which could result in penalties assessed to the day care.

Payment Coupon Books

Payment coupon books are booklets set up with reminder slips that include the name, amount, and date due. Though it helps some parents to stay organized there are still a host of problems.  First, these do require the daycare providers to pay to have these printed.  It also does not alleviate some of the other collection problems such as checks with insufficient funds.  Plus, it doesn’t work if parents don’t use it.

Automatic Withdrawals (ACH)

To combat late payments and bounced checks, many daycare providers turn to automatic processes such as automatic withdrawals from bank accounts (ACH).   With this method, receipts and late payments are eliminated because parents instruct their banks to allow the daycare to make automatic withdrawals for the specified amount at regularly scheduled intervals.  However, though the daycare does not have to deal with bounced checks, insufficient funds can still be a problem.

PayPal

Some daycare providers are looking to PayPal to also help solve some of these problems.  The customer can use a PayPal account to pay on-line, which is a huge convenience factor for some parents.  Obviously, there is no need for a receipt and insufficient funds are usually not a problem.  If funds are not available in the PayPal account, the difference is drawn from the bank account or from a credit card account.  Like the automatic withdrawal, parents can also schedule the payments in advance.

Credit Cards

Finally, some daycare providers allow for their customers to pay using credit cards.  This can be done in person or on-line.  It eliminates bounced checks, but a customer can have a credit card rejected due to credit limits.  Like automatic withdrawals and PayPal, credit cards do not require a receipt and can be regularly scheduled to avoid late payments.  There is, however, a small fee associated with each transaction for the vender – usually around two percent.

Over the years, daycare providers have learned that automated processes such as automated withdrawal, PayPal, and credit cards have solved many of their collection problems.  Unlike with cash or checks, late payments and insufficient funds are greatly reduced.  However, no method is perfect, and daycare providers must weigh the benefits of each before choosing the preferred.  They should also be prepared to accept more than one method.

Filed Under: DayCare Tagged With: child care center, community, grow, Grow Your Preschool, growth, marketing, payments

6 Essential Steps To Growing Your Preschool Enrollment

03/21/2011 by Local Child Care Marketing

Growing your preschool enrollment is easy with a few tips and techniques. However, as in any plan for business growth, there is a strategy. Keep a staff that knows how to provide exceptional customer service. Consider offering expanded services that parents will appreciate. Increase community exposure for your preschool by advertising locally and online.  Most importantly, get involved in community events.

Step #1: Provide Exceptional Customer Service

There can never be enough said about the benefits of great customer service. Build good relationships with customers and instantly gain trust. Make it a point to be friendly and upbeat all the time. Personality goes a long way in this business and it affects preschool enrollment. By all means, be nice to the kids! After all, word of mouth is a proven method of business growth. Train your staff to provide a personal touch. In addition, send birthday cards to the kids and email newsletters to families who have had to withdraw keeping them updated.

Step #2: Expand Services

It might be worthwhile to consider expanding services in order to increase preschool enrollment. Think of it as a way of adapting to a changing environment. Look into offering a unique service that is missing from the competition. This could be as simple as expanding hours of operation to include weekends or offering a specialized service that is in demand, but not offered anywhere local.

Step #3: Showcase Your Staff and Provide Incentives for Customers

Promote the unique skills or special qualifications of your staff. If there is something that makes your preschool a little extra special, your customers should know. In addition, offer incentives to current customers to bring in other families. Reward them for referrals with discounts or special coupons. Again, this goes back to word of mouth, if you deliver to your existing customers, they will tell their friends.

Step #4: Increase Community Exposure

Working with other local businesses not only builds your credibility, but also grows your preschool enrollment. Get involved with organizations that are highly regarded and recognized in the community. Offer time at a charitable event or sponsor a little league team. Community activities that promote business growth are unlimited and the more visibility your preschool gets, the more trust you build with parents and caregivers.

Step #5: Advertise in the Community

Advertising in the community is really about providing information for your potential customers. Distribute flyers. Create a great brochure and leave it at your local YMCA or local library. Make it a point to carry business cards at all times. Be diligent; word will travel about the services your school provides and your preschool enrollment will grow.

Step #6: Advertise Online

Make use of social media-it’s free.  Create a great website. Make sure you fill it with testimonials from happy parents and great photos of the kids. Provide several ways to contact you and keep it error free! Do not turn customers away by making silly mistakes. Start a blog and invite some of your favorite customers to post comments or share compelling stories. Finally, register your preschool with several online local business registries. Most are free!

Growing your preschool enrollment is easy. Practice great customer service and offer expanded services. Make sure you provide incentives for customers to bring in friends. Increase your community exposure and advertise locally and through social media. Follow these six steps and you will begin to see business growth in no time!

Filed Under: Local Online Marketing Tagged With: child care center, community, grow, Grow Your Preschool, growth, marketing, Six Essential Steps, social media

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